Last Updated on January 30, 2022
Often people do not understand the difference between these two sites, especially considering that they have the same founder. But they really are different. This article explains the difference between Alibaba and Aliexpress and compares their main criteria.
Before looking at the relationship of each of the platforms to business, pricing, attitude to customers, let’s look at how these 2 platforms have become.
To begin with, it is worth mentioning that there is a Alibaba Group company, which is closely connected with the sites we are considering.
Its founder is Chinese businessman Ma Yun (Jack Ma). In 1999, he set up a company specializing in online wholesale and retail. The trading platform was called, respectively, Alibaba. It was the holding’s first platform, which allowed Chinese manufacturers to find wholesale and retail buyers around the world and worked online. At that time, the number of goods was much lower, but now there are millions of positions in almost all areas.
At first, the company suffered heavy losses. But with the entry into the US market in 2003, it began to grow rapidly. The platform has been successfully operating to this day. Aimed primarily at wholesale sales.
With the development of the company, the number of assets that it owns also increased. So, in 2010, the Aliexpress trading platform began to work. It was created by the type of Alibaba, however, it is much easier for a private buyer to purchase goods on this resource, since it is intended specifically for retail. By nowadays, it has managed to rise to the largest corporation that competes with such giants as Amazon and Ebay. So, to the question ‘does Alibaba own AliExpress?’, we can reply that it still is owned by Alibaba and still is run by the same founder, Ma Yun.
Alibaba or AliExpress: What to Use for Business
Online shopping has long been a part of the lives of most people. Books, clothes, shoes, jewelry and even food, also any branded store has an online counterpart. However, not only stores are gaining popularity around the world, but also entire trading platforms for little-known Chinese brands. Aliexpress, Alibaba are sites that almost every network user knows about. But not everyone knows the difference between them.
Speaking about the business component of the two sites, buyers noticed a great similarity in the design of the Aliexpress and Alibaba online stores. There is an opinion that these are two competing Chinese stores. In fact, these are two completely different platforms, each of which is aimed at its own audience: wholesale and retail. The objectives and strategies of these stores are fundamentally different from each other.
When to Use Alibaba
Alibaba is the marketplace best suited for businesses importing large volumes of bulk products for resale online, in store, or for other businesses. Alibaba is primarily designed as a B2B platform, so it offers lower unit rates, opportunities to work directly with suppliers and manufacturers, and more opportunities to create custom products.
When to Use AliExpress
AliExpress is an online retail marketplace where everyday shoppers in the US and around the world can shop from manufacturers and resellers. AliExpress does not have a minimum order requirement, but prices are slightly higher. Many sellers on the website specialize in dropshipping, making it the best choice for small or start-up businesses that want to sell products online without having a warehouse.
Comparison of Alibaba and AliExpress
Fair enough that some buyers think the two platforms are similar. The site interface resembles each other. Both Alibaba and Aliexpress are available in English. But basically that is all about their similarities. If you still cannot decide which of these two options is more suitable, you need to understand a little deeper what volumes of supply of goods you are interested in, and whether you need to purchase financing, private label products.
The table below superficially shows it all about them ‘at one glance’. Let’s have a look.
Alibaba vs AliExpress at a Glance
Alibaba vs AliExpress for Business
Drop-shipping
Alibaba offers drop shipping to trade directly with factories, manufacturers and international wholesalers. Alibaba Dropshipping provides you with a free marketplace to source your original products, often with no minimum order quantity (varies depending on the seller and your arrangements).
All sellers in Alibaba Dropshipping Centers are Top Rated or Verified Suppliers, and many of them maintain Alibaba.com Trade Assurance protection policies that build trust between the two parties.
Alibaba takes the current privacy policy restrictions seriously and also recognizes the current lack of search filters compared to the AliExpress marketplace. Connects only to the Shopify and WooCommerce platforms. In addition, AliExpress market analysis tools provide a deeper understanding of sales trends and volumes with their own internal analytical extensions. Those using Alibaba Dropshipping must either analyze the data themselves or use a service provider partner including Modalyst, Syncee, Dropified, Sesam, and Sprocket.
Thus, when it comes to dropshipping, AliExpress is way ahead of Alibaba, as the latter has a deeper free built-in analysis system that is easy to use.
B2B/B2C
The huge difference between the two popular Chinese platforms lies in their business models.
Alibaba offers a wide range of products to another business (B2B model), ranging from daily necessities to electronics and home goods. It also deals with industrial equipment, which is of various and multi-purpose, and is also in high demand in markets around the world. Alibaba not only exports goods from China, but also from different countries. Over the years, it has grown as an online platform for international global trade.
Meanwhile Aliexpress is more focused on retail B2C business. It has a global reach and is designed for buying goods in small quantities or even piece goods that are shipped all over the world. Aliexpress can also often deliver products much faster because there are a huge number of reseller points around the world.
