Alibaba missed forecasts in the first quarter.
The e-commerce giant was hit by growing competition from smaller rivals like JD.com.
That saw overall revenue rise to just over $31.8 billion, a little below analyst predictions.
The results mirror those of Amazon, which saw online sales growth slow as lockdowns eased, and consumers ventured back to shops.
Now a shadow still hangs over Alibaba in the form of China's regulators, who continue to crack down on the country's tech titans.
Late last year they halted a $37 billion IPO for affiliate Ant Group, and ordered a restructuring of the financial firm.
Then in April they fined Alibaba $2.75 billion over anti-competitive practices.
During an earnings call with investors, CEO Daniel Zhang said the firm would monitor the impact of regulatory changes.
As one concern, he cited a recent crackdown on online platforms offering items at below market price.