AliExpress Invites U.S. Retailers to Sell on the Platform

Rhea-AI Summary

AliExpress, part of Alibaba International Digital Commerce Group, announces AliExpressDirect, inviting U.S. retailers to sell on its platform. The initiative offers local businesses 0% commission and $0 onboarding costs during an introductory period, along with comprehensive marketing and customer service support.

The platform provides tools for shop management, product listing optimization, and will launch API integration in 2025. Several U.S. retailers are already seeing success, including The PCA Companies, Cre8travel, and JemJem.

AliExpress reported a 60% year-over-year increase in order volume for Q4 2023, with U.S. monthly visits reaching 24.2 million in 2023, representing a 290% year-on-year growth.

Positive

• 0% commission and zero onboarding costs for U.S. sellers
• 60% YoY increase in order volume in Q4 2023
• 290% YoY growth in U.S. monthly visits to 24.2 million in 2023
• Platform expansion to over 100 countries with 150 million global shoppers

Negative

• None.

Insights

Market Research Analyst

This strategic move by AliExpress represents a significant shift in Alibaba's U.S. market approach. The 290% year-over-year growth in U.S. monthly visits to 24.2 million demonstrates strong market penetration. The zero-commission structure and comprehensive support services position AliExpress to compete directly with established platforms like Amazon and eBay in the domestic U.S. market.

The platform's 60% year-over-year increase in order volume last quarter, combined with its 150 million global shoppers, suggests robust growth potential. The timing aligns with increasing consumer demand for value-driven shopping, as evidenced by 65% of U.S. consumers prioritizing cost savings. The API integration planned for 2025 will likely accelerate seller adoption by reducing operational friction.

E-commerce Strategy Expert

The AliExpressDirect initiative marks a calculated competitive repositioning in the U.S. e-commerce landscape. The zero-cost entry barrier and comprehensive operational support create a compelling value proposition for local retailers, particularly those seeking to diversify from Amazon-dependent business models. The platform's ability to attract established players like The PCA Companies signals credibility in the market.

The emphasis on omnichannel capabilities and bulk SKU management demonstrates a sophisticated understanding of enterprise seller needs. This move could potentially reshape U.S. e-commerce dynamics by introducing a strong third player with significant technological and financial resources, potentially pressuring existing platforms to adjust their fee structures and seller services.

Through its new initiative, AliExpressDirect, the e-commerce platform will enable local businesses to access its unique and growing customer base

LOS ANGELES, Oct. 30, 2024 /PRNewswire/ -- AliExpress, an international online retail marketplace under Alibaba International Digital Commerce Group, today announced it is welcoming U.S.-based retailers to the platform through its AliExpressDirect initiative.

AliExpressDirect aims to support homegrown businesses by enabling them to reach AliExpress' unique, diverse, and growing customer base. As part of a special introductory period, local sellers will benefit from AliExpress' 0% commission and $0 onboarding costs. AliExpress will also provide U.S. sellers with comprehensive marketing, business, and customer service support, including buyer inquiry handling and after-sales disputes, without charge.

Local retailers will be able to open their own shop on AliExpress via a simple and flexible process. The platform's functionalities are designed to enhance shop management, featuring tools for optimizing product listings, pricing, and promotions. Sellers can utilize a one-click store design template for quick and easy setup, as well as transparent tracking and multi-product listing capabilities, enabling them to upload thousands of stock keeping units (SKUs) simultaneously. Additionally, launching in 2025, application programming interface (API) integration will allow for seamless synchronization of product listings, inventory, orders, and returns with sellers' existing systems, enabling them to create a truly omnichannel business.

"We're excited to support local businesses and are focused on reducing friction and risk in the onboarding process," said Jackie Lee, Head of Partnership and Business Development at AliExpress. "By leveraging our technology and resources, both growing and established businesses can easily explore a new channel that can help them increase visibility and boost sales."

Local Retailers Already Seeing Success

AliExpress has onboarded several local retailers that are already seeing positive momentum on the platform due to their unique offerings and AliExpress' promotional efforts.

