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Advanced Pricing Rule

In order to help you to better run your business, we have developed the new Advanced Pricing Rule feature to improve your dropshipping experience.


This guide will introduce you the formulation of the Advanced Pricing Rule and show you how to set it in your DSers account.



What is Advanced Pricing Rule in DSers?

The Advanced Pricing Rule is a complex formula to automatically set prices on the products you imported from AliExpress and want to sell on your store.


The formula of the Advanced Pricing Rule takes in consideration all kinds of fees that may occur, the minimum amount of profit you want to make on a product, and so on.

It is designed to make sure you will be profitable in selling any products for which it is applied to.



Formula

The formula of our Advanced Pricing Rule is:

Price Value = [(Product Cost + Shipping Cost) × (1+ Profit %) + Fixed Profit] / (1 - Breakeven %)


In some certain situations (See Final Profit below), the following formula will be used:

Price Value = [(Product Cost + Shipping Cost) + Minimum Profit] / (1 - Breakeven %)


Product Cost: Cost of the product you import from AliExpress

Shipping Cost: Cost of the shipping, which will be introduced later

Profit %: Adds a percent to the Product Cost

Fixed Profit: Adds a fixed amount to the Product Cost in addition to the Profit %

Breakeven %: Adds a percent to the listing price to cover all the sale-related fees (e.g. Shopify or WooCommerce fees, Paypal fees, and taxation)

Minimum Profit: the minimum fixed amount of profit you want to make on a product


Final Profit

Your Final Profit will be = (Product Cost + Shipping Cost) × Profit % + Fixed Profit


If the Final Profit ((Product Cost + Shipping Cost) × Profit % + Fixed Profit) is lower than the Minimum Profit you set, then the following formula will be applied:

Price Value= [(Product Cost + Shipping Cost) + Minimum Profit] / (1 - Breakeven %)


For example, if the Advanced Pricing Rule was applied, this is how prices would look like:


Situation 1:

Product Cost: 5.00 (USD)

Shipping Cost: 2.00 (USD)

Profit %: 100% (Meaning you want to have a profit of double the Product Cost)

Fixed Profit: 1 (USD)

Minimum Profit: 10 (USD)

Breakeven %: 30%


According to (Product Cost + Shipping Cost) × Profit % + Fixed Profit, the calculation of the Final Profit will be ($5.00 + $2.00) * 100% + 1 = $8. But the result is lower than the Minimum Profit you set, so the Minimum Profit formula will be applied here, that is Price Value= [(Product Cost + Shipping Cost) + Minimum Profit] / (1 - Breakeven %) . The calculation process is ($5.00 + $2.00) + $10] / (1 - 30%) = $24.29. So the Price Value will be $24.29 in your store.


Situation 2:

Product Cost: 30.00 (USD)

Shipping Cost: 5.00 (USD)

Profit %: 100%

Fixed Profit: 1 (USD)

Minimum Profit: 10 (USD)

Breakeven %: 30%


According to Price Value= [(Product Cost + Shipping Cost) × (1+ Profit %) + Fixed Profit] / (1 - Breakeven %). The calculation process will be: [($30.00 + $5.00) * (1 + 100%] + $1] / (1 - 30%) = $101.43. The Price Value will be $101.43 in your store.



Set your Advanced Pricing Rule

To use the Advanced Pricing Rule feature, go to DSers - Setting - Pricing Rule as shown below.

Advanced Pricing Rule with DSers - Set pricing rule - DSers

Click the store name to show the different types of Pricing Rules available, and click on the On/Off button on the right side of Advanced to activate the Advanced Pricing Rule.

Advanced Pricing Rule with DSers - activate advanced pricing rule - DSers

After activating "Advanced", a pop-up window will appear, the settings of the Advanced pricing rule are shown below. You're free to set it according to your preference.


If you are running a promotion, you can also set the Compared price here. Check the box to apply the Compared Price to all cost range.


The formula of Compared Price is:

Compared Price = Price value × / + your setting number


The Price Value is calculated from the formula in the above part, you can add or multiply a certain number to set your Compared Price.


The Advanced pricing rule is only available for users who subscribed to the Advanced plan or Pro plan.

Advanced Pricing Rule with DSers - subscribe advanced or pro plan - DSers


How to set Shipping Cost?

Compared to other pricing rules, the Advanced Pricing Rule has included some new components, especially the Shipping Cost.

If you want to add Shipping Cost to your calculation, you can check the boxes below to apply it in your Advanced pricing rule. If not added, the Shipping Cost will appear as zero in the Advanced Pricing Rule.


There are two ways to set the Shipping Cost and you can only choose one of them to apply in your Shipping Cost calculation.


1. Select a specific shipping method for a designated country to calculate the Shipping Cost. This is useful if you only ship to one country.


2. Set a specific Shipping Cost you want to apply in your calculation. This is useful if you ship to different countries. Make an average of the shipping cost between the different countries then enter it as below.


Don’t forget to Save!


We hope you now understand everything about the Advanced pricing rule feature! Happy dropshipping with DSers!


Click here to learn more about the Basic Pricing rule. Click here to learn more about the Standard Pricing rule.


Don't hesitate to contact us if you have any questions!



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