Why products are so cheap on Taobao.com?
Admittedly, China is the world’s factory. Cheap labor and high competition make products very cheap. Taobao.com is targeting thrifty Chinese citizens.
It is the place where more than 80% Chinese online buyers go shopping every day. What’s more, free access to open a shop on Taobao makes numerous individuals all around China become Taobao sellers. They compete for sales even more than real shops because one Taobao search can show you all the prices from up to down. To attract business, they have to put their item price to the lowest possible level.