Why Alibaba has a long way to go if they want to beat Amazon in the West
Marek Rozycki
Last Mile Expert & Independent Board Advisor. Specialises in CEP and e-commerce last mile with focus on PUDO/parcellockers and M&A due diligence support.
This is a personal experience but probably reflects that of many thousands of Alibaba customers outside of China.....
It all started some 4 months ago when my Dyson V8 battery pack gave up the ghost. I was about to buy a genuine Dyson replacement on Amazon when I noticed a super deal on Alibaba (or AliExpress, to be precise). Not only did the Chinese "me too" product cost less than half of the OEM one but it allegedly had almost three times the durability! Despite some concerns about possible customs charges and the delivery time, I was tempted and clicked the little orange button.
Interactive delivery management simply doesn't exist with AliExpress but some 6 weeks later, the item arrived. While the item was just over the EUR22 limit for customs-free import, it arrived duty-free and in undamaged condition. Moreover, it worked pretty well for just under one month...and then an ominous red light appeared, indicating a broken PCB I later learned.
After a few unsuccessful attempts to contact the seller "Erilles franchise Store", I noticed an option to claim for a refund. This was actually quite easy and the money hit my account shortly after that. I then promptly bought an original battery locally for almost three times the price but with full guarantee.
Notwithstanding the refund, my flirtation with AliExpress has ended and here's why:
- Amazon has taught me to expect visibility, control and super responsive customer service (in my language, or at least English)
- Amazon's last-mile is "light years" faster and will never be "hit and miss" or in a "grey zone" as regards customs fees or other processes
- Amazon items work...and if a supplier is selling poor quality products he will be delisted
What I don't understand is the fact while the Chinese are super smart, that the quality of service offered in China is significantly better than that in Europe, which is arguably a more demanding market.
Until Alibaba get their act together and start complementing their home market experience with European best practice, they will be far behind the likes of Amazon. The question is how this should be done? From my perspective, it will take more than a few (or even few thousand) Chinese guys in Europe. Alibaba must invest in companies close to Europe, such as Trendyol in Turkey (or JV's where they cannot buy controlling stakes in companies due to EU rules). Any other views?
Last Mile Expert & Independent Board Advisor. Specialises in CEP and e-commerce last mile with focus on PUDO/parcellockers and M&A due diligence support.
4 年Juan Sotolongo would you care to comment?
CEO
4 年So don't notice the price. Low cost isn't always cheap.
CEO | Business Consultant | Technology Advisor | Corporate Trainer
4 年Really eCommerce will change future
ICEYE- 为索赔、CAT 和承保团队提供 SAR 解决方案,增强洪水和野火的覆盖范围
4 年Great read Marek