Written by Dou Wenxue

Edited by Ziye

Alibaba's overseas business has seen new developments.

Recently, at the Web Summit, Europe's largest technology conference, Alibaba International launched Accio, the world's first AI search engine in the B2B sector, open to global merchants, officially entering the popular AI Search arena.

Zhang Kuo, president of Alibaba International, introduced that Accio comprises three major modules: "AI-driven search," "AI-reconstructed product encyclopedia pages," and "end-to-end e-commerce platform."

It is understood that Accio is the third AI product released by Alibaba Overseas in the B2B sector, following OKKI AI and AI Business Assistant. Its main interface is a dialogue box, resembling AI-native search engines like OpenAI's SearchGPT and Silicon Valley star product Perplexity in form.

Functionally, Accio caters to the needs of many overseas merchants. It can understand users' "colloquial" queries, connects the supply end with Alibaba International's platform and various global independent sites, third-party e-commerce websites, offline factories, etc., and outputs professional, specific, and organized content.

In recent years, Alibaba's overseas business has grown rapidly. Alibaba International has continuously updated its technology applications, launching large translation model products, and B2C products represented by AliExpress have also gained popularity overseas.

Together with Temu (owned by Pinduoduo), SHEIN, and TikTok Shop, Alibaba forms the "Four Little Dragons" of China's cross-border e-commerce, rapidly expanding worldwide while updating models and introducing subsidy activities to benefit consumers and merchants. In the 2023 "Black Friday" sales, it even prompted international e-commerce giant Amazon to extend its promotion period.

In the fierce competition, merely pursuing low prices and cost-effectiveness is insufficient for a platform to secure victory. To stabilize the market, platforms must be more efficient than competitors.

Therefore, Alibaba Overseas must deploy AI in multiple dimensions to enhance efficiency.

1. What does the AI search engine Accio mean for merchants?

Accio, meaning "fly to" in Latin and also the summoning spell in "Harry Potter," allows wizards to summon distant objects by saying "Accio + object name."

However, its name wasn't originally Accio.

According to LatePost, at an Alibaba International's monthly business meeting in early April this year, Accio was still referred to as the "Buyer AI Agent" project, leveraging AI's natural language understanding and generation capabilities to assist overseas buyers on Alibaba International, simplifying procurement steps.

However, Jiang Fan, CEO of Alibaba Overseas, believed that the "Buyer AI Agent" should not be limited to a chatbot. He hoped the project team would break through existing product frameworks to "create an AI-native product."

Thus, the positioning of the "Buyer AI Agent" project changed to a "conversational AI search engine."

It is understood that Accio solves the dilemma of many overseas buyers who "don't know how to ask questions" or "how to accurately search based on needs." Users can ask AI questions in plain language.

For example, typing "I want to build a ski resort in Dubai" will prompt Accio to suggest constructing "ski runs" and procuring "snowmaking machines." To ensure skier safety, Accio will also recommend necessary items like safety nets and helmets.

Accio also provides an AI filtering function. Details like the power of "snowmaking machines," installation mode, consumables used, shipping origin, supplier reputation, etc., will appear in the filtering options.

According to Alibaba International, Accio will proactively sort out and understand users' true needs through multiple rounds of dialogue, dissect demands with professional B2B industry knowledge, conduct market research, provide suggestions, and more accurately filter suppliers and recommend products, offering users one-stop intelligent procurement services.

From the supply end, Accio connects not only the Alibaba International platform but also various global independent sites, third-party e-commerce websites, and offline factories.

Zhang Kuo, president of Alibaba International, revealed that before launch, Accio's product coverage had expanded to hundreds of millions. However, Accio stratifies global supplies based on service capabilities, with Alibaba International's platform supplies, having complete fulfillment capabilities, in the first tier.

According to LatePost, Accio also incorporates multiple cross-verification mechanisms such as multiple data sources and timeline dimensions to ensure product information accuracy. This data helps reduce large model hallucinations—even the most advanced AI models cannot completely avoid nonsense.

In the final presentation, Accio does not simply output links but integrates product information using AI, essentially creating a more accessible "encyclopedia" page for each product and reminding users of important information like minimum order quantities, price changes for different order quantities, applicable venue standards, etc.

Alibaba International revealed that with Accio's nearly automated procurement search method, more startups and SME owners can quickly embark on global trade.

It is reported that some of Accio's capabilities were previously soft-launched in Alibaba International's "Find Factories" module. Alibaba International revealed a 20%-30% increase in conversion rates for user searches leading to purchases.

