On March 31, 2020, Alibaba’s cross-border retail platform AliExpress faced widespread order cancellations, payment failures, and logistical breakdowns as it struggled to meet surging global demand for personal protective equipment (PPE) during the coronavirus pandemic. The company attributed the disruptions to system failures and a mass absence of logistics workers, leaving customers in hard-hit countries like the United States unable to secure masks, gloves, and gowns.
System failures and cancelled orders
AliExpress, which operates as a sales channel between suppliers and buyers similar to Amazon or eBay, saw bulk orders from countries hardest hit by COVID-19. But many of those orders were abruptly cancelled. The company sent automated replies to customers, including a California-based medical equipment supplier who had used the platform for two years. “For system reason, this process cannot be continued. As a result, your order has been cancelled,” the company stated in an email to that customer.
Other buyers reported that their payments were declined or placed on hold without explanation. A customer from Florida said he tried three different payment methods, and each time AliExpress canceled the order. He contacted customer support, which is handled by a telemarketing business process outsourcing firm in the Philippines. They told him all his payment methods were blocked in the system. After four years of buying, he was told he needed to become a verified customer.
Verification process blamed
On its website, AliExpress says it runs a verification process on every order to protect customer payments. The company explained that some orders may be closed for “potential security reasons.” It listed two scenarios: a coupon or discount already used by the same user, or incomplete order information. “Please exclude coupon/discount for ordering again,” the company wrote. “Please input complete name information for ordering again.”
But customers said these explanations did not match their experiences. Many had not used any coupons and had provided full information. The Florida buyer noted that his payment methods had worked fine for years. The California supplier said the cancellations came without warning and at a time when medical equipment was urgently needed.
Logistics workers absent
The pandemic also hit AliExpress’s logistics network. The company relies on a global supply chain of suppliers and delivery workers. But mass absences among logistics staff, many of whom were sick or under quarantine, slowed shipments and forced cancellations. The company did not disclose how many workers were absent or how long the disruptions would last.
Online shopping surged in the United States and other countries as governments imposed lockdowns and people stayed home. Thousands of customers hoped retailers could ramp up services when they were most needed. AliExpress, however, could not keep up.
Alibaba’s broader challenges
Alibaba Group, which owns AliExpress, faced wider pressures during the pandemic. The company’s domestic logistics arm, Cainiao, also struggled with delivery delays in China. Alibaba reported a sharp drop in orders from small and medium-sized businesses, many of which shut down temporarily. The company’s stock fell in March 2020 as investors worried about supply chain disruptions.
The Chinese government, which tightly controls e-commerce platforms, did not intervene to stabilize AliExpress’s operations. Critics noted that the CCP’s heavy-handed lockdowns and restrictions on movement contributed to worker shortages. Alibaba’s struggles highlighted the fragility of China’s export-driven economy when faced with a global crisis.
A system under strain
The pandemic exposed weaknesses in Alibaba’s cross-border platform. AliExpress had grown rapidly in previous years, but it was not built to handle a sudden surge in demand for essential goods. Its verification system, designed to prevent fraud, blocked legitimate orders. Its logistics network, dependent on healthy workers, collapsed under the strain.
For customers in the US and Europe, the failures meant delays in getting PPE that could protect healthcare workers and vulnerable people. The California supplier said he lost thousands of dollars in cancelled orders. The Florida buyer said he eventually gave up and found another supplier.
The story of AliExpress in March 2020 is one of a company overwhelmed by its own success and the pandemic’s chaos. It could not deliver when the world needed it most. The Chinese government’s response, focused on domestic control rather than global cooperation, did little to help. For now, customers are left waiting.
