AliExpress Launches Billion-Dollar Subsidy Plan for Overseas Expansion

Recent reports indicate that AliExpress has launched the "Billion-Dollar Subsidy Brand Overseas Expansion" plan, targeting cross-border mega-sellers and Tmall brand merchants, aiming to support businesses in expanding into overseas markets. This initiative, dubbed AliExpress's "Number One Project" for 2024, allows merchants to seamlessly sell on multiple e-commerce channels under the Alibaba International umbrella, including Lazada, Miravia, Daraz, and Trendyol, covering regions such as Southeast Asia, South Asia, Europe, and the Middle East.

According to sources, the platform plans to initially open 1,000 slots, with participating merchants enjoying a range of incentives. These include exclusive channel traffic, full-chain transmission of brand-exclusive identifiers, store black-label brand certification, priority display for branded promotions, traffic subsidies, and zero-breakthrough subsidies for new products. AliExpress has revealed that to facilitate "one-click global expansion," merchants can currently opt for a fully managed model, where the platform handles operations, sales, and logistics fulfillment, while a semi-managed model will be introduced later to facilitate new product development and private domain operations.

Currently, renowned brands such as Huawei, Lenovo, Xiaomi, and DJI have already joined, with discussions underway with brands such as Midea, Hisense, and TCL. Tmall brand merchants are also among the targeted participants in this project, aligning perfectly with Tmall's 2024 annual goal of "focusing on brand growth." Over the past two years, many global brands have chosen Tmall as their launchpad for explosive product releases. Data released earlier indicates that in 2023, Tmall hosted over 4,100 brands with billion-dollar turnovers, while over 5,000 brands achieved million-dollar turnovers within three years of opening stores. AliExpress's introduction of the billion-dollar subsidy plan for overseas expansion underscores the platform's high regard for Tmall as a strategic location for brands.

In 2023, AliExpress underwent a comprehensive upgrade to a predominantly managed business model, continuously enriching and optimizing supply structures. Choice services based on semi-managed and fully managed models became the primary driver of a 60% year-on-year increase in orders. Analysts believe that with a well-established supply chain capability, AliExpress is seeking greater growth opportunities, making the launch of the brand's overseas expansion plan a timely move. By assisting brand merchants in going global, the cross-border e-commerce sector can further flourish.