According to reports by the reports, china-based e-comm conglomerate Alibaba Group Holding Ltd (NYSE: BABA) is intensifying its rivalry with Amazon.com, Inc. (NASDAQ: AMZN) by promising consumers 72-hour deliveries all across the globe Wall Street Journal.
Alibaba is looking to ensure it can deliver goods within 72 hours from China to anywhere in the world. Faster delivery and lower price play a vital role in who controls the most market share. The e-commerce products on the Alibaba marketplace are much more affordable than those on Amazon because of the direct access to merchants and factories based in China. Both e-commerce giants are trying to control most of the global market share, which is predicted to reach around $1.5 trillion by 2025.
The fast delivery services offered by Alibaba are gaining a lot of prominence in cities across Europe. The company is collaborating with different Western delivery service providers to come up with a unique shipping network that’s different from what is used at Amazon. The largest Alibaba warehouse in China is home to 800 robots. It’s two times more efficient than the average conventional warehouse. Most of the heavy work is done by the robots, which helps make things go faster. The robots help process over $70 billion worth of goods for the eleven-day Singles Day sales.
Why do shipping partners matter?
Alibaba needs to partner with several different shipping companies to help save on fleet maintenance, unlike Amazon. The speedier delivery service that Amazon offers can be taken advantage of by only 21 countries. Though, that’s not all. If you want to use it, you’ll need an annual subscription plan. The plan’s price varies, from $130 in the United Kingdom to $13 in India.
Alibaba, on the other hand, delivers to 190 countries worldwide. However, only a couple of products can be delivered within 72 hours. In addition, there’s a subscription fee of $3 so that the service can be expanded further.
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