Pricing Formula

A

avforbusiness

New Member
Hello,
as I'm new to all dropshipping both website and plugin I would like to hear from you.

As for the pricing formula of the Alidropship plugin how do you handle it?

I'm asking because the final price should be:

seller price + shipping costs + payment gateways fees + profit margin

This case considers the free shipping method available to the customer.

How you set your formula?

Thank you
 
Mar

Mar

Moderator
avforbusiness said:
Hello,
as I'm new to all dropshipping both website and plugin I would like to hear from you.

As for the pricing formula of the Alidropship plugin how do you handle it?

I'm asking because the final price should be:

seller price + shipping costs + payment gateways fees + profit margin

This case considers the free shipping method available to the customer.

How you set your formula?

Thank you
Click to expand...
Shipping costs cannot be added to pricing formula, the reason is because shipping cost differ from product to product and country to country. Payment gateways cannot be added for the same reason. If you use common sense, you would not be asking about this.
 
A

avforbusiness

New Member
Mar said:
Shipping costs cannot be added to pricing formula, the reason is because shipping cost differ from product to product and country to country. Payment gateways cannot be added for the same reason. If you use common sense, you would not be asking about this.
Click to expand...

Actually common sense demands that a pricing formula for a store consider all costs of the operation.

Thinking on a different manner is the starting point of bankruptcy.

Common sense meaning is "good sense and sound judgment in practical matters" and practical matters includes shipping and fees.

Watch your mouth and be happy!
 
Mar

Mar

Moderator
avforbusiness said:
Actually common sense demands that a pricing formula for a store consider all costs of the operation.

Thinking on a different manner is the starting point of bankruptcy.

Common sense meaning is "good sense and sound judgment in practical matters" and practical matters includes shipping and fees.

Watch your mouth and be happy!
Click to expand...
If what you are asking for is possible, it could have been implemented long time ago, before you even think about it. You really need common sense.
 
M

mt1895

New Member
Hi avforbusiness,

Here is just one method of many that you might consider employing which is to create a spreadsheet:

Step One: Add the seller price & shipping charge of seller.
Step Two: Take the sum of "Step One" and multiply it by 2.9 plus .30 cents for the gateway fee such as PayPal (of course you must use the numbers that apply for the gateway you are using.)
Step Three: Take the sum of "Step Two" and multiply it by the profit percentage you want to realize from the sale (I.E. 10, 20, 50 100 percent).
Step Four: Add this number to the total you received from "Step Two" and this is "YOUR" drop-ship price.

...Whoops - I forgot you have to factor in the tax that Aliexpress is now charging on all orders. I don't know what that percentage is.

If you receive an order for more than one in quantity, the seller shipping charge won't double and your bottom line will be more. At the same time you must ensure that this formula won't become excessive depending on what product you are dropshipping; but it's something to work with.

I hope it helps you.
 
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Direct Webstore

Direct Webstore

Well-Known Member
avforbusiness said:
Actually common sense demands that a pricing formula for a store consider all costs of the operation.
Click to expand...
That's right. Obviously. Make a general estimate of all your products and build it into the price. That's the only way to do it with dropshipping. Don't be confused with online stores that stock and ship all their own products. They CAN do what you are requesting.

Let's face it, apart from advertising, dropshipping has very low overheads and you will profit anyway. You just need to look at your competitor's prices to determine how big you think you could make that profit margin.

I only use sellers that offer free shipping, build in a reasonable profit and concern myself with other things.

This topic has actually been discussed several times in this forum already. The search box above will reveal more if you're interested.

avforbusiness said:
Watch your mouth and be happy!
Click to expand...
LIkewise mate.

;)
 
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kdb

kdb

Active Member
I suggest you should buy plugin to control shipping cost.
Rest of the cost you add in pricing formula section ( seller cost + Paypal/paymentGWays + profit )

I suggest ADS should do something about tax collection of the products by Aliexpress.
 
M

mt1895

New Member
kdbazarcom said:
I suggest you should buy plugin to control shipping cost.
Rest of the cost you add in pricing formula section ( seller cost + Paypal/paymentGWays + profit )

I suggest ADS should do something about tax collection of the products by Aliexpress.
Click to expand...

Hi kdbazarcom,

ADS has no control over what AliExpress charge for taxes. That's a new charge that's not going to the providence, state or country from where the drop-shipper resides and there is a lot of verbiage on their site as to why they are collecting it.

Now ironically, eBay and Amazon are doing the same thing even if you reside in a State (or area) that do not impose sales tax.

Amazon would charge it depending on the laws of the land but now they charge it on ALL products sold through their platform even if you are a manufacturer and using the purchased item to create another item for sale who are typically exempt from taxes (just a sidebar tidbit of information).

There may be mixed signals regarding the shipping charge. Your comment implies that you are using the ADS plugin to display how shipping will be handled from the items "YOU" are dropshipping on your website; which is fine. I thought the O.P. was asking about how he/she should incorporate (absorb) the shipping charges from the seller into their formula so that they can realize a profit.

