Alibaba’s stock surged by 5.8% in Hong Kong following the announcement of a new 0.6% software service fee on confirmed transactions for vendors on Tmall and Taobao platforms. This change, relayed to merchants on Friday, may be waived for small merchants. Jefferies Financial Group Inc. noted that this measure will boost Alibaba’s core merchant revenue, adding to the stock’s catalysts.
Previously, Alibaba earned the majority of its Taobao and Tmall revenue through customer management fees for advertising and product optimization. Jefferies analysts highlighted the new fee structure as beneficial for core merchant revenue starting in September.
Alibaba will join other major e-commerce platforms like PDD Holdings Inc., JD.com Inc., and ByteDance in adopting a percentage-based fee structure. Currently, Alibaba charges Tmall merchants a fixed annual fee, which will be waived when the new policy takes effect on September 1. Additional vendor support measures will include adjustments in traffic allocation criteria and free refund policies.
The stock is the top gainer on the Hang Seng Index, rising by up to 2%.