China's large wholesale chain stores have gained a large following in the western market. Every day the businesses that turn to these to supply their businesses are increasing, leaving aside even the giant Amazon. On Hispanic Entrepreneurs we explain the differences between AliExpress.com and Alibaba.com, the benchmarks of electronic commerce.
Origins of AliExpress.com and Alibaba.com
Alibaba.com owes its name to Jack Ma, its founder who thought that it was a recognized character in the world and easy to pronounce. It was the first online sales portal. It was launched in 1.999 with an investment of $ 60 after Ma was fired from McDonald's.
Along with 17 other people, he created the company with the vision of defending small businesses and with the belief that the internet would level the game. The idea was for these businesses to take advantage of technology to grow and compete effectively in national and global markets.
AliExpress.com debuted in 2.010 also by the richest man in China who was a professor at Hangzhou Dianzi University. It works under the motto “smart shopping for a better life”.
In other words, both are part of the conglomerate of 20 companies of the Ali Baba Group to which Yahoo also belongs. Annual active consumers of the Alibaba ecosystem reached 1,18 billion during the 12 months ended June 30, 2021. Of which 265 million are foreigners.
Differences between AliExpress.com and Alibaba.com
The two companies are affiliated with the Alibaba Group, but differ in some respects. Alibaba.com It sells countless products from screws, computers to dog food. But for orders a minimum quantity is needed, ranging from ten to thousands of units. That is, it focuses on wholesaling for large and small businesses.
It was created primarily to sell online between companies (business-to-business)For this reason, some of the orders are for tons or thousands of units. Generally offers quantity discounts. Many of its articles are not intended for the consumer, but for large companies such as construction materials and metallurgy.
Its suppliers are almost always Chinese companies and since there are large quantities, the process is handmade and made to measure. This is why customers should first discuss the details with the seller before making the purchase. Prices are often referential. They are manufacturers in volume, small scale or intermediaries. It operates with importers and exporters from 240 countries. Its main source of income is the membership paid by providers, which is why it charges commissions.
Meanwhile, AliExpress.com went on the market for intercompany buying and selling like its predecessor. But over time it entered the sale to individuals (business-to-consumer). Working similar to eBay or Amazon, except that it does not sell directly to consumers.
In this portal you can find wigs, clothing, mobile phones, accessories, household products, jewelry, costume jewelery, shoes and more. The seller can be a private business that offers from a unit.
When you add the product to the cart you will know the price, shipping costs and estimated time, so it is not necessary to contact the seller. It is made up of thousands of small Chinese stores for which it serves as an intermediary. Although it also sells a variety of products directly.
AliExpress.com puts its infrastructure and payment gateway in exchange for a commission. The stores themselves are the ones that organize the orders and ship them. It is based in some countries where it sells locally such as Spain.
More differences between AliExpress.com and Alibaba.com
Another important difference is that on Alibaba.com you will find cheaper products than on AliExpress.com. In the first one you can pay by bank transfer or credit card and the shipment is by sea or air. So delivery usually takes longer and you need to pay customs duties and taxes.
In the case of the second portal, you cancel by means of a credit card or Alipay, a payment system created by the Alibaba Group. Shipping is by mail, so it is more convenient, faster and cheaper. Many have free shipping or "Free Shipping".
Many of the stores that are on Alibaba.com also appear on AliExpress.com, so there is the possibility of buying some of these by unit. But it generally doesn't happen the other way around.
Alibaba's platform is more complex, you will find a lot of information and you must learn to use it so as not to get lost. By negotiating directly with the manufacturer, you can place the logo, choose a color, texture, etc., improving its quality. In addition to having all the certifications of your products and Dropshipping from your website unlike AliExpress.
