“Why Is AliExpress So Cheap?”
This is an INTERNATIONALLY popular question. I decided to EXPLAIN the mystery once and for all.
I’m an AliExpress dropshipping expert. In this article, I’ve listed the WHYs and HOWs of AliExpress’ mind-blowing low prices. You’ll know EXACTLY whether AliExpress is the sourcing website perfect for you.
Keep reading to SAFELY and CHEAPLY source products!
Why Is Aliexpress So Cheap?
Aliexpress is a part of the Alibaba group. It is Alibaba’s online consumer marketplace with cheap products. Many factors make them cheaper & desirable according to the customer’s purchasing power. Look at them with a detailed expert’s opinion below!
- Cheap Production
Aliexpress is a Chinese B2C marketplace. China is a production house of the world due to many reasons. Low-cost labor & extensive infrastructure makes the products in the Chinese market so cheap. It reflects on Chinese products and marketplaces.
You get low prices due to their cheap production. Suppliers outsource products directly from manufacturers in bulk quantity. When a US supplier outsources from a Chinese manufacturer, he must handle shipping.
After shipping, packaging & Marketing, the costs increased in the US markets. Yet it is different in the Chinese market. The biggest cost they have to pay is transportation which is mostly trucking.
Sellers also have access to offline wholesale markets in the region. It saves them the hassle of finding trustworthy suppliers from online marketplaces.
- More Competition
No doubt it’s easier to start a business in China. Chinese laws and infrastructure facilitate eCommerce sellers. It results in many online sellers on both B2B & B2B marketplaces.
What would you do when your competition is so high?
You focus on making your product’s market competitive. The best strategy is to lower their price and focus on quality. Aliexpress sellers do the same!
They focus on outsourcing cheap and cheap products in their online stores. Lower price attracts customers and users. You also get time-to-time discount offers due to this huge competition. My first purchase from Aliexpress was with a discounted coupon. Do the same thing and avail best discounts on the same product.
- Low Setup & Business Cost
Amazon & other US MARKETPLACES are sophisticated. Their algorithm is complex, and sellers focus on Branding & Packaging. On Amazon, you have PPC marketing which is very expensive. Conversely, Aliexpress has a relatively inexpensive marketing strategy to sell products.
Sellers focus on Listing and adding many items to their online store. Their primary focus is competing on price points with other Aliexpress sellers. Thus these low setup costs and Marketing costs result in low production costs.
You may not get high-end packaging and branding on Aliexpress products. Sometimes quality could be better. Check reviews & Ratings before buying any product.
- Quality Issues
Suppliers on Aliexpress don’t pay much attention to the quality of goods. It is primarily due to their bulk outsourcing and extensive operations. Not all products have low quality, but most have quality issues. These Aliexpress suppliers have no inspection team before selling products. Also, the product comes direct from cheap manufacturers. It is why their costs are low than other online retailers.
What to do if you get a low-quality product?
Don’t worry Aliexpress website has 75 days of buyer protection. So is Aliexpress safe and secure? Of course, enjoy a secure environment, even buying cheaper products.
- Bulk Suppliers & Manufacturers
Alibaba is the B2B marketplace of suppliers and Manufacturers. In my experience, I have noted the same products on Alibaba and Aliexpress. It means the same suppliers and manufacturers are selling products.
These suppliers & Manufacturers have bulk quantities, so they have meager prices. For example, suppose their outsourcing price is 1.5$ per item with simple outsourcing. It goes around 1$ when outsourcing in bulk quantities. Chinese manufacturers facilitate these suppliers. You enjoy such low prices due to bulk outsourcing.
- Chinese Warehousing Infrastructure
In CHINA, Sellers enjoy subsidized warehousing in most parts. US warehousing costs are so expensive. Even dark warehouses have high prices. On the other hand, Chinese warehousing & Logistic infrastructure is cheap.
The Chinese government helps Chinese companies. Even their own warehouses have a lower cost for international buyers. It makes their product more competitive and cheap in the international market.
- International Shipping Infrastructure
What is the biggest perk of shopping from Aliexpress?
Many sellers offer free shipping to the buyers. Aliexpress standard shipping is primarily offered in it. It makes their shipping costs lower and attracts buyers. Aliexpress has signed trade agreements with many shipping companies.
ePacket is the prominent shipping method that most sellers use. You also get shipping options from US shipping companies like DHL,& USPS.
How Are AliExpress Prices So Cheap?
I compare the prices of many products on different websites. Ultimately I got the best prices from Aliexpress with low shipping fees. There are many factors involved in it.
- DIRECT Sourcing
- Easy access to factories
- No complex advertising strategy
- Bulk outsourcing
These are notable factors that make Aliexpress cheap.
But why are they cheaper than the biggest marketplaces in the world, like Amazon?
Suppose you are an Amazon seller of hair and beauty products. Now you have to outsource products; China is your first choice. Have you got your supplier? Great!
Now pay through an intermediary that handles your OPERATIONS. They handle your production & Sample inspection, shipping & All extra services. Their costs are extra, and shipping is expensive too.
In the case of Air, shipping costs go up drastically. Now your marketing costs through PPC would be an extra burden. You have to spend a lot of money on listing optimization and marketing. Ultimately, you also expect to have a 30% profit margin. As a result, your product costs go up, and CUSTOMERS have to pay for it.
On the other hand, an Aliexpress seller does not have to face all these things. He has access to the offline market & purchases directly. They pack and stores inventory in China which has lower costs. Ultimately, he lists products on the Aliexpress platform at lower prices. Customers enjoy lower prices with lower shipping costs.
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FAQs about Why Aliexpress Is So Cheap
Is everything cheap on Aliexpress cheap because of quality junk?
It is due to China’s cheap production costs and RAW MATERIALS. Some sellers on Aliexpress sell fake stuff, which is low-quality products. But it is not too familiar when it comes to high-quality products. Most prices are low due to low advertising costs & Production costs.
What to do if you get scammed on AliExpress?
Aliexpress has a buyer protection program that protects you from scams. If you don’t get the product or get a damaged one, apply for it. It has 75 days protection period to file for a refund in case of any issue.
How to find trending products on AliExpress?
Dropshippers find trending products from Aliexpress dropshipping center. Also, you see the number of orders for each product. It also has many tags that describe either product trending or not. Check hot-selling products on your Homepage.
What is the safest way to pay on AliExpress?
Credit/Debit cards are the best payment method on Aliexpress. If you have any discount code, then apply it while checking out. Automatic coupon codes apply immediately and lower your final price. There are also many other payment methods available to use.
Is AliExpress cheaper than Amazon?
Yes, Aliexpress is cheaper for so many reasons. Amazon has a PPC advertising strategy which is expensive for sellers. Also, Amazon is sophisticated, and sellers focus on Branding & Packaging. It also operates in the US market, which is more expensive than the Chinese market.
What’s Next
The quality issue is the main thing shoppers face from Aliexpress. It is due to a need for more quality control on these products. Customers don’t like low-quality goods, no matter how cheap they are. They shop for high-quality goods from other online stores.
How do you get good product quality for your customers?
Leelinesourcing has a complete quality inspection team to ensure good quality. Contact us to get high-quality products from Chinese suppliers Now!
Related Resources
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