Alibaba’s AliExpress Pivots to Challenge Amazon for Top Brands

Alibaba Group Holding Ltd.’s international e-commerce unit AliExpress is shifting its strategic focus from low-price competition to courting established brands, in a direct challenge to Amazon.com Inc.’s dominance in the global market. The move signals a significant strategic realignment among China’s leading cross-border online retailers.

Starting in late September, AliExpress will launch a dedicated "Brand+" section on its homepage, showcasing over 2,000 brands with certified authenticity and increased traffic exposure. The initiative, set to gain prominence during the 2025 11.11 and Black Friday shopping festivals, will provide new operational tools for merchants and price protection for select consumer purchases. Free shipping, funded by the sellers, will be available in key markets including the US, Germany, France, Italy, and Spain.

The strategic pivot comes as AliExpress re-evaluates the sustainability of a price-war-driven model amid rising global tariffs. The company now believes that Chinese brands, even after accounting for import duties, can offer a competitive value proposition with room for brand premium. Its initial goal is for participating top brands to surpass their Amazon sales figures on the AliExpress platform in crucial markets like Spain, Latin America, Europe, South Korea, the UK, and Poland, though no specific timeline has been set.

This recalibration is part of a broader trend among China’s major overseas e-commerce players—including Shein, PDD Holdings Inc.’s Temu, and ByteDance Ltd.’s TikTok Shop—which are increasingly focusing on their respective core strengths rather than engaging in a singular battle over price. Temu continues to double down on its low-cost model, Shein is deepening its focus on fashion, and TikTok Shop is leveraging its content-driven ecosystem.

Shifting Tides Amid Tariff Pressures

The impetus for AliExpress’s strategic shift stems from internal reflections following recent global tariff conflicts. According to sources within the company, leadership concluded that a pure low-price strategy has a "low ceiling" and lacks differentiation, ultimately leading to a race to the bottom on pricing.

After this reassessment, the strategic priority for brand partnerships was elevated significantly. The company now views branded Chinese goods as a key growth driver, believing their price-performance ratio remains highly competitive in the global arena. This contrasts with the approach of competitors like Temu, which has focused on attracting Amazon sellers to expand its market share through a semi-consignment model, primarily offering a channel for inventory clearance.

In pursuit of a more sustainable and differentiated strategy, AliExpress is investing in deep localization efforts. In South Korea, its K-venue channel, launched in 2023, has expanded from electronics and beauty products to auto parts and golf supplies, and even introduced travel services in June of this year. An employee involved in Alibaba’s overseas business noted the ambition is to create an "all-purpose AliExpress" in markets like South Korea, stating, "winning this competition cannot be achieved through low prices alone."

A New Proposition for Brands

For years, Amazon has been the default first choice for Chinese brands expanding internationally. AliExpress now aims to position itself as the primary alternative, initially by targeting top Chinese brands already selling on Amazon.

The platform’s pitch to merchants is compelling: achieve 80% of the Amazon service experience at half the operational cost, with a guarantee of lower consumer prices. An AliExpress representative outlined the strategy as, "First, we'll carve out a slice, and then we'll gradually expand it."

To support this ambition, AliExpress has introduced several new features. A "Brand Center" has been added to the merchant backend, providing hourly updates on marketing campaign performance. The company is also co-hosting local marketing events, such as a recent offline music festival in Spain with Pop Mart International Group. These initiatives complement existing infrastructure, including overseas warehousing, local delivery services, and a suite of AI-powered tools. In contrast to Temu, which encourages sellers to use Amazon's fulfillment to create an impression of "the same goods for less," AliExpress is positioning itself as a platform where merchants can build and operate their own brands.

Building on Early Momentum

AliExpress’s confidence is bolstered by the early success of a new brand outreach program initiated in 2024. According to company data, the number of brands joining the platform increased by 70% in the first half of 2025, with over 500 brands achieving triple-digit growth.

Several case studies highlight this momentum. Vacuum cleaner brand Laresar sold 250,000 units in a year, reaching one in every ten households in Poland. The budget-friendly projector maker Magcubic shipped over 2 million units annually across more than 200 countries. Smart cycling brand Thinkrider, which stocks its entire inventory locally, tripled its sales volume and secured the top online market share in multiple countries.

While AliExpress has successfully cultivated emerging brands, its new focus on established, top-tier sellers marks a direct offensive in a market long dominated by Amazon. The effectiveness of this brand-centric strategy in capturing significant market share remains to be seen.