When we search for products from the international e-commerce platform Aliexpress, we can find some products’ prices are so cheap that even under one dollar, while only the shipping cost will be a few dollars or tens of dollars for the courier cost, why they can sell prices like that? Do they have profit? Won’t they lose money or how they make profit?
1. Charge Shipping Cost
The price of the product is low, but the shipping is not free, they can charge you extra money for the shipping. For example, a product selling for 6.8 dollars, the shipping charge of 6.08 dollars, a total of 12.41 dollars, after all, the low price is very attractive.
So when you select products to buy, check if the shipping is free.
2. Promotion
Sometimes to attract people to buy, the seller or the platform will lower the price to promote the sales. The intensity of the promotion will vary, sometimes it is very large, and the price is very low. But this kind of product usually has a buy limit, like only allowing one to buy one piece, or only in a few weeks.
3. Original Factory
The Seller are original factory that produces the product. There are no profits taken by middlemen, thus reducing the cost and price of goods.
4. Low Shipping Cost
Aliexpress shipping cost is relatively low, especially for very light products, the shipping cost will not be very high. For example, small packages are charged by gram, which makes the shipping cost relatively low even for small items.
5. Large Sales
AliExpress has a large user base and a huge number of orders are placed every day. This enables sellers to reduce unit costs through bulk purchasing and production.
6. Competition
There are many sellers on the AliExpress platform, and the competition is fierce. To attract buyers, many sellers will compete by lowering their prices.
7. Get More Orders
To gain an advantageous position on the platform, some sellers deliberately lower prices to attract buyers. At the same time, the lower the price, the more popular the product is with buyers, which also prompts sellers to lower prices to obtain better sales and reviews.
8. Overcapacity Products
As a sales channel, AliExpress clears inventory by selling at low prices in response to the overcapacity of certain product categories in China.
Conclusion
Aliexpress is a good platform for international retail, you can find a lot product that is good and cheap.
