(Yicai) Aug. 14 -- Lazada, the Southeast Asian online shopping platform under Chinese e-commerce giant Alibaba Group Holding, has achieved profitability for the first time ever in July.

Lazada reported above-zero earnings before interests, taxes, depreciation, and amortization last month, Chief Executive Officer James Dong said at an internal meeting yesterday, Yicai learned.

Achieving profitability proves that Lazada's commercial strategy is effective, Dong noted, adding that the firm will sustainedly increase investment in Southeast Asian markets under its sustainable operation mode.

Lazada's Thai business was the first to achieve profitability in 2022, when it reported a net profit of THB3.2 billion (USD91.5 million) and a revenue of THB38 billion (USD1.1 billion).

In its latest annual earnings conference call, Alibaba said Lazada continued to increase its operating efficiency. In the first quarter of this year, Lazada’s loss significantly shrank, thanks to higher monetization ratios, lower logistics costs, and more value-added services, Hangzhou-based Alibaba noted.

Lazada has enhanced localized operations in the past two years, including investing heavily in the development of its key brands in the Malaysian market.

Artificial intelligence is becoming a key tool to enhance the operating efficiency of e-commerce platforms. Lazada took the lead in using AI technologies among Southeast Asian firms.

Since May last year, Lazada has launched LazzieChat, an AI chatbot for customer service and personal shopper purposes, and other staff tools, such as an AI marketing assistant and an advertisement return on investment forecasting tool. LazzieChat answered more than 30 percent of consumers' shopping queries on Lazada.

More cross-border e-commerce platforms are foraying into Southeast Asia. Besides Shopee and Lazada, also TikTok Shop and Temu have entered the market in the past two years.

According to a report from accounting giant Klynveld Peat Marwick Goerdeler, Shopee ranked first in Thailand's online shopping market, with a 25 percent share, followed by Lazada at 22 percent.

Editors: Xu Wei, Futura Costaglione