Alibaba and AliExpress are both marketplaces where you can find a product supplier for your ecommerce business.
Both platforms are part of the Alibaba Group, a Chinese company that Jack Ma founded in 1999.
Although both platforms belong to the same company, there are essential differences between Alibaba and AliExpress.
In this article, you’ll learn whether Alibaba or AliExpress is the better solution for your business.
You will also learn what you need to consider when sourcing a product on Alibaba or AliExpress.
Here are the contents of this article:
- What is Alibaba?
- What is AliExpress?
- The Best Products on Alibaba or AliExpress
- Differences Between Alibaba and Aliexpress
- Similarities Between Alibaba and Aliexpress
- Which One Should You Pick?
- Alibaba vs. AliExpress – Conclusion
- Alibaba vs. AliExpress – FAQ
Let’s start.
What is Alibaba?
Alibaba (Alibaba.com) is one of the world’s largest B2B marketplaces. It was founded by Jack Ma in 1999. The Alibaba Group (including Alibaba.com and AliExpress.com) employs about 219,260 people and generated a revenue of $32.39 billion in the first quarter of 2024.
Alibaba is a B2B platform for manufacturers and suppliers. Businesses can buy almost any product on Alibaba from suppliers worldwide. Although every company can sell products on Alibaba, suppliers from Asia, and especially China , are most active on the platform.
There are Minimum Order Quantities on Alibaba. Each supplier sets its own Minimum Order Quantities. In most cases, this is between 100 units and 500 units. However, it depends on the supplier and the product. Some suppliers have Minimum Order Quantities of over 500 units.
You can get information like available product variations, costs, certificates, contact information, and so on by searching the Alibaba platform. You can also contact manufacturers and negotiate with them directly.
If you are looking for a supplier on Alibaba, you should look for those who have a Gold Supplier Membership. This membership is designated to manufacturers who stand out for their quality and legality.
Alibaba accepts several payment methods. The platform also offers a secure payment and trade assurance program. Buyers can use this program to get a refund if a product does not meet the agreed quality criteria.
What is AliExpress?
AliExpress works differently than Alibaba because it is not a business-to-business marketplace. It’s more a business-to-customer (B2C) marketplace like Amazon. There are lots of sellers on AliExpress, and you can find almost any product. As with Alibaba, most sellers are from Asia, especially China.
AliExpress is especially suited to online shoppers looking for low prices. Since AliExpress is a B2C marketplace, there are no Minimum Order Quantities. This is especially beneficial for small businesses.
Like Alibaba, AliExpress offers buyer protection. If you don’t get your products in the agreed-upon condition, you’ll get a full refund. Some sellers even offer a 60-day money-back guarantee.
With 431 million visitors per month, AliExpress is the fifth largest online marketplace in the world. Compared to that, Amazon has 42.6 billion visitors per month.
However, while Amazon is only a B2C marketplace, AliExpress is a mix of B2C and B2B. For example, if you order 100 units of a product, some suppliers will give you a discount on your bulk order.
How To Find the Best Products on Alibaba or AliExpress
Before you search for products on marketplaces like Alibaba or AliExpress, you need to decide which products you want to sell. Here are some tips to help you find a successful product:
- High profit margins: Look for products with a profit margin of 25% or more.
- Small and light: Shipping and storage costs depend on the size and weight of a product. With smaller products, your shipping and storage costs will also be lower.
- High demand: Choose products that are in high demand all year round.
- Low competition: Choose products with few competitors, as this will help you increase your sales faster.
There is a tool that you can use to find products with high potential on Amazon. Follow these step-by-step instructions to use it:
1. Sign up for a free Helium 10 account
2. Navigate to the Helium 10 Black Box Tool
3. Define the desired product criteria: For example, use the filters to define the number of sales for products with high demand or define the number of competitors for products with low competition. If you’ve never heard of product research before, take a look at our guide: What to sell on Amazon.
4. Click on “Search” to display the search results.
Focus on products that are worth analyzing more closely. For example, exclude products from major brands, as it is hard to compete with them.
The Differences between Alibaba and AliExpress
Although Alibaba and AliExpress belong to the same company, fundamental differences exist between the two platforms. They include:
Criteria |
Alibaba |
AliExpress |
|---|---|---|
|
B2B vs. B2C |
Alibaba targets businesses looking to place bulk orders. |
AliExpress is geared toward customers who wish to make small-quantity purchases. |
|
Minimum Order Quantiites |
Alibaba sellers require minimum order quantities. |
AliExpress sellers allow you to make orders as big or small as you wish. |
|
Negotiations |
When you buy on Alibaba, you must negotiate with sellers on pricing and shipping methods. |
AliExpress offers a fixed rate on its prices and shipping. If you want an item, simply use your credit card to purchase through the site. |
|
Customization |
Alibaba sellers allow you to customize items. You can add a company logo, and choose your preferred colors and designs. |
You can not customize orders on AliExpress. |
|
Manufacturing |
Due to customization, items on Alibaba are made to order and may take longer to ship. |
AliExpress sellers sell pre-manufactured items that are ready to ship. |
|
Dropshipping |
Alibaba does not work with dropshipping. |
You can use AliExpress for dropshipping. |
The Similarities between Alibaba and AliExpress
Although Alibaba and AliExpress have many differences, they also have some similarities. Here are the most significant similarities between Alibaba and AliExpress:
- Both platforms belong to the Alibaba Group, which Jack Ma founded in 1999.
