Why goods on AliExpress are often two times cheaper than in Russian stores

The head of Brandshops Denis Kutnikov wrote a post on his social networks about the price structure of equipment. He

explains why products on AliExpress can be cheaper than in Russian stores. Discuss

The price of a product is made up of the following:the cost of raw materials or components, the cost of production and development, customer support, promotion, maintenance of this entire process, financial burden, profit. All this distributes to three actors: manufacturer, importer, seller. So, first you need to determine the price that will allow you to provide the desired volume of sales and force the channel to choose your specific product. The more famous and better the product, the less profit the channel has.

"Gray" imports have never been liked by manufacturersand official importers, writes Kutnikov. For them there is a shortfall in profits. Due to parallel imports, the situation has worsened. For full-fledged market players who bring goods themselves with the payment of all duties and taxes, take care of customers and reputation, everything has become much more expensive. Now, for example, they need to independently provide warranty repairs, promotion, customer service, etc.

But for sellers on AliExpress, none of thisdo not need to do. They buy goods cheaply, put them on the site. “In extreme cases, they will open a dispute, return the money for the broken goods and continue to do the same,” Kutnikov said. In addition, there are no VAT and duties. In the price for the end client it is 20-25-30%.