Abstract:
According to a person familiar with the matter, AliExpress, the cross-border e-commerce platform of Alibaba Group, is testing a new VIP membership program in some markets to attract and retain high-spending users. People familiar with the matter said the VIP program, called Elite, is on an invitation-only basis and is open to customers who spend more than $800 a year. The project is currently being piloted in Australia, the United Kingdom, Germany, and Spain; the platform plans to expand to more European markets and South Korea next month.
Unlike Amazon Prime’s paid subscription model, Elite does not charge membership fees. Membership benefits include an additional 50% discount on a large number of products, 24/7 online customer service, and a convenient return policy.
This previously undisclosed move by AliExpress reflects the general trend of the global e-commerce market.
Informed sources said that AliExpress also plans to launch Elite into the US market, but the launch time has not yet been determined. The platform internally predicts that the number of Elite members is expected to reach 1 million by the end of this year.
AliExpress has also launched other initiatives to win over users accustomed to Amazon services. For example, next-day delivery is being piloted in European cities with mature logistics infrastructure such as Madrid, Paris, and Warsaw, giving priority to goods shipped from local warehouses. People familiar with the matter said the platform is considering expanding next-day delivery to more markets. According to data disclosed by companies in accordance with the EU Digital Services Act, as of June, AliExpress had 157.6 million monthly active users in Europe and Amazon had 193.9 million monthly active users in Europe.
This new profit-oriented strategy has begun to bear fruit: AliExpress achieved operating profits in the quarter ended in June. Alibaba’s international e-commerce segment, which includes AliExpress, Southeast Asian e-commerce Lazada and other businesses, had revenue of US$4.09 billion in the quarter, a slight decrease of 1% year-on-year.
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