Rumors of CJ Logistics Parting Ways with Ali Bidding? Uncovering the Inside Story

Approximately 12.35 Million Bids, Unlikely to Be Existing Contract Volume with CJ Logistics
No Alternative Companies to Handle the Volume

Chinese shopping platform AliExpress sparked rumors of a split with its existing logistics provider CJ Logistics after issuing a bid to select a logistics company. However, considering the scale of this contract, analysts suggest that it is an agreement for additional volume beyond the existing contract with CJ Logistics. Given the volume AliExpress has handled so far, it is expected that a breakup with CJ Logistics, which can ultimately handle this volume, will not be easy.

According to industry sources on the 22nd, AliExpress conducted a competitive bidding process the day before to select a company responsible for customs clearance and delivery in Korea. This led to rumors of a split with the existing contractor CJ Logistics. AliExpress has contracts with CJ Logistics for customs clearance until the end of May and for parcel delivery until the end of June.

However, the relationship between the two companies is still expected to remain strong. First, this bidding may not be for the volume that CJ Logistics has handled so far. The volume presented in this bidding announcement by AliExpress is 12.35 million shipments (from March 2024 to March 2025). According to estimates by KB Securities, CJ Logistics handled about 32 million out of 46 million shipments delivered domestically by AliExpress in 2023. Considering that AliExpress recently introduced the 'K Venue' category involving Korean sellers and diversified its product range to include fresh food, there is analysis that the volume presented in this bidding may be for new volume rather than existing volume.

Furthermore, there is no suitable company to replace CJ Logistics' capacity to handle the volume. Most of the shipments AliExpress imports into Korea are small parcels. CJ Logistics operates 46 multi-point facilities nationwide, grouping small parcels by destination area, significantly reducing costs of terminal-to-terminal transfers. CJ Logistics is the only logistics company equipped with such facilities. Kang Sung-jin, a researcher at KB Securities, analyzed, "Even when renewing the existing volume contract, CJ Logistics has an advantage in terms of delivery service and freight competitiveness."

There have been similar bidding processes in the past. CJ Logistics also conducts most contracts for CJ group volumes through bidding rather than direct contracts. Previous contracts were multi-party agreements where CJ Logistics handled small parcels, and other logistics companies handled some large parcels. This is why it is difficult to interpret this bidding as a sign of a split. An industry insider explained, "Even if AliExpress establishes a domestic logistics center, conducting parcel delivery services directly would require massive investment and competition," adding, "Ultimately, even if they build a center, using CJ Logistics for delivery services is more efficient in many ways, so the relationship between the two companies will remain solid for the time being."