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Ali Considers Introducing 'Doorstep Pickup' for Returns… Aiming at 'Coupang Exiters'?

[비즈한국] AliExpress appears to be revamping its return policy. As there has been significant dissatisfaction with the current process, where customers must pay shipping costs upfront and wait for reimbursement, the company is considering introducing a doorstep pickup service through partner logistics firms. Industry observers suggest that because this change mirrors Coupang's return system, it may be a strategic move to capture 'Coupang exiters' (those leaving Coupang) following the recent personal data breach incident.

From Paying Upfront to 'Doorstep Pickup'

According to Bizhankook’s report, AliExpress is currently reviewing its return structure. Instead of the existing 'self-shipping' method, the company is considering a system where it assigns partner logistics firms to pick up returned goods directly from the customer.

Currently, AliExpress offers up to five free returns per month, but the process is far from simple. Customers are required to pay the shipping fees themselves, send the item to the return address, and then apply for a separate refund through the customer service center or platform help center. It is reported that it takes about 20 days for consumers to receive their cash refund for the shipping costs.

If the doorstep pickup system is introduced, customers will no longer need to send the items themselves or pay for return shipping upfront. Because they simply need to leave the return item at their door, the overall burden of the return process is expected to decrease significantly. However, AliExpress has not disclosed details such as the service launch date or the delivery companies that will handle the pickups.

An AliExpress representative explained, "If there are any changes to our return policy, we will inform consumers in advance and share the relevant details in a timely manner," adding, "Customer experience and service quality are AliExpress's top priorities. We plan to continuously improve our services throughout the operational process."

AliExpress once utilized an aggressive marketing strategy by promising 'unconditional free returns,' but since November of last year, it has gradually scaled back these customer benefits. The policy was changed so that customers must pay for return shipping after a certain number of returns, and in April this year, it introduced a 'self-shipping' system where consumers must handle the logistics themselves and request a refund for the costs.

During this process, consumer complaints increased. One user vented, "I had to go to the post office myself to send the return item. I paid the shipping fee in advance and attached a photo of the receipt, but for some reason, it didn't upload correctly," adding, "I was told to receive a separate form via email and resubmit it, but the process was so complicated that I eventually gave up on the refund for shipping costs."

Another user added, "They say they refund the return shipping costs, but the process of getting the money into my account is tricky, and it takes nearly a month to actually get the refund," noting, "It feels like they are subtly nudging me to accept it as an AliExpress coupon instead. The fatigue from the return process has led me to reduce my usage of AliExpress altogether."

With consumer dissatisfaction growing, AliExpress has pivoted toward re-examining its return policy. As the inconvenience of the return process is cited as a key factor deterring users, the industry expects this revamp could improve consumer convenience and have a positive impact on expanding its user base.

Seo Yong-gu, a professor of business administration at Sookmyung Women's University, stated, "It seems that AliExpress has shifted its stance to recognize that continuous investment is necessary for long-term growth in the Korean market," adding, "While logistics costs may increase, creating new customer value by enhancing the convenience of returns could have a significant impact on AliExpress's usage rates."

E-commerce Industry Busy Trying to Capture 'Coupang Exit' Demand

The industry is paying close attention to the fact that the doorstep pickup method AliExpress intends to introduce is similar to Coupang's system. For Rocket Delivery items, Coupang has long operated a system where, if a customer requests a return via the app, a delivery driver visits to collect the item directly, without the customer needing to go through a separate drop-off process or pay shipping fees. It is a system that has been highly rated for its convenience, as consumers do not need to handle the shipping process themselves.

However, trust in Coupang has been shaken among consumers following a recent large-scale personal data breach. Movements for class-action lawsuits against Coupang have emerged, and the Korea National Council of Consumer Organizations held a 'Coupang Exit Consumer Action Launch Ceremony,' calling for boycotts and account deletions. The sentiment among consumers looking for platforms to replace Coupang is spreading.

The domestic platform industry is moving quickly to preempt this 'Coupang exit' demand. Major e-commerce companies have simultaneously launched large-scale discount events to secure users who have left Coupang. In this context, as AliExpress moves to revamp its return process into a form similar to Coupang's, industry analysts interpret this as a measure to attract those consumers who have left the platform. It is interpreted as a strategy to absorb demand from those leaving Coupang and expand its domestic user base by significantly strengthening the convenience of its returns.

Professor Seo Yong-gu projected, "The flow of customers leaving Coupang may continue for the time being," adding, "In a situation where competition between platforms over 'Coupang exit' consumers is intensifying, if AliExpress continues to enhance customer benefits like return convenience, there is sufficient room to absorb some of that demand."