The group will remove all its ads from the search engine and its subsidiary websites from 10 November.
A spokeswoman for Alibaba said: "We don't get much organic traffic from Baidu and we have found that the traffic we do get is low-quality."
In September, Alibaba blocked Baidu from crawling its websites after the search engine launched an e-commerce platform in direct competition to Alibaba's own auction site, Taobao.com.