Why Is Aliexpress So Cheap? 9 Reasons Behind The Low Price

Aliexpress is a well-known online marketplace based in China. It provides a wide range of products from electronics to clothing and fashion accessories. Most importantly, the majority of products are at incredibly low prices. For example, a humidifier costs $1.99, and a nice T-shirt needs only $0.99.

Why is Aliexpress so cheap? Is it safe to buy from?

In this article, we will share with you the secrets behind the low prices on Aliexpress.

Let’s dive in.

9 Reasons why Aliexpress is so cheap

Stuff on Aliexpress is so cheap. It’s hard for you not to shout out a “wow!” if you often used to look at products on Amazon.

There are several reasons to explain the affordability of Aliexpress items.

1. You buy from a manufacturer or a wholesaler

Aliexpress is a business-to-consumer marketplace. In this marketplace, most stores are set up by Chinese manufacturers or wholesalers who buy in bulk from manufacturers. Once they produce or prepare products in their warehouse, they begin to sell them. Therefore, the whole process is made simple, middle costs are cut, and the price can be much lower.

2. Aliexpress offers discounts & coupons to attract customers

The competition in eCommerce is fierce. Online marketplaces like Aliexpress have to implement various marketing strategies to attract customers. Offering discounts and coupons to new users is one of the effective strategies to entice purchases.
After you create a buyer account, Aliexpress gives you a welcome coupon or discount on selected products. This platform also provides great deals during a holiday event.

3. Sellers set a lower price to stand out from the competition

One of the reasons why Aliexpress is so cheap is that sellers price their products low to stand out from the competition. As there are more and more sellers joining Aliexpress, competition in this marketplace has been increasing day by day. For many sellers, setting a low price is a way to capture customers’ attention and drive sales. So you can often see products at the price of between $1 and $2 on this platform.

4. Some imitative products

Some items sold on Aliexpress are similar in design to well-known branded products but are made by different manufacturers. These “copycat” products often look and function much like the big-brand versions but come at a fraction of the price. For example, you might find phone accessories or fashion items that resemble popular global brands, but because they aren’t licensed, they’re much cheaper.

5. The sellers offer discounts to increase sales

Offering discounts can be a marketing method and prove effective on shopping websites. Thus, many Aliexpress sellers set discounts to increase sales. They usually offer customers a 2%-15% discount or a $1-$10 coupon.

These sellers provide bulk discounts as well. If you purchase in bulk at one time, they will give you a big discount on your order. This information may not be displayed on the storefront sometimes, but the seller will be pleased to offer you a discount when you contact them.

6. Low to zero shipping cost

On Aliexpress, most sellers offer free shipping services. Though they may add the shipping cost on top of the product price, the total price is still low. This is because AliExpress sellers can get lower shipping costs from logistics companies under the Alibaba Group. The drawback is that your customers may need to wait for 2-3 weeks to receive their orders.

7. Bulk Production

Manufacturers often create large quantities of items, which drives the cost per unit down significantly. With bulk production, the cost of raw materials, labor, and manufacturing is spread across a large number of products. This mass-production model is one of the key reasons why you can find such cheap prices on the platform.

8. Low materials and labor costs in China

There are over 100 million items on Aliexpress, and most of them are made in China. In comparison with the US and Europe, the cost of production materials and labor is low in China. Furthermore, many sellers are located near factories. They don’t need to spend a lot on the transportation. Mass production in the factory also helps reduce the cost per item. So they can get their products at a super low cost. Even if they set a low price for their product, they can still turn a profit in the end.

9. Small and medium-sized enterprises on Aliexpress

Aliexpress is a selling platform for small and medium-sized enterprises. The mission of this platform is to assist businesses of such scales to succeed. This means that most brands on Aliexpress are not established as Apple, Zara, and Adidas. They can be not eligible to charge a premium for their brand recognition. As a result, their products are not as expensive as those you see from a popular brand on Amazon or other marketplaces.

Is it safe to buy from Aliexpress?

It is tempting to connect a cheap product with bad quality and a scam, especially when you buy online. However, Aliexpress is legit and safe to buy from in most cases.

Aliexpress is one of the leading eCommerce platforms around the world. It is a subsidiary of the Alibaba Group, which is one of the world’s largest retailers and e-commerce companies.

Aliexpress provides buyer protection to ensure you stay safe when shopping. You can request a refund within 90 days of the purchase if you encounter the following problems.

• what you receive is not as it is described or presented on the detail page
• The item you receive is damaged or defective
• The item is not delivered within the estimated delivery date or it doesn’t arrive

The buyer protection program adds a layer of security to transactions on this marketplace. So it is safe to order from Aliexpress.

How to avoid scams on Aliexpress?

Almost everything on Aliexpress is cheap. Though the price doesn’t necessarily suggest a scam, you still need to exercise caution when you buy something.

Aliexpress is only an intermediary between sellers and buyers. The majority of sellers on this platform are trustworthy, but some may not. Scams can still occur like on other marketplaces.

Here are some proven tips to help you avoid scams from unreliable sellers.

1. Read the product description carefully before the purchase

In this fast-paced time, it is easy to make a purchase decision with a glance at the product title and photos. But you had better read the product description carefully to ensure you get what you expect.

