Alibaba Reportedly Switches To Percentage Fees for Merchants

Alibaba Group Holding (BABA) reportedly announced plans to institute a package work interest for merchants, sending its American depositary receipts (ADRs) higher successful intraday trading Monday.

Starting successful September, nan Chinese e-commerce elephantine will complaint vendors a 0.6% interest connected its Tmall and Taobao platforms, Bloomberg reported. The argumentation whitethorn beryllium waived for mini merchants, nan study said, citing a root acquainted pinch nan matter. 

Alibaba presently charges Tmall merchants a fixed yearly fee, and besides "earns nan mostly of its Taobao and Tmall gross done customer guidance fees, which merchants salary to advertise products aliases amended tailor their offerings," nan study said.

Alibaba did not instantly respond to Investopedia's petition for comment.

Alibaba To Join Rivals successful Switching To Percentage Fees

Rival e-commerce firms PDD Holdings (PDD), JD.com (JD), and TikTok-parent ByteDance person each made nan move to percent fees successful caller years. 

Alibaba ADRs traded 2.4% higher astatine $78.39 arsenic of astir 1:15 p.m. ET Monday pursuing nan news. In Hong Kong, shares of nan institution closed astir 5% higher.