AliExpress Launches Loyalty Club in Israel, Expects Over 20 Million Packages

AliExpress officially launched its loyalty club, AliExpress Elite, in Israel on Sunday. The e-commerce giant anticipates over 20 million packages will arrive in Israel in November, primarily from China and Europe, with a smaller portion from the US. This projection is contingent on the security situation and global shipping costs. The Elite club offers members a 5% discount on millions of products marked with the Elite tag, including items from the Choice and Brand+ categories. Additionally, members will receive an 8% discount on eligible products during a monthly "Elite Day." AliExpress also announced its Singles' Day sales will run from November 1 to 18.

AliExpress stated that Elite club members will benefit from free product returns within 15 days of receipt, without needing additional documentation, and will have access to dedicated 24/7 online customer service. These benefits do not supersede Israeli consumer protection laws. Arik Zhang, Vice President of AliExpress, described Elite as their first loyalty program, offered free of charge as a way to thank loyal customers and provide them with enhanced discounts and service. He indicated this is just the beginning of their investment in the Israeli consumer experience.

The company's increased focus on Israel is attributed to its long-standing, growing customer base and the competitive landscape, particularly with the rise of SHEIN and TEMU. A significant factor is also the European Union's recent implementation of a 3-euro customs duty on low-value packages (under 150 euros) arriving from outside the EU, primarily from China, via online platforms. This duty, intended to level the playing field with local European retailers, has impacted Chinese platforms like AliExpress.

Israel Post Logistics is preparing for a 30% to 40% increase in shipments in November, according to its CEO, Oudi Sharon. He noted uncertainties from the previous year's weaker November due to security concerns and current trends in shipping. Sharon highlighted that new customs duties in the EU have reduced cargo traffic from China to Europe by 40%, potentially diverting resources to the Israeli market. The suspension of flights by Flydubai, which operated 10 daily flights, has also created challenges for cargo movement into Israel, with nearly 50% of inbound cargo arriving via passenger flights.

Maman Group, another logistics player, is gearing up to handle a peak of 1 million packages in November, compared to 650,000 last year. Maman, which handles logistics for SHEIN, TEMU, and AliExpress, among others, is increasing its workforce to maintain an average handling time of four hours per package. The anticipated rise in shipments is attributed to a low dollar exchange rate, early sales events, and evolving Israeli consumer habits, provided no further conflict erupts.