Why is everything so cheap on AliExpress?
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Prices on AliExpress are very low because China is a great place to do business. People are encouraged to do business and compete. The supply chain is running like a well-oiled machine.
For example, some cities in China are known for making the same kinds of goods. Component makers send parts to nearby assembly sites. Manufacturers, factories, and suppliers work together to make things quickly and in a small area. Why is everything so cheap on AliExpress
The Chinese government charges business owners low taxes and fees. When exporting goods, many companies don't have to pay VAT (value-added tax). Manufacturers are happy to make more things, and they are encouraged to keep the costs of selling their goods low.
Why is everything so cheap on AliExpress
When compared to Europe or the U.S., the cost of labor is relatively low. This lowers costs for the manufacturer and increases their margin.
Usually, a product goes from the maker to the wholesaler, then to the store (or stores), and finally to the buyer. When a product goes from one middleman to the next, and each of them makes a profit, the price almost doubles by the time the product gets to the customer.
AliExpress sells straight to the customer, cutting out the middleman. As a dropshipper, you buy from the manufacturer, which keeps prices low.
So, when you put together China's supplier-friendly environment and the D2C (Direct to Customer) model of AliExpress, you can see why their products are so cheap.
2. Suppliers are trying to stand out so that they can sell more goods.
More than 28% of all goods made in the world are made in China. This makes it the top country for making things.
Why is everything so cheap on AliExpress
It also means that thousands of sellers are trying to get the attention of the buyer. They cut prices to stand out.
Think about the fact that AliExpress has 100,000,000 items for sale. The suppliers are aware of how much competition there is.
If you're into cooking like I am and search for "plate set," you'll get more than 3,600 results. As a customer, you'll look through that list and decide which seller to buy from.
Most likely, you'll look at the pictures first and then the prices. If the reviews are good, you'll probably choose one of the cheaper ones. This is what a lot of AliExpress sellers think about when they decide how much to charge for their goods.
People may add a cheap item to their shopping cart on the spot. It's only an extra dollar or two, after all. The law of demand says that when prices go down, demand goes up.
3. Suppliers Offer Bulk Discounts
AliExpress is used by many dropshippers because almost all of the sellers offer discounts when you buy in bulk. Suppliers will give you an extra price cut if you buy a lot of items at once.
Also, it's easy to get this special discount. On the product page, some sellers list deals for buying a lot at once. You say you'll buy a lot, so your discount is automatically applied.
Some suppliers will tell you to get in touch if you want to buy a lot. Some don't say anything on their website about selling in bulk, but they're open to the idea if you ask.
Why is everything so cheap on AliExpress
Thousands of AliExpress sellers work with retailers and dropshippers all the time. They are very open to doing business with people for a long time.
Aside from discounts for buying in bulk, millions of AliExpress items are sold at a discount or come with free shipping. Products with big discounts are included in user bonuses.
4. Shipping costs that are low or free
There are a lot of AliExpress sellers who offer free shipping. But if you look at the price, it's still really cheap. Just look at this set of Japanese plates.
Why does AliExpress cost so little?
If you used to be like me, you might think that there's nothing better than free shipping. You think that sellers add the cost of shipping to the price of the product and say "free shipping" when they do this.
Well, AliExpress lets you ship things for free. Shipping is really free.
How? Exports are encouraged by the Chinese government. It pays for China Post, which is a common way to send packages.
When an AliExpress seller sends an item overseas, they get a huge discount on the shipping cost. This only happens when the supplier ships to countries that have signed trade agreements with China and uses the China Post or Hong Kong Post. Take the United States as an example.
AliExpress sellers are able to offer free shipping because exports are subsidized and encouraged.
5. It could take a long time to get there,Why is everything so cheap on AliExpress
Remember how we just talked about free shipping? When you order a "Japanese plate set" from the United States, what do you think happens? The supplier sends it to the shipping center, where it is put on a plane and sent to you as soon as possible. That's not how it works.
Ask yourself how the Chinese government can help pay for shipping costs without losing a lot of money.
How does it work? You make a purchase and choose "free shipping." The AliExpress seller wraps it up and sends it to the shipping center. Your package is put with other packages and sent out to be delivered.
But it doesn't leave China until there are other packages going to the same area of the United States as yours. The same plane is filled with thousands of packages going to your area. Your package can't leave China until there are other things in it.
You do not have to pay for shipping. But your package takes a long time to come.
Why is everything so cheap on AliExpress
If you pay for shipping, you might only have to wait a week or a few days, but if you choose free delivery, you'll have to wait 3 to 5 weeks. If you're willing to wait, you can get the cheap item and free shipping.
6. Some products are fake and of low quality
I looked up the new iPhone 13 on AliExpress because I was interested. You know, at lower costs. Even if you don't believe it, there were places that sold the latest "Phone13 pro max" for less than $100.
Reading the product name and description carefully is the only and easiest way to avoid being scammed.
AliExpress checks out the goods that are sold on its platform. This means that sellers can't say they have the real iPhone 13 when they don't. Pay close attention to what the product says about itself.
Don't buy name-brand items from AliExpress. Even though some big brands, like Xiaomi, have official stores on AliExpress, the site is really for small and medium-sized businesses that want to reach the international market.
Why is everything so cheap on AliExpress
TL;DR: Some of the low prices on AliExpress are set by scammers who hope you don't know better.
AliExpress is for regular customers
As I said, AliExpress cuts out the middleman and puts the customer in touch with the manufacturer directly. It works with a D2C model. This automatically lowers the prices of goods.
Another thing is that you can't get branded or customized items on AliExpress. At least not automatically. Only a small number of AliExpress sellers sell Dell, Gucci, or the iPhone 13. The rest are just trying to steal your money.
Most suppliers sell items that are mass-produced in their factories and don't have a well-known brand name.
If you're a dropshipper, you might not like this. You might want to sell branded items so that they stand out. Well, you'll have to get in touch with Givenchy if you want to sell their designer clothes.
If you want to sell products with your brand or label on them, you can talk to an AliExpress supplier about dropshipping and have the products labeled and packaged for your customers.
It's not easy to find the right supplier. 84% of eCommerce retailers say that the hardest part of starting their business is finding a good supplier.
Bestfulfill makes it easier to find the right partners to work with. You just need to get in touch with us and tell us what niche and products you want to sell. We'll take the time to find and carefully check out potential suppliers.
After all, you need a reliable supplier who makes good products, gives discounts for buying in bulk, and can grow with your business as it grows. Sometimes you'll find a supplier whose products are great, but they don't package or ship orders the way you want. We'll make that collaboration work.
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