The domestic retail business of the Chinese e-commerce company Alibaba Group contributed 67 percent of revenues in the second quarter of 2022. Five percent of overall revenues came from retail sales through international e-commerce. Here is Alibaba revenue breakdown by business segments and sectors.
Alibaba revenue distribution Q2 – 2022 Quarterly result :
| Alibaba Sectors | Share of Revenue | Revenue in Million RMB |
| China commerceretail | 67% | 141,935 |
| Cloud computing | 9% | 17,685 |
| Cainiao logistics services | 6% | 12,142 |
| Local consumer services | 5% | 10,632 |
| International commerce retail | 5% | 15,451 |
| Digital media and entertainment | 4% | 7,231 |
| International commerce wholesale | 2% | 3421 |
| China commerce wholesale | 2% | 3592 |
| Innovation initiatives and others | 0% | 479 |
Alibaba revenue breakdown by Commerce Sector :
The commerce segment consistently outperforms the other segments in terms of revenue. It consists of different digital wholesale and retail platforms, logistics, and neighborhood consumer services. The selling of a range of marketing services, customer support, product sales, membership fees, software service fees, and transaction commissions are all ways that the business generates income. Every quarter, it makes up about 87% of the company’s overall revenue.
Revenue for the Commerce Segment in Q2 2021 was $19.28 billion, while in Q2 2022 it climbed by 37.75% quarter over quarter. It generated $27.91 billion in sales in Q1 2022, slightly less at $26.56 billion, and made up 85.29% of Alibaba’s overall revenue.
Alibaba revenue contribution by Cloud Sector :
The company’s second-highest revenue stream is cloud computing. Customers can access a variety of cloud services from Alibaba Cloud, including storage, databases, network virtualization, administration, and application services, platforms for machine learning, and other services.
The company’s cloud, big data analytics, and AI technologies are readily accessible through the cloud computing division, which also offers improved work capabilities. Depending on how long and how often business customers use the services, Segment receives payment from them. Every quarter, the segment adds close to 10% to the company’s overall sales.
Revenue from cloud computing reached $2.19 billion in Q2 2021 and $3.10 billion in Q2 2022, representing a quarter-over-quarter growth of 41.55%. It announced sales of $2.48 billion for Q1 2022, an increase of 25% from the previous quarter, with cloud computing accounting for 9.5% of the company’s overall revenue.
Alibaba revenue breakdown by Entertainment and digital media
The company’s consumption-capture strategy naturally extends to digital media and entertainment. Customer management services, online games, subscriptions, and membership fees are its main sources of income. It is the organization’s third-largest source of revenue.
Digital media and entertainment generated $1.18 billion in sales in Q2 2021, and $1.25 billion in Q2 2022, with QoQ growth of 5.98%. The segment’s earnings remained consistent between Q1 2022 and Q2 2022, contributing 4.10% to the company’s overall sales.
Alibaba revenue breakdown by initiatives for innovation and other
The company’s other segments and innovation projects make up the smallest portion of its overall revenue. Sales of products and customer service fees account for the majority of its income. This market category attempts to innovate and create new services and goods that can satisfy consumer needs, such as network connectivity and digital navigation apps.
Revenue from Innovation projects and other segments was $170.1 million in Q2 2021 and climbed to $220 million in Q2 2022, a 294.1% increase. The segment’s revenue climbed from $210 million in Q1 2022 to $230 million in Q2 2022, adding 0.70% to the company’s overall revenue.
More about Alibaba Group :
On June 28, 1999, Alibaba Group Holding Limited, also known as Alibaba, was established. China-based Alibaba is a publicly traded firm. Its main office is in Hangzhou, China. It is a technology-based international corporation that operates an online platform and is focused on retail, e-commerce, technology, and the internet. Alibaba is a business that conducts both B2B and C2C (consumer to consumer) transactions.
Alibaba offers sales via online stores. It operates online shopping search engines and several electronic payment systems. It was listed as the fifth-largest artificial intelligence business in 2020. The business offers businesses real-time analytics for better inventory and storage management. Additionally, it offers incredibly quick delivery and lets customers track their orders.
