Alibaba executives reported that while return rates are rising across the domestic e-commerce market, Taotian Group’s (Taobao and Tmall) rate is below the industry average, with improvements in consumer retention, purchase frequency, and shopping experience. Alibaba’s Q1 FY2025 revenue grew 4% YoY to RMB 243.2 billion ($33.4 billion), but profits dropped 29% to RMB 24.3 billion ($24.3 billion). Analysts highlight high return rates as a key factor in the weakening e-commerce market. Fang Jianhua, founder of the women’s clothing brand Inman, criticized mandatory return shipping insurance, noting e-commerce return rates often reach 60%, posing challenges for small retailers with limited cash flow.