Why is AliExpress So Cheap?

Affordability through Economical Factors

AliExpress's ability to offer low prices stems from its direct sourcing from Chinese manufacturers. This eliminates the need for intermediaries, reducing costs associated with distribution and warehousing.

Moreover, China's low production costs contribute to the affordability of AliExpress products. Factors such as inexpensive labor, favorable government policies, and efficient supply chains allow manufacturers to produce goods at competitive prices.

Subsidized Postal Rates and Intense Competition

AliExpress benefits from subsidized postal rates provided by the Chinese government to support exports. This reduces shipping costs, allowing sellers to offer free or low-cost delivery.

Additionally, intense competition among sellers on AliExpress drives prices down. With a vast number of vendors offering similar products, sellers engage in price wars to attract customers.

Mass Production and Economies of Scale

AliExpress leverages mass production to achieve economies of scale. Bulk manufacturing allows manufacturers to produce goods at a lower per-unit cost. This cost savings is passed on to consumers in the form of lower prices.

In summary, AliExpress's direct sourcing from Chinese manufacturers, subsidized postal rates, intense competition, and mass production contribute to its reputation for offering cheap products.