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Drop shipping is a form of retail business in which the seller accepts customer orders without keeping stock on hand. Instead, in a form of supply chain management, the seller transfers the orders and their shipment details either to the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer.
AliExpress has drawn comparison to eBay, as sellers are independent and use the platform to offer products to buyers. [6] As of March 2024, the number of global users of the AliExpress mobile app reached 8.18 million, a 130% year-on-year increase, setting the highest record since statistics began in 2016.
In 2010, Alibaba launched AliExpress.com, an online retail service made up of mostly small Chinese businesses offering products to international online buyers. It is the most visited e-commerce platform in Russia. [94] It allows small businesses in China to sell to customers all over the world, resulting in a wide variety of products.
Temu requires its sellers to offer their products at prices lower than those found on AliExpress. [37] When multiple sellers offer the same product, Temu authorizes only the one with the lowest price. [37] Items not meeting Temu's minimum sales requirements (30 pieces and $90 in 14 days) are removed from the platform. [37]
The prices of products are set by the shop owner, but Etsy claims 6.5% of the final sale price of the listing [7] and 6.5% of the postal fee. Additionally, Etsy has mandatory offsite ad fees of 12% or 15%. If a shop is selling less than $10K per year, they can opt out of offsite ad fees.
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