- Most suppliers on Alibaba and AliExpress are from Asia.
- You can buy products on Alibaba and AliExpress for a low price.
- Alibaba and AliExpress both accept various payment methods and offer buyer protection.
- Both platforms offer a positive user experience.
Alibaba vs. AliExpress: Which One Should You Pick?
There are many factors to consider when deciding whether Alibaba or AliExpress is better for your business. In determining the right platform for your needs, it’s essential to understand the scale and scope of each.
Alibaba typically serves those looking to make large wholesale purchases, whereas AliExpress offers retail goods in smaller quantities. The following sections will explain when you should choose Alibaba and when you should choose AliExpress.
Dropshipping and Private Labeling
Private Labeling and dropshipping are different business models. Here are two short explanations:
Private label products are produced for a specific reseller and sold under its own brand name. It allows you to sell your own products and build your own brand. If you want to learn more about Private Labeling, check out this post on how to sell private label products on Amazon.
If you want to do dropshipping, you need an online store and a dropshipping partner to start your business. When a customer orders a product from your online store, you pass this order on to your dropshipping partner. Your partner will then package and ship the product to your customer.
But which platform should you use for which business model?
If you want to sell private label products, search for a supplier on Alibaba. You can discuss specific product changes, negotiate a better price, and place bulk orders.
You won’t find suppliers that offer private label products on AliExpress. You have access to millions of products, but you can’t request customized changes such as printing your logo on the products.
However, many suppliers on AliExpress offer a dropshipping service. So if you want to build a dropshipping business, you should use AliExpress.
Takeaway
Use Alibaba if you want to do Private Labeling. Use AliExpress if you want to build a dropshipping business.
Wholesaling
Wholesaling involves buying products from suppliers and reselling them to other commercial buyers. Whether Alibaba or AliExpress is better suited for wholesaling depends on your business goals.
If you’re looking for small quantities like 100 units or 200 units, AliExpress is a better choice. If you want to order large quantities, like 500 units or 1000 units, Alibaba might be the right option.
In most cases, Alibaba has lower prices than AliExpress. Let’s take a look at the price of a drinking bottle on AliExpress:
On AliExpress, the price varies between $2.33 and $9.03.
Now, let’s take a look at drinking bottles on Alibaba:
The prices on Alibaba are lower than AliExpress. However, Alibaba requires you to place larger orders.
Keep in mind that the real product manufacturers on Alibaba offer the lowest price in most cases. Most resellers sell the products for a higher price.
Therefore, you should always buy products from the real manufacturer. Contact the seller and ask if they are the real manufacturer to be on the safe side.
Takeaway
If you want to do wholesaling, choose Alibaba. You will get a lower price per unit but you need to order more units.
Minimum Order Quantity
The Minimum Order Quantity (MOQ) is the minimum number of products you have to order from a supplier.
On AliExpress and Alibaba, Minimum Order Quantities are very different. On AliExpress, you can order one unit, while on Alibaba, Minimum Order Quantities can be 50, 100, 500 or more.
That’s because, on Alibaba, most products are customizable. You can discuss specific details with your manufacturer, print your logo on the product, or change its color.
Sellers who take the time to customize each item will only do so for larger orders. Smaller order customization is not worth their while.
On AliExpress, the products are not customizable. These sellers will not want to take the time to customize small orders that are earning them a minimal profit.
The Minimal Order Quantity is also part of what makes Alibaba a better B2B option and AliExpress a better B2C option. Businesses will typically buy in bulk to fufill large customer orders or to maintain supplies for their staff. Private buyers may just need one item for personal use.
Takeaway
If you want to order small quantities, AliExpress is the more suitable option. If you want to place large orders, Alibaba is the better choice.
Delivery Time
It’s essential to have enough units available to sell online. If you don’t have products available, your potential customers will shop elsewhere and spend their money on your competitors. That’s why delivery time is such an important factor. Here is how the two platforms measure up on delivery times:
AliExpress
On AliExpress the products are already produced. Sellers can simply source them from their inventory, package them, and ship them out. This process significantly reduces delivery time.
