Alibaba brings 5-day delivery on AliExpress to US via Cainiao in battle against Shein, Temu

Alibaba Group Holding has expanded its “five-day delivery” service to the US, as the Chinese e-commerce giant faces intensified competition against Temu and Shein in the world’s largest economy.

Customers who place an order in the US on AliExpress, Alibaba’s international e-commerce platform, can now expect to receive their parcel in five days, delivered by Cainiao, the Alibaba logistics unit said on Tuesday.

Cainiao and AliExpress jointly launched their five-day global e-commerce delivery services last year. Coverage has since been expanded to cover Germany, France, Portugal, Saudi Arabia and Mexico, in addition to the US. Alibaba owns the South China Morning Post.

Cainiao launched its five-day global delivery service last year. Coverage has since been expanded to cover Germany, France, Portugal, Saudi Arabia and Mexico. Alibaba owns the South China Morning Post.

“We hope to make ‘Global Five-Day Delivery’ a global express shipping service for cross-border merchants, ” Ding Hongwei, vice-president at Cainiao, said in a statement.

Expedited delivery services have become a crucial factor for cross-border e-commerce operators striving to boost orders on their platforms, as consumers prioritise fast delivery when deciding where to shop online, according to Ding.

AliExpress appears to have seen initial results from its strengthened global push. Its Choice service, which was rolled out last year and offers fast delivery of higher-quality goods, saw orders grow by more than 60 per cent year on year in the December quarter, according to Alibaba’s financial report.

Cainiao’s revenue grew 24 per cent year on year in the same period, bolstered primarily by its cross-border logistics and fulfilment services. Order volume associated with its five-day delivery service achieved triple-digit growth between the September and December quarters, Alibaba reported.

Cainiao began expanding its global logistics network in 2017, when it launched in partnership with the Malaysian government an e-commerce hub located near the Kuala Lumpur airport to develop cargo terminals, sorting centres, warehouses and fulfilment centres.

Alibaba said in its latest quarterly report that Cainiao will continue to execute its strategy of building a global smart logistics network by improving freight transport, customs clearance, parcel sorting and delivery.