Morgan Stanley: Alibaba's Taobao Tmall Adjustments to Balance Merchant and Consumer Interests

Morgan Stanley's report highlights Alibaba's Taobao Tmall Group's new policies aimed at balancing the ecosystem between merchants and consumers. Key changes include:

- New Experience Score System: For high-scoring merchants.
- "Refund Only" Policy Adjustments: Targeted at enhancing merchant performance.
- Software Service Fee: 0.6% of GMV per transaction.

Morgan Stanley expects these changes to boost Taobao Tmall Group’s Customer Management Revenue (CMR) by 4% YoY and slightly reduce EBITA by 1% YoY in FY2025.

The firm rates Alibaba as Equalweight with a US target price of $85.