What Happened to AliExpress?

AliExpress, an online retail service owned by the Chinese conglomerate Alibaba Group, was officially launched in March 2010, though a test version existed since 2009. Its core business model is a business-to-consumer (B2C) platform, enabling small businesses and manufacturers, primarily from China, to sell products directly to international buyers. Unlike Amazon, AliExpress does not hold its own inventory, acting purely as an intermediary and generating revenue through seller commissions, advertising fees, and value-added services. This asset-light approach has allowed for massive scalability and global reach.

In its early years, AliExpress rapidly expanded its global footprint, becoming particularly popular in markets like Russia and Brazil. A key turning point was its full transition from small-scale wholesale to a consumer-oriented platform around 2013, followed by the internationalization of Alibaba's Singles' Day (11.11) sale in 2014, which became a global shopping phenomenon. The platform heavily invested in localized efforts, improving logistics and payment systems, often leveraging Alibaba's logistics arm, Cainiao, to reduce delivery times significantly in various regions.

Recent years have seen AliExpress continue its growth trajectory while adapting to a changing global e-commerce landscape. In 2023, it launched "AliExpress Choice," a program designed to offer curated products with enhanced services like free shipping, free returns, and delivery guarantees in selected markets. This initiative, alongside the introduction of 'Five-Day Global Delivery' in partnership with Cainiao, aimed to address long-standing concerns about shipping speed and reliability. By 2025, AliExpress's e-commerce revenue reached US$76,500 million, with Alibaba's international commerce segment, primarily driven by AliExpress, showing significant year-over-year growth.

However, 2025 and 2026 brought new challenges. In May 2025, a US Executive Order ended the de minimis exemption for all products from China, impacting the cost structure for low-value goods imported without duties. More significantly, in July 2026, the European Commission imposed a substantial €550 million fine on AliExpress for failing to adequately curb the sale of unsafe and counterfeit products, a breach of the EU's Digital Services Act. This fine highlighted increasing regulatory scrutiny on large online marketplaces.

As of August 2026, AliExpress remains a dominant force in global e-commerce, with nearly 10% of the market share and 952 million annual visits, making it the second most visited e-commerce site worldwide. It has recently overtaken Amazon as the largest online marketplace in Europe. The platform is actively doubling down on core markets like the United States, South Korea, and Latin America, with increased investments and policy incentives. It is also enhancing its US customer experience with clearer order information, simpler refunds, and more consistent support. While still a valuable tool for product research, many dropshippers are exploring alternatives due to persistent concerns about shipping times (often 10-30 days) and inconsistent product quality, as customer expectations for rapid delivery continue to rise.