Alibaba.com and Aliexpress.com are two trading platforms belonging to the Alibaba Group, a company based in Hangzhou, China. Although the differences between the two portals are difficult to grasp at first glance, they are two completely different business models, each with different strengths and weaknesses.
I hope that reading this article can help you choose the most suitable portal for your specific case.
The main features of Alibaba.com
- as it is a B2B (business to business) portal that connects manufacturing companies – especially Chinese but not only – to importers from all over the world
- No online payment method is specified, so the buyer must negotiate the price and other terms of the transaction via email, phone or chat on the Alibaba website
- There is no transaction fee or commission to be paid to Alibaba, whose main source of profit is the Gold Supplier program. To become part of this program, manufacturing companies, in addition to paying a certain amount, must also prove that they own a legally registered company and provide other important information such as the registered office and share capital of the company (information that will be verified by an Alibaba employee). So closing a deal with a supplier who is enrolled in the Gold program is certainly safer (I recommend that you discard suppliers who are not enrolled in the program in advance). Keep in mind though that Alibaba does not offer any guarantees about the quality of the product you will buy
- The vast majority of suppliers you’ll find on Alibaba don’t keep any stock of goods in stock. Instead, they will only produce the goods you intend to buy after you have placed your order and paid an advance on the total amount of the transaction
The main features of Aliexpress.com
- com is a B2B and B2C (business to consumer) portal that connects wholesale export companies – especially Chinese – to importers from all over the world
- The suppliers on Aliexpress specialize in small purchases (even from one to ten pieces per order). Such a platform is therefore more suitable for small to medium-sized importers who cannot or do not want to order an entire container of goods
The Differences Between Alibaba and Aliexpress
Minimum Order Quantity (MOQ)
A manufacturing company needs to enforce a certain MOQ, i.e. the minimum quantity of goods to be ordered. If you can’t or don’t want to meet a certain MOQ, the supplier simply won’t agree to close the deal (follow the link above to learn more about the reasons why it’s mandatory to meet a certain MOQ).
Alibaba: Suppliers tend to require a fairly high MOQ. The main reason is that, not owning any goods in stock, they have to buy raw materials and components so that they can fulfill your order. And suppliers of raw materials and components require that a certain MOQ be respected in turn. Many consumer products, such as wristwatches, tend to have a MOQ of around 300 pieces. The MOQ requirement is always intended for a specific product. So, if you’re planning to order two types of products at once, keep in mind that the MOQ will double (even if you order both products from the same supplier).
Aliexpress: Most suppliers are satisfied with a very low MOQ (even less than ten pieces per order). The reason for this is that wholesalers on Aliexpress buy goods from one manufacturing company and then resell them to several customers at a time. This eliminates the MOQ problem but has, as we will see, an impact on prices.
Price
The price of a given product is essentially based on two factors: the quality standards required and the volume of goods you intend to order. The approach to price negotiation varies depending on whether you’re haggling with a supplier on Alibaba or Aliexpress.
Alibaba: There are no fixed prices. First, you need to submit the specifications of the product (color, size, materials, certificates, etc.) you want to buy, the shipping terms you prefer (Incoterms), and the quantity of goods you plan to order. Only then will the supplier have all the information they need to offer you a quote. Continuing with the example above, the price of a wristwatch can range from 2 to 200 euros depending on the quality standards and delivery terms required. Clearly, if you can meet the MOQ on Alibaba, you will get much more favorable prices than what you can find on Aliexpress.
Aliexpress: The supplier publishes a list of products and prices (corresponding to the number of pieces you intend to order). There is usually no great deal of room for negotiation. The prices you will find on Aliexpress will be higher than those you can tick on Alibaba where, however, as already pointed out, you will be forced to order a higher quantity of goods.
Customized products
Creating and advertising your own brand instead of importing and selling anonymous goods increases the perceived value of your products, even if it’s not too well-known brand. A “trademark” can also be simply a logo printed on the product or a particular color scheme.
Apart from the brand, there are those who want to design, manufacture and market an innovative product, which is not yet available on the market.
Alibaba: Most suppliers can make a customized product and/or complete with a logo. Keep in mind, however, that designing and building a new product requires a list of product specifications and detailed graphic designs.
