Americans Need Aliexpress USA: Another Alternative to Amazon

29 August, 2016 | Charles
Americans Need Aliexpress USA: Another Alternative to Amazon

What is Aliexpress?

Aliexpress is a retailing side of Alibaba. It is a global marketplace to purchase stuff in small quantities and is becoming a global giant in online shopping. Alibaba is a Chinese-based global e-commerce giant and Aliexpress is one of its many successful projects and subsidiaries. Through Aliexpress, shopping is done online throughout the world and especially the Chinese products are shipped worldwide. Not only is it the most visited e-commerce website in Russia, but all over the world, Aliexpress is a secure and trusted platform for mainly the Chinese products for the international buyers. Buyers in the developed world particularly USA have placed a great trust on the services of Aliexpress USA.

Aliexpress USA vs Amazon.com

Headquartered in Seattle, Amazon is an American e-commerce giant and to its comparison vs Alibaba’s Aliexpress USA, many eyebrows have been raised throughout the recent years. There are many similarities and many striking difference between the two giants. Both were founded in the 90’s but have strikingly different services and business models. The biggest difference is the commitment to small business. Amazon tends to stay relevant to online e-commerce whereas Aliexpress tends to promote small business and benefit both buyers and sellers. Amazon on the other hand is obsessed with its customers and does not promote the sellers as much as Aliexpress.

Aliexpress USA

“…we want to help small businesses grow by solving their problems through Internet technology. We fight for the little guy.” Said Jack Ma of Alibaba. Aliexpress always cares for its employees and gives them utmost job security and priority. Amazon is often criticized for ignoring small business to compete in the market and to stay relevant whereas Aliexpress is in a striking contrast to this approach. Moreover, the transaction rate of Aliexpress USA is far greater than that of Amazon. Even though Amazon charges more transaction fee as compared to Aliexpress but due to less transaction fee but more business, Aliexpress makes far more profit than Amazon. Sometimes, this profit of Aliexpress is as high as 10x more than what amazon makes.

Amazon

Payment and Shipping Methods

Payment methods on Aliexpress are quite simple and convenient. PayPal, Boleto, Visa, MasterCard, QIWI, Western Union, Maestro debit card, WebMoney and bank transfer can be used. More payment options will be available on AliExpress in the future. 

Shipping on Aliexpress is protected and secure (insured). Aliexpress is popular due to many reasons but their quality shipping is one of the main reasons of their populariry and success. Following are the shipping methods used on Aliexpress.

Shipping Type

Shipping Company

Delivery Time

Weight

Successful Delivery Rate

Express Delivery

EMS

5-10 days to the US and most  European countries

Less than 30kg

Good

Express Delivery

DHL
UPS 
FedEx 
TNT

SF

3-7 days to the US and most European countries

No limit

Very good

Postal Service

Air Mail (China Post)

10-20 days to the US and most European countries

Less than 2kg

Medium

User Experience

Both Aliexpress and Amazon are competing at a very high level and both giants have major plans for the future but the user experience matter a lot in their future. Aliexpress is getting more and more positive and encouraging reviews from the users worldwide and particularly from American users because of their user protection policy and cheaper shipping costs as compared to Amazon. In this way, amazon is trying to keep up the pace with Aliexpress but Aliexpress is speeding ahead of Amazon. In contradiction to Amazon, Aliexpress focuses a lot on B2C platforms and encourages small business to grow, therefore, it is getting a lot of appreciation from the users worldwide. Amazon is believed to be hated by the users in terms of small business operations and it has created a negative impression of Amazon especially outside the US.

The business model and shipping methods of Amazon according to user reviews have been more of a greedy and corporate in fashion. Aliexpress focuses less on its shipping costs and more on getting more customers to capture the market and that is one of the reasons that alone in USA, Aliexpress USA did 50x better than Amazon in 2013 alone. Creating warehouses, ignoring small businesses, giving less value to the employees and being more greedy are some of the reasons Amazon is not doing as good as Aliexpress.

Legit and Safety

Aliexpress is known for the legitimacy of its sales and safety along with the protection of buyers and sellers both. There is a well-developed mechanism to ensure the safety of the shipping throughout the process and it is fool proof to a great extent. It guarantees full refund if the buyer does not receive the order and full or partial refund if the order is not as described. There is a simple three-step dispute mechanism to claim the refund and no other e-commerce website provides such protection and security and this prevents frauds and scams to a great extent.

Amazon stocks their own products whereas Aliexpress USA does not do that. Amazon buildswarehouses in order to try and take over the e-commerce industry and that actually makes it more challenging for them. This actually costs them more money because building and maintaining a warehouse is an uphill task and in the longer run, it is actually causing them more money to lose in contrast with Aliexpress USA. That is one of the reasons that the profit ratio of Aliexpress was 50x times higher than Amazon in the year 2013.

Conclusion - Amazon vs Aliexpress

Concluding the comparison and predicting the future of the both giants, it can be said with confidence based on the user experience that Aliexpress USA has a brighter and more successful future purely based on their business model and business strategy. The ingenuous model of Aliexpress that is the subsidiary of the legendary Alibaba suits everyone including small business owners, major corporations and brands, individuals and retailers. Everyone fits in and the shipping methods are safe along with the cost that is more affordable for everyone involved in the process of transactions. Aliexpress has given a whole new concept to the global trade and is facilitating to make the process of globalization move at a faster pace worldwide. The future is bright for both the giants but in order to compete with Aliexpress USA, Amazon will really have to come up with a whole new game plan and business strategies.

Aliexpress does not sell stuff and instead they just facilitate people to exchange it from one hand to another whereas Amazon tries to sell and stock stuff. At present, Amazon does dominate the American market and Aliexpress has a strong hold on China and the rest of the world but Aliexpress is rapidly increasing its sales in American market and is likely to surpass the dominance of Amazon in America by their heavy invetments in the North American continent and that is highly likely to get them results.

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