AliExpress Choice Program Accelerates Brand Onboarding and Sales Growth in Alibaba's Q3 2025 Results

Alibaba's International Digital Commerce Group, powered by AliExpress, reported substantial improvements in unit economics and brand sales during the December 2025 quarter, narrowing losses significantly amid global expansion efforts.

AliExpress, Alibaba Group's global e-commerce platform, demonstrated notable progress in its Choice program with accelerated brand onboarding and substantial quarter-over-quarter sales growth, as revealed in the company's December quarter 2025 financial results released on March 19, 2026. This development underscores enhanced operating efficiency and supply chain leverage, making AliExpress more competitive in international markets while contributing to a 59% year-over-year loss reduction in the Alibaba International Digital Commerce Group (AIDC). For DACH investors tracking cross-border e-commerce opportunities, these metrics highlight AliExpress's maturing business model amid Alibaba's broader AI and cloud-driven ecosystem push.

Updated: 20.03.2026

By Dr. Elena Voss, Senior Editor for Consumer Tech and E-Commerce Markets: Covering global platforms shaping mobile shopping trends for European investors.

Recent Developments in AliExpress Operations

Alibaba International Digital Commerce Group, which houses AliExpress alongside Trendyol, Lazada, and Daraz, posted revenues of RMB32,351 million (US$4,626 million) for the quarter ended December 31, 2025. This marked a 3% year-over-year increase, primarily fueled by AliExpress contributions despite some offset from Lazada's performance.

The AliExpress Choice business saw sequential improvements in unit economics, driven by logistics optimization and investment efficiency enhancements. AIDC's adjusted EBITA loss narrowed to RMB2,016 million (US$288 million) from RMB4,952 million the prior year, reflecting significant efficiency gains across operations.

A key highlight was the acceleration of the "Brand+" program, which offers go-to-market solutions for overseas brands. This initiative achieved substantial sales growth quarter-over-quarter through rapid brand onboarding.

Product diversification played a crucial role, leveraging Alibaba's ecosystem supply chain. For instance, following a joint venture with South Korea's Shinsegae, AliExpress expanded collaborations to sell high-quality Korean products on platforms like Lazada.

These efforts align with broader AIDC strategies to enrich offerings and improve profitability metrics. Currency fluctuations impacted reported figures, as many international operations generate revenue in local currencies against Alibaba's RMB reporting base.

The group's total revenue contribution stood at 13.8% of Alibaba's overall revenues, positioning AliExpress as a pivotal growth engine internationally.

AliExpress Choice: Core Driver of Efficiency Gains

The AliExpress Choice program emerged as a standout performer, optimizing customer acquisition and retention through premium offerings. Its unit economics improved sequentially, signaling scalable profitability potential.

Logistics enhancements via Cainiao integration reduced delivery times and costs, a critical factor for global buyer satisfaction. This ties into Alibaba's ecosystem, where domestic strengths support international scaling.

Brand partnerships under Brand+ expedited market entry for premium sellers. Substantial sales uplift quarter-over-quarter demonstrates demand for curated, high-quality products on the platform.

Compared to peers, AliExpress's focus on cross-border retail differentiates it from domestic-heavy competitors. AIDC's loss narrowing by 59% year-over-year outpaces overall group profitability pressures.

Merchants benefit from Alibaba's vast marketing reach and technology infrastructure, enabling seamless global engagement. This positions AliExpress as more than a discount marketplace, evolving toward a branded e-commerce hub.

Investor sentiment reflects optimism, with analysts like Morgan Stanley maintaining Overweight ratings and high price targets, citing cloud and international commerce synergies.

Strategic Expansions and Partnerships

Beyond Korea, AliExpress deepened ecosystem collaborations. Joint ventures like Shinsegae expanded to multiple AIDC platforms, diversifying revenue streams.

The platform's wholesale and retail arms, including Alibaba.com synergies, bolster supply chains. This vertical integration enhances competitiveness against platforms like Amazon or Temu.

Geographic focus on emerging markets via Lazada and Trendyol complements AliExpress's global reach. Revenue growth despite forex headwinds shows underlying order volume strength.

Consumer-to-consumer features via Xianyu-like models are being adapted internationally, fostering community marketplaces. Tmall Global integrations bring premium imports to broader audiences.

These moves align with Alibaba's user-first strategy, combining Taobao, Tmall, and international arms under streamlined reporting since June 2025.

For DACH markets, AliExpress's EU logistics hubs and localized promotions increase relevance, tapping into price-sensitive shoppers seeking Asian imports.

Integration with Alibaba's AI Ecosystem

A post-quarter milestone on January 15, 2026, saw Qwen app upgrades integrating Taobao Instant Commerce (formerly Ele.me), Amap, Fliggy, and Alipay. This AI assistant executes complex real-world tasks, boosting user engagement.

AliExpress benefits indirectly through ecosystem traffic. Qwen's coordination across platforms enhances discovery and conversion for international shoppers.

Cloud Intelligence Group's investments support AI-driven personalization on AliExpress. Revenue growth in cloud ties to e-commerce optimizations like recommendation engines.

AI, cloud, and quick commerce are flagged as long-term drivers despite short-term spending pressures. Partnerships expand enterprise footprints, relevant for AliExpress's B2B elements.

This positions Alibaba beyond retail, into digital infrastructure powering global commerce. AliExpress leverages these for faster fulfillment and targeted marketing.

DACH investors note parallels to European AI regulations, where Alibaba's compliant cloud offerings could enable compliant expansions.

Financial Performance Breakdown

AIDC's revenue rose modestly but losses halved, with AliExpress leading efficiency. Group-wide, Alibaba China E-commerce contributed 60,401 RMB million, contrasting AIDC's growth phase.

Adjusted EBITA improvements stem from AliExpress ops, offsetting unallocated expenses. Cloud posted positive EBITA of 3,138 RMB million, up 25%.

P/E ratio at 13.6x trails sector slightly but reflects turnaround potential. Q3 earnings missed estimates yet revenues grew year-over-year.

International retail focus yields steady top-line, with AliExpress countering Lazada dips. This diversification mitigates China-centric risks.

Overall, AIDC's trajectory supports Alibaba's international ambitions, vital amid domestic saturation.

Investor Context for Alibaba Group (US01609W1027)

Alibaba Group Holding Limited (NYSE: BABA, ISIN: US01609W1027) trades as an ADR representing the Hong Kong-listed entity. AliExpress operates under AIDC, comprising 13.8% of revenues with improving margins.

Recent analyst picks like Morgan Stanley's Overweight at USD180 target underscore confidence in cloud and commerce. Shares reflect broader China tech sentiment but international metrics provide diversification.

DACH portfolios benefit from exposure via accessible US listings. Volatility ties to macro factors, yet AliExpress growth offers counterbalance.

IR updates via alibabagroup.com detail segment performances. Earnings calls highlight AIDC progress as key to global scaling.

Implications for DACH Markets

European shoppers increasingly turn to AliExpress for affordable electronics, fashion, and home goods. Enhanced Choice program elevates quality perceptions, competing with Zalando or Otto.

EU VAT compliance and local warehouses reduce barriers. Brand+ aids German brands entering Asia, fostering two-way trade.

Investors monitor regulatory alignments, with Alibaba's data practices adapting to GDPR equivalents. Quick commerce integrations mirror European trends like Gorillas integrations.

Long-term, AI-driven personalization tailors offers for DACH users, boosting retention. Economic ties via Belt and Road echo in e-commerce flows.

This evolution makes AliExpress a watchlist staple for cross-border plays, distinct from pure China bets.

Disclaimer: Not investment advice. Stocks are volatile financial instruments.