A parcel postal arrived via China Post. The package was labeled “small packet by air”, it contained only a set of needles. A few days later, a second package with the same courier arrived containing a USB to mini USB cable.
It’s amazing how those two items got to my address in another country. The first packet of needles cost less than $ 1, and the shipping cost was only $ 0.1.
The second package containing USB cable also costs less than $ 1 with free shipping.
The two packages came from China.
The simple question many people have is why is alibaba so cheap.
Logistics experts and business people say that cheap or free shipping is because the logistics costs have already been included in the price of the goods. As a result, consumers seem not to pay shipping costs.
In addition, China usually cooperates with postal networks between countries for goods shipped across national borders. Postal companies have agreements, this can reduce postage costs. Cheap or even free shipping can also occur because these costs are borne by e-commerce companies.
In comparison, there are similar items being sold in our own country. Through a local marketplace, there is an online merchant selling a set of identical needles I bought on alibaba, up to $ 4 more expensive. There are also online merchants selling a unit of USB-to-mini USB cable for $ 1. Unfortunately, this price does not include shipping cost. Through local e-commerce there are shipping costs starting at $ 1 for both items.
Domestic shipping costs that are borne by consumers when purchasing via online shopping at home are not competitive with the shipping costs for goods from China. The two items purchased from China, over a thousand kilometers stretching between our country and China, are subject to a tariff of less than $ 0.2. In fact, they also don’t hesitate to provide free shipping.
By eliminating the long shipping time from China to another country, the goods sold by Chinese online merchants via alibaba are more friendly for consumers. From the above case, Chinese goods sold online have at least two advantages. Cheap and low cost and even free shipping cost.
