BEIJING — As China’s e-commerce landscape matures, Alibaba, one of the largest players in the sector, is pushing the boundaries of international business. With growth in its domestic platforms like Taobao and Tmall slowing, the company has shifted its focus to global markets through its international division. On Wednesday, Alibaba International unveiled a powerful update to its AI-powered translation tool, positioning it as a formidable competitor to existing solutions like Google Translate, DeepL, and OpenAI’s ChatGPT.
According to Alibaba, their newly enhanced Marco MT translation tool outperforms its rivals. The claim is supported by a Flores benchmark—an industry-standard framework used to evaluate translation models. This announcement marks a major milestone in Alibaba’s efforts to boost cross-border e-commerce by simplifying multilingual communication for global merchants.
A Tool Tailored for E-commerce Success
The updated translation tool, which was first launched a year ago, already boasts over 500,000 active merchant users. These sellers, hailing from various countries, use the tool to easily create product pages in the language of their target markets, thus expanding their global reach.
The latest version of the AI translation engine leverages large language models (LLMs), enabling it to capture cultural and industry-specific nuances in translations. According to Kaifu Zhang, Vice President of Alibaba International Digital Commerce Group, this update helps improve the performance of merchants on the platform, leading to better user experiences and, ultimately, higher sales conversions.
“Our goal is to help merchants boost their bottom line,” Zhang explained in a recent interview with CNBC. “When merchants succeed, the platform succeeds.”
The translation tool is powered by Alibaba’s proprietary AI model, Qwen, and supports 15 languages, including English, French, Arabic, Korean, Spanish, and Japanese. The company anticipates strong demand from both European and American markets, as well as significant uptake in emerging markets.
AI in E-commerce: Contextual Translation as a Differentiator
Alibaba’s translation tool sets itself apart by focusing on contextual translation—an approach that ensures the translated content reflects cultural and linguistic subtleties. For example, a colloquial Chinese term for “slippers” might be translated more appropriately into English as “comfort footwear,” thus preserving the intended meaning and appeal to a global audience.
Zhang pointed out how this contextual accuracy will enhance consumer experiences during global shopping events, such as Double 11, Alibaba’s massive shopping festival. He explained, “The new translation model will provide more authentic product descriptions, which could increase conversion rates during peak shopping periods like Double 11.”
Alibaba’s Expanding Global Footprint
Alibaba’s international division, which includes platforms such as AliExpress and Lazada, saw a 32% revenue increase to $4.03 billion in the quarter ending in June 2024. This growth contrasts sharply with its China-focused Taobao and Tmall platforms, which experienced a mere 1% decline in sales to $15.6 billion during the same period.
Nomura analysts predict that despite a slight slowdown in growth for the September quarter, Alibaba’s international business will continue to be a key revenue driver, with operating losses narrowing as the company scales globally. Notably, Alibaba has not yet disclosed when it will release its next quarterly earnings report.
Conclusion: Will Marco MT Disrupt Global E-commerce?
Alibaba’s move to enhance its AI translation tool comes at a crucial time when global e-commerce competition is intensifying. With other Chinese companies like Shein, Temu, and TikTok entering global markets, Alibaba’s focus on international growth, aided by advanced AI tools like Marco MT, is a clear signal of its commitment to dominate the cross-border e-commerce space.
As e-commerce merchants worldwide look for solutions that improve their ability to sell across borders, Alibaba’s AI-powered tool could serve as a critical asset in enabling seamless global trade.