Most AliExpress suppliers offer new user discounts, have bulk buying options, and provide free shipping to the USA. Many fulfill orders and custom package products. On the homepage, AliExpress promotes products from top stores and shows daily deals. Some cost one cent.
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.
目录
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.
The Chinese government imposes low taxes and duties on business owners. Many manufacturers are exempt from VAT (value-added tax) when exporting products. Manufacturers are happy to make more products and are encouraged to keep selling costs low.
The cost of labor is relatively lower when compared to Europe or the U.S., which reduces costs on the manufacturer’s side and increases margin.
The usual sales chain is from the manufacturer to the wholesaler, the retailer (or retailers), and finally to the final buyer. When a product is passed from one middleman to the next, each making a profit, the product has almost doubled in price by the time it gets to the customer.
AliExpress cuts out the middleman and sells directly to the customer. As a dropshipper, you buy from the manufacturer who keeps prices low.
So, combine China’s supplier-friendly ecosystem and the D2C (Direct to Customer) AliExpress model, and you understand why AliExpress products are very cheap.
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.
Think about the fact that there are a hundred million products on AliExpress. The suppliers know that there is intense competition.
If you’re a kitchen buff like me and search for “plate set,” 3600+ results come up. As a consumer, you’re going to scroll through that and decide which supplier to buy from.
You’re probably going to look at the photos and then the prices. You’ll probably go for one of the cheaper ones, as long as the reviews are positive. This is what many AliExpress suppliers think when they’re pricing their products.
People are likely to add a low-priced item to their shopping cart impulsively. After all, it’s just an extra dollar or two. The law of demand: the lower the price, the higher the demand.
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.
Some suppliers encourage you to reach out to buy in bulk. Some don’t post any information about selling in bulk but welcome the idea when you contact them.
Thousands of the AliExpress suppliers regularly partner with retailers and dropshippers. They are very open to forming long-term business relationships.
Apart from bulk discounts, millions of AliExpress products are sold at a discount or offer free shipping. User bonuses feature high discount products.
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.
How? The Chinese government encourages exports. It finances China Post, a standard shipping method.
When an AliExpress supplier exports items, they get a massive subsidy for shipping. This only happens when the supplier uses the China Post or Hong Kong Post and ships to countries that have signed trade agreements with China. For instance, the United States.
Because of subsidized and encouraged exports, AliExpress suppliers can afford 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.
Ask yourself, how is it that the Chinese government can subsidize shipping costs and not run into significant losses?
Here’s how it works. You place an order and choose the free shipping. The AliExpress supplier packages it and sends it to the shipping center. Your package is consolidated and put out for delivery.
But, it doesn’t leave China until other packages are going to the United States, near your address. Thousands of packages bound for your area are loaded onto the same plane. Until there are other items, your package cannot leave China.
Yes, you get free shipping. But, you wait a long time for your package to arrive.
While paying for shipping can reduce delivery time to within one week, sometimes a few days, opting for free delivery means you have to wait 3 to 5 weeks. If you’re willing to wait, the inexpensive product and free shipping are all yours.
6. Some Products Are Low Quality and Counterfeit
Out of curiosity, I looked up the latest iPhone 13 on AliExpress. You know, for better prices. Believe it or not, there were suppliers offering the latest “Phone13 pro max” for less than a hundred bucks.
If you’re new to AliExpress, you may think it’s the actual iPhone. Granted, you can get the real iPhone 13 for almost two grand from AliExpress suppliers. But, it is true that a good number (not the majority, but a good number) sell counterfeit brand products.
The only and easy way to avoid getting scammed is to read the product name and description carefully.
AliExpress vets the goods sold through the platform. This means that suppliers cannot claim to sell the real iPhone 13 when they don’t. Always look closely at the product description.
Avoid buying branded products from AliExpress. Even though some brands like Xiaomi have official AliExpress stores, the platform is for small to medium-sized manufacturers looking to connect with the international market.
TLDR, some of the low prices on AliExpress are placed by scammers who hope you don’t know better.
7. Aliexpress Is for the Common Customer
As I pointed out, AliExpress cuts out the middleman and connects the customer directly with manufacturers. It operates on a D2C model. This automatically reduces product prices.
Another thing is that you cannot get branded or customized products on AliExpress. At least, not by default. Apart from the scammers trying to get their hands on your money, only a tiny number of AliExpress suppliers sell Dell, Gucci, or iPhone 13.
Most suppliers sell products mass-produced in their factories—generic products with no famous brand name.
As a dropshipper, you may resent this. You may want to sell products that are branded to stand out. Well, if you wish to sell Givenchy designer clothing, you’ll have to contact Givenchy directly.
If you want to sell products with your brand or label, contact an AliExpress supplier for dropshipping, and get products custom labeled and packaged for your customers.
Finding the ideal supplier is not easy. 84% of eCommerce retailers claim that finding a good supplier is the biggest obstacle to kick-starting their business.
Bestfulfill smoothes out the process of finding the ideal suppliers to partner with. You just have to contact us and tell us what niche and products you’re interested in. We’ll take the time to source suppliers and thoroughly vet them.
After all, you want a reliable supplier who produces quality products, has bulk discount prices, and can scale with your business when it gets bigger. Sometimes, you find a supplier that makes brilliant products but doesn’t custom package or fulfill orders. We’ll make that partnership work.
Aside from finding the best suppliers for your business, we do quality inspections, custom package products, and take professional product photographs. We allow you to store products in our 3000 square meter warehouse, and we fulfill orders as they come in.
The process is simple. Just reach out to Bestfulfill.
Finally
There are quality and legit products on AliExpress. You can get them for very low prices, free shipping, and bulk discounts.
You just have to be wise when navigating the platform and make sure you’re not buying a “fake” product. And you can do that by looking at the product title, description, and customer reviews.
As long as you follow these steps or hire Bestfulfill to do it for you, your dropshipping business is already set up for success. Good luck.
FAQs
How To Avoid Getting Scammed on AliExpress
Do you want to get only quality products from AliExpress? Follow these three steps to the tee.
a) Think Twice for Products That Are Priced Too Low
Sometimes, the products are just too cheap. Even though a fancy notebook for 10 cents is very cheap, it is possible. But a gold necklace for twelve bucks? Think again.
When you see a very cheap product, take the time to read the description section. Is it a gold necklace, or is it plated? Compare prices with similar products from different sellers, not the same seller.
b) Avoid Buying Branded Items on Aliexpress
Few big brands have AliExpress stores. They don’t need to since they have access to the international market. It’s small to medium-sized manufacturers that use AliExpress.
When you find a branded product on AliExpress, visit the store page to learn more. Is the seller an official retailer? For instance, Xiaomi has an official AliExpress store.
c) Read the Complete Product Description
Never buy a product just because of the name and the photo. Take the time to read the description. Look at the specifications and exactly what to expect.
Suppliers want to maintain low return rates. Even after glowing product titles and dazzling photos, they’re going to tell it like it is in the description section. Also, look at customer reviews.
