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Low margin businesses that sell cheap Chinese junk are not sustainable in the long run when you factor in how much of the margin advertisement eats up. Source:
by antisthenes 3y ago
Low margin businesses that sell cheap Chinese junk are not sustainable in the long run when you factor in how much of the margin advertisement eats up.
Source: 11 years in e-commerce.
- RankingMember 3y agoAliExpress has been around since 2010. I'm not saying there's nothing shady going on in their funding scheme, but clearly someone thinks they're worth continuing to pump money into.
- antisthenes 3y agoAliexpress is a division of Alibaba Group, which likely makes the bulk of their profits through their B2B sales. They don't provide separate financials for it, or even its approximate size compared to other components of the group. My bet is Aliexpress has slightly negative margins up to -5%, and makes up to maybe 10% of total revenue. In other words, it could operate like this forever, being subsidized by more profitable components. It could also be slightly profitable, I'm not sure.