Wholesaling
Talking about wholesale trade, as already mentioned, Alibaba is a holding that is completely focused on wholesale sales on a large scale. The site mediates between the manufacturer or distributor with another company or entrepreneur. The information on the site is for informational purposes, according to the type of ads: that is, the offer is posted on Alibaba, but the entire transaction process is carried out with direct interaction between the seller and the buyer.
AliExpress also has a wholesale option, however, due to the fact that transactions are made through suppliers, resellers and third parties, the prices for such “wholesale” are a little bit higher.
Private Label
When it comes to finding private label manufacturers, Alibaba is an excellent source. Manufacturers everywhere tend to create custom-designed products or add small modifications.
With Alibaba direct-to-manufacturer products, you can influence the creation of your own customized and branded product. You can make the goods with your logo, picture, etc. at a very low price because they are added during the manufacturing process and not by a third party.
Suppliers on Alibaba are ready to make products according to your design, so you get a truly unique product.
You can find suppliers by searching by product or supplier. There are thousands of items on the list. From the results, you can find out more detailed information about the manufacturer. Or contact them to find out what modifications they provide with the products. You can also check out their response time reviews and reviews from other buyers.
On AliExpress, products are pre-made and ready to use, so customization options are limited and they are usually more expensive.
Very few vendors offer a white label, and none of them offer private label services. More often than not, those offering white labeling are also on Alibaba. You will have to look at a lot of sellers by contacting them to confirm if they offer this. If you want to build a brand with white label or private label products, AliExpress is not worth considering.
Alibaba vs AliExpress Pricing
Despite having totally similar items on the sites, prices are different there. Let’s read why.
Product Pricing
It is easy to buy goods at a discount on Aliexpress, because many stores regularly hold sales on old collections or goods in limited quantities. Thus, you can buy goods at a lower price and save a lot of money. The Aliexpress website has its own logistics that allows buyers to track orders, and also cooperates with many carriers, which often provide absolutely free delivery of parcels. Making purchases on Aliexpress is simple and clear, and the assortment is distinguished by a variety of offers and low cost. All this makes the Aliexpress website attractive in the eyes of potential buyers and very beneficial for the average user.
Alibaba has a different focus, as already mentioned, B2B, which means mostly wholesale, which can afford to have lower prices for products.
MOQ
Speaking of Minimum Order Quantity (MOQ), these platforms offer different terms of cooperation. On the Alibaba web site, suppliers usually have high MOQs so that the buyer can order as many goods of the same kind as possible. In the case of AliExpress, where the majority of buyers are people who buy items by single pieces, most suppliers only offer MOQs of 10 units, or do not consider MOQs at all as an option to sell their product.
Startup Costs
Startup costs on AliExpress are lower than on Alibaba.
Depending on low MOQ, you can start running your business with low expenses, but the volume of income is also not so big in this case.
On the Alibaba site low costs of startups are possible but they are anyway higher than AliExpress’ due to higher MOQ, so you need more money to buy more items of a kind, but you also will get a better income out of it.
It can be a mistake to think of AliExpress or Alibaba as choosing one, as if one of them could really be better than the other.
Instead, use both platforms as two parts of a single strategy to achieve your short and long term business goals.
First, you might use AliExpress’s low start-up costs to start your business. And subsequently, as you grow, move to store your own inventory and take advantage of the wholesale pricing offered by Alibaba.
Shipping Cost
Shipping costs vary on both platforms.
On AliExpress, the shipping cost depends on the shipping company you choose. There are several types of shipping within Aliexpress: AliExpress Standard Shipping, which usually takes 15-45 business days, or AliExpress Premium Shipping, 7-15 business days. And also, additional types, such as epacket, dhl, and others. Most often, shipping with Aliexpress is standard by default: free
AliExpress still outperforms Alibaba in shipping.
The cost you pay when ordering a pack from Alibaba depends on what you and your supplier have agreed upon. Your supplier may choose to send you samples for free, but don’t expect this with a bulk order.
If your supplier has done this, that’s their decision. If not, be prepared to pay. You must agree on the terms of delivery. Delivery options also include FedEx, DHL or UPS – the cost is much lower.
However, when choosing sea freight, you pay:
- Load
- Ship in dock
- Documentation
- Sea Freight to USA from China
- Unloading and delivery to the destination / warehouse.
All this with taxes, peak season delays and other transaction fees. You can pay up to $2,000, especially if you order a lot of items.
Alibaba vs AliExpress User Experience
Reviews about the two platforms are mixed. Can we still ask, ‘Is Alibaba and AliExpress the same? What about the user experience?’ Your buying experience on these marketplaces can vary greatly depending on the supplier you are buying from. They all have different policies and quality standards that may or may not meet your expectations.
