AliExpress startup capital demand analysis and detailed explanation of risk control process
As a world-renowned cross-border e-commerce platform, AliExpress provides entrepreneurs with broad market opportunities. However, for many start-ups, one of the biggest concerns is: How much capital is needed to start an AliExpress business? **This article aims to explore this topic, combined with another key issue – why shipments need to be made after risk control, to help readers fully understand the financial preparations and related operating procedures required to start a business on AliExpress.
Financial needs analysis
Store level fees
Opening a store on AliExpress is not completely free. The platform provides a variety of types to choose from, from ordinary stores to VIP stores, and the fees for each type vary. Entrepreneurs should make reasonable choices based on their actual needs and budget.
Product types and inventory
The need for funds is also affected by the types of goods sold and the size of the inventory. If you plan to sell multiple categories of goods and maintain larger inventories, the initial capital required will increase accordingly. In addition, the purchase cost of different products is also an important factor affecting the overall budget.
Advertising delivery costs
In order to increase sales, many merchants choose to place advertisements on AliExpress. This part of the expenditure will vary depending on the scale of advertising and platform selection.
Logistics cost
Logistics costs in cross-border trade often account for a large proportion, including but not limited to packaging, transportation, tariffs, customs clearance and other expenses. Therefore, when formulating a financial plan, the possible costs of logistics must be fully taken into account.
Set aside emergency funds
In addition to the above fixed expenses, it is recommended to set aside some funds as emergency reserves to deal with emergencies or unexpected events.
Analysis of risk control process
When an order is generated, the prompt “Funds not received” sometimes appears. This is actually because the payment is in the review stage of AliExpress’s risk control system. The purpose of this step is to protect the interests of sellers and prevent potential risks caused by information asymmetry in the online payment process, such as credit card fraud. According to the regulations of international credit card organizations, users have the right to file a dispute request, a so-called “chargeback” within 180 days of purchase. In order to avoid such a situation from happening, the platform has taken measures to delay lending.
However, in order for consumers to successfully initiate a “chargeback”, they need to meet a series of conditions, which is not easy to achieve. On the one hand, filing a dispute itself requires paying a certain fee; on the other hand, it may take several months from the filing of the application to the final decision; more importantly, frequent such operations may damage an individual’s credit, thereby affecting his or her future credit Activity. Therefore, although this mechanism exists, the probability of its actual occurrence is not high.
Taken together, the specific amount of funds required to start an AliExpress business varies from person to person and mainly depends on the business strategy and scale. For novices, you can start from a store with a lower threshold, gradually accumulate experience, and adjust your investment strategy based on market feedback. At the same time, throughout the entire operation process, we always pay attention to capital management and risk control to ensure long-term stable development.