Why Is DHgate So Cheap

Why Is DHgate So Cheap

Is DHgate Legit?

DHgate is a legitimate B2B eCommerce platform that connects buyers and sellers worldwide from China. Unlike Amazon, DHgate is a platform that acts as an intermediary between buyers and sellers. Choosing the right seller is therefore crucial.

DHgate, as a platform, is without a doubt a legit one. However, the reliability of this platform depends on the trustworthiness of the seller that you decide to purchase from.

Is DHgate Legit? Let’s Unveiling the Truth: Dhgate Reviews

What is DHgate?

DHgate.com, a leading B2B eCommerce marketplace serving medium- and small-scale retailers around the world, is a cross-border platform.

DHgate was founded in Beijing in 2004 and has offices in many countries including the US, UK, and Australia. Their business model is based on facilitating wholesale purchases by overseas buyers and resellers.

DHgate has a wide range of products from China, including apparel, consumer electronics and shoes, bags, garden and home products, as well as other categories.

It’s not surprising that DHgate has some of the best prices around, considering most sellers are either manufacturers or wholesalers.

The platform hosts currently over 32 millions product listings, and an incredible 31,000,000 individual buyers.

Pros and cons of DHgate

Let’s now look at some of the benefits and drawbacks to buying from DHgate.

DHgate Pros

  • Bulk purchases can offer even cheaper prices
  • Dropshipping and bulk purchasing are possible.
  • The minimum order quantity for most items is low or none.
  • Wide range of products are available
  • You can see reviews of products and sellers
  • Payment methods are varied
  • Buyer Protection (Funds remain in Escrow pending delivery of the product).
  • Many sellers ship internationally

DHgate Cons

  • Many replica brands or products
  • Shipping times are too long
  • Shipping costs
  • The quality of the product can vary according to the seller
  • Customer service is not the best
  • There are many unreliable sellers

Why is DHgate so cheap?

After explaining what DHgate and how it operates, we are left wondering – why is DHgate such a bargain? Let’s see!

1. No involvement of third-party middlemen

Most of the sellers on DHgate, therefore, are factories or manufacturers. The sellers can list their products for cheaper prices.

The price of the same product will be higher if you purchase from retailers.

When you purchase from DHgate manufacturers and individual sellers, you will get factory prices.

2. Sell Excess Stocks at Reduced Prices

DHgate’s sellers are mostly manufacturers. It is no surprise that they produce more products than they can sell.

They will then list the surplus stock and sell it for a discount, making little or no profit. It is usually done to free up space in the event of storage problems. Customers who are looking for great deals will be happy to know that they can get them!

3. Based in China, with low production costs

DHgate’s headquarters are in China where labor and production costs are cheaper than in other countries. The platform can offer its products at lower costs than their competitors.

4. No physical store costs

DHgate is a completely online company, which eliminates the need for physical shops and their associated costs, such as rent, utilities and maintenance. Individual sellers instead use their DHgate shops to list and then sell items at factory price.

5. No advertising costs

DHgate does not spend money on advertising. It relies on search engine rankings and word-of mouth to bring in new customers. This helps to keep costs down and explains why there are so many affordable products on the platform.

6. Bulk orders at Wholesale Prices

DHgate’s products are already cheap, but you can get them even cheaper if you purchase in bulk. The more you buy the cheaper it is.

7. Reduced Taxes and Fees

Taxes, fees and other charges are almost always included in the price of any product. DHgate is a platform based in China, and many of its sellers are also. This means that these costs will be significantly lower when you purchase items from DHgate. The cost of the items is reduced because fewer taxes and fees are added.

China does not have a national sales tax or income tax. It only imposes local taxes to companies. Prices on DHgate are lower than in Europe and North America, where taxes apply.

8. Low Seller Commissions

DHgate is a marketplace that operates on a percentage basis. It’s not much different than other marketplaces. However, the commission rate is significantly lower. DHgate charges sellers 3%, while Amazon and eBay charge 15-20% each.

The lower commission structure allows sellers to sell their products at lower prices. Plus, DHgate doesn’t charge sellers listing fees, maintenance fees, etc. It allows sellers to sell their products for lower prices.

9. There are many sellers and competitive prices

Sellers can set their own prices on DHgate. It may appear that this approach would lead to high prices but the opposite is true.

Due to the competition between sellers, they lower their prices in order to gain more customers. These prices are highly competitive, and you as the buyer benefit from them.

10. Replica Products

You’ve probably noticed the ridiculously low prices of “branded” clothing and accessories on DHgate. You can find products from brands like Dolce & Gabbana and Gucci.