Buyer Protection
Alibaba has limited buyer protection, because here the buyer and seller establish partnerships themselves, and the site is only a platform for their working alliance. You can always negotiate, get samples by talking directly with suppliers. They all have their own return policy, but in most cases this should be a clear error on the part of the supplier.
AliExpress in this sense is closer to other online stores that deliver daily and where you can contact support, request a refund and protect your purchases in case something happens to them. The reason for this is that orders are smaller, so they are easier to control.
Lead Time
Speaking of lead time, getting products from Alibaba can take a month or two or even more because you have to choose a supplier, negotiate the price and design of the project, and confirm the samples.
When dealing with Aliexpress, the products are already made there, so you don’t have to worry about long order processing or order production, sellers most often care about their reviews and reputation, so they try to process applications on time and ship your purchase.
Service
When dealing with Alibaba, companies deal directly with suppliers and not with Alibaba itself, so there is no such thing as customer service. However, Alibaba does have help centers, community forums, and places to file formal complaints and disputes. Buyers can contact Alibaba customer service via live chat. There is no phone support through Alibaba; however, you will be in direct contact with your suppliers via email.
AliExpress also has a help center and live chat on the website, and no phone support. It has dispute management services on the website for reporting suppliers or requesting refunds.
Customer Reviews
There are many reports of scam businesses on the Alibaba website, they are everywhere. However, there are also many experienced reputable manufacturers out there who do their jobs responsibly. The online platform has taken many steps to combat issues such as product quality and counterfeit goods. Recently, wholesale buyers have had a positive experience with Alibaba because you can purchase custom-made products at low prices.
Reviews about AliExpress are also very mixed. Some companies use it to dropship products without problems. However, many retail buyers who buy from AliExpress complain about orders not being delivered or taking a long time to arrive, incorrect product shipments, and problems resolving disputes or getting refunds.
Payment
As a B2B site, Alibaba offers a narrower list of payment options than the average consumer’s favourite AliExpress site, which caters to a larger audience of shoppers.
AliExpress provides immediate payment options such as credit and debit card payments, as well as a credit or debit service such as PayPal called AliPay, while Alibaba, which targets international wholesale markets, offers payment methods optimized for transferring large sums of money. The platform supports traditional bank transfers, telegraphic transfers, letters of credit and electronic checks, although credit card payments are still possible in some cases.
The payment methods available through Alibaba can make life difficult for small sellers who always need to access funds quickly to keep cash flowing. In this case, selling small items with higher profits individually may be more preferable to be done on AliExpress.
AliExpress or Alibaba: which site should you use
This article raises various questions and discusses the criteria by which you cannot determine which is better Alibaba or AliExpress (because they have different goals), however, you can determine what suits you best. If you are a trader or want to start your own business, you can search for suppliers on Alibaba. If you are a buyer who wants to buy a thing for your own use, visit Aliexpress, because its functionality is like that of a traditional online store, and the interface is extremely simple.
Conclusion
As you can see, the two Chinese sites, despite their external similarity, are fundamentally different from each other. In general, the difference between the two sites is manifested in the following aspects:
- Sales volumes. Alibaba is focused on wholesale, Aliexpress is retail;
- Buyer-seller interaction. On alibaba.com, the customer only sees the storefront. You can buy a product, find out the exact price and resolve the issue of payment with delivery only by contacting the seller directly. Aliexpress in this regard is a traditional online store. The purchase process takes place using the functionality of the site;
- No Buyer Protection. The popularity of the aliexpress.com store was largely brought by its buyer protection program. The seller will not receive money for the goods until the buyer confirms receipt of the goods in accordance with the order. As you understand, Alibaba does not provide such services;
- Methods of delivery, payment, as well as the range of goods also vary significantly.
FAQs
Is Alibaba different from AliExpress?
They are similar to each other by their interface and tools, but totally different by purpose.
Does Alibaba sell fake products?
It does not sell anything, but suppliers on Alibaba might be two different types: those who sell products of good quality and those who sell bad quality products. You should be careful when having a deal with sellers on the website, take into account reviews on their products’ page and try to have samples before buying in packs.
Is it safe to buy from Alibaba?
Yes, it is mostly safe to buy and sell there: the platform does its best to block sellers of fakes or dishonest suppliers. Anyway, be always careful while making a deal on Alibaba.
What is better than AliExpress?
Only AliExpress is better than AliExpress! To be honest, different selling platforms have different purposes, that is why you can not call something better or worse. Speaking of AliExpress, it is really good for single item purchasing, it has a fast and mostly free delivery, 24/7 Customer Service and low prices for any product that can be delivered to anywhere around the world. So, what is better than AliExpress?
