Why is AliExpress so Cheap? Is it worth it?

5 mins read

AliExpress is an online shopping site famous for giving heavy discounts and deals in bulk. These discounts leave customers in awe and some even question the validity of the deals offered on this site. Regardless of that, there is no denying that AliExpress is incredibly popular. No one clearly knows how AIiExpress is able to give these big discounts but in this article, we will try to shed some light on this topic. Why is AliExpress so cheap? Is AliExpress safe to use debit card? We will answer these and many more related questions.

Why is AliExpress so Cheap? Is it worth it?

AliExpress is a popular Chinese online store owned by the Alibaba Group. It is good for purchasing products at lower prices than other stores. The store was established in 2010 and is a Chinese multinational company that markets its products to international buyers online.

Why is AliExpress so cheap?

AliExpress website

If you are wondering why is AliExpress so cheap, well there are many reasons behind it and some of them are mentioned below.

Influence of the Chinese market

There is no doubt that rules and regulations of the Chinese market aid Chinese companies in making a max profit. When it comes AliExpress, it affects their business in the following ways.

  • Most of the merchants selling products on AliExpress are from China and thus they source all of their products from Chinese manufacturers directly. It means that they can afford to provide cheap shipping as well.
  • The Chinese government imposes low taxes on business owners and besides that many manufacturers are not liable to pay VAT when they export their products. Moreover, the cost of labour is lower which increases the margin and lowers the cost of manufacturers. Thus, manufacturers can afford to sell the products at a lower price and they are also encouraged to manufacture more products.
  • Another reason why is AliExpress so cheap is that you do not have to pass through the sales chain in which price increases when it passes from one middleman to another. As you get to buy directly from the manufacturer, thus you get to buy at a cheaper rate.
  • China is the number one country in manufacturing. There are many manufacturers who want to stand out and want to expand their business, so to do that they tend to lower the prices. They know that products with lower cost and good quality tend to attract customers more and there is intense competition, so they keep the product prices low and you get to buy so cheap goods.
  • Chinese factories are the best in the world to manufacture cheap products as they know how to use raw materials and energy efficiently thus the items made on AliExpress are manufactured in China therefore they are so cheap. Products manufactured in China have lower prices than products made in Europe or USA.

Other Factors

Money back guarantee | Why is AliExpress so Cheap

Some other factors that allow AliExpress to sell products cheaply are given below.

  • Suppliers offer great discounts and bulk deals on the product. Besides offering amazing discounts to customers AliExpress suppliers also provide great deals to retailers and drop shippers. For purchasing products in bulk, they also give extra price cuts.
  • AliExpress suppliers not only provide products at a cheaper price but the shipping cost is also very low or negligible. Suppliers can afford free or low shipping because AliExpress suppliers get a massive subsidy for exporting items. This happens only when the China post or Hong Kong Post is used by the suppliers to ship the products to countries that have trade agreements with China.
  • Alibaba Group also has to compete with other companies like American, Japanese, European, Latin American companies and more. So, to beat these companies AliExpress keeps the product prices cheap and the shipping cost also low so that it attracts customers and sales increases.
  • Another reason why is AliExpress so cheap is that AliExpress as well as the sellers on AliExpress does not invest much in advertising. A large advertising campaign is done not more than once a year thus low advertising cost leads to low prices.
  • AliExpress is cheap as it offers coupons which can be redeemed at any AliExpress store. You can make use of AliExpress coupons to combine orders from different stores, but you can use only one AliExpress coupon per purchase.

Note: AliExpress is banned in some countries.

Is AliExpress Safe to Use Debit Card and Credit Card?

Now let’s answer Is AliExpress safe to use credit card and is AliExpress safe to use debit card. Yes, it is safe to use a credit card and debit card on AliExpress. It is a convenient method to pay through debit or credit cards. But a lot of customers are tense about the security of AliExpress and they are not comfortable paying using their credit or debit cards.

Many people have complained about the unsafe experiences they have come across relating to credit card theft on AliExpress. People have complained of being scammed by deceitful people. Because AliExpress is an international shopping site, international hackers are present to steal your sensitive information.

But AliExpress has improved over the years in terms of their security as they have taken various security measures to make the customer experience safe and secure and to make AliExpress a safe website to use debit cards or credit cards.

  • The customer’s details and personal information are protected under the data protection law.
  • Besides that, AliExpress makes use of a 3D secure system so that the people who make payments through credit cards or debit cards are protected from being scammed by fraudulent people. So, when any customer makes payment through a debit card or credit card, then they confirm the transaction with the password which is given to them via SMS.
  • This website also makes use of an escrow payment system, this system ensures that your payment will not be directed to the seller from whom you have bought an item until and unless get your package.

Other Payment options in AliExpress

AliExpress is a global online shopping platform, thus it supports various payment options other than credit cards and debit cards. So, the other payment options which are common and convenient on AliExpress are PayPal, Bank transfers, Western Union, Webmoney, Yandex.Money, DOKU, QIWI and more. All the available payment methods in AliExpress focus on a better customer experience and the highest security.

Also Read: Opinion Outpost Review: Take Surveys, Make Money

Is AliExpress App Safe?

AliExpress features section | Why is AliExpress so Cheap

Yes. AliExpress is a legitimate website and shopping on AliExpress is considered safe because it is owned by Alibaba which is an established multi-national company. It is safe to make purchases on it and it also offers various buyer protection policies.

  • If you get items or products that are significantly different from how the seller described them then customers can claim refunds that are guaranteed.
  • Your purchases most of the time are delivered by a set date but if they get late then also you will receive a refund for late delivery.
  • It also has a dispute process which is managed by the AliExpress customer service team. So, if the buyers are not able to solve any problems that they may have with a seller directly, then they can open a dispute during the buyer protection period and the AliExpress dispute team looks into the issue and offers solutions to the buyer.
  • AliExpress also offers a secure payment method including a 3D secure system so that the people who make payments through credit cards or debit cards are protected from being scammed by fraudulent people.

You can also take some precautionary measures to protect yourself when shopping online at AliExpress. For instance, you can check out the seller reviews before purchasing an item, you should also watch out for fake products and make sure you are purchasing any item from the real AliExpress website.

Sushma Singh

Sushma is a financial expert and online entrepreneur. With years of experience in personal finance and business management, she is dedicated to empowering individuals to take control of their finances and make smart investment decisions. Through Moneymint's website, she provides insightful tips, strategies and resources to help individuals grow their wealth and achieve financial stability. Join Sushma on the journey to financial freedom today!

Latest from Blog