Last Updated on February 16, 2022
When choosing an electronic retail platform to order goods from, it is important to know the options’ differences, advantages, and disadvantages. So what you need to take into account is your business type, purchasing process, logistics, and, of course, financial capabilities, too.
In this article, we will focus on two of the leading online retailers of 2021, which are AliExpress and Banggood. We will analyze their pros and cons, their differences, and which one would suit you best.
Definition of AliExpress
AliExpress is an online retailer based in China. It was launched in 2010 and now consists of smaller businesses in China and other countries, such as Singapore, that offer goods to international online shoppers.
- Owner: Alibaba Group
- Location: China
- Top 3 Markets: Russia, United States, Brazil
Definition of Banggood
Banggood is a Chinese global electronic ecommerce website that offers products to online buyers all around the world. This e-tailer bills itself as Amazon, offering “the best bang for your buck,” selling a variety of goods, from clothing to toys, electronics, and more. Sales categories even include cars and tools, industrial and scientific goods.
- Owner: Banggood
- Location: China
- Top 3 Markets: United States, Brazil, Italy
Difference Between Banggood and AliExpress
Comparing AliExpress vs. Banggood required rather deep research on both platforms. We have covered numerous parameters of both online retailers. Hopefully, it will help you pick the platform that best suits your business and needs.
| AliExpress | Banggood | |
| Pricing | Low | Higher |
| MOQ (Minimum Order Quantity) | No | No |
| Startup Costs | Low | Low |
| B2B/B2C | B2B/B2C | B2B/B2C |
| Dropshipping | Yes | Yes |
| Shipping Costs | Free to Low | Low |
| Private Labeling | No | Yes |
| Buyer Protection | Yes | Yes |
| Wholesaling | No | Yes |
| Lead Time | Instant | Instant |
| Service | Yes | Yes |
Method of Evaluation
While doing our research, we focused on 11 key parameters, which, in our opinion, perfectly showcase the difference between AliExpress and Banggood and identify the pros and cons of each platform:
- Pricing: whether prices are low or high;
- MOQ (Minimum Order Quantity): whether there is a minimum;
- Startup Costs: how high they are;
- B2B/B2C: as a target market;
- Dropshipping: direct-to-consumer shipping;
- Shipping Costs: average shipping pricing;
- Private Labeling: whether it is possible to customize a product;
- Buyer Protection: whether it is available;
- Wholesaling: whether it is possible to buy7 in bulk;
- Lead Time: how long it takes to process an order;
- Service: who is responsible for the execution.
Pricing
Price is one of the most important factors affecting the market. Clearly, the platform with better offers attracts more customers.
AliExpress
AliExpress is known for its attractive prices made possible by the partnership the platform has with its sellers. AliExpress sellers have a lower commission rate, and it allows them to significantly drop their prices.
Let’s take a look, for instance, at the Hiseeu 8 channel NVR Outdoor camera. AliExpress offers this camera for $188, which is a pretty low price.
Speaking of money, if you want to get the desired product for a reasonable cost, there is a perfect tool to keep an eye on the price. It’s called Alitools, and it’s available to download as a free extension for your browser.
Alitools works with many retail platforms, so you can compare prices on AliExpress vs Gearbest vs Banggood and others. Click here to download the extension:
Banggood
So, the camera worth $188 on AliExpress will cost you $267.99 on Banggood, which is double the former price.
MOQ (Minimum Order Quantity)
MOQ, or Minimum Order Quantity, is the smallest amount of product you can purchase on an ecommerce platform.
AliExpress
There is no MOQ limit on AliExpress. You, as a customer, can buy as many units as you wish.
Banggood
There are no MOQ requirements on Banggood either.
Startup Costs
A true entrepreneur will always try to reduce the initial costs as much as possible in order to reduce risks to a minimum.
AliExpress
Dropshipping with AliExpress requires minimal start-up costs, making it an ideal business for beginners. Vendor partnerships do not require any commissions or upfront payments, allowing you to test different goods without significant investment.
Banggood
You do not have to invest any money to start dropshipping with Banggood, as their affiliate membership is free. You can get started simply by joining the Banggood affiliate program.
B2B/B2C
The target market, whether it’s consumers or businesses, has a great influence on the offer of the marketplace. In other words, the platform always provides the best conditions for a group of target customers.
AliExpress
AliExpress is designed for the B2C segment. However, it is also popular among small businesses that place products on the platform. By the by, an entrepreneur can have quite profitable wholesale offers.
Banggood
In case you only work with customers, Banggood’s affiliate marketing may be an ideal program for you. With the help of it, you get a commission whenever someone you refer places an order. It is not as complicated as dropshipping because you only promote links and banners and send the customer to buy on the Banggood’s website.
Dropshipping
Dropshipping is a business model that allows you to sell your goods online. However, when a customer purchases a product, your supplier then ships it directly to the customer on your behalf.
AliExpress
While AliExpress may position itself as an online store, most sellers on AliExpress have come to realize that a significant number of their customers are resellers who are much more interested in dropshipping. Dropshipping with AliExpress is also rather easy. There are no upfront fees, so you can test various goods without much financial commitment.
