Advantages of AliExpress platform business

AliExpress platform business is a business that was born with the help of the Internet and the Alibaba platform. It has advantages that cannot be matched by traditional international trade business models.

(1) Low entry barriers and active transactions can meet the desire of many small businesses to quickly engage in export business. AliExpress does not impose any restrictions on the form of corporate organization and capital on sellers. The entry threshold is low and both companies and individuals can publish products on the platform.

After successfully registering and publishing 10 products, sellers can set up their own stores on the platform and directly operate for customers or small businesses in more than 200 countries and regions around the world. They can communicate and exchange with customers and publish and promote their own products. Order transactions are fast and active, which stimulates the activity of platform transactions.

(2) Simple transaction procedures. One of the major advantages of AliExpress is that the transaction process is very simple. Exporters do not need to have corporate foreign trade qualifications and do not need to personally declare imports and exports. Import and export declarations can be completed by simple operations by the logistics party. The generation, delivery, receipt and payment of transaction orders between buyers and sellers are all completed online. The operation mode of both parties is very simple, just like the operation of the domestic Taobao platform. The seller quickly delivers the goods through third-party logistics, and the customer pays the transaction through a bank card. Both parties do not need to have professional foreign trade expertise such as T wire transfer, letter of credit, trade terms, etc.

(3) No tariff expenditure. Since the transaction amount of a single order of AliExpress business is small, the value of the parcels sent out is generally low, generally not reaching the standard of the minimum customs tariff threshold of the importing country, so there is no tariff expenditure, which greatly reduces the customer's purchase cost. Therefore, the goods on the AliExpress platform have a strong price competitive advantage.

(4) Many varieties and low prices. Due to the agglomeration advantage of my country's manufacturing industry, my country has become a source country for the sale of goods in many countries. Foreign customers use the Internet and the AliExpress platform to skip the retailers and wholesalers in their own country and directly purchase goods from the supply base of the source - Chinese suppliers. There are many varieties of goods to choose from and the prices are low. Therefore, compared with traditional international trade business, AliExpress business has a stronger market competitive advantage.

(5) No international trade friction in the short term. Since the order amount of AliExpress business is small, the goods often enter the importing country as gifts or samples, and their impact on similar industries in the importing country is often ignored by the importing country. Therefore, in the short term, small-scale cross-border e-commerce can avoid international trade friction. However, in the long run, if the amount of goods entering the country is large, it will also have an impact on the industry of the importing country, thus causing international trade friction.