On September 26, Taobao announced at a Hong Kong business conference that it will invest 1 billion to turn Hong Kong into a free shipping zone. During the upcoming shopping season, Hong Kong consumers can enjoy free shipping on Taobao purchases over 99 HKD. Currently, 92% of the products on Taobao support official direct delivery to Hong Kong.

Since August this year, Taobao has been trialing free shipping for clothing in Hong Kong, and this initiative is now expanding to all product categories. Starting October 1, Hong Kong consumers can receive free shipping on Taobao purchases over 99 HKD, covering various popular categories, including electronics, home storage, sports, entertainment, and cosmetics.

In addition to reducing shipping fees, Taobao has launched a cross-border return service. Users who purchase items labeled "supports returns from Hong Kong" can return them at local Cainiao pickup points, with products sent back to mainland warehouses. However, this will incur a fee.

Returns have been a pain point for cross-border e-commerce, but according to Alibaba International, they have communicated with customs to streamline the process. Consumers can now return items locally or directly to mainland sellers. Chen Zijian stated that as transaction volumes increase, Taobao will aim to reduce fees in due course.

Taobao offers three shipping methods for merchants sending products overseas or to Hong Kong and Macau: official consolidation, official direct shipping, and self-arranged shipping. Buyers must choose one of these options when placing an order:

1. Official Consolidation (Sea/Air/Land): Sellers treat it like domestic orders, shipping to a consolidation warehouse. After the package is received, buyers pay for the forwarding costs.
2. Official Direct Shipping: Similar to the consolidation method, but consumers pay for the shipping costs at checkout.
3. Self-Contact with Seller: If the address is genuine overseas or in Hong Kong, sellers must find a logistics provider themselves. It's recommended that merchants establish a partnership with a logistics company or contact consumers for refunds and reorders.

Taobao is a core part of Alibaba Group. In recent years, competition in China's e-commerce market has intensified, causing Taobao's market share to decline. To address this, Taobao has adopted a "user-first" development strategy. After stabilizing its domestic market, Taobao is now seeking international opportunities.

At the conference, Taobao revealed that delivery times in Hong Kong have been reduced to 3-4 days. Additionally, the number of official Taobao pickup points and lockers in Hong Kong will increase to 800. Taobao will also enhance its cross-border return service, allowing Hong Kong consumers to return items to local logistics points.

In mid-July, Taobao launched a "Global Free Shipping Plan" for clothing, directly selling domestic clothing to overseas markets through the Taobao app. The initial phase targets regions including Singapore, South Korea, Hong Kong, Macau, and Taiwan, with plans to expand to Japan and other countries by year-end.

Taobao's overseas business has been in operation since 2016, serving Chinese consumers globally. As of October 2020, the Taobao app covered consumers in over 200 countries and regions, with over 20 million overseas users purchasing goods during the 2021 Lunar New Year festival. This series of initiatives has laid a foundation for Taobao's current international expansion.

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