Economy

Taobao’s cross-border transactions with Macau quadruple

Chinese online shopping platform Taobao has seen a surge in cross-border purchases from Macau, with transaction values nearly quadrupling in the first ten months of 2024 compared to the same period last year, according to the e-commerce platform.

CK Chan, head of Tmall and Taobao’s Hong Kong and Macau operations, attributed the boost to the waived delivery fees for items shipped to Macau. This incentive, combined with enhanced logistics, helped to triple the number of customers taking advantage of the free shipping offer.

Popular items purchased by Macau residents include phone cases, cosmetics, travel bags, and folding shopping carts. More recently, the platform has seen a growing demand for electronic accessories, wet wipes, travel towels, and hand fans, among others.

This increase comes ahead of Taobao’s upcoming shopping events. The first, scheduled to take place between October 21 and 24, will be followed by another from October 31 to November 11, offering discounts to customers.

In Alibaba’s latest Hong Kong stock market regulatory filing, the company reported a record-breaking quarter ending in June. The company that owns the Taobao platform reported an impressive, yet slower than expected, 4% year-on-year increase in consolidated operating revenue to a total of over RMB243.2 billion.

However, operating income declined more substantially than initially forecasted by analysts, falling some 15% to RMB51.16 billion, largely due to an extraordinary one-time accounting adjustment reversing RMB6.9 billion in accumulated share-based compensation expenses. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also marginally declined by 2%, despite revenue growth as expenses increasingly outpaced topline results. Victoria Chan

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