Search queries show that millions of searchers ask, “Why is DHgate so cheap?” Some even think that the e-commerce website is a scam. But you cannot always judge without knowing why they are so cheap. However, this article discusses in detail why DHgate is so cheap.
What Is DHgate?
DHgate is an online cross-border Chinese B2B marketplace that offers amazing deals and discounts through selling wide categories of products like electronics, fashion, apparel, home and garden, sports, health and beauty, industrial equipment, etc to its customers.
DHgate was founded by Diane Wang in August 2004, and it’s based in Beijing, China. They have offices in countries like the US and the UK, more than 22 million product listings on their platform, and they offer solutions to multilingual sales, meaning language is not a barrier when buying on DHgate.
This renowned e-commerce website is ranked the second-largest online marketplace worldwide. The reason is due to its ability to meet the needs of millions of people including you. They do this by connecting you to various manufacturers and suppliers, thus giving you the chance to buy trusted products on the platform.
How Does DHgate Work?
DHgate is an e-commerce website that works by connecting various manufacturers, suppliers, and SME owners to buyers all over the world. This means you get to meet suppliers with various shipping costs, product qualities, different discounts, and offers, as well as different products without physical appearance. However, there’s a process to it, and listed below are steps to how DHgate works.
- Step 1: Register for a buyer account if you don’t have an account/Log in to your account if you are an existing customer.
- Step 2: Utilize the search bar to find your desired product.
- Step 3: Read store reviews of the supplier as well as product reviews.
- Step 4: Order
- Step 5: Know the shipping cost
- Step 6: Make payment
- Step 7: DHgate escrows the funds (the fund is not released to the buyer yet)
- Step 8: The seller processes and ships your orders
- Step 9: Check the goods upon arrival
- Step 10: DHgate pays the seller after you have confirmed your order.
Why Is DHgate So Cheap?
If you have ever asked yourself the reason behind the cheapness of goods of DHgate, listed below are the reasons:
1. No Middlemen
As you know, middlemen are people or companies that act as intermediaries between the buyer and seller. Therefore, on DHgate, there are no intermediaries. You deal directly with the supplier or manufacturer of the product you are buying, thus allowing for low prices.
2. Minimum Prices For Excess Stock
Since manufacturers produce a wide variety of goods in bulk, the majority of them come to DHgate to list their goods at discounted prices. You’ll be able to buy plenty of goods at low prices because manufacturers may want to get rid of old stock in time for them to store new and trending goods in their stores.
3. Low Production Cost
Take note that the cost of manufacturing products is cheaper in China compared to any other country due to lower labor costs, economy of sales, government support, infrastructure, and low regulatory costs. These are the factors that prompt low production costs in China, and the prices of goods produced are in proportion to production costs.
4. Zero Advertising Cost
Lots of e-commerce platforms pay a reasonable amount of money to advertise their websites, but it’s not always like that in the case of DHgate. On DHgate, the source of advertising is individuals telling themselves about the renowned platform and through SEO rankings. Although they advertise through other channels too, the cost incurred on advertising and promotions is very low, thus contributing to the reason DHgate is cheap.
5. No Physical Store
When a store operates physically it pays for rent, maintenance, and utilities. But DHgate is an online store with no physical store. This approach automatically minimizes the cost associated with physical stores, thus contributing to their goods being sold at low prices.
6. Bulk Purchases Are Sold In Wholesale Price
There is a principle on DHgate that states “ The more goods you purchase, the lesser the price”. Normally, the prices of goods sold on DHgate are low, but you get to benefit even lower prices when you buy bulkier goods.
7. Lower Taxes And Fees
As you know, DHgate is a China-based company. The China law does not impose national income tax or sales tax (VAT) on goods in the country, instead, local taxes are imposed on the companies. This tells you that tax fees are excluded when you are purchasing products on DHgate, thus contributing to low prices on the e-commerce platform.
8. There’s Room For Price Negotiation
Despite the low prices on DHgate, you can always negotiate and bargain for the products you are willing to purchase. The interesting part of it is that, if you are good at bargaining, and you buy bulkier goods, you’ll get the products at a cheaper price.
9. There Are Various Sellers With Competitive Prices
Since there are more than 2 million sellers on DHgate, there will be goods sold at lower prices. The reason behind this is that sellers are not given a uniform price, therefore most of them will reduce their price to attract the buyer.
10. Seller Commissions Are Low
Did you even know that DHgate doesn’t charge seller listing fees or maintenance fees, and they only charge around 3% as their commission? This is another reason the prices of DHgate goods are cheap because since sellers know that they are not being charged a high percentage, they also reduce the price of their goods for their buyers so that it can be a win-win scenario for both parties.
