The landscape of cross-border e-commerce has evolved dramatically in recent years, especially after enduring fierce competition characterized by low pricing and varied levels of service contractsAs we anticipate the changes leading up to 2025, the integration of artificial intelligence (AI) is projected to introduce a multifaceted battleground for e-commerce platforms globallyIn a race for supremacy, Alibaba International Digital Commerce Group, also known as “Ali International,” is ramping up its efforts to secure a prominent position.

On February 14, reports emerged that Alibaba International’s B2B cross-border e-commerce platform, Ali International Station, plans to significantly increase its investment in new markets like Europe for the entirety of 2025. This is not merely a strategic decision but a well-calculated move aimed at enhancing their market presence amidst growing global competition.

To achieve this, the platform is actively seeking to establish and expand its local logistics and financial partnershipsThis includes enhancing logistical routes to Europe, ensuring that transactions are secure and efficient, and providing payment methods that align with the preferences of European buyersAs the platform matures, these localized strategies are essential in offering reliable logistics guarantees to clients, ultimately leading to improved service delivery.

In addition to these initiatives, Ali International Station is eager to attract more merchantsThey've released recent performance metrics that demonstrate a surge in orders, with a remarkable 50% increase in order volumes observed just one week post-Chinese New YearCore metrics have shown robust growth, particularly in the United States, while emerging markets are witnessing unprecedented growth rates; Europe, in particular, saw an over 70% increase in orders.

In sectors like consumer goods, there's been an explosive growth in specific segmentsFor instance, in the European market, the beauty, luggage, consumer electronics, apparel and accessories, jewelry, and home and garden products recorded order uplifts exceeding 100%. Moreover, non-consumer sectors such as hardware tools, engineering machinery, and automotive and motorcycle parts also doubled their order volumes, showcasing the breadth of opportunity crossing various industrial categories.

Alongside Ali International Station, another notable contender is AliExpress, part of what is popularly known as the “four dragons of overseas retail.” This platform is also intensifying its efforts to capture market share

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Reports from Wall Street suggest that for the upcoming Spring Festival in 2025, AliExpress plans to introduce a “Festival Never Sleeps” promotional eventMerchants are expected to witness daily sales skyrocket into thousands, hitting full tilt to welcome the new lunar year.

Moreover, to assist cross-border merchants in capitalizing on the increased traffic during the festive season, AliExpress has rolled out a series of beneficial measures, including incentives for timely order fulfillmentMerchants can earn per-order bonuses for timely shipping, illustrated as an attempt to bolster sales during one of the most significant shopping periods of the year.

The platform also unveiled plans last year for “overseas custody” and “billion-dollar subsidies,” aimed at encouraging high-ticket, quality-driven brand merchants to stock locally and improve fulfillment efficiency, thereby enhancing price competitivenessThis strategic combination has attracted numerous self-operated merchants, who have reported an increased sense of autonomy in their operations relative to the platform’s dual-track strategy introduced in the latter half of last year.

In the wake of what is referred to as the “Year of Full Custody” in 2023, many cross-border platforms have recognized that the mere reliance on “cut-throat pricing” is not sustainable for long-term successWith AliExpress affirming that the position of self-operated businesses will continue to rise, competitors like TEMU are also speculated to adopt a self-operated model amidst shifting market dynamics.

Merchants within this ecosystem have noted that the rise of the four Chinese e-commerce giants in overseas markets has fundamentally transformed the cross-border sectorOperational efficiency and consumer experience have become paramount, signaling the end of the era where drop-shipping and unsustainable growth strategies thrivedAs cross-border profits diminish, it is increasingly difficult for merchants to passively earn revenue without putting in substantial effort and strategy.

A consensus is emerging in the industry that terms like “in-stock,” “warehousing,” “product capability,” and “refined operations” have become the new lexicon for driving traffic in the cross-border e-commerce space.

Industry experts predict that cross-border merchants will face diverse options by 2025, necessitating tailored strategies that align with their core product categories and supply chain capabilities to solidify their profit margins amidst varied operational conditions.

The competition among cross-border e-commerce platforms has escalated significantly

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As giants such as SHEIN, AliExpress, TEMU, and TikTok Shop grace the front lines as influential "four dragons of overseas retail," they dominate discussions and strategies surrounding consumer-facing e-commerce.

However, it’s essential to recognize Ali International Station, positioned as Alibaba's foundational B2B platform established in 1999. Dubbed the “firstborn” of Alibaba, the International Station has languished during the rapid expansion of China's e-commerce sectorStill, as the market matures, with growth reaching a plateau, the platform is gaining renewed attention in the spotlight.

Amidst the tumultuous global trade climate, there is an increasing belief that B2B overseas platforms, with their larger transaction sizes, higher profit margins, and sustainable advantages, will emerge as the most significant opportunity for Chinese merchants tapping into international markets.

As part of their growth strategy, leveraging AI has become a cornerstone for Ali International Station in recent timesReports indicate that their end-to-end AI trade products are now fully integrated with the DeepSeek-R1 model, designed to enhance key core operational segments of trade businesses, facilitating greater exposure to new revenue streams for merchants.

Previously, the International Station had launched an all-encompassing AI tool designed to assist foreign trade merchants by managing their product operations and automatically engaging with customers, while simultaneously executing smart marketing campaigns worldwide and ensuring compliance with regulations in real time.

Cross-border e-commerce expert Lin Zhiyong has posited that 2025 may very well mark the true inception of AI in cross-border e-commerce, as technologies like DeepSeek significantly reduce the barriers to AI adoption for sellers, who are actively utilizing these tools to improve productivity and qualityThe pervasive presence of AI, particularly among larger corporations committing fully to AI strategies, could establish new competitive advantages against smaller merchants.

As cross-border e-commerce transitions into a phase of “prolonged warfare,” a visible trend shows that market players are pivoting from unrestrained growth to a more sustainable and profitable growth model

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