Banggood
Dropshipping with Banggood is a great way to run your business without having to manage your inventory. You can focus on marketing and let Banggood do all the logistics!
Shipping Costs
Shipping costs can play a huge role when you’re choosing between online retail platforms, so it is important to know in advance what they look like.
AliExpress
Luckily, AliExpress often pleases its customers with free shipping. There is also the option to filter out items that have no free shipping. In all other cases, the price will vary a lot. Standard shipping is generally inexpensive, whereas express shipping can take up to 14 working days and is much more expensive.
Banggood
Shipping costs and delivery times will vary depending on the size of the item, its total weight, and the destination. For instance, to the United States, expedited shipping, as well as Banggood Express, may take approximately 10 to 15 working days.
Private Labeling
Putting on a private label is personalizing the purchased item. Sometimes manufacturers might meet your needs and make small design changes if you order in bulk.
AliExpress
Unfortunately, there is no possibility to put your label on the products sold on AliExpress.
Banggood
Bangood sells a wide range of both branded and non-branded goods. One of the benefits of selling unbranded items is the ability to attach your own brand to them. Tying your brand to a non-branded product, known as private label dropshipping, is a great way to increase sales and make your products authentic.
Buyer Protection
Shopping online always comes with an increased risk of fraud. Retail platforms have come up with Buyer protection policies to reduce the risk of losing money.
AliExpress
AliExpress has a Buyer Protection Policy, which guarantees to refund your money if your product has not been delivered within the Buyer Protection Period. You can easily contact the seller and apply for a refund for the product. In general, you can expect to get your money back within 15 working days. Nevertheless, you can always contact AliExpress themselves to resolve the issue.
Banggood
As a Buyer Protection Policy, Banggood offers the following guarantees:
- 3-day DOA guarantee of the product (if your item has come damaged);
- Product warranty (if the item you received does not comply with your order);
- 3-day return window (if you are not satisfied with the item);
- Cancellation policy (if your delivery is significantly delayed, you can contact the seller to cancel your order).
Wholesaling
Wholesale is the ability to buy in bulk. This is commonly practiced by retailers who have many orders and need to store items for fast delivery.
AliExpress
You can purchase multiple items by adding them to your cart, but it does not have the same features as Alibaba. However, it is a great option for small and medium-sized businesses looking to purchase cheap products for their stores.
Banggood
With Banggood, the more you purchase, the more you save. You can easily save money by adding more items to your basket and getting a higher discount on bulk orders.
Lead Time
Lead time is just another term for “order processing time”.
AliExpress
AliExpress sellers ship products almost instantly. Since no private labeling or customization is required, the items do not need to be changed. They are just stored, waiting for customers to order.
Banggood
Depending on the number of orders in the Banggood’s system that need to be processed, it can take up to 2 days for a standard order to be processed. But Banggood sellers usually try to ship items as soon as they can.
Service
We also evaluated the two ecommerce platforms in terms of their customer service.
AliExpress
AliExpress has a live chat facility on the website but does not offer direct phone support. The company’s website also has a dispute resolution service to report suppliers or request a refund.
Banggood
Banggood customer support can be reached from their contact page on the website. You can contact them for pre-sales inquiries up until you receive your item and you are not satisfied with it. Banggood’s recommended method of contact would be per email, and they guarantee a response within 24 hours of filing the complaint.
Conclusion
If we compare both AliExpress and Banggood online retail platforms, it is clear that Banggood is a reasonable online store with an excellent range and services. It will suit those who are interested in:
- Having their items customized and putting a private label on them;
- Reducing all risks to the minimum;
- Starting their dropshipping business with minimal costs.
On the other hand, AliExpress does a little better in other areas. You should try this one if these things are extremely important to you and your business:
- Low prices;
- Low shipping charges;
- Wide range of products.
So you certainly should take a look at Banggood, but as for now, we will pick AliExpress as the best platform for ordering goods.
Thank you for taking your time, and don’t forget to follow the article updates to learn all the latest news on the biggest ecommerce platforms!
FAQs
Is AliExpress same as Banggood?
Banggood is a little older than AliExpress. Banggood claims that its app is the most popular and downloaded mobile shopping app across Europe. It is distinguished from AliExpress because all the products on the site are sold directly by Banggood. On the platform, there are no third-party sellers.
Why is Banggood cheaper?
Banggood buys products directly from producers, bypassing the retail mark-up, allowing them to offer you low prices. Apart from that, due to low production costs and low taxes in China, Banggood and other Chinese online shopping platforms offer low-cost products compared to other online shopping platforms.
Is Banggood a trustworthy website?
Banggood is a legitimate online shopping site that sells a wide variety of items at low prices. However, not all the items they sell are exactly as described, and getting a refund is usually impossible. So, before making a purchase, be cautious and read reviews.
Is there anything better than AliExpress?
Gearbest is one of the most popular AliExpress alternatives, owing to the fact that it sells similar products and ships quickly. Gearbest, although founded after Aliexpress, has gained more trust. It frequently holds sales in order to attract new customers.