In most cases, delivery time is about 5 days. However, if you are dealing with international shipping, it could be as much as 40 days.
Alibaba
The total processing time, encompassing negotiation, production, and delivery, ranges from roughly 20 days to 6 months or more. Complex customization requirements will extend this duration. Production alone can often exceed 30 days.
Shipping time depends on whether you want your products shipped by sea or air freight. Sea freight can take up to one month or longer.
If you don’t need any specific product changes, the total processing time will be significantly shorter.
Takeaway
If a short delivery time is important, choose AliExpress.
Delivery Costs
You have to pay delivery costs when ordering products. On AliExpress and Alibaba, delivery costs are very different. Browsing the platforms will give you an indication of what you can expect, but we will summarize your options in these sections.
AliExpress
AliExpress offers several products with free shipping. You can even filter products by Free Shipping to find the lowest rates available.
You have the choice between different shipping service providers, delivery times, etc…
In most instances, delivery rates will be between $1 and $3 for each product. Keep in mind that the more products you order, the more you will have to pay. For example, for 100 units, the shipping costs are $71.
Alibaba
Alibaba works in a different way. Shipping depends on the terms you agree to with your supplier. For example, your supplier can be generous and send you the sample for free – that’s very rare, though.
You must also decide between sea freight and air freight. Air freight is more expensive as it requires the following fees:
- Charges for loading
- Charges for docking the vessel
- Extensive documentation
- Actual freight charges
- Charges for unloading
- Transportation to the final destination
When you consider taxes, high season delays, and other transaction fees, you will probably have to pay $2,000 or more for your orders.
Takeaway
Alibaba is better for bulk orders. The delivery costs will be lower per unit. AliExpress is better for small to medium quantities. Some sellers even offer free shipping.
Conclusion
There are two things to keep in mind when choosing between Alibaba and AliExpress: your business goals and budget.
If you have a big budget, use Alibaba to order higher quantities and pay less per unit. If you have a low budget, use AliExpress and order fewer products.
Alibaba is indispensable for Private Labeling. It allows you to negotiate with manufacturers, make product changes, and build relationships. On the other hand, you should use AliExpress if you want to build a dropshipping business.
AliExpress ships products much faster than with Alibaba. There are also AliExpress suppliers who provide free shipping. On Alibaba, you will have a hard time negotiating free shipping with your supplier.
FAQ
Although Alibaba and AliExpress belong to the same company, there are fundamental differences between the two platforms. Here are the main differences between Alibaba and AliExpress:
- Target audience: Alibaba is a B2B marketplace and AliExpress is mainly a B2C marketplace. Alibaba is suitable for wholesale orders, while AliExpress is suitable for small to medium-sized orders.
- Minimum Order Quantities: There are minimum order quantities on Alibaba, but not on AliExpress.
- Purchase: If you want to buy a product on Alibaba, you need to get a quote. You can also negotiate with suppliers. On AliExpress you must order products and pay directly.
- Customization: Alibaba offers customized products. AliExpress does not.
- Manufacturing: AliExpress sells products that are already manufactured. Products sold on Alibaba are typically made to order.
- Dropshipping: You can use AliExpress as a dropshipping provider. Alibaba does not offer dropshipping.
Alibaba is a B2B marketplace and AliExpress is primarily a B2C marketplace. Alibaba is suitable for wholesale orders, while AliExpress is primarily for small to medium-sized orders.
Amazon has 42.6 billion visits per month, making it the largest online marketplace in the world. Alibaba (Alibaba.com), on the other hand, is one of world’s largest B2B (business-to-business) marketplace. The Alibaba Group (including Alibaba.com and AliExpress.com) employs 219,260 people and generated a revenue of $32.39 billion
The Alibaba Group includes several subsidiaries:
- Alibaba.com, business-to-business trading platform
- AliExpress, business-to-customer trading platform
- Taobao, online auction house
- Ant Financial, financial services
- Alipay, online payment system (operated by Ant Financial)
- Aliyun OS, web service for cloud computing and data management
- 1688.com, China regional business-to-business trading platform
- Tmall.com, online department store
- juhuasuan.com, discount offer website
- amap.com, online map service offered by AutoNavi
- Alibaba Pictures Group, film producer or investor (involved, for example, in Star Trek Beyond and Mission: Impossible – Fallout)
- Alibaba Cloud, cloud computing provider
You can buy products on Alibaba and AliExpress at a very low price. You should note that there are minimum order quantities on Alibaba. On AliExpress there are no minimum order quantities.
Alibaba is a reputable sales platform that provides excellent service for online wholesale shopping.
The platform accepts various payment methods and offers a secure payment and trading program. Companies can use this program to get a refund if a product does not meet the agreed quality criteria.
