Alibaba dismantled its 1+6+N structure in late 2025 to consolidate domestic operations. The company integrated Taobao/Tmall, Ele.me, and Fliggy into a single China E-commerce Group to reduce internal friction and counter rivals PDD and Douyin.
Domestic e-commerce monetization is currently stabilizing through two primary initiatives. Taobao implemented a 0.6% software service fee to drive revenue growth. Merchants are also increasing adoption of Quanzhantui, an AI-powered marketing tool. These measures help offset financial challenges from lower-monetization merchants on the platform.