Have you been scrolling through AliExpress, looking at the low prices, and wondering, “How can everything be so cheap?”
You’re not alone!
This is actually a super common question.
In this article, we’ll dive into the 13 reasons that make AliExpress products so cheap.
For instance, did you know that shipping from China to the US is so cheap because it’s subsidized by the US government?
Keep reading to learn more!
13 Reasons why AliExpress is so cheap
Here are the 13 reasons why AliExpress is so cheap:
- Mass production and economies of scale
- There are no middlemen
- Lower labor costs
- Less stringent regulations
- Copycat products and intellectual property issues
- Cheaper materials and components
- High competition among sellers
- Subsidized postal rates
- Lesser focus on customer service
- Cultural aspects of pricing
- Low operational costs
- Manipulation of the Chinese currency
- Welcome deals or selling remaining stock
Let’s discuss them one by one:
1. Mass production and economies of scale
The first reason why AliExpress can offer such low prices is because of mass production and economies of scale.
This is a concept that’s crucial to modern manufacturing.
Imagine walking into a factory where thousands of identical products are produced daily. This is mass production, and it’s a common scene in many Chinese manufacturing plants.
By producing items on such a large scale, these manufacturers can significantly reduce the cost per unit.
It’s like buying in bulk from a wholesaler; the more you buy, the cheaper each item becomes.
The same principle applies in manufacturing!
2. There are no middlemen
The absence of middlemen is another reason that makes AliExpress cheap.
In a typical retail chain, products pass through several hands before reaching the consumer.
There are manufacturers, wholesalers, distributors, and retailers, each adding their markup along the way.
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