What is your pricing strategy for drop shipping Aliexpress?

7 years ago

I mostly sell products which I can buy on Aliexpress for a dollar or less and the final price in my store is usually at least 10$.
It depends how you wnat to track your expenses. The easiest way is to check your expenses and incomes at the end of the month. But if you are promoting a single product for some time, than definitely add all expenses you created in this time to this single products.
About the shipping price. I usually offer free delivery without a tracking code. I say that i have a lot of warehouses over the world and that it may take some time for the item to arrive.

Which ecommerce platform are you using?

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1 reply

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xixna 7 years ago

Hey, thank you for your reply. My drop shipping business is built in wordpress and use the plugin woocommerce to import products from aliexpress. If you dont mind, could you share what sort of advertising you do to promote your products?
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carltonman

7 years ago

I mostly use Pinterest and Facebook for advertising. I have several Pinterest accounts with a decent amount of followers. In my own experience, Pinterest is even better than facebook.
But I also pay attention to every customer which comes to my shop. I try to make everything to make him buy something.
That is why my most popular products are always on "sale." I also try to gather good reviews for every products. I show these "trust badges" on every page. And I also use this conversion booster app which shows recent orders in my store. It shows a small popup with the most recent orders in my stores. Take a look at it here. This one is for Shopify, but I am sure that something familiar exists for woocommerce.
Every customer that comes to my store is a valued customer because I probably paid something for him. And I want him to buy something or I just wasted my money on him.

Thanks

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dave_hermansen

7 years ago

There is only one way to price your products - you set your price based on what the main players in your niche are charging for those products. Setting your prices on an arbitrary strategy is a recipe for failure. The marketplace dictates your prices.

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Jamin Borh

7 years ago

carltonman..
are you using shopify platform ?!

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carltonman 7 years ago

Yes Jamin.
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Milos Milicevic

7 years ago

This is my Strategy:
$0<Supplier Price<$1=Your Price: $7.95
$1<Supplier Price<$5=Your Price: $9.95
$5<Supplier Price<$30= Your Price: Supplier Price x 2
$30<Supplier Price<$50=Your Price: Supplier Price x 1.75
$50<Supplier Price<$100=Your Price: Supplier Price x 1.5
Supplier Price>$100=Your Price: Supplier Price x 1.35

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dave_hermansen

7 years ago

Originally Posted by Milos Milicevic

This is my Strategy:
$0<Supplier Price<$1=Your Price: $7.95
$1<Supplier Price<$5=Your Price: $9.95
$5<Supplier Price<$30= Your Price: Supplier Price x 2
$30<Supplier Price<$50=Your Price: Supplier Price x 1.75
$50<Supplier Price<$100=Your Price: Supplier Price x 1.5
Supplier Price>$100=Your Price: Supplier Price x 1.35

I can tell you many, Many, MANY markets where you wouldn't sell a thing with that formula. The only valid pricing strategy is keeping your prices in line with your main competition. Go significantly lower, and you start a price war that will lead to no profits. Go too high, and you won't sell anything.

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mich800

7 years ago

Originally Posted by dave_hermansen

I can tell you many, Many, MANY markets where you wouldn't sell a thing with that formula. The only valid pricing strategy is keeping your prices in line with your main competition. Go significantly lower, and you start a price war that will lead to no profits. Go too high, and you won't sell anything.

I agree. The market sets the price. It is your job to source the product cheap enough to generate sufficient margins. If you cannot source the product cheap enough move on and find a different product, repeat.

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Samfredi 7 years ago

I like this strategy - I have adopted it to my new store and prices seem reasonable though I would not stick to fixed prices as you end up with a lot of products with the same price. Just need to multiply very low prices with very high margin.
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ShopifyMaster

7 years ago

I aim for at least $10 profit per product. But it also depends on the product, some products you can make up to $50 profit from or more. The perceived value of the product to the customer is extremely important. Also you need to factor in advertising costs into your markup, but that might be tricky to do in the beginnning since ad costs on facebook tend to fluctuate, so its more of a trial and error scenario. If your profit margin is high enough, just pay for quicker shipping...nothing outrageous though, anything from 20-30 days is fine.

Thanks

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What is your pricing strategy for drop shipping Aliexpress?

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