Chinese e-commerce conglomerate Alibaba Group (NYSE:BABA) is reportedly introducing a brand new service fee for vendors using its Tmall and Taobao online retail platforms.
According to a Bloomberg report citing “a person familiar with the matter”, Tmall and Taobao vendors will need to pay a ‘basic software service fee’ of 0.6% on confirmed transactions, although some small merchants may get a reprieve.
The percentage-based fee, which will replace an existing fixed annual charge, is expected to improve Alibaba’s core merchant revenue stream.
The news was met with glee among investors, who pushed the Hong Kong-listed stock 4.7% higher on Monday.
Alibaba is one of China’s most-valuation companies with a market capitalisation of nearly $150 billion following today’s rally.