29.07.2024 22:00:58
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Alibaba Stock Rises On Report Of Hike In Vendor Service Fee
(RTTNews) - Shares of Alibaba Group Holding Ltd. (BABA) rose on Monday after a report stated that the company plans to increase vendor service fees.
According to a report by Bloomberg, the e-commerce giant would charge 0.6 percent basic software service fee on confirmed transactions for vendors on the Tmall and Taobao platforms from September.
The move is expected to increase the core revenue of Alibaba as the company "earns the majority of its Taobao and Tmall revenue through customer management fees, which merchants pay to advertise products or better tailor their offerings," the report stated.
Notably, Alibaba currently charges a fixed annual fee from Tmall merchants.
Bloomberg also said that the Chinese company might waive the new fee for the small merchants.
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