Why Is AliExpress So Cheap? 21 Secrets Behind Low Prices [2025]
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AliExpress is famous for its unbelievably low prices on everything from electronics to clothing and home goods. But how can they sell products at a fraction of Amazon’s cost? Is AliExpress actually cheaper in 2025, and why?
This article dives into the real reasons why AliExpress prices are so low, with updated insights for 2025. Let’s get started!
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Why Is AliExpress So Cheap in 2025?
Why Is AliExpress So Cheap in 2025?
Traditional retailers add 30–50% markup to cover distribution costs, while AliExpress lets buyers purchase directly from manufacturers.
Example: A Chinese factory sells a $2 phone case on AliExpress. After distributor markups and retail costs, the same item could cost $12–$15 in a U.S. store.
AliExpress sellers use Cainiao, YunExpress, and 4PX, which handle over 70% of shipments instead of costly postal services.
Fact: AliExpress Standard Shipping takes 10–20 days to the U.S. and 12–22 days to Europe. Free shipping options take up to 6 weeks.
Up to 30% of AliExpress products receive negative reviews due to poor quality. Sellers often cut costs by using cheaper materials.
🔍 Buyer Tip: Always check seller ratings above 95% and review real customer photos before purchasing.
A physical store in the U.S. costs around $34,000 per month to operate, while an AliExpress seller pays $0–$1,500 per year in store fees.
Over 70% of AliExpress sellers offer bulk discounts, reducing prices by 30–50% for large orders.
Example: LED string lights priced at $2 per piece drop to $1.20 per piece when buying 50+ units.
China keeps the yuan undervalued by 6–10% compared to the U.S. dollar, making exports cheaper.
Fact: A $10 item on Amazon could cost just $7–$8 on AliExpress due to exchange rates.
A study of 1,000 AliExpress orders found that 12% had misleading descriptions and 8% were defective upon arrival.
🔍 Buyer Tip: Use AliExpress Buyer Protection and open disputes within 15 days if you receive a faulty product.
Chinese manufacturers produce in massive volumes, reducing per-unit costs significantly.
Example: A phone case on AliExpress costs $0.50–$1.50, while a U.S. supplier charges $8–$12 for the same case.
AliExpress has over 150 million active buyers, focusing on budget-conscious shoppers rather than premium brands.
The average salary in China is 33% lower than in the U.S., cutting production costs significantly.
Only 20% of AliExpress products meet strict Western safety standards.
Over 30% of AliExpress sellers offer lookalike or imitation products.
AliExpress sellers use lower-grade plastics, synthetic fabrics, and unbranded electronic parts to cut production costs.
There are 10+ sellers competing for every popular product, leading to price wars.
China’s shipping subsidies have decreased, but AliExpress sellers still benefit from low-cost logistics.
Many AliExpress sellers operate at 5–10% profit margins, compared to 30–50% for Amazon sellers.
New AliExpress users often get $2–$5 off their first purchase.
Sellers often undercut competitors by 5–20%, forcing prices lower.
Running a physical store costs 10–50x more than an AliExpress online shop.
Studies show 15% of AliExpress products are inaccurately described, leading to buyer complaints.
Unlike Amazon or eBay, AliExpress does not require sellers to verify product safety for most items.
Example: A $20 smartwatch on AliExpress may lack FCC certification, while a $100 smartwatch at Best Buy is fully tested and certified.