Many new sellers on AliExpress are hesitant about product pricing after developing products, and price positioning will affect search rankings, product click-through rates, final order willingness, product added value, etc. There are many decision-making factors that affect price positioning. The bottom line of pricing is to generate profits, especially for new store product pricing, which should leave enough profits so that there is room for operation when various operations and promotional measures are taken later. Here are some good AliExpress pricing formulas.
1. Refer to the prices of peers or similar products
Find similar products or peer sellers on AliExpress or other cross-border e-commerce platforms, and refer to their pricing. On this basis, set prices based on the store’s own positioning and product positioning. For example, the price should be lower than that of similar products, but the gap should not be too large, otherwise it will lower its own profits, and at the same time, the price competition on the platform will eventually implicate the sellers themselves. When many sellers release products, they set prices based only on their own costs, freight, commissions, exchange rates, expected profits and other factors. By referring to the prices of peers, sellers can also dig out more unknown information. By studying the pricing of others, sellers can find problems that exist in themselves and are not easy to find, such as the transportation cost can be reduced and the product packaging does not need to be too gorgeous.
2. The simplest “rough” pricing
The specific formula is: price minus cost + expected profit. This method is the simplest and “rough” pricing method of AliExpress. It grasps the cost of its own products and gives a profit margin within a reasonable range. The final result is pricing. It is recommended to control the profit at about 30% of the product cost, so that you can leave yourself money for activities. This method is more suitable for novice sellers or new products and new store products.
3. Detailed and refined pricing
The specific formula is: price = (product cost + shipping + affiliate marketing commission) (1 + gross profit margin) / (1 to gold ratio) US dollar exchange rate / discount set on AliExpress, or price = (product cost + shipping + gross profit + affiliate marketing commission) / (1 to gold ratio) / US dollar exchange rate / discount set on AliExpress.
4. Clever use of digital pricing
In daily life, we have such experience that whether it is a shopping mall, supermarket or other store platform, they often adopt the odd-ever pricing rule in marketing, that is, the price of the product is not rounded but the odd-ever is retained. This is to use the psychological factors of consumers to set prices. Retaining the odd-ever can reduce the price by one digit, giving people a very cheap psychological feeling. For example, a Qinhequan fishing reel is priced at US$37.88 instead of US$40. This can achieve the effect of increasing sales, because the odd-ever pricing often gives consumers a feeling of price concessions, so sellers may wish to adopt this strategy when pricing.
Of course, on the AliExpress platform, there are more and more store discounts, affiliate marketing, through trains, and platform promotion activities. Most of the merchants participating in them have high profits, because they have made price estimates and calculations in advance, which will ensure that they can make profits while giving up profits. Some merchants do not want to participate or their products are of low value and are not suitable for participating in such activities. They can set their product prices lower and rely on low prices to grab orders. Merchants can also set higher prices for products when they are first listed, relying on high discounts or multiple discounts to attract traffic and win orders.