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Retail's profit crashes 80% in race with Alibaba over rural China

Chinese e-tailer's one-day delivery in small cities led to huge costs logistics staff sort out packages for the Singles Day shopping holiday. The Chinese e-tailer held a domestic market share of 25.7% in the third quarter.   © Reuters

DALIAN, China --'s third-quarter net profit plummeted 79.6% on the year to 612.3 million yuan ($85.6 million), hurt by the costs of delivering products to rural customers as it sought to gain on domestic e-commerce leader Alibaba Group Holding.

The black ink fell despite revenue climbing 28.7% to 134.8 billion yuan, a record for the quarter through September, China's second-largest e-tailer reported on Nov. 15. The company's number of active users also grew 9.5% on the year to 334 million as of Sept. 30.

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