AliExpress semi-hosted service fully launched, offering logistics subsidies and exclusive traffic to merchants

[Ebrun Original] On January 5th, Ebrun learned that after six months of trial operation, AliExpress' "semi-hosted" service has been fully launched. It has changed from being invitation-based to allowing all merchants to apply for and enjoy logistics subsidies and exclusive traffic.

Currently, AliExpress has launched a new function in the merchant backstage, "Product reservation for joining semi-hosted", where merchants can choose the products they want to join the semi-hosted and fill in relevant information.

(Reservation page for semi-hosted products on AliExpress)

According to the investment information, semi-hosted products will enjoy a series of logistics subsidies and preferential traffic. Firstly, similar to fully hosted products, semi-hosted products receive recommended traffic along the entire transaction chain. Secondly, the operation fees for warehouse delivery of semi-hosted products will be fully waived. Merchants who join recently can also enjoy the offer of full waiver of warehouse rental fees until the end of February. Regarding logistics subsidies, taking the United States as an example, after upgrading the standard route, the cost of most orders will be reduced by at least $1.

(Pertinent benefits of AliExpress semi-hosted)

It is reported that AliExpress' semi-hosted service is an upgrade to the self-operated model for merchants (i.e. third-party stores), with the core being "platform-provided warehousing/distribution (cross-border warehouse delivery/JIT) management services." After joining the semi-hosted, merchants can continue their original operational methods, including pricing rights, on-shelf sales, etc., while the platform will provide a series of solutions such as warehousing distribution logistics, exclusive marketing activities, after-sales services, and so on.

The fully hosted model is the biggest variable for 2023, with many cross-border e-commerce platforms following suit. In March of last year, AliExpress launched Choice based on the fully hosted at the front end. In the following quarter, the platform's orders grew by 50% year-on-year. In the second quarter of 2024, Alibaba mentioned in the Q2 financial report conference call that 50% of AliExpress' future orders will come from fully hosted.

After observing high growth due to the fully hosted, in August of last year, AliExpress started testing semi-hosted, returning pricing rights and operations to merchants, benefiting high average order value and brand-oriented merchants. By independently operating, they can obtain more premium space and retain the service standards and benefits of the fully hosted.

"If there is no accumulation in the early stage, it's okay to enter the market at a low price, but later on, you must find a point to contribute to profits." A merchant expressed to Ebrun that in a certain sense, the semi-hosted makes the cross-border e-commerce ecosystem more diverse, providing new solutions for different types of merchants.

Ebrun has learned that since December of last year, AliExpress has increased its efforts to attract merchants to the semi-hosted and has made a wave of policy updates, including emphasizing that there should be logistics information within 48 hours on the US site, offline logistics economic routes, the independent addition of products to the semi-hosted on the US site, and adjustment of penalties for downgrading JIT, among others, to encourage merchants to join the semi-hosted from multiple dimensions.

It is reported that AliExpress will focus on the U.S. market this year, with semi-hosted being a key development direction.