Ecommerce Training

How do I target the highest profit margin products on AliExpress using AliExtractor?

Utilize this article in order to better understand what to look for to ensure you are researching and sourcing high-profit margin products.

One of the most important skills that independent eCommerce retailers can learn, is how to master a product mix between high-profit product selection and lower-profit sales items, that draw customers and provide exciting bargains (and more traffic to your store).

Some new retailers may experiment with only low-cost (and low profit) products on AliExpress, but that strategy (while it boosts sales) really doesn't provide you with the revenue you need to feel compensated for the time and effort you put into running your store.

A more effective revenue and sales strategy will include an assortment of products at different price points and profitability rates.

When choosing products for your Shopify, Woocommerce, eBay, or Amazon store (or any other store; AliExtractor tools can be used with any retail eCommerce store), consider these consumer buying habits and strategies, when building your price assortment strategy:

  • Low cost or at cost products as promotional items, or limited time offers. You can also use these products to encourage minimum purchase amounts to qualify for a product at 50% off (for example).

  • Promotional bundles at a sales discount. Build-in your profit margin on a bundle. Consumers love multiple product deals.

  • Middle-range cost products in each category. Research shows that many consumers (when selecting from an assortment of similar products) will choose the middle-priced option for value and a perceived 'better quality than lower-priced items in the same category.

  • High range cost products. Why? Because some people want to buy the very best product and associate that quality, with a premium price.

Cost of Shipping and Delivery Time Considerations

Nothing can kill your profit margins faster, or deter consumers from buying your products than a high cost of shipping, or a longer delivery time. That is slowly changing in the online retail market, with some providers building in an expectation of a 2-4 week delivery (and some vendors on Amazon and eBay successfully sell products with long delivery windows). But the majority of consumers like to receive their products in the shortest possible delivery time (think about the popularity of Amazon Prime).

So you want to make sure you strike a perfect balance between managing low costs of shipping, with delivery times that won't prompt your customer to cancel or return their order.

Sort by ePacket Eligible Products

AliExtractor allows you to filter products within a category by many methods, and one of them is by ePacket delivery.

There are different rates for shipping from the vendor, but AliExtractor can help you identify free delivery items and items that start at only $1 for ePacket shipping.

This is a special arrangement between importers and national mail providers, that allows for a discounted rate for delivery, with (typically) a shorter delivery window due to express delivery.

Retail Price and Profit Calculations and Data Filters

Determine the optimal price you should be selling your AliExpress product for, by examining the Retail Price and Profit columns in the AliExtractor product table. This will help you find the right rate of markup for each product.

You can quickly sort numerous products by the highest profit potential, to identify your best options for profitability by individual unit sale.

Our convenient Net Profit Calculator will also give you an accurate snapshot of your net sale value (after shipping and cost of purchase) to help you choose the winning products and your best revenue opportunities.

Remember to build in your cost of customer acquisition into your profitability model, to account for pay-per-click advertising for paid website traffic, and marketing required to promote sales of the product.

Once you get good at reading the data, this can be done in a matter of minutes and across hundreds of products. That’s the power of AliExtractor!

To locate top-selling items trending items, please click this link for instructions.