Too cheap to fail: Price prevails over problems for AliExpress, Temu users

The Korean government's push to keep Chinese e-commerce platforms in line is of little concern to most Korean consumers, who just like the prices.

An advertisement in the subway in Seoul promotes AliExpress. [ALIEXPRESS]

[NEWS ANALYSIS]

Kim Seong-hee, a 36-year-old AliExpress user, is skeptical about the government's promise to clamp down on the rising number of counterfeit goods deriving from the Chinese shopping platform as well as from others like Temu, which have rapidly expanded their presence in the local market over the last year or so.

Kim claims to use the platform habitually to purchase all sorts of merchandise, from key rings to electronic goods, ordering off the platform once or twice a week.

Her recent purchases include a stylus pen for her iPad from the brand Goojodoq, which makes cheaper electronic accessories that can substitute for expensive Apple gadgets such as the Apple Pencil, iPad keyboards and cases.

"I've never used the Apple Pencil before so I wouldn't know which is better, but the Goojodoq stylus pen works fine for me," she said, but also explained that she would never buy off of AliExpress if she is seeking a quality product. From the consumer's perspective, it's still a gain more than a loss if they can purchase something useful at a much cheaper price than what domestic platforms offer.

"Consumers don't care about governmental regulations, they just want to buy cheap," she added. The Korean government and domestic e-commerce players have raised doubts about the reliability of China's shopping platforms, but like Kim, many Korean consumers are largely attracted to the cheap prices that the platforms offer.

Other major bait for users is that the platforms easily offer penalty-free refunds without raising too much of a fuss. Even if, under some circumstances, the refund process is prolonged, people tend to shrug their shoulders and forget about it — it's only a couple of bucks anyway.

In fact, the consumer bar set for these platforms is so low that everything generally considered essential to succeeding in the e-commerce industry — such as product quality maintenance, fast shipping and customer hotlines — are generously overlooked.

Users click on the apps to buy products suiting their various needs. For instance, some would prefer to buy consumable goods, such as hairbands, phone cases or umbrellas, and others say that they would never buy electronic products off of these platforms due to lack of credibility.

Elsewhere, some users, so unhappy with their first-time purchases, have vowed to steer clear from the Chinese platforms.

"I bought a tablet stand for my iPad through AliExpress but it can't hold the weight of it and it keeps drooping," wrote one user on the social media platform X, formerly known as Twitter. "Everyone else seemed to have gotten great deals on it, but I guess it's not for me. I'm never buying something from AliExpress again."

As product quality varies on a case by case basis, users feel that purchases from AliExpress or Temu are similar to a loot box system — sometimes they might turn out to be all right, and other times they have to request a refund or toss it in the trash can if it's not worth the hassle.

"When I receive products, the quality of some is so unbelievably high for the price, but there have been disappointments as well," said 28-year-old AliExpress user Lee Joo-hyun. "It's like a loot box system where you spend 3,000 ($2.22) to 5,000 won for a draw to see which item comes — better or worse [than expectations]."

Despite the risk, AliExpress is definitely included on her list of go-to apps when she shops online.

"Cheap price tags are hard to ignore," she said. "The same type of product that is sold on Coupang for 30,000 won is being sold for 10,000 won on AliExpress. After acknowledging that prices skyrocket once the products go through the hands of Korean sellers, I can't help but consider the prices on AliExpress whenever I make a purchase."

A 27-year-old user of both AliExpress and Temu, Kim Eun-bi, says the quality of products on Chinese platforms isn’t all bad once you throw aside the prejudice about the “Made in China” labels stamped on them.

“Even within Korea, I’m aware that most industrial commodities sold on platforms like Naver’s Smart Store and Coupang are manufactured in China, so in general, I don’t have that high of expectations regarding quality. So when I need something and can’t find it at [the dollar store chain] Daiso, AliExpress is my go-to platform,” Kim said.

She has been using AliExpress for three years, and has rarely been disappointed with a purchase. Plus, she says she has developed a knack for screening faulty goods.

“I’ve been purchasing phone cases from AliExpress for about three years now. I remember it used to take about a month for delivery, but nowadays, even shipping has become faster. Plus, there are a lot more reviews from Korean users these days, which makes it much easier to decide."

Aside from pre-assessing the product through reviews within the platform, Koreans are taking to other social media channels such as YouTube to share what products to buy and what to avoid on the Chinese platforms.

In February, AliExpress ranked No. 2 in terms of monthly active users (MAU) among Korean e-commerce platforms, skyrocketing 130.42 percent on year to 8.18 million, according to data from WiseApp, Retail, Goods. Coupang sat on top with 30.1 million, inching up 1.93 percent.

Korea’s antitrust regulator announced on Monday that it will probe the e-commerce industry to examine the market structure and competition following the rapid advancement of Chinese platform operators in recent years.

The surge in users has been paralleled by a surge in grievances. A total of 673 customer complaints were submitted to the Korea Consumer Agency regarding AliExpress last year, tripling from the previous year. An additional 212, nearly a third of last year’s total, were submitted in January of 2024 alone.

However, users have different experiences regarding refunds — some say that the process wasn’t that onerous.

“I’ve bought casual clothes and other commodity goods such as cleaning supplies from the Chinese platforms,” said a 36-year-old surnamed Jin who claims to be a frequent user of both AliExpress and Temu. “I don’t know about other online retailers, but here, the prices are so low that if there are any defects or flaws, they just offer a full refund instead of exchanges, even without requiring product returns.”

She says she's been receiving refunds long before AliExpress submitted an investment plan that included an array of consumer-protection policies earlier last month. However, Jin says that she would never buy electronic goods from such platforms.

“No matter how cheap they are, I would never buy them,” she said. “I don’t know, I just think that they would break really soon.”

The 36-year-old AliExpress user Kim says that she would have fallen for a scam on the app if she was that gullible.

"I once ordered a product worth 150,000 won, but it never arrived, even after two months," she said. "The tracking number also turned out to be fake. I requested a refund from the seller, but they said they would do so if I confirmed the purchase on the app. Of course, I didn't comply, and upon searching, I found out that it was a scam commonly seen on the platform. So I requested a refund directly from AliExpress, and I received a full refund without any hassle."

AliExpress user Lee Joo-hyun believes that slow shipping and a lack of customer service is a definite downside.

“For some products, there’s a seven-day guaranteed delivery option, but in other cases, it can take over two to three weeks,” Lee said. “The lack of precise delivery dates or efficient customer service makes the waiting process vague and frustrating. Moreover, once you subscribe to the app, an overwhelming number of advertisements and promotional emails start to arrive to your account, making the whole shopping process feel cluttered. Basically, I get worn out from too much information and too many options to choose from.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]