Watching Alibaba; Traders Circulate Jefferies Note Saying The New Service Fee Arrangement Is A Positive To CMR, "We View Service Fees Applied To Taobao And Tmall Is a Positive On Incremental Service Fees From Taobao' Expect Taobao Represents About 50% Of Total GMV. Service Fees For Tmall Merchants With A Big GMV Scale Should Pay More Vs Fixed Fees"
Portfolio Pulse from Benzinga Newsdesk
Jefferies released a note indicating that Alibaba's new service fee arrangement for Taobao and Tmall is positive for the company. The note highlights that service fees applied to Taobao, which represents about 50% of total GMV, and higher fees for Tmall merchants with large GMV scales, will benefit Alibaba's revenue.
July 26, 2024 | 4:32 pm
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Jefferies views Alibaba's new service fee arrangement for Taobao and Tmall as a positive development. The new fees are expected to increase Alibaba's revenue, especially since Taobao represents about 50% of total GMV and Tmall merchants with large GMV scales will pay more.
The new service fee arrangement is expected to generate incremental revenue for Alibaba. Taobao, which accounts for a significant portion of Alibaba's GMV, will contribute more through service fees. Additionally, Tmall merchants with large GMV scales will pay higher fees, further boosting revenue.
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