Return to the user's Alibaba amplification strategy, upgrade 88VIP benefits. Starting from April 22nd, Taobao's 88VIP benefits have been significantly upgraded, with unlimited returns and shipping fees included. 88VIP is divided into lifestyle cards, shopping cards, and all-around cards. The first two types of cards cost 88 yuan, while the latter type costs 168 yuan. There are 6 5-yuan return coupons per month for lifestyle cards, and 10 25-yuan return coupons per month for shopping cards and all-around cards. After upgrading, all three types of cards are eligible for unlimited return shipping fees, with a maximum subsidy of 25 yuan for postage per return, unlimited in number of times, and can be used in combination with shipping insurance.
Recently, on the occasion of the first anniversary of Alibaba's reform, Jack Ma made his first long article after retiring. In his lengthy article, he mentioned that "the most important thing is not who to catch up with, but how to improve the consumer experience of tomorrow's e-commerce." In the era of stock competition, e-commerce platforms return to users and choose roll up services to enhance user experience and dig deep into the value of old users.
88VIP unlimited return package shipping fee has been upgraded multiple times before
Taobao launched a new membership service called 88VIP in August 2018. It is understood that 88VIP is a membership card launched by Alibaba, covering all core businesses under Alibaba. It connects the annual VIP benefits of Youku, Ele.me, Taopiaopiao, Xiami, and other top brands, as well as a 95% discount on the annual benefits. The normal purchase price is 888 yuan, and purchases with a Taobao value of over 1000 can be made at 88 yuan per year.
In the eyes of the outside world, one of the purposes for Alibaba to launch 88VIP was to connect its own economic user data, in order to better understand the users themselves, label them, and recommend corresponding services in appropriate scenarios. The post 88VIP benefits have increased businesses such as Hema and Fliggy. On the other hand, e-commerce selects high-value users with strong purchasing power and high purchasing frequency through paid membership screening. As early as 2019, the person in charge of the project stated that the unit price of 88VIP is twice that of ordinary users, and the purchase width is six times that of ordinary users.
To attract new members, e-commerce platforms continuously expand their membership rights. In August 2020, 88VIP reached a cooperation agreement with NetEase Cloud, and NetEase Cloud Music Black Glue VIP Card benefits were added to the 88VIP annual ecological benefits package. Netease Cloud Music is also the first Internet product with 88VIP strategic cooperation outside the Alibaba system. Since then, 88VIP has been taking continuous actions, including seeking cooperation across systems, increasing the number of international big brands, luxury brands and other cooperative brands, expanding the rights and interests of segmented fields, and enhancing rights and interests.
Another major change occurred last year. Before last year's Double 11, Taobao 88VIP announced an upgrade: the original benefits and prices remained unchanged, renamed as "Life Card", added "Shopping Card" and "Universal Card", and focused on the "New Three Guarantees" of e-commerce shopping, including daily red envelopes, return shipping packages, and after-sales support packages.
In addition to the annual promotion of high-value consumption vouchers and special discounts such as a 95% discount, the above changes also provide services such as return shipping vouchers and exclusive customer service. Regarding the benefits of return shipping coupons, Alibaba has expanded its strategy this year by directly upgrading the return shipping coupons for three types of cards to unlimited free shipping for returns, and upgrading its service once again.
It is worth noting that after Pinduoduo established a reputation among consumers through "refund only", JD and Alibaba increased their services while copying homework. It is reported that after JD announced unlimited free shipping for PLUS members in August last year, it launched a "free return and exchange service" on its own in February this year. Regardless of size, weight, and quantity, customers can come to visit for free returns and exchanges.
E-commerce Digs Deep into Old User Value, Membership Rights and Benefits Plus Service
In order to attract loyal users with high order frequency, e-commerce platforms have successively launched paid members, vertically incorporating different businesses of their own ecosystem into membership benefits, and horizontally cooperating with other content and traffic platforms to attract new users. However, the focus of upgrading membership rights on e-commerce platforms varies depending on the competition cycle.
Before the epidemic, e-commerce platforms actively expanded their membership rights and enjoyed cross-border cooperation with online content platforms such as audio and video websites, Zhihu, and Reading. They also collaborated with offline brands to launch electronic consumption vouchers. Generally speaking, as platforms become more familiar with users, they continuously increase their benefits around various scenarios in daily life. At this stage, e-commerce platforms focus on attracting new users to open cards and serve old users with their valuable and diverse benefits, while simultaneously expanding their online and offline traffic "circle of friends".
When the era of stock competition arrives and cost-effectiveness consumption becomes dominant, consumers become more cautious and rational, and e-commerce platforms adjust their strategies to offer both price and service. Recently, on the occasion of the first anniversary of Alibaba's reform, Jack Ma made his first long article after retiring. While supporting the new management, he mentioned, "The most important thing is not who to catch up with, but how tomorrow's e-commerce can improve the consumer experience."
Less than half a month after Jack Ma posted, 88VIP announced unlimited returns and shipping fees. It is not difficult to see that the focus of this upgrade of rights has changed, targeting pain points in the user shopping process and focusing on updating services. A fresh food merchant ranked high on the entire network told Nandu reporters that the growth of e-commerce platform users has peaked. In order to retain loyal users who pay, when upgrading the platform's benefits, they are more inclined to focus on discounts and service benefits, such as returns and exchanges, refunds only, and discounted red envelopes. "Tmall has made significant adjustments this year. In terms of return strategies, some categories support only refunds, and customers can apply for only refunds before signing for them. Alibaba is expected to launch more services to return users in the future."
Data shows that in 2023, the number of 88VIP members has exceeded 32 million. From the measures taken by various platforms to increase free return services, retail e-commerce industry expert Zhuang Shuai told Southern Metropolis Daily reporters that e-commerce platforms should attract old users, improve their loyalty through refined operations, and increase the frequency of ordering.