How Do They Make Money?

As of fiscal year ending March 2024:

Alibaba Group has the following significant revenue streams which combined make up around 3/4 of total group revenue:

• Domestic e-commerce Retail - 41%

• Cloud Computing and AI - 10%

• Cainiao Logistics - 8%

• International e-commerce Retail - 8%

• Local Services - 6%

Alibaba's main revenue comes from domestic e-commerce. This is through the use of Taobao and Tmall, both of which are e-commerce platforms, but the former is focused on c2c whereas the latter is focused on b2c.

The Cloud Intelligence Group provides infrastructure as-a-service (IaaS), platform-as-a-service (PaaS) and model-as-a-service (MaaS).

According to Alibaba:

Infrastructure as a service (IaaS) is a form of cloud computing based on automation and orchestration technologies to on-demand provision and manage virtualized infrastructure resources such as server, storage and network over a wide area network (WAN) to the consumer. The consumer does not manage or control the underlying cloud infrastructure but has control over their resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications.

Platform as a service (PaaS) is a form of cloud computing that provides a platform allowing consumers to develop and deploy applications and services over Wide Area Network (WAN) or the Internet. The consumer does not manage or maintain the underlying platform software, middleware and cloud infrastructure.

Model-as-a-Service (MaaS) is a cloud-based framework that allows developers to access and use AI or machine learning models without managing the underlying infrastructure.

Cainiao Logistics deals with China logistics, international logistics and logistics technology development. It is important to note that Alibaba Group announced on March 26, 2024 that it would acquire the remaining 36% of Cainiao Smart Logistics Network Limited shares, bringing its total stake in the company to 100%. This now allows Cainiao to operate as a core business unit within Alibaba Group.

International Commerce Retail mainly consists of Aliexpress which targets consumers worldwide and allows them to purchase directly from manufacturers and distributors. Aliexpress has become increasingly synergised with Cainniao since Alibaba Group's full acquisition.