Detailed explanation of the start-up capital requirements for AliExpress e-commerce business

Many friends want to enter the AliExpress market, but they are often troubled by financial problems. The following content will provide a detailed analysis of the initial capital allocation required to do AliExpress.

First of all, registering a company is the first step to enter the e-commerce market. This usually requires a budget of several hundred yuan, and the specific costs vary from city to city. Secondly, the purchase of office equipment cannot be ignored, including basic facilities such as computers and network connections. In addition, if you consider applying for a trademark, the cost may range from a few hundred to several thousand dollars. However, for novice sellers, it is not necessary to apply for a trademark, and they can usually rely on the authorization of suppliers or Taobao to operate.

Another necessary expenditure for joining AliExpress is a deposit, which is usually between 10,000 and 50,000 yuan, depending on the selected category. The deposit for many categories is about 10,000 yuan. In terms of products, there is no need to carry a large amount of inventory in the initial stage. Sellers can choose to dropship shipments through suppliers after customers place orders.

However, products shipped in the early stage do require a certain amount of working capital to cover multiple cost items, including cargo costs, freight, etc. In addition, AliExpress’s payment cycle is relatively long, so sellers need to carefully calculate the necessary working capital. Since sellers operate different products and have different initial order volumes, it is difficult to accurately estimate the starting capital. However, preparing 20,000 to 30,000 yuan is a relatively reasonable budget.

If the seller plans to sell products with a price of more than 50 yuan, and calculates based on selling 20 to 30 orders per day, the required start-up capital will increase relatively. Generally speaking, the larger the order quantity, the higher the upfront cost and freight you need to pay, and the profit earned after the payment is received will also increase. Compared with other e-commerce platforms, AliExpress has lower start-up capital requirements, making it very suitable for small and medium-sized sellers to choose to settle in.

To sum up, although the start-up capital requirements for AliExpress are related to many factors, relatively speaking, the limitations and risks are small, and it is very suitable for entrepreneurs who are interested in e-commerce development. However, sellers still need to plan funds carefully to ensure the stable operation of the business.