Hi,
Aliexpress is a China-based company that provides online retail services, it was launched in 2010 and is owned by Alibaba group. It’s is an e-commerce platform that helps small businesses to sell their products to international customers.
More than 100 Million products are available which are ready to sell on Aliexpress, by this we can understand the number of manufactures available on this platform, and because of this competition is very high among the manufacturers including product cost, quality, shipment, etc.
AliExpress started as a business-to-business buying and selling portal. It has since expanded to business-to-consumer, consumer-to-consumer, cloud computing, and payment services, as well.
Reasons behind cheap product cost:
- Cheap labor cost as the products are made in china
- Products are brought directly from the manufacturer, so no taxes and profit are shared
- Products are purchased in bulk so they shipped in bulk which reduces the shipping cost
- Commission rate is lower than other platforms
- Since the competition is very high so, need a lower price to gain the marketing
- AliExpress suppliers are overseas manufacturers and wholesalers selling their goods at a lower price
If you wanted to become an entrepreneur, AliExpress dropshipping via Oberlo is probably the most straightforward strategy you can use to begin your online business.
Happy Selling,
