The first wave of 2024! AliExpress fully launches "semi-hosting"

At the beginning of 2024, there was new news about cross-border e-commerce. The reporter learned from AliExpress that after half a year of trial operation, AliExpress's " semi-hosting " service was fully launched in January. All merchants can apply to join and enjoy logistics subsidies and exclusive traffic.

On January 5, many merchants noticed that AliExpress launched a new feature called " Product Reservation for Semi-Hosting" in the merchant backend . Merchants can select the products they want to add to semi-hospitality and fill in the relevant information . Some senior sellers believe that this new feature is the platform's preparation for subsequent comprehensive upgrades .

(AliExpress semi-managed product reservation page)

Public information shows that AliExpress's semi- hosted service is an upgrade of the merchant's self-operated model (i.e. third-party stores), and is a more flexible "hosted" way to serve self-operated merchants. The products of the merchant's self-operated store can be added seamlessly without having to reopen the store.

According to the AliExpress clerk, the core of semi-hosting is that "the platform provides warehouse and distribution/logistics (cross-border warehouse and delivery/JIT) management services". After joining semi-hosting, merchants can continue their original operating methods, including pricing power, shelf sales, etc.; while the platform will provide a series of solutions such as warehouse and distribution logistics, exclusive marketing activities, and after-sales services , so that merchants can reduce their operating burdens, while having faster logistics timeliness, better service quality, and improving operating results.

According to the latest investment materials, semi-managed products will enjoy a series of logistics subsidies and traffic tilt. First of all, like fully managed products , semi-managed products have full-link transparent Choice mindset and obtain recommended traffic . Secondly, the warehouse and product handling fees for semi-managed products will be waived. Merchants who have joined recently can also enjoy the discount of free warehouse rental fees before the end of February. In terms of logistics subsidies, taking the United States as an example, after upgrading the standard line, the cost of most orders will be reduced by at least $1.

(Rights and interests related to upgrading AliExpress semi-hosting)

In March 2023 , AliExpress launched the fully-hosted Choice on the consumer side, which brought significant traffic growth and order conversion to merchants by improving the shopping experience. Orders on the AliExpress platform increased by 50% year-on-year.

After the full hosting was successfully verified, many merchants were looking forward to the more flexible semi-hosting. Merchants can have more independent pricing power, which to a certain extent avoids the cruel internal competition of low-price competition and is more friendly to merchants with high customer orders /brands/differentiated categories .

In the previous trial operation, semi-hosting was only carried out in the form of targeted investment promotion. From January 2024 , AliExpress semi -hosting will be fully open to all merchants.

According to media reports, during the trial run of semi-hosting, merchants who were the first to try it out have already achieved a surge in orders. In the merchant communication group, some merchants shared their achievements after joining semi-hosting: "Orders were placed on the first day", "Links that did not place orders before also started to place orders". Other merchants revealed that they received hundreds of order information in a short period of time after the products were put on the shelves, and their mobile phones were flooded with messages.

In 2023, cross-border e-commerce platforms have embraced full-hosting, and the full-hosting model has become an irreversible industry trend with its extreme cost-effectiveness and efficient supply chain organization.

Among them, factory-type merchants have price advantages and can quickly adapt to full trusteeship and become "hands-off shopkeepers"; while self-operated merchants and brand owners often hope to give full play to their own operating advantages. "Semi-trusteeship" came into being and became the key direction for the upgrade of third-party merchants.

Some media analysts said that AliExpress launched "semi-hosting" to win over self-operated merchants and brand owners and activate the supply side to a greater extent. Semi-hosting retains the "freedom" of merchants to operate on their own, but also takes into account the service standards and rights of full hosting. AliExpress hopes to provide different solutions for different types of merchants, and ultimately achieve the survival of the fittest in the diverse ecology of the platform.

"The reshuffle period has arrived. This is a signal that the platform will fully embrace hosting." A senior merchant in cross-border e-commerce believes: "Hosting services will definitely be the mainstream way of playing in cross-border e-commerce in 2024. Whether it is semi-hosting or full-hosting, it is only a matter of time before they join. "

AliExpress

Semi-hosting