Alibaba Group's cross-border e-commerce platform AliExpress is testing a new VIP membership program in some markets, aiming to attract and retain high-spending customers, according to a person familiar with the matter.
The invitation-only program, named Elite, is designed for customers who spend more than US$800 a year, the person said. It is currently being piloted in Australia, the UK, Germany and Spain, and the platform plans to expand it to more European markets as well as South Korea next month.
Unlike Amazon's paid Prime subscription model, Elite does not charge a membership fee. Member benefits include an additional 5% discount on a wide range of products, round-the-clock online customer service and a convenient return policy.
The previously undisclosed move by AliExpress reflects a broader trend in the global e-commerce market. The person said AliExpress also plans to bring Elite to the US market, but the timing has not yet been determined. Internally, the platform expects Elite membership to reach 1 million by the end of this year.
AliExpress has rolled out other initiatives to win over users accustomed to Amazon's services. For example, it is piloting next-day delivery in European cities with mature logistics infrastructure such as Madrid, Paris and Warsaw, prioritizing items shipped from local warehouses. The person said the platform is considering expanding next-day delivery to more markets.
According to corporate disclosures under the EU's Digital Services Act, AliExpress had 157.6 million monthly active users in Europe as of June, compared with Amazon's 193.9 million in Europe.
The new profit-oriented strategy is already showing results: AliExpress achieved operating profit in the quarter ended June. Alibaba's international e-commerce segment, which includes AliExpress and Southeast Asian e-commerce platform Lazada, posted revenue of US$4.09 billion in the quarter, down 1% year on year.
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