Remember, even if you say "Free Shipping" on your site(s) as I do, that doesn't mean the seller will ship it for free.

Just like others on this forum I prefer to use sellers that ship for free, however; since all of my products are shipped to the USA, I will pay for shipping (pass the cost along) when the shipping time is guaranteed between either 7 or 14 days.

Americans are a hasty bunch and don't like waiting but will accept a guaranteed time.

Cheers
 
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A

avforbusiness

New Member
mt1895 said:
Hi avforbusiness,

Here is just one method of many that you might consider employing which is to create a spreadsheet:

Step One: Add the seller price & shipping charge of seller.
Step Two: Take the sum of "Step One" and multiply it by 2.9 plus .30 cents for the gateway fee such as PayPal (of course you must use the numbers that apply for the gateway you are using.)
Step Three: Take the sum of "Step Two" and multiply it by the profit percentage you want to realize from the sale (I.E. 10, 20, 50 100 percent).
Step Four: Add this number to the total you received from "Step Two" and this is "YOUR" drop-ship price.

...Whoops - I forgot you have to factor in the tax that Aliexpress is now charging on all orders. I don't know what that percentage is.

If you receive an order for more than one in quantity, the seller shipping charge won't double and your bottom line will be more. At the same time you must ensure that this formula won't become excessive depending on what product you are dropshipping; but it's something to work with.

I hope it helps you.
Click to expand...
Thank you!
 
A

avforbusiness

New Member
Mar said:
Many are asking stupid questions, not using common sense. If you mention it, they are mad. Members, if you are not using common sense, expect to be told use your common sense.
Click to expand...

Have you just learned the term common sense?
It looks like you are using it in a very intense and wide manner.
There's a bunch of beautiful words and sayings you could learn.
I know a few in different languages.
If you want we can create a new post just to talk about it!
Let me know!
Take good care of yourself!
Have a great day!
 
Mar

Mar

Moderator
avforbusiness said:
Have you just learned the term common sense?
It looks like you are using it in a very intense and wide manner.
There's a bunch of beautiful words and sayings you could learn.
I know a few in different languages.
If you want we can create a new post just to talk about it!
Let me know!
Take good care of yourself!
Have a great day!
Click to expand...
Beautiful words don't work with people who don't have common sense. It hurt but they need to be told frankly, otherwise they would not learn.
 
Direct Webstore

Direct Webstore

Well-Known Member
mt1895 said:
Step One: Add the seller price & shipping charge of seller.
Step Two: Take the sum of "Step One" and multiply it by 2.9 plus .30 cents for the gateway fee such as PayPal (of course you must use the numbers that apply for the gateway you are using.)
Step Three: Take the sum of "Step Two" and multiply it by the profit percentage you want to realize from the sale (I.E. 10, 20, 50 100 percent).
Step Four: Add this number to the total you received from "Step Two" and this is "YOUR" drop-ship price.
Click to expand...

That's all perfectly fine for a single product, but not as a formula to cover a range of different product prices and shipping prices which is what the Alidropship pricing formulas do.

And step one contains an amount based on the profit margin you personally want.

With the Alidropship plugin's pricing formulas they have to cover a range of different prices and/or shipping prices.

And if you want to do it by editing each product one by one, you will then face the age-old problem of those changes reverting after updates.

Considering dropshipping has very low overheads you WILL make a profit. You just need to determine how much is competitive based on others prices and to follow the "KISS principle".
 
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Direct Webstore

Direct Webstore

Well-Known Member
avforbusiness said:
Have you just learned the term common sense?
It looks like you are using it in a very intense and wide manner.
Click to expand...
Calm down. It was a direct reply to me based on this ...
Direct Webstore said:
I wish I was. A lot of overly sensitive people around here ... lol
Click to expand...
... which was in relation to an experience I had with a childish person on another thread just yesterday.

It had nothing to do with this thread or you ... until you stepped in, that is. lol
 
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T

ToddyWoggle

New Member
Omg people there is a whole section in woocomerce where you can set up shipping zones and options that then get added on to the final price when the customer orders their product. and this price will do the calculations you are asking for, do not listen to these idiots who tell you to use common sense as they have none because if they did they would have just mentioned this fucntion its here:1622864502717.png
 
chris37

chris37

Well-Known Member
ToddyWoggle said:
Omg people there is a whole section in woocomerce where you can set up shipping zones and options that then get added on to the final price when the customer orders their product. and this price will do the calculations you are asking for, do not listen to these idiots who tell you to use common sense as they have none because if they did they would have just mentioned this fucntion its here:View attachment 14717
Click to expand...
Okey let star again with you..

They above is just for flat rate.. this is not working for dropshipper.

As many products in aliexpress have different shipping in the same country.

For example one product that need to be shipping To USA have $5 shipping and other product again shipping to USA have $20 shipping.
So as you understand you can not use flat rate in this Case .

They best option is the Alishipping add-on.
 
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