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Alibaba used goods trading platform ramps up AI efforts

By FAN FEIFEI | chinadaily.com.cn | Updated: 2024-12-02 17:58
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Xianyu, Chinese tech heavyweight Alibaba Group's online trading platform for secondhand goods, is ramping up efforts to leverage artificial intelligence technology to bolster the recycling and circulation of idle goods and contribute to the development of sustainable consumption.

Chen Jufeng, chief technology officer of Xianyu, said the company has launched an AI agent that has been applied in several links of secondhand products trading, including a pre-sale credit rating system, release of idle goods, and after-sales services.

In collaboration with Alibaba's ChatGPT-like large language model Tongyi Qianwen, the platform could answer queries from potential buyers based on previous similar replies provided by sellers, he said, highlighting that the AI technology has significantly improved the transaction efficiency of idle goods.

Chen said the number of users on Xianyu has surpassed 600 million, and this figure is expected to reach 1 billion by 2030.

"At present, the penetration rate of China's online secondhand goods transaction market only stands at 1 percent, while in some developed countries, the figure can reach about 10 percent," he noted, adding he is bullish on the huge development potential of China's secondhand products trading sector.

The transaction volume of China's used goods market is projected to rise from 1 trillion yuan ($138.1 billion) in 2020 to 3 trillion yuan in 2025, according to a report issued by the Institute of Energy, Environment and Economy of Tsinghua University.

In addition, the circulation and reuse of secondhand items can greatly reduce carbon emissions, Chen said, estimating the company will drive carbon emission reductions of more than 55 million metric tons by 2030.

An increasing number of Chinese young consumers pay greater attention to cost-effective products and have higher acceptance of used merchandise, trying to strike a balance between the quality and price when buying commodities, he added.

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