The Complete List of Pricing Strategies in Dropshipping [2020]


A feasible and emerging craze, dropshipping is the newest trend wagon everyone is getting on to; due to limited-entry barriers and lesser overheads.
Halt your entrepreneurial brain! Before you dream about starting your own little label, with AliExpress you have to focus on your product pricing. Even though there is no singular successful dropshipping pricing formula, a few things can be kept in mind for beneficial returns. Think about your investment in the business, the returns, and the profits. Often the key dropshipping pricing strategy suggested is product selection.

However, how are you going to buy those luxurious tweet jackets without a thick stack of dollar bills? Well, do not fret because you are at the right place at the right time. The following post accumulates numerous useful techniques for AliExpress dropshipping pricing.

Get ready to increase your sales and maximize your collective returns!

1. Hey! What is dropshipping?


Do not know what dropshipping is? What sort of an alien is a dropshipper and where are the products accumulated from?
Essentially dropshippers are like grand talent hunters in the business chain. They find suitable suppliers who stock their preferred products, market them beautifully and voila bring them to customers far and wide. Dropshipping follows a procedure of get go selling to customers without having to store the products themselves. Businesses wanting to expand their product range or perhaps a business wanting to give rise to underprivileged voices can make great use of dropshipping. The method allows exposure to exotic products without the hassle of storage management.

2. Dropshipping Pricing Strategy

Let’s now dive into how to price your merchandise:

2.1. Understand the products you will sell


It is vital that you do your homework before any pricing strategies are adopted. Dropshippers require avid information and understanding regarding the industry as well as products they are aiming to sell. Marketing is diverse along industries and products. The best way to sell an electric heater will not work for cosmetics.

2.2. The Dropshipping Profit calculation technique you need!


The simplest and fastest way for profit calculation is right here! Simply pin the difference between what you invested and what you earned. Do not fool yourself however, the higher price of your merchandise is not correlated to higher profits in most cases. This is why it is vital you know best how to price products for dropshipping.

2.3. Shipping Prices are Crucial!


Profits and return rely heavily on shipping charges. It is a fast world, customers want fast responses and similarly fast deliveries. At times however, shipping does not follow our own rules. Customers would not wait this long, but you can turn this around! Give them a good deal with free shipping. Listen closely, add your shipping costs to the your products and eliminate the shipping label altogether. As a dropshipper you can also collaborate with suppliers without shipping sales, hence lesser investment and higher profit.

2.4. Fixed markup on cost

FMOC as it is commonly known, is a highly used technique concerning how to price dropshipping items. The dropshipping strategy is based on a initially set profit target against the price of your merchandise. Both percentage and dollar standards can be utilized.

Think about it, you need an extra 4 dollars, add the amount collectively or singularity to your products and similarly see a difference in your profit target.

By the way, in the Ali2Woo plugin you can set up this strategy on the Pricing Rules page.


2.5. The Tiered markup dropshipping pricing strategy

If you aim to sell multiple products, then this technique is your best friend. An array of products means an array of price ranges. Tiered markup price strategy makes lower pricing of your merchandise cool!

Set a range for markdowns on your products such as 50% off on products priced at $15 and 10% off on products priced at $200. The main goal here is to have attractive discounts on cheaper priced products to boost your sale chances.

In the Ali2Woo plugin you can enable this feature on the Pricing Rules page if activate the “Advanced pricing rules” option. This feature will allow you to set a product markup depending on cost ranges.


2.6. Psychological dropshipping price strategy

This is your chance to be that intelligence agent you always wanted to be. Take notes from psychological intriguing and sell big! Make your customers feel like they have landed a grand deal. A deal that is cheap and to die for. Something priced at $9.99 seems far cheaper than that same thing at $10 without the difference being very major.

Notice, in the Ali2Woo plugin you can activate the “Assign Cents” feature to utilize this pricing strategy.


2.9. Bedazzle them with Discounts

The oldest and the most profitable technique ever existed is undoubtedly enticing discounts. Dropshippers would usually price their merchandise at higher prices but would balance it out with crazy discounts.

Do not forgot that crazy discounts are only useful is used accurately. Pinpoint what sells most and then bank out the best deal available. Keep in mind that higher priced products when reduced not only grab more audience attention but are more likely to boost your profit range. The seemingly discounted product stills packs higher returns. A few dollars off is enough to get people obsessing.

Look how easy to activate this pricing technique in Ali2Woo – just use the “Compared at price” field.


2.10. Win customer trust with manufacturer suggested retail pricing

Manufacturer’s suggested retail pricing is a dropshipping method utilized by smaller businesses. Early on in your business journey, it is important to win audience trust. As a dropshipper if you range your products according to the supplier suggested cost, you give customers less of a price shock with your merchandise. Which essentially builds audience trust and profit generation.

How to set price for dropshippingwith is technique? Showcase a markdown that generates profit and is affordable. Simple!


2.11. Stand out from your Competitors

Relative increase in dropshipping businesses mean tougher and higher competition. Ask yourself, as a customer how is your business the best in the dropshipping market?
Foremost, observe and learn. Occasionally stalk your competition, see what they are selling, how they are selling and the price range they cater. Now incorporate better prices, marketing techniques and offers than them. Smart selling does not necessarily mean cheap selling. Highlight and polish your brand identity alongside occasional surprises.
Hey, do not get caught snooping around your competitors though!


2.12. Be the Gucci of Dropshipping

2020 is the year of customer stratification. Your audience should be loved and adored like royalty so add a sticker here, wrap it up artistically and send lots of love. Anything unexpected makes customers feel cherished and appreciated. Which as a business should be your key goal.

Satisfied customers not only come back for more but also become avid marketers of your brand. The good by mouth shared response is vital for a bustling business. Small efforts can take your business from a dropshipping service to a brand. However, do not go overboard with wooing your customers. Anything over done can be viewed fake and be heavy on your pockets.


2.13. Fixed dollar addition pricing strategy

Occasionally it is quite advantageous to set up a secure revenue bank. Understand that even though you have set additional cash on the side, you are still liable to include charges that you must pay for shipping.

Keeping additional cash on the side is a wise tactic if you are hoping for an easy way to appraise the potential profit you are likely to make. Say you have a product which you would like to add a 20% margin on. Understand that that in terms of collective sales whatever fixed dollar addition you used needs to undoubtedly cover all of your charges alongside any additional turnover targets.


2.14. Valuable Returns

Returns cater to both branches of shopping, online or offline. Predominantly, this technique is used in dropshipping market permitting sellers lesser control over the quality of their products.

Say your customers are demanding a refund, do not panic. The stakes are high and similarly should be your regards for customer satisfaction. Hence, be ready for any possibilities and keep some cash on hand in case of need. Free returns here are an attractive offer. To feasibly accumulate this, just look at your return percentage, add that to your sales percentage and voila.


3. Time to analyze your Dropshipping pricing strategy Notes

What we aim you learned here today is that dropshipping is adaptable and changing. As a dropshipper you need to peel your eyes when pricing dropshipping products. At times your supplier might end your contract, raise their prices or stop selling. In face of these issues think fast and adapt.

Pricing is crazy and to limit it with strategies is even more. To find the best method you need to not only think it but also apply it. See how far up you can take your profit margin without losing your audience. Think about all the above mentioned methods and market wisely.

Dropshipping has almost no financial risk and is a fine way to step foot into the retail business. Yes, it is legal. You are not a criminal drug Lord. No, you would not need log into the dark web for marketing. All you need is a plan, a supplier, a platform and an audience.

How to price your dropshipping products has never gotten easier than this! We hope to see you selling away with us. Happy dropshipping!

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