When you’re running a dropshipping store, pricing isn’t just a number—it’s your profit engine. You need to cover costs, handle fluctuating supplier discounts, and still remain competitive.

Here’s how to cut through the fluff and set prices for your AliExpress products on Shopify that work.

1. Get a Grasp on Your Costs

Before you even think about a markup, understand what you’re paying:

Product Cost

This is the base price on AliExpress. Remember, AliExpress prices can be deceptive. Some discounts are only temporary or applied for first-time buyers, so always check the undiscounted price if you want reliable margins. As one Reddit user pointed out, relying on the discounted price can hurt you when prices change unexpectedly!

For example, a smartwatch listed at $15 might be discounted to $12 for a limited time. If you base your pricing on $12 and the discount expires, you could lose 20% of your margin instantly.

Shipping Fees and Additional Expenses

Factor in shipping costs, Shopify subscription fees, transaction fees, and any marketing expenses. Even if a supplier offers free shipping, double-check that the service level won’t hurt your customer experience.

AliExpress shipping fees: Vary by supplier but range between $1-$10 per item for standard shipping.
Shopify subscription: Starts at $39/month for Basic Shopify.
Transaction fees:
- Shopify Payments: 2.9% + 30¢ per transaction.
- PayPal: 2.99% – 4.4% + fixed fees based on the buyer’s country.
Marketing costs: Facebook Ads, Google Ads, and influencer partnerships typically cost $5-$50 per day when testing.

Currency and Fluctuations

If you’re not paying in your local currency, keep an eye on conversion rates. Prices can swing, so build a buffer into your pricing strategy.

E.g: If you’re not paying in USD, consider currency fluctuations. Exchange rates can change by 1-5% monthly, impacting your costs and profit margins.

2. Markup: More Than Just Doubling Up

A common rule of thumb is to price your product at roughly twice its wholesale cost.

But don’t just blindly double it—think about the value you add:

Keystone Pricing

This is the simplest method: double the cost. It works well if you’re just starting out, but it might not always cover all your expenses.

Tiered Markup

Lower-cost items might carry a higher percentage markup while more expensive products require a slimmer margin. Adjust based on your niche and customer expectations.

Psychological Pricing

Consumers react to price endings. Prices like $9.99 feel a lot lower than a flat $10. This isn’t magic—it’s human psychology at work.

3. Account for AliExpress Price Fluctuations

One of the biggest headaches in dropshipping is the constant fluctuation of product prices on AliExpress. Suppliers often run limited-time discounts or adjust prices based on volume.

To avoid squeezing your profit margins:

Base Your Markup on the Undiscounted Price: This gives you a safety net if the supplier’s discount expires. If you price only on the lower, temporary rate, you could end up with negative margins later.

Regularly Monitor Prices: Use your dropshipping app’s tools (like DSers or Importify) to track changes. When prices shift, adjust your store pricing accordingly to protect your profits.

4. Study the Competition and Know Your Value

Even if you nail your cost calculations, customers won’t pay if your price isn’t competitive. Research what similar products are selling for on other Shopify stores and major marketplaces.

Competitive Analysis

Look at both the price and the value proposition. If you offer better customer service, faster shipping, or more detailed product descriptions, you can justify a slightly higher price.

Test and Iterate

There’s no magic formula that fits every niche. Run A/B tests, experiment with price adjustments, and use customer feedback to refine your strategy.

5. Always Be Ready to Adjust

The market isn’t static, and neither should your prices be.

Regularly revisit your pricing strategy based on:

Supplier Changes: Keep tabs on when suppliers update their costs.
Customer Behavior: Notice if your sales drop after a price change or if competitors lower their prices.
Seasonal Trends: Holidays or seasonal demand spikes may allow for temporary price increases.

Final Thoughts

Start with a clear understanding of your costs, use a sensible markup strategy, account for fluctuations, and keep a close eye on your competition. This no-sugarcoating approach means you’re ready to face the realities of dropshipping head-on while building a sustainable, profitable business.

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