e-commerce

Alibaba reported a 66% year-over-year net income decline in its fiscal third quarter, missing revenue estimates. The e-commerce giant is heavily investing in AI and cloud infrastructure, prioritizing long-term growth over immediate profits. CEO Eddie Wu highlighted strong AI-driven revenue growth in its Cloud Intelligence Group, with AI-related products seeing triple-digit growth for ten consecutive quarters. The company is committed to AI, planning significant investments and developing new AI models and agentic commerce capabilities.

Trustpilot is strategically positioning itself for AI-driven shopping by partnering with e-commerce leaders. The company anticipates significant growth in LLM content utilization, evidenced by a 1490% surge in AI-powered search click-throughs. This pivot aligns with industry trends like Amazon and Google integrating AI for direct purchasing within chatbots. Trustpilot’s extensive review data is becoming a vital asset for AI agents making informed consumer decisions, presenting both challenges and opportunities in the evolving landscape.

Amazon is launching one-hour and three-hour delivery services in select U.S. markets, covering over 90,000 products. This move aims to meet increasing consumer demand for speed and convenience in e-commerce. The faster delivery options will have associated fees, with Prime members receiving lower rates. This expansion signifies Amazon’s continued investment in logistics to maintain its competitive edge.

JD.com has launched its European online shopping platform, Joybuy, in six countries, including the UK and Germany. Leveraging its strong logistics and focus on product quality, Joybuy aims to compete with major players like Amazon. The platform offers same-day delivery for orders placed before 11 a.m. and a competitive subscription service for free delivery, differentiating itself from rivals through its proprietary infrastructure and first-party retail model.

The Supreme Court has ruled against former President Trump’s tariffs, finding he lacked the statutory authority to impose them. This decision has boosted e-commerce stocks, with Etsy seeing an 8% surge. The ruling particularly impacts the “de minimis” exemption, which allowed low-value packages duty-free, affecting companies like Temu and Shein. Businesses may be able to recoup billions in tariffs paid.

Etsy’s stock rose after selling its fashion resale app Depop to eBay for $1.2 billion, signaling a focus on its core marketplace. While Q4 earnings beat expectations, revenue and gross merchandise sales slightly missed targets, partly due to a prior divestiture. The Depop sale aims to streamline operations, while eBay enhances its presence in the growing fashion resale market. Etsy’s active seller base grew, though active buyers saw a minor dip. Future GMS guidance indicates a cautious outlook.

Amazon CEO Andy Jassy has appointed Dharmesh Mehta, VP of worldwide selling partner services, as his new “shadow” advisor. This strategic move aims to deepen executive understanding of Amazon’s core commerce and technology. Mehta will accompany Jassy to various meetings, gaining immersive insights into diverse operations. This highly coveted role has historically been a launchpad for future leadership, with past occupants including Jassy and Amit Agarwal. Mehta’s appointment signals a focus on marketplace dynamics and AI integration.

In 2025, TikTok, Temu, and Shein maintained strong U.S. market presences despite geopolitical tensions and policy scrutiny. TikTok ranked second in app downloads, with its video editing app CapCut also performing well. E-commerce platforms Temu and Shein continued to thrive, ranking seventh and leading the apparel category respectively. These China-linked apps succeeded by offering affordability, convenience, and engaging content driven by sophisticated algorithms, demonstrating remarkable adaptability to regulatory challenges and consumer demand.

China’s tech giants, including Alibaba and ByteDance, are pioneering “agentic commerce.” Their advanced AI chatbots now autonomously manage shopping tasks, from product recommendations to payment processing, all within a single chat interface. This evolution moves beyond basic AI, enabling autonomous agents to execute user requests with minimal oversight. E-commerce is an early frontier for this technology, with Chinese firms leveraging their integrated ecosystems to gain a competitive edge.