Aliexpress: Wholesalers on Aliexpress simply buy ready-made products from a manufacturing company and resell them on the internet. So this is not the right place to order a customized product.
Certification standards
Some product categories such as consumer electronics, toys, plastics, food and others must meet certain certification standards if they are to be imported into Europe. Many importers assume that imported products always meet these standards. This is a common but deadly mistake.
Goods made in China rarely meet European standards – unless such goods are specifically produced for a European importer who has specified a given standard – and a product that does not possess the required certifications is illegal. Here are some of the most common certification standards:
- Consumer electronics: CE, RoHS, EMC Class A and B
- Toys: EN71
- Plastics: REACH
Alibaba: You will have the option of requiring the supplier to make a product that meets a certain certification standard. Not all suppliers on the portal will have the experience and ability necessary to comply with the constraints required by the European Union; You will then need to select a provider that has the appropriate expertise.
Aliexpress: The products on Aliexpress hardly comply with European certification standards. However, keep in mind that not all products require a certificate; so if you want to import a product purchased on Aliexpress to Europe, I suggest you avoid product categories for which a certificate is required.
Quality issues and other risks
It is no coincidence that in China there are countless companies that deal with ensuring quality and preventing fraud: importing from China is risky and, if you do not proceed with caution, you risk bankruptcy.
Alibaba: Not all suppliers will be able to make a product that meets the required specifications or certificates, especially if it is a customized product. You will therefore have to invest the necessary time to put together a list of suitable suppliers. I recommend that you do not start your search until you have a detailed list of specifications and that you discard suppliers who are not enrolled in the Gold Suppliers program. I also recommend that you prepare a sales agreement and have it signed by the supplier you choose before paying the advance and starting the production phase. These are in fact the three basic steps to prevent quality problems.
Aliexpress: You should always order a sample of the product before proceeding with an important order. On Aliexpress, you can also read reviews from past buyers on supplier pages (like on eBay). I recommend that you always read these reviews before placing an order.
Delivery time
When ordering a product from China, you need to consider the time it takes to choose the most suitable supplier, the production time, and the shipping time.
Alibaba: It can take months to identify the best supplier, verify the product samples, negotiate the price, prepare and get the supplier to sign the sales agreement, produce the goods (usually it takes about a month), and ship them from China to Europe (about a week by air and about a month by sea). You can always choose a supplier at random and order the goods without having them sign any sales agreements. It is certainly faster but you will be facing a very high risk.
Aliexpress: The goods have already been produced and ready for delivery. If you’re ordering on Aliexpress it’s probably a small purchase so it wouldn’t make sense to ship by sea. The delivery time is therefore reduced to that necessary to choose the supplier and have the goods sent to you via airmail (i.e. about a week).
Summarizing…
| ALIBABA | ALIEXPRESS | |
| Minimum Order Quantities | High | Minimum (1 to 100 units per order) |
| Price | Low | Higher than what you can find on Alibaba |
| Customizations | Virtually unlimited | Unavailable |
| Regulatory | Many suppliers have the ability to produce products that comply with European | Generally, the products you find on Aliexpress do not meet European or American standards |
| Quality issues and risks | A good knowledge of the product to be imported and the ability to prepare a detailed sales agreement is required | You will get the product that the wholesaler is able to offer you. Nothing more and nothing less |
| Delivery time | It can take months | If you want even just 6-7 days |
I recommend Alibaba.com if…
- You intend to order at least a few hundred units of the same product
- Want to order a custom product
- Your profit margins are very small and you therefore need to buy the goods at the lowest possible price
- You intend to import consumer electronics, toys, plastics, or other products into Europe or the United States that must comply with a certain certification standard
I recommend Aliexpress.com if…
- You intend to order less than a hundred units of the same product
- You are not interested in a customized product or even in creating your own brand
- You can afford to buy at a higher price than you could find on Alibaba.com
- You intend to import into Africa, South America or a country that does not require stringent certification standards, or you intend to import into Europe or the United States a product that is not required by law to meet any standards (note that such products are rare)
- You need the product quickly (less than a month)
Disclaimer
This article is provided for informational purposes only. Neither the author nor any of the companies and/or service providers mentioned in the text guarantee that the information is accurate, complete, current, suitable or valid. This article represents the views only of the author and has not been endorsed by any of the companies and/or service providers mentioned in the text.
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