Alibaba Group Holding Ltd is getting ready to break its own single-day sales record on November 11, on which there is an official online shopping holiday in China. Singles’ Day has become one of the largest online shopping days in the world. Alibaba, which last year set a single-day sales record of $14.3 billion during the 24-hour period, is expected to make $20 billion online sales this year, Forbes reported.
Over the past few years, Alibaba has sold more during the 24-hours than Black Friday and Cyber Monday in the United States. The company is going to need to more than 1 million workers, 400,000+ vehicles, over 5,000 warehouses and more than 150 airplanes to deliver the huge number of ordered goods on Singles’ Day. This year, the e-commerce giant plans to deliver goods in as little as two hours, according to the report.
Will It Be Biggest Singles’ Day Ever For Alibaba?
Singles’ Day has been touted by Alibaba as a 24-hour shopping day since 2009. On this day, the company offers international and local brands with discounts on its marketplace and online stores. The company is expected to set a single-day sales record this year. It might be the biggest Singles’ Day ever for Alibaba, according to the Forbes report. New York-based research firm Fung Global Retail & Technology estimates that Alibaba’s sales are expected to hit $20 billion this year, representing a 40% year-over-year increase.
Reportedly, nearly 10,000 merchants will be selling on Singles’ Day to millions of shoppers in China. For the first time, Apple, Guerlain, Maserati and Target will sell on Alibaba’s online store Tmall this year. Other brands that will use Alibaba marketplace include Costco, Macy’s, Starbucks and Zara.
“Alibaba has made an early start to promote the event to build the anticipation for the big day, already generating plenty of buzz from its celebrity line-up at the countdown gala in China’s tech hub Shenzhen and an eight-hour fashion show in trend-savvy Shanghai which shoppers can pre-order items and pay later,” the Forbes article reads.
Virtual Reality Payment Service
Alibaba Group Holding Ltd launched a new payment service that will make virtual reality shopping easier and seamless. The e-commerce giant’s finance arm Ant Financial demonstrated the VR payment service shoppers last month in Shenzhen. The new payment service will allow VR shoppers make payment just by nodding their heads.
The Alipay VR payment system will allow people to pay for purchases without taking off their VR goggles. This will make the payment process seamless.
In October, Alibaba Chairman Jack Ma sent in letter to shareholders, stating that he expects a birth of re-imagined retail industry in coming years. Ma wrote in the letter that his e-commerce company is creating the fundamental digital and physical infrastructure for the future of commerce in order to transform China’s $4.5 trillion traditional retail industry. Ma believes that pure e-commerce players will soon face tremendous challenges as e-commerce is rapidly becoming a “traditional business.”