The description on a detailed page can offer more information about the product, such as its specifications, features, how-to guide, and refund & return policy. Some unscrupulous sellers play tricks on you with titles or photos. If you read the description, you may find that the product is not totally as the title depicts or the photo displays.

2. Check the seller’s rating and company profile

The seller rating provides insights into the seller’s services and product quality. A rating of 4.5 or higher out of 5 usually suggests this seller is reliable.

The seller’s company profile can also give you a hint about whether you should work with them. A reputable seller may have the badge such as “Gold” and “AliExpress’ Choice” on the profile. And these sellers often have at least 3 years’ experience in the industry and own a ton of followers.

3. Check product reviews

Product reviews give more details about the product quality and the shopping experiences of previous buyers. Some sellers claim they sell the best items at a low price. But chances are that their items are not the same as described or their service sucks. This is where product reviews come in. You can get a clue about what the product really looks like through the photos and feedback from other buyers. However, take negative reviews with a grain of salt. Because there could be fake reviews from competitors of the seller. Just be sure to leave a page when you find the product has a high rate of negative reviews.

4. Be aware of products that are too cheap

Someone may come across a product that is extremely low-priced and still very good. But chances are you won’t be this guy.

Most often, products that are too cheap can be not as good as it is described on the website. Sometimes, you may get another item instead of what you order. It would be a waste of time to negotiate with your supplier and ask for a refund then.

5. Be careful with branded products

There are not many well-known brands on Aliexpress. If you find a pair of Nike shoes, it is probably a counterfeit. Importing such products to resell in your store will cause intellectual property infringement issues.

6. Buy a sample before you place a big order

It seems a hassle to order samples before placing a bid order. But it will pay off in the end. By buying samples, you will know if the product meets your expectations in terms of quality, appearance, and functions. Also, you can have an idea of how long it actually takes for delivery. Meanwhile, you can find out whether the supplier can solve your problem in a timely and proper manner.

7. Check the product carefully upon delivery

One effective tip to avoid scams on Aliexpress is to check the item upon delivery. Once your package arrives, take the time to inspect the product carefully and ensure it matches the description provided by the seller. Check for any damages, defects, or discrepancies in size, color, or specifications. If there are any issues or if the item does not meet your expectations, promptly contact the seller and initiate a dispute through AliExpress’s buyer protection program.

8. Don’t make deals with a seller outside of Aliexpress

Some unreliable sellers may entice you to make deals with them outside of Aliexpress. Don’t do that whatever they say. Instead, always stick to making purchases through the Aliexpress website or app.

Aliexpress only protects your transactions and handles disputes on this platform. Reputable sellers won’t ask you to do business with them privately. Avoid engaging with sellers who try to take the transaction off-site or ask for personal information via email or other communication channels.

9. Work with a sourcing expertise

If you want to source products from Aliexpress, the easiest way is to collaborate with a sourcing expertise like Sup Dropshipping.

With years of sourcing experience, we are able to find high quality products from reliable suppliers efficiently. Our negotiation skills allow you to get your desired products at the most affordable prices.

If you would like to source Aliexpress products by yourself, our Chrome extension is helpful to streamline the sourcing process. With a few clicks, you can find similar products at a lower price.

FAQs

1. Is it safe to buy from Aliexpress?

Aliexpress is a legitimate company and safe to use in most cases. However, some sellers on this platform may not be trustworthy. You should apply the effective tips we provide to stay safe from scams when buying on Aliexpress.

2. Why is Aliexpress so cheap to buy?

AliExpress is so cheap due to several factors.
First, most products are manufactured in China, where labor and production costs can be lower than in other countries. Mass production further reduces the cost per unit.
Additionally, AliExpress connects consumers directly with manufacturers and wholesalers, cutting out multiple intermediaries. When you buy in bulk, you can get discounts or coupons on selected products.
Furthermore, products on AliExpress are often from not well-known brands, which can also contribute to lower prices.

3. Are products on Aliexpress of good quality?

The majority of products on AliExpress are high-quality or meet the standard. But there are still lower-quality or counterfeit products available. You should read the product description and reviews carefully before the purchase. Checking the seller ratings and company file to find a reliable seller. If possible, buy a sample to find out whether a product meets your expectations and whether the seller’s service is satisfying.

4. Are there other sites as cheap as Aliexpress?

Yes, there are other websites similar to AliExpress that offer competitively priced products. Some popular alternatives include Temu, Alibaba, Banggood, and DHgate. Each platform may have its advantages and disadvantages. We made a detailed comparison between Aliexpress and these alternatives. You can read our comparison guides to make an informed decision.

5. Why is Aliexpress cheaper than Amazon?

AliExpress is cheaper than Amazon for several reasons. One reason is the difference in business models. AliExpress primarily operates as a marketplace connecting buyers directly with sellers, while Amazon sells products directly and also offers a fulfillment service. This difference can affect their pricing strategy. In addition, as mentioned earlier, most products on AliExpress come from Chinese manufacturers and wholesalers. These goods have lower production costs.

Conclusion

Now you have known why stuff on Aliexpress is so cheap. To buy from Aliexpress safely, you still need some strategic tips. The easiest way is to work with Sup Dropshipping so you can be free from any potential scams and source better products at the most affordable prices.

Ready to start your journey with Sup? Now is the best time.