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Jun 21, 2023

Alibaba vs Aliexpress: Which Is Best for Your Business in 2023?

Brian Connolly May 17, 2023 Amazon Inventory Management Sharing is caring! This

Brian Connolly

May 17, 2023

Amazon Inventory Management

Sharing is caring!

This article was written by Jungle Scout ecommerce experts with some assistance from artificial intelligence.

Alibaba and Aliexpress are two of the most popular online marketplaces worldwide, offering millions of products to businesses and consumers.

While the same company — Alibaba Group — owns both marketplaces, they serve different markets and business models.

In this article, we will explore the differences between Alibaba and Aliexpress and help you determine which platform is right for you.

Alibaba is an online B2B (business-to-business) marketplace that connects buyers and sellers from across the globe. It was founded in 1999 by Jack Ma and has since grown to become one of the largest e-commerce companies in the world.

Alibaba's primary business facilitates trade between businesses, enabling companies to buy and sell products in bulk quantities. For example, as an Amazon seller, you need to find a manufacturer for your product; you can find them on Alibaba.

READ MORE | How to Buy on Alibaba and Sell on Amazon in 2023

You can find a wide range of products on Alibaba, from raw materials to finished products, machinery, and industrial equipment.

Alibaba features global suppliers and manufacturers for nearly any product you can think of – all with the ability to customize your product.

The platform also offers various services, including logistics, financing, and marketing tools, to help businesses grow and expand their operations.

Aliexpress is an online retailer that enables consumers to buy products directly from manufacturers and wholesalers. It was launched in 2010 as an international extension of Alibaba, and its business model is geared towards B2C (business-to-consumer) transactions.

With Aliexpress, anyone can go to the site and make a single purchase, just as if they were purchasing from Amazon.

Aliexpress offers various consumer products, from clothing and electronics to home appliances and beauty products.

Unlike Alibaba, Aliexpress is focused on small orders, making it an ideal platform for individuals who want to purchase products in small quantities. It offers a range of services, including buyer protection, secure payment options, and fast shipping.

Aliexpress can also be an excellent place for ecommerce entrepreneurs to test out new product samples they want to offer, as you can order in smaller quantities than Alibaba.

As you can probably see, there are many differences between Alibaba and Aliexpress, but let's dive deeper into each topic.

Want to learn another way to search for suppliers for your product? Check out our video on Jungle Scout's Supplier Database tool:

Our pick: Aliexpress

Amazon dropshipping is an e-commerce method in which the seller takes orders on behalf of a manufacturer, distributor, or supplier. Then, when a customer buys the product, the seller uses their supplier to fulfill those sales.

Aliexpress is a great platform for drop shipping, as it simplifies the order process by handling tasks such as payment processing, packaging, and shipping.

READ MORE | How to Dropship on Amazon in 2023

For example, if you have a drop shipping store through Shopify, once a customer places an order from your store, you then place an order from a seller on Aliexpress and enter your customer's shipping information. The seller on Aliexpress can typically add your company information to packing lists or invoices.

However, since Aliexpress sellers are typically resellers and not direct manufacturers, you may face challenges in terms of product quality control, shipping times, and maintaining consistent stock availability. It's crucial to carefully select reliable suppliers and communicate effectively to ensure smooth operations.

Note: If you will be drop shipping on Amazon, make sure you review Amazon's drop shipping policy before doing so.

Our pick for private label: Alibaba

When it comes to creating your own branded private label products, Alibaba is the better choice. As we went over above, suppliers and manufacturers on Alibaba will allow you to customize and brand your products and product packaging according to your specific needs.

READ MORE | 2023 Guide to Amazon FBA Private Label

As a B2B platform, Alibaba is the choice between the two for private label products. It provides access to a vast network of manufacturers and suppliers, its benefits include:

It also requires careful supplier selection and effective communication to ensure that your private label products meet your quality standards.

Aliexpress can be a good option if you are just starting with a smaller budget or want to test a particular product market but don't expect the best quality or the ability to customize like you can working with a manufacturer on Alibaba.

We hope this article helped you understand the differences between Alibaba and Aliexpress and when you would use each platform. Remember, if you want to create a private label product for your brand, use Alibaba. If you want to test out products, order a product as a consumer, or drop ship, use Aliexpress.

Do you have any more questions regarding Alibaba or Aliexpress? Let us know down in the comments.

Check out our full How to Sell on Amazon Guide for more information on product research, product sourcing, listing creation, and much more.

Explore new product opportunities with Jungle Scout and start making money during Q2 on Amazon!

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Brian Connolly

Brian is a writer and entrepreneur with over 6 years of experience in e-commerce and selling on Amazon.

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