Alibaba vs Zalando: Revenue, Profit and Business Model
Alibaba had ~$142.3B of annual revenue in FY2026 and ~$14.4B of net income. Zalando had ~$14B of annual revenue in FY2025 and ~$243.1M of net income.
Latest financial snapshot
Financial summary
Alibaba
Revenue rose from ~$22 billion (RMB158.3 billion) in FY2017 to ~$142 billion (RMB1.024 trillion) in FY2026. Net income was ~$14.4 billion (RMB103.6 billion) in FY2026, down from ~$17.5 billion (RMB126.0 billion) in FY2025. Alibaba reports on a March 31 fiscal year and invests heavily in commerce, cloud and AI infrastructure. Alibaba Group is a Chinese multinational technology titan with a market valuation typically hovering around $200 billion.
Zalando
Zalando's FY2025 revenue rose 16.8% to ~$14 billion (€12.35 billion), mainly because ABOUT YOU was consolidated from July 2025. Adjusted EBIT was ~$668 million (€591 million) and net income was about $243 million (€215 million). H1 2026 revenue rose 22.2% to ~$7.25 billion (€6.42 billion) on a reported basis. For full-year 2026, Zalando guides to adjusted EBIT of €680-720 million.
Revenue and profit by year
Alibaba
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$142.3B | ~$14.4B | 10.1% | +2.7% | Source |
| FY2025 | ~$138.5B | ~$17.5B | 12.6% | +5.9% | Source |
| FY2024 | ~$130.8B | ~$9.9B | 7.6% | +8.3% | Source |
| FY2023 | ~$120.7B | ~$9.1B | 7.5% | +1.8% | Source |
| FY2022 | ~$118.6B | ~$6.5B | 5.5% | +18.9% | Source |
| FY2021 | ~$99.7B | ~$19.9B | 20.0% | +40.7% | Source |
| FY2020 | ~$70.8B | ~$19.5B | 27.5% | +35.3% | Source |
| FY2019 | ~$52.4B | ~$11.2B | 21.3% | +50.6% | Source |
| FY2018 | ~$34.8B | ~$8.5B | 24.5% | +58.1% | Source |
| FY2017 | ~$22B | ~$6.1B | 27.6% | — | Source |
Where the revenue comes from
Alibaba
- China commerce
Not formally reported
Alibaba earns revenue through China commerce.
- international digital commerce
Not formally reported
Alibaba earns revenue through international digital commerce.
- cloud intelligence
Not formally reported
Alibaba earns revenue through cloud intelligence.
- logistics services
Not formally reported
Alibaba earns revenue through logistics services.
- local services and digital media
Not formally reported
Alibaba earns revenue through local services and digital media.
Zalando
- B2C (Zalando, ABOUT YOU, Lounge by Zalando)~91%
Wholesale sales, partner programme commissions and retail media across the three consumer apps; about $12.8 billion (€11.3 billion) of revenue in FY2025.
- B2B (ZEOS and SCAYLE)~9%
Fulfilment and logistics services for brands plus commerce software; revenue rose 14.6% to about $1.24 billion (€1.1 billion) in FY2025.
Business model and strategy
Alibaba
How it makes money
Alibaba earns revenue from customer-management services and commissions on its China commerce marketplaces, direct sales and logistics services in international commerce, cloud products and services, Cainiao logistics, local services, and digital media. Taobao and Tmall primarily connect merchants with consumers rather than operating only as first-party retailers.
Growth strategy
Facing intense regulatory scrutiny and fierce domestic competition, Alibaba's growth strategy recently underwent a large structural overhaul. They announced a plan to split the empire into six separate, independent business groups (like Cloud, E-commerce, and Logistics), allowing each to operate faster and potentially seek their own IPOs.
Competitive advantage
Alibaba's primary moat was its large network effect within China; virtually every merchant had to be on Taobao because that's where all the consumers were, and vice versa. their proprietary logistics network (Cainiao) and deep integration with Alipay created a frictionless ecosystem for Chinese consumers.
Zalando
How it makes money
Zalando reports two segments. B2C covers the Zalando, ABOUT YOU and Lounge by Zalando apps. There it earns money from goods it buys and resells itself (wholesale), from commissions in its partner programme where brands sell directly to Zalando customers, and from retail media sold through Zalando Marketing Services. B2C produced about $12.8 billion (€11.3 billion) of revenue in 2025.
Growth strategy
Zalando's plan rests on two growth vectors. In B2C it runs a multi-app approach, with Zalando, ABOUT YOU and Lounge by Zalando aimed at different customer groups. It is also widening into sports, beauty and home & living, and using AI tools such as the Zalando Assistant. In B2B it opens its logistics network (ZEOS) and software (SCAYLE) to outside brands and retailers.
Competitive advantage
Zalando combines a large customer base (62.5 million active customers in Q2 2026), relationships with thousands of brands through its partner programme, and a European logistics and software stack that it now sells to other companies through ZEOS and SCAYLE.
Questions about Alibaba vs Zalando
Which company has higher revenue — Alibaba Group Holding Limited or Zalando?
Alibaba Group Holding Limited had ~$142.3B (FY2026), while Zalando had ~$14B (FY2025). By latest annual revenue, Alibaba Group Holding Limited is the larger business, with Zalando showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Alibaba Group Holding Limited vs Zalando?
Alibaba Group Holding Limited's market capitalisation stands at $266.6B, while Zalando's is $7.5B. Alibaba Group Holding Limited carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Zalando.
How does revenue per employee compare for Alibaba Group Holding Limited and Zalando?
Alibaba Group Holding Limited has $1.08M / employee in revenue per employee, while Zalando has $900k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Alibaba Group Holding Limited and Zalando make money?
Alibaba Group Holding Limited and Zalando generate revenue in fundamentally different ways. Alibaba Group Holding Limited: Alibaba earns revenue from customer-management services and commissions on its China commerce marketplaces, direct sales and logistics services in international commerce, cloud products and services, Cainiao logistics, local services, and digital media. Zalando: Zalando reports two segments.
Which company is valued higher relative to revenue — Alibaba Group Holding Limited or Zalando?
On a price-to-sales (P/S) basis, Alibaba Group Holding Limited trades at 1.9x P/S and Zalando at 0.5x P/S. Alibaba Group Holding Limited commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Zalando. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Alibaba Group Holding Limited bigger than Zalando?
By last reported revenue, Alibaba Group Holding Limited (~$142.3B (FY2026)) is the larger company compared to Zalando (~$14B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Alibaba vs Zalando overview