Sellers turn to AliExpress “AE Mall”

Many big sellers rushed to the new platform

Last year, a wave of bans swept Amazon sellers, and many of them suffered, and are not even completely out of the way. But at the same time, many sellers have begun to look for a new way out.

According to people familiar with the matter, more than 500 Amazon sellers have recently entered the AliExpress platform under Alibaba, and are negotiating with the platform. The cooperation focus will be on the recently launched AliExpress New project – “AE Mall”.

Among these sellers, there are many top sellers on Amazon, and at the previous summit held by AliExpress in Shenzhen, there were also some of the most representative “Sakata Five Tigers” in the cross-border circle. A few attended in a low-key manner. At present, seven Chinese cross-border sellers including Aukey and Ucommune have settled in AliExpress and started selling, and they have also received special team services.

According to the official introduction, “AE Mall” is a key project promoted by AliExpress this year, and it is suitable for merchants of a certain scale to settle in. It can also be seen from the current outflow application standards that the threshold for application is relatively high. A new merchant needs to have a transaction volume of more than 10 million. If it is a seller who has already entered the AliExpress platform, the annual transaction needs to exceed 600,000 US dollars, which is an average of 50,000 US dollars per month.

At present, the specific details of the project have not been officially announced, but some content versions have been circulated in the business circle. Some sellers said that the version circulating in the circle may be an early unfinalized version. According to rumors, AliExpress said that it will also adjust or even increase the project based on feedback from merchants.

But regardless of the threshold and benefits, this move by AliExpress will certainly help more big sellers to more easily realize the multi-platform layout that is becoming more and more popular.

Where are the sellers fleeing

At the “2022 Global AliExpress Annual Summit” held in April, Alibaba Group Vice President and General Manager of AliExpress Zhang Kai said that AliExpress wants to be “the world’s AliExpress will be “the largest cross-border e-commerce platform” and “the cross-border platform that understands Chinese merchants best”. At the same time, he also pointed out the three most important things for the AliExpress platform this year, namely the accelerated growth plan for quality merchants, the continuous upgrade of logistics performance capabilities, and the upgrade of the market mechanism and merchant environment of the AliExpress platform.

This is also closely related to the three pillars of AliExpress’s growth, including the platform’s users, logistics and supply.

The first point is to provide support for high-quality merchants and merchants with branded development. The support plan for these merchants is AE Mall. Merchants who settle in AE Mall will get an obvious logo, and behind this identity logo, there will be customer managers and corresponding rights and interests.

Secondly, AliExpress will continue to promote the construction of overseas warehouses in key markets, including Spain, France, Brazil, South Korea, the United States and other places this year, and the construction of preferred warehouses in China. At the same time, AliExpress will also increase investment in a series of basic capabilities, including order consolidation, self-pickup, trunk line, and terminal timeliness, to reduce costs and increase efficiency. Finally, AliExpress will also optimize the platform mechanism through a series of initiatives.

In the past year, the number of merchants with annual sales of more than $1 million on AliExpress has increased by 43%, the growth of new users has increased by 30%, and the delivery time has increased by 25%. This is inseparable from the situation of global trade.

In the past year, the global trade in goods increased by 10.8%, which is far faster than the global economic growth in the past year, and the proportion of China’s exports in the world is constantly increasing. In the past five years, China’s cross-border e-commerce has grown tenfold, and in 2021 alone, China’s cross-border e-commerce has grown by 15%.

In such an environment, the situation of cross-border e-commerce is actually very good, but due to the wave of bans last year, many sellers began to stay away, and with the shrinking of foreign e-commerce, many companies began to clear their goods and adjust their direction.

Some sellers have fled to Amazon’s nemesis, Walmart.

The latest data from Marketplace Pulse shows that 51% of Walmart’s newly added sellers are from China, and the number of new sellers in China has surpassed that of the United States.