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Even though Alibaba.com made less money this year, the company is sticking with it for the long haul. CEO Eddie Wu said cross-border trade remains a big opportunity.

Alibaba Group is seeing solid results from its efforts to expand beyond China; in its latest annual report, the company revealed that its international ecommerce sales rose sharply, growing by 25% over the past year.

This marks a major step forward in Alibaba’s strategy to become a global online shopping leader. For its full fiscal year ending March 31, Alibaba’s international ecommerce division brought in RMB133.7 billion, or about $18.4 billion, in sales. That’s up from RMB106.4 billion ($14.6 billion) the year before. This growth was driven mainly by two of its biggest platforms outside of China:

  • AliExpress, which sells products to consumers in markets like Europe
  • Lazada, which operates in Southeast Asia

Toby Xu, Alibaba’s chief financial officer, called the results “robust” and said the company’s strategy is clearly working.

“AliExpress achieved strong growth this year,” Xu said during the earnings call. “AliExpress Choice is now the primary contributor to our order volume. It’s delivering better customer experiences and stronger economics.”

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both platforms operate in China and primarily serve the Chinese market. Among Alibaba’s other marketplaces is the global B2B marketplace Alibaba.com.

Alibaba grows international sales

AliExpress Choice is a newer program that offers curated products, faster shipping, and more reliable service, especially in Europe. It has quickly become the core of the AliExpress platform. According to the company, most of AliExpress’s orders now come from the Choice program, which uses Alibaba’s own logistics network to ship items quickly and efficiently.

“Our logistics efficiency has gone up, and we’re seeing customers come back to buy again and again,” Xu added.

Lazada, Alibaba’s Southeast Asian platform, also made steady progress. While Alibaba didn’t break out exact sales figures for Lazada, it said the platform had improved how it makes money from its users and reduced its operating losses. This improvement came from streamlining operations and offering better tools to merchants.

“We’ve improved Lazada’s services and cut unnecessary costs,” said Eddie Wu, Alibaba’s CEO. “That’s helped us make it more competitive in fast-growing markets like Indonesia, the Philippines, and Thailand.”

Year-over-year comparison of Alibaba international ecommerce

Total international commerce revenue

  • Fiscal year 2025: RMB133.7 billion ($18.4 billion)
  • FY2024: RMB106.4 billion ($14.6 billion)
  • Growth: +25%

Retail commerce (AliExpress, Lazada, Trendyol, Daraz):

  • FY2025: RMB119.6 billion ($16.5 billion)
  • FY2024: RMB91.2 billion ($12.5 billion)
  • Growth: +31%

Wholesale commerce (Alibaba.com):

  • FY2025: RMB14.1 billion ($1.9 billion)
  • FY2024: RMB15.2 billion ($2.1 billion)
  • Growth: -7%

Alibaba’s long-term strategy

Another part of Alibaba’s international division is Alibaba.com, the company’s original B2B website that connects manufacturers and buyers across borders. This segment brought in RMB14.1 billion, about $1.9 billion, which is down 7% from the previous year’s RMB15.2 billion (around $2.1 billion).

Xu explained that the drop in revenue was part of a shift in strategy.

“We’re focusing less on short-term revenue and more on building lasting value,” he said. “That means offering better digital storefronts, smarter tools for matching buyers and sellers, and services that help merchants grow.”

Even though Alibaba.com made less money this year, the company is sticking with it for the long haul. Wu said cross-border trade remains a big opportunity, especially for small businesses around the world.

“We believe strongly in helping small and medium-sized businesses reach customers worldwide,” Wu said. “Alibaba.com is a key part of that vision.”

One of the most encouraging signs in the report was that the company’s losses from running its international commerce business shrank considerably. While it still spent more than it made in this division, the gap got much smaller. Alibaba said its adjusted losses dropped to RMB4.5 billion (around $620 million). That’s down from RMB7.1 billion ($990 million) the previous year.

“This shows we’re moving in the right direction,” Xu said. “We’re operating more efficiently, choosing better products to promote, and being more thoughtful with our investments.”

Alibaba investments in logistics and AI

The company’s improved performance wasn’t about selling more. It also came from investing in logistics — how products are shipped and delivered. Alibaba’s logistics arm, Cainiao, has played a big role in this, helping AliExpress deliver items to European customers in as little as five days.

“Our ability to offer faster delivery is setting us apart from competitors,” Wu said. “Cainiao is key to that. It gives us more control over the experience, and that builds trust with our users.”

Technology is another major focus. Both Wu and Xu emphasized that Alibaba is putting artificial intelligence (AI) to work in its international business. They’re using AI to make it easier for customers to find what they want, personalize product suggestions, and help merchants manage inventory more effectively.

“AI is becoming part of every part of our platform,” Xu said. “It’s helping us deliver better service and make smarter decisions across the board.”

As Alibaba looks ahead, it plans to keep investing in its global business. That includes building out logistics, offering better support for merchants, and finding ways to make shopping on its platforms easier and more enjoyable.

“We’re playing the long game,” Wu said. “Our international commerce business is still developing, but it’s already showing momentum. We’re confident it will be a key growth engine for Alibaba in the years to come.”

Check back in for more earnings updates. Here’s last quarter’s update about Alibaba revenue and earnings.

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