The answer is that Amazon has quietly pivoted: Their new business model is
1. Buy stuff from AliExpress.
2. Mark it up 5x-10x.
3. Profit!
Amazon probably hopes their customers don't notice they can get the same stuff from AliExpress much cheaper. Which they won't because only about 1% of Amazon's customers have even heard of AliExpress.
Even with speedy free delivery, Amazon's profit margin by marking up AliExpress stuff is probably quite a bit higher than it was for the old Amazon.
From the limited searching I did when I first noticed this, it seems to actually be a more or less flat $10 markup, regardless of whether that works out to 10x or 10%.
Maybe some sort of fixed cost is involved?
You pay the markup to get the item quickly, and for easy returns.
It's not surprising this niche has developed. What's surprising is that Amazon seems dead set on undermining their business to support it. It's also surprising that people write these amazed posts like they've just discovered this problem, when it has been going on for a decade.
I read a HN comment a while back that framed the topic of declining quality plus free returns as companies outsourcing their QC to the customers and that really stuck with me. This is really the natural progression of wanton consumerism - so much stuff is sold and never actually used that it's profitable to only worry about the case where the buyer actually uses it and finds it lacking.
https://knowledge.wharton.upenn.edu/article/quality-fade-chi...
Because all the profit is in being a platform. Otherwise, their retail operations would be looking at the sub 5% profit margins of every other retail business in the US.
I think Aliexpress is usually about 20% of the Amazon price, but depending on the item I agree that it can be 10%.
i think the scam here is that amazon or amazon sellers will pay people to warehouse product in the US, because when you're selling aliexpress goods at a 90% markup, you can afford the warehousing. and the people they're paying to run those warehouses list the product on ebay at 20% markup, on the assumption that if it sells they can make an aliexpress order and restock before the amazon seller notices their product is missing.
The margins look huge, but actually many steps like carrying that inventory or even the shipping from near warehouse is pretty expensive. Like more than the product itself.
Reverse image search works wonders against "unique" brandnames.
Any idea why Taobao goes through such great effort to prevent American buyers from using the platform? (Or was I doing it wrong…? I used one of the Taobao forwarding services)
Just curious because I've never had any luck finding something specific, just slightly different knock-offs. Which can be fine of course, it's just less obvious to me that should exist than under-the-table selling of extra output, or rogue employees/company or whatever. Higher effort and more enterprising.
AliExpress.. by the time it arrives I've probably forgotten I've ordered it, and if they won't offer a refund if it's no good/wrong somehow then bank might say the transaction's too old to do anything about (not sure about a time limit on credit card protections, maybe that's a better option), just generally more hassle. Not to mention the janky UX of ordering in the first place. (Why can it never guess both currency and delivery country correctly? UK & GBP isn't an oddball combination...)
The one advantage you still get via indirect ordering is often smaller lot sizes. I'd rather pay $1 for a bolt than $50 for 5000 bolts, even if the piece cost is much higher.
Is Amazon better at compensating customers or removing fraudulent product listings?
If I can wait a month, it's cheaper on AliExpress, although their search/discovery is a mess.
If I want it in a week or two, I can usually find it for a few dollars more at eBay claiming 'US seller".
If I want it by the end of the week, I'll try to assemble $25 worth of "shipped by Amazon" items.
I placed an order June 30, it arrived July 17.
As some of the recent supply chain issues are easing off things will be feeling better when they are in fact moving back in the direction of what was normal.
I wish they'd at lest truly make the product generic instead of placing a useless logo on it.
After nearly month (and I emailed the guy twice already without reply) I ordered a leather case from UK which cost twice the amount of money. I got it within 2 days. I put a claim with PayPal (he wasn't responding) for the case I didn't receive. It was accepted quickly.
A few days after that the guy emailed me claiming it was due to illness at his company, and that he'd send ut ASAP. A few days after I got it in the mail. Its still rotting somewhere in my house. I wonder if he saw or cared about my claim. Given it only cost him a couple of USD I figure he'd just write it off instead of asking for return.