Why is AliExpress so cheap?
Aliexpress is a Chinese/Asia online retail marketplace where small businesses, resellers, and sales reps for larger distributors sell their products.
You wonder if you will get what you pay for, how goods can be dirt cheap, and if you can trust AliExpress suppliers to deliver quality products, which brings us to the question, “Why is AliExpress so cheap?”
In this article, I will explain why AliExpress products are cheap. You will also learn some tips on avoiding scams when buying on AliExpress.
While Aliexpress may seem cheap, it’s still considered retail. There are other avenues that have the same products cheaper (wholesale).
You’ll find most of the products available on Aliexpress are cheaply made, have cheaper quality, cheaper materials, and shipping are also cheap.
Many items can ship cheaply due to standard letter mail being very slow and such a large amount of orders get sent out that the sheer mass volume brings down the shipping cost for non-tracking snail mail deliveries.
While 99% of people believe when you buy from Aliexpress, you’re buying directly from Manufacturers; this is actually not the case. You’re just buying from distributors/resellers and a vast amount of sales reps (that will tell you they are the manufacturer when they aren’t) that buy from the manufacturer.
There still are some factories that hire sales reps to represent factories but these sales reps usually represent multiple factories at once, they’re still a middleman. For the majority of buyers, you’d have to go through this system unless you can physically go there yourself and buy in person.
Some small factories do sell their own items as retail on Aliexpress, but the majority of factories don’t, they stick to just manufacturing and wholesaling.
I have over 40 shops now on Aliexpress that resell products, and we like other sellers actually go out to the factories to pick up items for resale and stock a large volume.
1. You Are Buying Directly From Manufacturers
AliExpress prices are very low because China has a very business-friendly ecosystem. Business and competition are encouraged. The supply chain efficiency is through the roof.
For instance, some cities in China are known for similar products. Component manufacturers transport parts to nearby assemblies. Factories, manufacturers, and suppliers network to make goods fast and within a small area.
2. Suppliers Are Trying To Stand Out To Sell More Products
China accounts for more than 28% of the world’s manufactured goods. That makes it the number one country in manufacturing.
It also means that thousands of manufacturers are seeking the buyer’s attention. To stand out, they reduce prices.
3. Suppliers Offer Bulk Discounts
Many dropshippers use AliExpress because almost all the suppliers offer bulk discounts. For buying up many products at once, suppliers will give you an extra price cut.
It is also straightforward to get this special discount. Some suppliers include bulk deals on the product page. You indicate that you’ll buy many, automatically applying your discount.
4. Low or Free Shipping Costs
It is very common to find AliExpress suppliers offering free shipping. And yet when you look at the price, it’s still super low. Take this set of Japanese plates, for instance.
If you’re like me, the former me, you probably believe that there’s nothing like free shipping. You think that suppliers add the shipping cost to the product cost and say “free shipping.”
Well, there is free shipping on AliExpress. Actual free shipping.
5. There May Be Long Delivery Time
Remember we discussed free shipping just now? What do you think happens when you place that order for a “Japanese plate set” from the United States? The supplier sends it to the shipping center, it gets thrown into a plane and delivered ASAP to you. That’s not what happens.
