AliExpress will close its only local warehouse in Russia

AliExpress to close only Russian warehouse

BusinessDialogue learned that according to Russian media reports on May 13th, AliExpress Russia’s Russian-Chinese office announced that it will close its only warehouse in Chekhov on June 1st this year, and require platform sellers to transfer all goods from that warehouse to the KazanExpress warehouse.

The AliExpress statement said that from June 1st, all sellers who use the Chekhov warehouse will no longer be able to use it, but they can transfer their goods for free to the KazanExpress warehouse located in the capital of the Republic of Tatarstan, or transfer the goods to the seller’s local warehouse.

In addition, if sellers do not notify AliExpress of their intention to transfer goods, AliExpress will unilaterally destroy these goods and will not compensate the sellers in any way.

For sellers planning to continue working with AliExpress, AliExpress recommends using Russian Post or other express delivery services for delivery, especially KazanExpress, which is one of the fastest logistics providers and can provide same-day delivery for most goods.

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BusinessDialogue understands that AliExpress Russia has purchased 30% of the shares of KazanExpress. Currently, AliExpress Russia has more than 23 million items that provide same-day delivery service.

For sellers who transfer from AliExpress to other e-commerce platforms, they will also automatically become partners of KazanExpress, but sellers need to bear the sales commission and related service fees of other platforms on their own.

By closing its only local warehouse, AliExpress is actually declaring its withdrawal from the competition in the local logistics and warehousing market in Russia. Perhaps in the near future, KazanExpress will be fully responsible for AliExpress’s logistics business in the Russian market. The company has a huge warehouse complex covering an area of ​​120,000 square meters in the Republic of Tatarstan.

It is worth noting that AliExpress has only announced the closure of its only self-owned warehouse in Russia to reduce logistics and storage costs, but its business in Russia will continue to operate.

After the warehouse is closed, most of the goods of AliExpress in Russia will be shipped from China, and the logistics costs and delivery time will not be able to compete with local platforms. In the short term, AliExpress may be able to retain some users by relying on low prices and diverse products, but as more localized platforms and sellers emerge, AliExpress may eventually be replaced.

Editor ✎ Ashley/BusinessDialogue

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