Alibaba introduces the Alibaba Guarantee for SMEs from Investing.com

NEW YORK – Alibaba (NYSE:.com, the global business-to-business (B2B) e-commerce platform of Alibaba International Digital Commerce Group, today announced the launch of Alibaba Guaranteed. The service aims to streamline global procurement and supply chain processes for small and medium-sized businesses enterprises (SMEs) in the United States and around the world.

Alibaba.com, which serves over 48 million SME buyers and serves over 200,000 suppliers worldwide, introduced Alibaba Guaranteed to inspire buyer confidence by offering fixed prices with shipping fees included, shipping goods within 72 hours and ensuring on-time delivery . In addition, the service includes after-sales benefits such as fast refunds in case of order problems and free local returns for defective products.

The new solution promises to increase buyer order security by enabling Alibaba.com order fulfillment. The platform will also manage financial transactions such as escrow and payment terms, as well as after-sales services, allowing buyers and suppliers to focus on their products.

Kuo Zhang, CEO of Alibaba.com, highlighted the importance of Alibaba Guaranteed in simplifying the complexities of global sourcing for SMEs, comparing the ease of cross-border trade to purchasing shoes online.

The launch comes at a time when SMEs are increasingly looking to online procurement solutions. A recent Alibaba.com survey found that 66% of SMEs plan to increase their use of global online sourcing in 2024. Alibaba Guaranteed addresses identified challenges related to delivery times, logistics costs and the risk of not receiving products as significant concerns in the survey.

Alibaba Guaranteed Alibaba.com marks a significant expansion for B2B e-commerce SMEs, offering a more reliable and streamlined sourcing experience, according to a press release.

In other recent news, Alibaba Group Holding Limited has seen significant developments. The company raised $5 billion through a private placement of convertible senior notes, with the transaction including the sale of 0.50% convertible senior notes due in 2031. The offering attracted U.S. institutional buyers and non-U.S. individuals in offshore transactions , with Alibaba also engaging in limited call transactions with proceeds.

Additionally, Alibaba saw significant growth in its core AI businesses and revenues in March and full-year fiscal 2024, with significant growth in gross merchandise volume and revenues in key segments such as Taobao and Tmall. Despite a decline in GAAP net income due to market valuation changes, the company continues to pursue shareholder value through significant share repurchases and dividend payments.

From an analyst perspective, BofA Securities increased the price target for Alibaba shares to $103 from $99, maintaining a Buy rating. This revision followed Alibaba’s fourth-quarter fiscal 2024 results. On the other hand, Mizuho revised the price target for Alibaba’s shares to $92.00 from $95.00, while maintaining a Buy rating on the stock. This adjustment was based on Alibaba’s latest quarterly report, which showed positive signs and was reflected in the company’s ongoing share repurchase program worth approximately $30 billion.

InvestingPro Insights

Alibaba Group’s recent launch of Alibaba Guaranteed aims to improve the e-commerce experience for SMEs, backed by the company’s solid financial metrics. With a market capitalization of $193.04 billion and a price-to-earnings (P/E) ratio that has reached a more attractive 12.66 in the trailing twelve months from Q4 2024, Alibaba stands out as a financially stable partner for companies looking for reliable B2B services.

The company’s revenue growth of 8.34% over the same period highlights its ability to expand and innovate, which is crucial for SMEs looking for growth opportunities. Moreover, Alibaba’s commitment to reinvesting in its services is evident in its significant gross profit margin of 37.7%, ensuring it can continue to develop solutions like Alibaba Guaranteed that meet the pressing needs of SMEs.

InvestingPro’s guidance suggests that Alibaba’s strong EBITDA growth of 19.02% over the trailing twelve months, starting from Q4 2024, reflects its operational efficiency and potential to reinvest in customer-centric solutions. Furthermore, with an analyst estimated fair value of $106.32 and InvestingPro’s own fair value of $124.49, the platform’s financial health indicates its ability to maintain and improve services like Alibaba’s guaranteed to its massive user base.

For readers who want to dig deeper into Alibaba’s finances and potential investment opportunities, InvestingPro offers additional information. With numerous tips, users can unlock Alibaba’s comprehensive financial analysis with a coupon code PRONEWS24 to get an additional 10% off 1 or 2-year Pro and Pro+ subscriptions.

This article was generated with the assistance of AI and reviewed by an editor. More information can be found in our Regulations.