11. Replica Products
Considering non-branded products on DHgate might be a good decision for you. Because sometimes even when you see big-name brands like Zara, Amiri, and Versace on DHgates, you’ll of course question the price. When you find big names with ridiculous prices, it means the products are not the original brands, meaning they are fake, and purchasing fake products of big brands might make you have a disheartening experience due to the law governing them.
Benefits of buying from DHgate
- Although buyer location and seller location are what determines the delivery days on DHgate. But normally, DHgate delivery usually takes up to 14 to 17 days, thus giving you fast delivery.
- When you buy in bulk, you buy at wholesale price which helps you make more profit.
- DHgate’s ability to let you confirm your delivery before releasing payment to the seller guarantees your safety on the platform.
- There are hundreds of thousands of suppliers on the platform, thus giving you the ability to do proper vetting before choosing a manufacturer.
- The platform has a user-friendly interface, meaning you cannot encounter difficulties even if you are a new user.
- There’s a wide range of products for you to choose from without visiting another store.
Challenges of using DHgate
- There’s inconsistency in the goods due to varieties of small wholesalers and manufacturers.
- Shipping may take longer than you expect.
- Sometimes you cannot find all the information you need about a particular supplier for you to make an informed decision.
- Although DHgate offers worldwide shipping, they are not known worldwide.
- Many products on DHgate are replicas which is another reason they are cheap.
How To Buy Safely From DHgate
Listed below a detailed precautions you should follow for you to buy from DHgate safely without falling for scammers on the platform.
First Order A Sample
First order a sample if you can before you order in bulk for you to have a look at what exactly the product looks like.
Pay Attention To Product Description
Reading product descriptions is another great way to look at the product you want to buy, do not neglect it. When you read a product description, you understand what the product is, its features, and so on and it’ll help you decide if it’s actually what you wanted or not.
Find Real Buyer Pictures
Mostly when past buyers are leaving reviews on DHgate, although not all but some will attach a real picture of the product to it. You should consider looking at it because pictures of products attached to the description are often photoshopped and some are just a random picture, not exactly the product picture.
Read Product Reviews
Do not go for products whose reviews are below 4.3 ratings, it’ll help you make an informed choice. Additionally, make sure that the product has enough reviews and you should take your time to read them. When you read reviews, you will have insight into how good or bad the products are. Once you are convinced that there are a lot of satisfied buyers, you can go for it too.
Don’t Pay Outside DHgate.
Paying outside DHgate might make you have a worse experience. Make sure you pay through DHgate payment protection for you to stay safe from scammers on the platform. Additionally, you can file for a dispute if your order didn’t go as you expected.
Properly Vet The Seller
Don’t neglect vetting the seller you want to buy from. Some sellers are very new to the industry and you cannot tell how legit they are. Therefore, you need to make sure the seller you are buying from has been on the platform for at least 2 to 3 years, offers prompt delivery, at least 90% positive reviews, product quality is above average, and good customer service.
Check The Product Delivery Date
Make sure you are aware of the delivery date when choosing your shipping method. However, it’s important you know that your destination has a great impact on the date of your delivery.
Confirm Delivery Upon Arrival
Do not confirm your delivery before they arrive. Even when the goods are delivered to you, make sure you check to see if it’s what you ordered before you confirm.
Request Tracking Number
Remember having your goods tracking number helps you know the current location of your goods at almost every interval, and the expected delivery date, and you’ll know if there’s any delay in the process of shipping. Therefore, requesting a tracking number is important.
Buy From Premium Merchants
DHgate makes it very easy for you to know the top Merchant sellers by giving them a badge titled “top Marchand or premium merchant”. They are given the badge based on previous customer satisfaction, high positive feedback scores, consistency in supplying quality products, having a good record in transactions, and having spent many years on the platform. These sellers are safer for you to purchase your goods from.
Conclusion
Now we are sure that your question “Why is DHgate so cheap? Has been answered. However, it’s important you know that DHgate is not cheap due to inferior goods on the platform, but due to various reasons stated earlier in this article.
If you still have questions about DHgate or want to purchase easily on DHgate, welcome to contact meenogroup.
FAQs
What Are The Payment Methods On DHgate?
DHgate offers a wide range of payment methods, some of which include VISA, Mastercard, American Express, E-wallet, Bank transfer, Credit/Debit Card, etc.
Is DHgate Legit?
Yes, DHgate is a legit B2B e-commerce website that directly connects you with a seller on the platform, the legitimacy is now based on the seller you are purchasing from. This is why there’s so much emphasis on proper vetting of the seller you are buying from.
What Is DHgate Quality Control?
DHgate’s quality control includes instructing sellers to provide accurate product descriptions, setting quality expectations, and listing accuracy. You can also report a buyer if they sell counterfeit products to you. When this happens, the seller is penalized.
Will I Be Refunded If I Get Scammed On DHgate?
Yes, you’ll be refunded if you are about to be scammed in as much as you pay through DHgate escrow protection.