However, the current Accio functionality is still imperfect. Zhang Kuo also stated at the conference, "The currently launched version is still a 'half-finished product,' encompassing only 10% of our vision for the B2B business model in the AI era. We will continue to iterate rapidly."

Nevertheless, the launch of Accio signifies that Alibaba International has officially embarked on the efficiency battle with AI.

2. To conquer overseas markets, Alibaba must also rely on AI to enhance efficiency

As China's outbound business enters the 4.0 era, more Chinese industries are expanding into overseas markets.

Alibaba has also increased its investment in overseas markets, aiming to compete not only on price-to-performance ratios with other cross-border e-commerce players to attract buyers but also on efficiency to attract sellers.

At the beginning of 2023, Alibaba Overseas's main B2C e-commerce platform, AliExpress, had already covered over 200 countries globally, marking a new phase of expansion.

A notable phenomenon is that in the second half of 2023, AliExpress's actions targeting "sellers" have become more frequent. As it belongs to the same Alibaba Overseas business as Alibaba International, it has implemented many measures to provide merchants with supplier channels and facilitate their overseas trade.

For example, it announced simultaneous Double 11 and Black Friday recruitment, launched "Global 5-Day Delivery," and introduced tax payment services in Brazil.

In this context, Alibaba International has become the "rear guard" supporting overseas sellers.

Judging from the current layout, the AI applications launched by Alibaba International have received positive feedback from many merchants.

For instance, industry insiders have stated that previously, it took about a month for one person to list 100 products, but with the AI Business Assistant, over 100 products can be listed in a week. The AI Business Assistant's AI smart reception function also helps sales staff receive customers, significantly reducing their average response time.

Furthermore, Alibaba International aims to start AI applications from its most familiar business to further enhance B2B trade efficiency.

Alibaba Research Institute has released a survey stating that about 30% of surveyed merchants on e-commerce platforms already use generative AI, and over half of those who have used it believe it is effective.

It is understood that Alibaba International has released three AI products in the B2B sector: Accio, AI Business Assistant 2.0, and OKKI AI, covering platform suppliers, unenrolled suppliers across industries, overseas buyers, and other groups.

OKKI AI assists novice foreign trade professionals with communication polishing, Image source: Alibaba International's official WeChat public account

Among them, AI Business Assistant 2.0 will recognize buyers' needs worldwide in real-time, automatically adjust priorities, optimize expressions, display products, titles, and descriptions that better meet buyers' needs, enhancing product appeal; OKKI AI can polish emails for foreign trade professionals, increasing response rates from major clients.

Alibaba International stated that starting from the core entry point of B2B trade search to suppliers' product launches, reception, marketing, and compliant operations, B2B, Alibaba's earliest business, is comprehensively leveraging AI to reshape global trade.

In addition to focusing on AI applications, Alibaba International has also launched a semi-managed service, providing merchants with marketing, logistics, and other support services.

It is understood that Alibaba International's semi-managed service is a fulfillment management service for cross-border B2B business, providing merchants with exclusive marketing activities, door-to-door logistics fulfillment, reverse return services, and other operational management solutions, allowing merchants to focus on production and sales while lowering the barriers to entering overseas markets.

Under this service, merchants only need to be responsible for product launches, pricing, sales, and scheduled shipping, while Alibaba International will handle a series of fulfillment services including cross-border logistics, fund collection, and bundled sales. Moreover, there are no mandatory price requirements for semi-managed products on International Station, allowing merchants to set their own prices and marketing strategies.

Furthermore, Alibaba International will provide a series of marketing resources and scenarios around the semi-managed service, including search recommendations, exclusive labels, scenarios, and resources.

For example, currently, all products participating in the semi-managed service are labeled with "Alibaba Guaranteed" and clearly indicate accurate delivery times, fixed prices, and after-sales guarantees to attract buyers.

Currently, Alibaba's overseas business is progressing smoothly.

The second-quarter report for 2024 revealed that Alibaba International Digital Commercial Group achieved revenue of 29.29 billion yuan, a year-on-year increase of 32%.

Meanwhile, the financial report indicates that Alibaba's overseas e-commerce is still in a period of heavy investment in infrastructure construction and market cultivation.

Alibaba stated in its second-quarter report for 2024 that the expanded loss of the Alibaba International Digital Commercial Group was mainly due to increased investment in AliExpress and Trendyol cross-border businesses, partially offset by a significant reduction in operating losses due to improved monetization rates and operational efficiency at Lazada.

Now, with the launch of its first B2B AI search engine, Alibaba International will fight the efficiency battle and achieve cost reduction and efficiency enhancement under multiple models.

(The featured image of this article is from Alibaba International's official WeChat public account.)