This week we have another question from you guys that we loved! Jonas wrote to us asking;
How can we compete with Aliexpress?
Hi, We have considered staring an online business. We really don’t have an excuse not to give it fair go as we design and create websites including shopping carts. I know it is more involved than that to have a successful online business but at least we can save on that expense. We have thought of a few different products that we possibly can sell. What makes me unsure of this adventure is how do we actually compete with for example Aliexpress? I know they say Aliexpress is a b2b retailer but when it comes down to it I reckon they are as much a b2c retailer – as anyone can buy products from them at low quantities. How do we, that what to run an ecommerce site and most likely get our products from Aliexpress compete with them after we have added our mark-up? Would be very interested I hearing your views or thoughts on this or if you have heard anything from any of your users that might have expressed similar concerns. Thank you for a good website with some useful information
Kind Regards, jonas
Answer: You Don’t!
Totally agree that Aliexpress is becoming more and more B2C, and that you shouldn’t try to compete with them. We were in China on an Alibaba/Aliexpress panel last year, and along with everyone else on the panel we stated our concerns about how B2C Aliexpress was becoming. They politely took notes, unfortunately it does not appear that the suggestions will be taking place. That doesn’t mean that you can’t use them to get started however, and two of the key things to remember when launching an online business (or any other business for that matter), is that you will always have competition and there are different kinds of customers. When we first started, we sold products on ebay, that we now sell for 2-3 times more on our website. The products are the same, but they are presented and packaged differently, we offer more services and add-on’s with them and they are sold to different customers. The value to the customer has increased greatly and the profit margin for us has also increased creating a win/win.