If it wasn’t obvious from the price, these are replicas, not original brands. Selling replicas (and possibly even causing you customs clearance problems) is frowned upon. We recommend that you stick to non-branded items if you intend to resell them.

11. Possible Price Negotiation

It’s also important to know that bargaining and negotiation are possible when you purchase from DHgate.

Negotiating can result in better discounts and deals, especially when you order in bulk.

Tips for Buying Safely from DHgate

Let’s look at some of the best practices to ensure you buy from DHgate with confidence:

Always Pay Through DHgate

Never pay a seller outside the DHgate platform. Pay through DHgate to ensure that you are protected by their Buyer Protection Service and Escrow.

If you choose to pay privately, DHgate will not be able to assist you in any future disputes, nor can you receive a refund, even if it is only a partial one.

Sellers should be evaluated carefully

It’s a good idea to check out the seller before you purchase any products from DHgate.

  • The more years of operation, the better. But at least two or three years is acceptable.
  • We recommend that you choose sellers who have 95+% positive feedback.
  • Product quality: above average;
  • Customer service: above average;
  • Green arrows up: On-time Delivery Rate
  • Store categories: Most professional sellers will only sell products within a specific niche.

Read Product Reviews

It’s best to stick with products that have a minimum of 100 positive reviews and a maximum of 4.5 stars. (Aim for more than 100 reviews in order to verify that the reviews are genuine and not from the seller). You can see if the majority of the customers are satisfied with the quality and delivery time.

Check out real buyer photos

Many DHgate customers leave product reviews that include images. Check out the images attached to product reviews before making a purchase on DHgate. They will give you a better idea of what the item looks like.

Oft, the product description and photo uploaded by sellers do not match what is actually being sold. You can make a more informed choice by looking at photos of buyers.

You can check the delivery date on products

You’ll see the estimated delivery date when you place an order or choose your shipping method. Check this before you buy, as their free shipping can take two months depending on where you are.

You can ask for a tracking number

Asking the seller for an order tracking number is the best way to make sure your product will arrive. If the seller is unable to give you a tracking number, contact the shipping company.

Select Top Merchant or Premium Sellers

You can add an extra layer of security by looking for sellers who display “Top Merchant” and “Premium merchant” badges. This is the best option if you can find a seller who has these badges.

Do not confirm the delivery before.

Escrow is where your money stays when you purchase a product from DHgate. Only after you have confirmed that you have received your order will they be released to the seller. We advise you to confirm your order only after you have received the product.

It is important to read product descriptions carefully.

When you shop at DHgate, don’t rely on the product images alone. The product photos are often misleading but the descriptions will be accurate.

If you don’t read the description, where the seller explains exactly what you are getting, DHgate will refuse your complaint later, since technically you knew everything before.

You can order a sample before you buy

It is always a good idea to order a single product or request a sample before ordering in bulk. Unfortunately, shipping costs are often very high on DHgate, particularly for small orders. It is often this that prevents customers from ordering sample products.


Let’s finally answer some of the questions that are frequently asked about DHgate and why it is so cheap.

Is it safe to buy on DHgate?

If you are careful and do your research, you can buy on DHgate with confidence. Note that the following are some of the most frequent complaints and reviews about DHgate’s products:

  • Product quality not as described
  • The products arrived late or not at all
  • Shipping costs
  • Bad customer service

What is a fake item from DHgate?

You will find many great deals and products on DHgate, but you’ll also see many fakes and replicas. If you notice a brand on a product that is priced surprisingly low, it’s likely a fake.

We recommend that you do not buy counterfeits or replicas if you intend to resell them. This could cause Customs Clearance problems and damage your local business.

How Can I Tell if a DHgate seller is Legit?

Do some research on the seller and check their profile to ensure they are legit. Look for sellers that:

  • Sell products in one niche (or two related niches);
  • Over 95% positive feedback.
  • You must have been active on DHgate for at least two years.
  • You should have stats that are above average in terms of product quality, customer service and on-time deliveries;
  • Display badges in the buyer protection section (Return policy, No delivery refund, Secure payment);
  • Respond quickly and efficiently;

Does DHgate sell illegal items?

Although there are DHgate sellers who sell legitimate products, many of them are counterfeits or replicas. Replicas are those where the seller clearly states that the item is a copy (but not an original) of the original.

If the seller lists the item and deceives customers into believing he is selling the original brand, it’s a counterfeit.

Which is safer – DHgate.com or AliExpress.com?

With some research on the seller, both AliExpress as well as DHgate are safe. AliExpress is a better option in terms of buyer protection, quality control and seller verification.

AliExpress is primarily a B2C site, while DHgate focuses on B2B. Bulk orders may be cheaper at DHgate rather than AliExpress. The high shipping rates on DHgate usually make up for the difference.