Alibaba vs. 1688 vs. AliExpress: Which is Best for Sourcing?

As a brand owner, e-commerce seller, or brick-and-mortar retailer, the first place you likely look when sourcing products from China is Alibaba. Sourcing from China can provide access to a lucrative market and high-quality manufacturing capabilities. But Alibaba is not the only option – there are also platforms like 1688 and AliExpress that are part of the Alibaba ecosystem. So what are the differences between these platforms, and which one is best for your business?

What is the difference among Alibaba, 1688, aliexpress?

For a consumer or a dropshipper as a side business, Aliexpress may be a good choice, as it is a platform targeting individual consumers, and you can buy a single piece of a product. However, for businesses that buy in bulk, Alibaba or 1688 might be more suitable options.

Alibaba is targeting the international market, so it offers additional value-added services that can benefit overseas buyers. On the other hand, 1688 is targeting the local Chinese retail market, and the products listed are primarily in Chinese.

AliExpress: This is Alibaba’s consumer-facing, business-to-consumer (B2C) platform. It’s geared towards individual consumers and small businesses looking to purchase single items or small quantities. AliExpress offers buyer protection and often includes free shipping.

Alibaba: This is Alibaba’s flagship business-to-business (B2B) platform, designed for international buyers looking to purchase products in bulk from Chinese manufacturers. Alibaba offers trade assurance and various payment protections to facilitate these larger transactions.

1688: This is Alibaba’s domestic B2B platform focused on the Chinese market. 1688 is primarily used by Chinese businesses and retailers sourcing from local manufacturers. The site is in Chinese and the products are often tailored to the local Chinese market.

Here I illustrate the differences of Alibaba, 1688 and Aliexpress.

Many people think that 1688 is not suitable for the overseas market, as the products may not meet EU or US certification requirements. However, this is not always the case. In fact, many large retailers with offices in China are able to source products through 1688 at much lower prices, thanks to their local teams.

The reason behind this is that the factories themselves are aware of the 1688 platform and its local target audience. They know that their customers on 1688 are primarily local Chinese businesses who are price-conscious, so they often offer reasonable prices on the platform.

Don’t be misled by sourcing or trading companies that try to dissuade you from using 1688, as this is likely their own “gold mine,” and they don’t want you to know about the potential cost savings available through this platform.

The advantage and disadvantage of sourcing from Alibaba

Sourcing from Alibaba offers clear advantages for international buyers. Its multilingual platform and features like trade assurance and payment protection make it attractive. Alibaba invests in third-party factory audits to offer trade assurance, with factories indirectly covering the cost through listing fees. While this system lends credibility to a factory’s legitimacy, it doesn’t guarantee product quality, which remains a consideration for buyers. Naturally, these added costs are reflected in the product prices on Alibaba.

It’s crucial to remember that purchasing from Alibaba doesn’t automatically guarantee compliance with local regulations or flawless product quality. Buyers must still conduct their own due diligence.

In China, exporting requires a license due to existing quotas. Since Alibaba caters to the overseas market, all listed companies are required to possess export licenses. However, it’s important to note that some listed entities might be trading companies rather than actual manufacturers. For guidance on identifying genuine manufacturers, you can refer to this article: The Manufacturer vs. Supplier Dilemma: A Practical Guide to Finding the Real Product Source.

The advantage and disadvantage of sourcing from 1688

The main advantage of sourcing from 1688 is the significantly lower prices compared to Alibaba. Due to 1688’s focus on the domestic Chinese market, the prices offered by 1688 suppliers can be 30-50% less than what you’d find on Alibaba for the same or similar products. When comparing prices for identical products, I found significant differences between Alibaba and 1688. For instance, a tumbler priced at US$3.85 on Alibaba was available for US$2.39 on 1688. Similarly, a backpack listed at US$8.29 on Alibaba was offered at US$5.33 on 1688. These findings suggest that for bulk purchases of 500 pieces or more, exploring 1688 could lead to substantial cost savings.

However, 1688 also has some significant drawbacks for international buyers. The primary challenge is the language barrier – 1688 is entirely in Chinese, making it difficult for non-Chinese speakers to navigate. The product listings, supplier communications, and overall platform are geared towards the local Chinese market.

Another potential issue is that some 1688 suppliers may not have the proper export licenses to sell internationally. While Alibaba requires this, 1688 does not. So you’ll need to carefully vet the suppliers to ensure they can legally export the products you want to purchase.

1688 also lacks the built-in trade assurance and payment protections that Alibaba offers. You’ll need to work directly with suppliers on things like quality, compliance, and payment terms. This requires more due diligence on your part.

Practical tips for using 1688

If you’re ready to put in more effort and earn higher profits, the following content may interest you. We’ll explore various strategies to overcome challenges when sourcing from 1688.

Why 1688?

Many export-oriented factories in China list their products on both Alibaba and 1688. However, 1688 caters primarily to the domestic Chinese market, resulting in significantly lower prices due to reduced export fees and lower marketing costs.

Overcoming the Language Barrier:

• Utilize Translation Tools: Leverage browser extensions or dedicated translation websites to translate product descriptions and even images.
• Reverse Image Search: Find a product on Alibaba, take a screenshot, and use 1688’s image search function to locate the same product on their platform.

DYOR – Do Your Own Research on Qualification and Compliance

• Direct Communication: Request to speak with an English-speaking representative from the supplier to establish clear communication.
• Sample Ordering: Always order samples to personally assess product quality before committing to a larger order.
• Requesting Documentation: Ask for relevant testing reports and certifications to ensure the product meets your market’s safety and regulatory standards.
• Third-Party Quality Inspection: Consider engaging a reputable third-party inspection company like KOL Quality. These services, typically costing between US$200-300, provide on-site quality checks and can also conduct background checks on potential suppliers.

Secure Payment Methods:

• Negotiate Payment Terms: Clearly discuss and agree on payment terms with the supplier before finalizing any transactions.
• Use Reliable Payment Platforms: Utilize platforms like WISE for secure and near-instantaneous international payments. While payment protection options exist, prioritizing thorough due diligence beforehand is always recommended.

1688 vs. Alibaba: Which is Better?

The choice between Alibaba and 1688 ultimately comes down to your specific business needs and priorities. Alibaba offers more protections and convenience for international buyers, but at a higher cost. 1688 can provide dramatic cost savings, but requires more hands-on work in terms of supplier vetting and quality control.

If speed and convenience are paramount, and you’re willing to pay a premium, Alibaba may be the better choice. But if you have the resources to do more due diligence and can accept a bit more risk, 1688 could unlock major cost advantages, especially for larger volume orders.

Many successful businesses utilize a hybrid approach, sourcing some products through the security of Alibaba and others through the savings of 1688. It often comes down to the specific item, your purchase volume, your risk tolerance, and how much control you want to maintain over the sourcing process.

Regardless of which platform you choose, thorough research, vetting, and quality control are essential when sourcing products from China. With the right approach, both Alibaba and 1688 can be valuable parts of a diversified global supply chain. By investing in due diligence upfront – whether conducted independently or through a specialized service like KOL Quality – you can confidently unlock the potential of 1688 and gain a competitive edge.

Need Assistance?

KOL Quality offers tailored and cost-effective solutions for navigating 1688, including supplier identification, due diligence, and quality control. Contact us today to explore how we can support your sourcing needs.