You’ve probably heard the saying: “Price = Cost × 2.” Sounds nice, doesn’t it?But anyone who’s done dropshipping knows — if you really follow that, you’ll basically end up eating dirt. This article will walk you through, step by step: where your profits actually go, and how to calculate a realistic pricing strategy to avoid the nightmare of “the more you sell, the more you lose.” The Cost Components of Dropshipping  Don’t fool yourself into thinking the cost is just what you pay on 1688, AliExpress, or Temu. The real cost = product price + shipping + fees + marketing expenses + returns/customer service + taxes + your own salary/profit expectations. Let’s break it down: Cost Item Example Data (Selling One T-shirt) Product Cost ¥20 (AliExpress cost) International Shipping ¥15 (ePacket or Yanwen small package) Platform Fees ