I’m not sure what point you’re making. How is that issue related to labor in Europe? Amazon US is all white-label Aliexpress stuff too, but the minimum wage here is literally $7.25 an hour, many states have zero sales tax, and there’s no VAT.

Even if you're selling the same item you need to pay local rates for importing, handling, stock storage, etc. which are highly dependant on labour prices and real estate costs.

As such if you're trying to sell to anyone who's not in the same purchasing power range or higher (aka literally nobody when it comes to Switzerland) you'll run into problems as you can't compete with vendors operating at lower costs in those countries. It's just basic arithmetic.

That's what makes Switzerland one of the worst places one could manufacture and/or stock things and China one of the best. Exploitation of the poor is the optimal business choice, after all it's the very foundation upon which capitalism itself is built.

They are also expanding in EEA: Germany, France, Italy for sure. I don't know about other markets.

In Germany, they are usually close to the cheapest, but rarely the cheapest when I see them on Geizhals (price comparison site).

I guess you never heard about Swiss import tax, and overall you don't seem very familiar with topic. They have no competition here, they offer maybe 50x more products than available in rest of eshops, and most have actually in warehouse. Stuff you simply can't buy elsewhere and its either not shipped into CH at all (thank you, Amazon) or at higher prices and utterly crappy warranty.