Chinese loan: what are the risks of buying goods on AliExpress
24.04.2017 apleapplekot 0 Comments
Monday, April 24 AliExpress opened for the Russians the opportunity to make purchases in installments and credit. While a loan only available to sellers section of the “Mall”, but after 2-3 months the new service will be available for the whole range of AliExpress cost from 3000 rubles.
In the publication Info Sibnet figured out why installment AliExpress is unlikely to be profitable for the Russians of the dangers of “Chinese credit” of the domestic online shopping, and whether you need the state to intervene in aggressive expansion the world’s largest trading platform.
Russia will become the first country where AliExpress opens up the possibility of credit purchases. The Chinese company has stated that Russia is one of the priority markets, and the new service will make available on the site products more accessible to a wider range of consumers.
Statistics on the side AliExpress is already a third of shopping online applies to cross-border trade, according to data of the Federal customs service. According to statistics of the Association of companies the Internet-trade (AKIT), AliExpress is the most popular online store for Russia — monthly the site is visited by over 25 million Russians.
While in credit or installment to buy on AliExpress, can not so much goods — the list includes iPhone, Samsung smartphones, but also laptops and accessories Beats. Partner acts AliExpress “Tinkoff Bank”. The interest rate on the “Installment plan” is 23.4% per annum, for the product “Credit” of 29%.
According to a post on the website AliExpress, the Russians can use for shopping Bank approved limit. It is valid for purchases from 3 to 100 thousand rubles. In the case of installments, the customer will pay the Bank only the original cost of the goods (the store is doing a discount on the amount of the Bank rate), but to buy on such terms can only lot that is marked with a special icon.
“Overall, this is a fairly standard terms and conditions for online credit, says broker and financial analyst of the company “Broker-service” Dmitry Nazarov. In practice, the interest rate usually is calculated individually for each client, so a purchase with beneficial at first glance the price may be expensive”.
For example, right now as part of the sale of the Russian platform “Mall” offers to buy the Samsung Galaxy S7 for 33 962 rubles. At first glance, indeed, it’s a good price, since the average cost of the gadget for “Yandex-Market” is 39 000 rubles. However, a careful study of the service you can find shops where the apparatus is about 32 to 34 thousand rubles.
According to Nazarov, credit terms AliExpress is hardly unique, and a new service may not be popular. “On the Chinese site are purchased by people who intend to save a few thousand. If this economy in the end will not, even buying on credit is unlikely to much change the situation on the market”, — said the analyst.
Paradise for the “gray” dealers
“The risks to domestic participants of the market of electronics in connection with the new policy of the Chinese sites is minimal — firstly, loans and installment is valid only for Russian sellers, and secondly, the quality of the product and support on AliExpress traditionally low,” says CEO and founder of trading network “e2e4” Andrey Melnikov.
According to Melnikov, now even on electronics from Chinese sites in Russia practically there are no guarantees, finally, the services have serious problems. In addition, for reviews great a risk to run on recovered gadgets or “gray” dealers who sell to Russia is designed for regional markets devices.
“I see the positive side in innovation — in the Russian segment of AliExpress can appear small companies who find it difficult to enter into contracts with banks. The Chinese site will do their job for them. But it is unlikely there will be a low price tag for the buyer,” — said the expert.
However, while the popularity of credit purchases on AliExpress is questionable, warns Miller. Director of the Russian trading network recalls that the Chinese partners will domestic banks and fast loans conditions significantly unprofitable traditional, as there is an increased risk of default.
“To partner with AliExpress to have on site a store e2e4? For us it is not a very favorable strategy, since the average buyer AliExpress important just the low price but the quality and service it’s usually not interested. Besides, it will inevitably lead to additional costs, because the site takes a percentage of the transaction,” he says.
Now the benefits of shopping on foreign sites for Russians is the lack of a number of duties and taxes, in the end, the price tag is lower than in the Russian store. “As a seller, we would like to conditions for market participants were the same. But we must remember that ordinary citizens will eventually have to pay for the purchase,” concludes Miller.
The state is asked to intervene
Unlike market participants, the President of AKITA Alexey Fedorov believes the real risk for the domestic market the Internet-trade to lose part of the profit in connection with changes in the Chinese marketplace. In this scenario, the events should intervene, the expert believes.
“At the moment the goods offered on credit, were imported to our country in accordance with all the rules of law, but in the future AliExpress can extend this practice to goods from abroad, imported through cross-border, then it will cause damage to the domestic Internet Commerce,” says Fedorov.
The head of the AKITA resembles that goods from abroad are not subject to VAT and duty, and if to these advantages is added to a credit purchase, Russian consumers EN masse will go for the purchase of goods in foreign online stores. Besides AliExpress does not hide the plans to complete the expansion in Russia, said Fedorov.
“For example, Cainiao is another subsidiary of Alibaba group — has bought the premises for the classic import Chinese goods to Russia. Thus, reduction of term of delivery with the existing classroom indicators AliExpress will provide leadership in the Russian market,” he warns.
In this situation would have an impact on online sellers of clothing, electronics and children’s goods of low price segment, as in the current our country economic situation, the Russians prefer to save by buying the cheapest products. However, while these risks are only hypothetical, the expert adds.
“The Russian consumer AliExpress associated with cheap Chinese goods. Average ticket purchases there is 500 rubles. AliExpress will have to exert lots of effort in order to change in the minds of buyers this focus and begin to sell them expensive goods”, — continues Fedorov.
According to the head of the AKITA, the Russian Internet-stores already have optimized distribution warehouses, built supply chain, service and return – what the Chinese giant has yet to learn. Besides online retailers have long and successfully provide services to online lending.
However, in the future, the situation on the market requires government intervention. “First of all, a level playing field will ensure introduction of VAT registration of foreign online stores. According to the forecasts of AKITA, in the first three years of implementation mechanism the state will receive up to 300 billion rubles,” — said Fedorov.
In addition, the head of the AKITA offers to settle the level of responsibility of foreign players to the Russian consumer. For this the government needs to amend the law “On protection of consumer rights”, to give foreign merchants the same rights and responsibilities as domestic online retailers.