Alibaba.com Vs. AliExpress: What’s the difference between merchants and sellers?
Alibaba has been commonly referred to as the Amazon of China. Alibaba and Amazon are the largest competitors globally for the ecommerce market. Alibaba and AliExpress are managed under the same company. Alibaba is a highly-organized wholesale and product customization market with very fair pricing. AliExpress is a subset of Alibaba. So what’s the difference between the two?
Alibaba.com Vs. AliExpress: A general comparison
According to Alibaba, their website is meant for merchants to buy products at wholesale from Chinese suppliers. The purchases made on the website are shipped to almost every destination in the world. Their prices are very low per-unit pricing because of China’s wholesale strategy policy. Alibaba targets resellers, trading companies, and manufacturers. That means ecommerce stores can purchase manufactured wholesale products. They also have the option of customizing the items, for example, placing their brand logos. Merchants can also decide to have a new invention. In such cases, they can contact a manufacturer on Alibaba to start mass production on a prototype. Most suppliers are on both Alibaba and AliExpress. The most significant difference between the two is pricing. AliExpress has lower prices for small quantities. Alibaba operates on minimum purchase orders, and its costs are lower compared to most standard wholesalers.
Additionally, Alibaba has millions of unique products. Alibaba is best for large quantities at a per-unit cost, while AliExpress is best for smaller quantities at a higher price per unit. Don’t get confused though, AliExpress is still cheap. Both Alibaba and AliExpress are excellent platforms to find quality products at affordable prices for maximum profits.
Alibaba.com vs. AliExpress: Their difference for Merchants
Pricing
- Some of the products on Alibaba have the lowest prices for the product in the world. It is cheap to source products from China, a production and manufacturing giant in the world. Alibaba sells products in bulk; therefore, their costs are very minimal. The minimal cost of production translates to cheap sale margins, which is a win for the merchant. The merchant can make huge profits per sale. You can even negotiate with suppliers for better deals.
- AliExpress has a higher per-unit price since it doesn’t require the seller to make a minimum purchase order. Also, you cannot bargain on AliExpress.
Easier to use
- Alibaba’s interface matches that of other giant ecommerce platforms like Amazon. It is incredibly easy to use. However, it may take some time to get used to it. You need to find credible suppliers and learn how you can contact them. Additionally, the language barrier is a common problem since the suppliers are most likely not familiar with your language. The language barrier brings a lot of communication problems.
- AliExpress is also a simple interface to use. It is the best platform for dropshipping. Your communication with suppliers is limited, therefore saving you the hustle.
Duration for production
- Alibaba has a production time of 15 to 45 days. Often, you should add more time for shipping. The number of days it takes to produce depends on the bulk of the products. If you make a large order, it will take more time to produce. Other factors to consider is how far your country is from China. If it is far, it will take a bit longer for the shipment to arrive.
- Shipping on AliExpress takes 7 to 45 days. The suppliers here usually have stock ready to sell, rather than customizing products. That’s why their shipping time is shorter. However, it may take longer if you are drop-shipping directly to customers.
Private labels on products
- Alibaba offers customization needs. They include branding, packaging, invoicing, and labels on products. The manufacturers are very willing to create your product just the way you want it. You can have your branding or have the manufacturers invent new designs for you.
Buyer Protection
- Buyer protection on Alibaba is limited. You can talk directly to suppliers and get samples. Each supplier has their return policy. However, in most cases, the error is usually on the supplier’s side.
- AliExpress has a better buyer protection policy. Sellers and merchants can directly contact customer support to make complaints and request returns. The merchant can protect their purchase. An added advantage is that quantities on AliExpress are smaller, therefore more manageable.
Shipping Costs
- Shipping costs on Alibaba are determined by the manufacturer or supplier you choose. Factors that influence prices are shipping method, size of the order, and the supplier’s charges.
- AliExpress usually has free shipping. However, they sometimes include a fee. Since orders are in small quantities, the packages are small. They can be shipped using ePacket, which is cheap and fast.
Minimum Order Quantity (MOQ)
- Alibaba usually requires an MOQ. The most common unit requirements are 100 to 500. The platform operates on wholesale and bulk orders and supplies.
- AliExpress doesn’t require MOQ, since their order quantities are much smaller. If a supplier is requesting an MOQ, just find another supplier. Most companies that order on AliExpress drop-ship directly to their customers. Therefore, it is not cost-effective to buy a large number of items when you need just one.
Alibaba.com Vs. AliExpress: Pricing in Detail
Alibaba operates on minimum order quantities; therefore, their upfront costs are higher. However, the profit for the merchant is much higher if they sell all the products. Per unit costs for Alibaba are cheaper than AliExpress.
Upfront fees
You don’t require to make any payment to get started on Alibaba. You can easily access suppliers and a variety of products without signing up for membership. There are no restrictions on the website for looking through the site. You can communicate with suppliers to find out their MOQ and shipping costs. Alibaba is free up to the point of placing an order.
Product pricing on Alibaba
Alibaba serves the business market. Price per unit is very low since they sell in wholesale with most suppliers in China. The advantage to the merchant or seller is that they can access a large pool of suppliers and manufacturers at a go. Additionally, they can check the ratings and reviews from suppliers. You will mostly find lower MOQ’s, but product batches are more common. The batches range from 100 to 1000 batches. A search on Alibaba for men’s clothing will display shirts, shorts, and jackets. The shirts are available for custom printing, but you have to place an order for at least 100 units. Some items are more expensive than others. However, you can easily find the best deals possible. Additionally, you can order samples before committing to a full order.
Product’s pricing on AliExpress
AliExpress does not sell products at wholesale. Therefore, they have higher pricing. Businesses can easily purchase individual products for low prices on the platform. However, there isn’t bulk pricing, and therefore their cost per unit is higher as compared to Alibaba. However, their prices are still low. An online seller can make high profits from their products. Browsing and research are required to find the best suppliers with the lowest prices and highest quality products. You will notice that per-unit prices for clothes in AliExpress are far higher than in Alibaba. For example, a fancy winter jacket on AliExpress sells for $64. As a merchant, you can sell this for even the double price on your website. AliExpress prices are listed for individual products per item, unlike Alibaba, where there are wholesale listings. Some of the other clothes on AliExpress, such as jeans and hoodies, are cheaper. Ensure you always check with supplies to find out if they have high-quality products, fast lead, and delivery times.
Alibaba.com Vs. AliExpress: Fulfillment options
Alibaba Fulfillment
The fulfillment options for the two is very interesting. AliExpress offers an advantage here for merchants and sellers. When you buy from Alibaba, it’s the same as buying from a wholesaler. Your purchases will be shipped to your address. It is up to you to figure out how they will get to your customers. That means you have more work, such as packaging, branding, and shipping. All these increase your overhead costs. You can choose to partner with a third party company in your country. The company will handle your fulfillment in terms of handling and shipping. The overall upside is that you will still make significant profit margins for selling products from Alibaba.
AliExpress Fulfillment
In AliExpress, the consumer can order an item and get it delivered to their house. However, most merchants have their websites from which customers purchase goods. There are applications that allow you to automate the process. That way, you can take a product’s details from AliExpress and share them on your website. When a customer makes an order on your website, the details are directly sent to the supplier. The supplier packages the product and sends it directly to the customer. In such cases, AliExpress handles all the fulfillment requirements, which is an advantage to the merchant. The only disadvantage is that the merchant has no control over the product’s quality, and they don’t get to put their branding in the box. AliExpress relieves the merchant from spending time and money on warehouse storage, packaging, and shipping.