Samsung Electronics Official Partner Ali Store Opening
Galaxy Buds Live Online Lowest Price
Ali's Large-Scale Discount for 14th Anniversary Starting Today
AliExpress, a C-commerce (Chinese e-commerce) company, is expanding its domestic sellers by promoting bold policies such as 'commission exemption.' It is targeting the domestic e-commerce market by listing not only Korean processed foods with relatively long shelf lives but also fresh foods that require fast delivery, as well as Samsung Electronics home appliances.
According to the distribution industry on the 18th, AliExpress began selling major home appliances, including Bespoke refrigerators and kimchi refrigerators, through Samsung Electronics' official partners starting at midnight on the same day. AliExpress emphasizes free shipping from Korea and that these products are genuine items from Samsung's official partners. It handles Samsung Electronics home appliances in an open market format, which is the business structure of domestic e-commerce companies. However, LG Electronics has not yet joined.
Samsung Official Partners Join... Ali's Large-scale Discount Event for 14th Anniversary, Korean Products Participate
Samsung Electronics' partners sell various products on AliExpress, including ▲IT devices such as laptops, tablet PCs, and monitors, ▲kitchen appliances such as refrigerators and microwaves, ▲audio appliances such as TVs, speakers, and home theaters, and ▲home appliances such as vacuum cleaners, air conditioners, and dishwashers. Notably, some products like the wireless earphones 'Galaxy Buds Live' are priced lower than the lowest online prices as of the 18th.
With Samsung Electronics' official partners joining, AliExpress is expected to somewhat quell the long-standing 'counterfeit controversy,' which has been its biggest weakness. All products sold by Samsung partners are genuine products guaranteed by Samsung Electronics. Previously, AliExpress faced counterfeit controversies due to the blatant sale of so-called 'fake' products.
Samsung's official partner companies have opened stores on AliExpress. The following are the results of a search for Samsung refrigerators. [Image source=AliExpress]
Starting today, AliExpress has also launched a large-scale discount event called 'Anniversary' to celebrate its 14th anniversary. AliExpress holds this anniversary discount event every March. The event, running until the 27th of this month, also features 'K-Venue,' a Korean product specialty store launched last October. AliExpress has named the event '100 Billion Festa,' signifying an investment of about 100 billion KRW in the event. Since K-Venue's recognition is still low, the plan is to promote K-Venue through this event to attract more domestic sellers and consumers.
Earlier, Alibaba Group, the parent company of AliExpress, revealed in a business plan submitted to the Korean government that it plans to invest $1.1 billion (approximately 1.4471 trillion KRW) in the domestic market over three years, of which $100 million (about 131.6 billion KRW) will be allocated to support global exports by Korean sellers.
AliExpress will waive fees for sellers entering 'K-venue,' a platform selling domestic products. [Image provided by AliExpress]
To this end, AliExpress plans to establish a sourcing center to discover Korean products and open a global sales channel serving as an export platform in June. Through this channel, it is expected to supply products from domestic small and medium manufacturers and sell them on overseas e-commerce platforms. AliExpress has set a goal to support the global export of 50,000 Korean SMEs over three years.
There is also a plan to sell Korean products on Alibaba's e-commerce platforms. Besides AliExpress, Alibaba operates platforms such as 'Lazada' in Southeast Asia and 'Miravia' in Spanish-speaking regions. Among these, Lazada has emerged as a major e-commerce platform in Southeast Asia with over 130 million members. Miravia is a local specialized e-commerce platform launched in Spain in December 2022. Additionally, Alibaba operates platforms like the open market 'Taobao' and wholesale shopping mall '1688.com' in the Chinese domestic market.
Ali Leading with 'Zero Commission'... Following Hetbahn and Buldak Bokkeum Myun, Domestic Fresh Foods Also Listed
As AliExpress actively expands K-Venue, which sells Korean products, it continues its policy of waiving sales commissions for domestic sellers. K-Venue is a domestic product sales channel launched by AliExpress last October. It operates similarly to an open market in the existing e-commerce industry, where the sellers listed on AliExpress directly ship products to Korean consumers. Products sold on K-Venue are shipped domestically, and although delivery times vary by product and region, most are delivered within three days. Shipping is also free.
K-Venue serves as a channel to compensate for the shortcomings of C-commerce companies, such as slow delivery, low quality, and difficulty in exchanges and refunds. Since domestic manufacturers directly join AliExpress, flexible responses to product defects are possible, and delivery times have been significantly reduced by using domestic courier services. Free returns are supported for all products sold on K-Venue.
As a result, the number of domestic brand listings is rapidly increasing. After lifestyle product companies such as LG Household & Health Care, Amorepacific, and Aekyung first joined, CJ CheilJedang and Lotte Chilsung have recently joined AliExpress. Samyang Foods, the manufacturer of the globally popular 'Buldak Bokkeum Myun,' plans to join AliExpress next month. Notably, fresh foods such as 'Nonsan Seolhyang Strawberries' and 'Busan Daejeo Tomatoes' have also been listed on K-Venue. AliExpress appears to be expanding its territory from its main product category of manufactured goods to fresh foods, which have traditionally been exclusive to domestic distributors.
How Long Will Ali's 'Zero Commission' Last?
AliExpress emphasizes that it charges no commission not only to small and medium-sized companies joining K-Venue but also to large corporations such as LG Household & Health Care and CJ CheilJedang. This 'zero commission' policy aims to increase the number of domestic sellers, enhance the presence of Korean products recognized worldwide for their quality, quell the 'counterfeit controversy,' and counter 'Coupang,' which has conflicts with domestic manufacturers over commissions, thereby encroaching on the domestic e-commerce market share.
It is unusual in the domestic e-commerce market to have a policy of not charging listing and sales commissions. Most domestic e-commerce platforms rely on a certain percentage of commissions based on sales amounts from sellers as a major source of revenue.
However, AliExpress's business model differs from domestic e-commerce. Alibaba Group, which operates AliExpress, does not charge commissions to sellers on 'Taobao,' an e-commerce platform dedicated to the Chinese domestic market. Instead, it earns revenue by charging advertising fees to display ads on the platform's main page or at the top of search results.
Nonetheless, some speculate that AliExpress may soon discontinue its 'zero commission' policy. An AliExpress official explained, "The e-commerce industry is rapidly changing, and the digitalization of business and shopping habits is accelerating these changes. In line with these changes, AliExpress is adopting not only successful past business models but also ways that follow the latest trends."
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