New York-based The PCA Companies – one of the leading beauty product distributors in the country – recognized the potential of utilizing AliExpress' reach within the U.S. to strengthen its omnichannel strategy and grow its business domestically.

"AliExpress provides a strong, scalable platform that allows us to connect with a large audience in the U.S. while maintaining control over our fulfillment and shipping processes. The platform's structure supports fast order processing, which complements our focus on delivering beauty products quickly to customers," said Piyush Golia, CEO, The PCA Companies. "AliExpress has helped us tap into a different segment of U.S. consumers who may not shop on other platforms, and the feedback has been overwhelmingly positive. We anticipate continued growth as more consumers discover our offerings through AliExpress."

For Cre8travel – a creator of graphically designed cultural products that employs top U.S. art school students and alumni for design and creative work – was drawn to the unique, low-risk opportunity to diversify its revenue streams, reduce dependency on a single platform, and expand into regions where it previously had little penetration.

"AliExpress allows my business to focus on product innovation without the need to worry about advertising. Savings are passed on to the buyer, creating a win-win-win scenario for Cre8Travel, the buyers, and the AliExpress platform," said Wei Liao, CEO & Founder of Cre8Travel. "Even though our store just opened, we have already noticed a diverse range of new customers and believe the platform's reach and user base will give us the visibility needed to accelerate growth."

JemJem, one of the largest resellers of refurbished products in the USA, is excited to tap into AliExpress' large customer base. "We look forward to bringing our wide range of refurbished electronics to AliExpress and reaching the platform's unique customer base," said Jay Kim, CEO and President at JemJem. "We believe this winning combination will allow us to scale up our business significantly."

More Choice for Consumers

For U.S. consumers, the ability to shop from local sellers affords an even greater diversity of products on AliExpress, including an increasing number of well-known brands and the latest trending products. Customers will also benefit from shorter delivery times, worry-free returns, and fast customer support.

A new U.S. Consumer Insights Report by AliExpress and Censuswide found that U.S. shoppers prioritize value when shopping locally, with more than half of respondents (65%) looking to keep costs low. Other key factors when deciding to shop local included customer service benefits and the overall support of local businesses. This aligns with AliExpress' commitment to enhancing its platform for local retailers to meet consumers' needs and deliver massive savings across a wide variety of products.

A Global Leader Among E-Commerce Platforms

Over the years, AliExpress has become a leading e-commerce platform serving consumers worldwide. It now operates in more than 100 countries and regions, attracting more than 150 million shoppers worldwide. The platform is constantly expanding its logistics network and working with local partners, which enables fast deliveries.

The platform saw a 60% year-over-year increase in order volume in the quarter ended December 31, 2023. While Similarweb data indicates AliExpress' monthly average visits in the U.S. soared to 24.2 million in 2023 – a 290% year-on-year spike, marking it as one of the nation's fastest-growing e-commerce sites.

Business owners can get started on AliExpress at HERE.

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About AliExpress U.S. Consumer Insights Report

The research was conducted by Censuswide, among a sample of 2,000 nationally representative respondents across the U.S., aged 18+. The data was collected between October 24 and October 25, 2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.

About AliExpress

Launched in 2010, AliExpress is a business-to-consumer (B2C) e-commerce platform enabling global consumers to buy directly from manufacturers in China and around the world. In addition to the global English-language version, the AliExpress platform is also available in 15 other languages. AliExpress is part of Alibaba International Digital Commerce Group.

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SOURCE AliExpress

FAQ

What is AliExpressDirect and when was it launched?

AliExpressDirect is a new initiative by AliExpress (BABA) launched in October 2024 that enables U.S.-based retailers to sell on the platform with 0% commission and zero onboarding costs during the introductory period.

How much did AliExpress (BABA) grow in the U.S. market in 2023?

AliExpress saw significant growth in the U.S. market in 2023, with monthly average visits reaching 24.2 million, representing a 290% year-on-year increase.

What features will AliExpress (BABA) offer U.S. sellers in 2025?

In 2025, AliExpress will launch API integration allowing sellers to synchronize product listings, inventory, orders, and returns with their existing systems for omnichannel business operations.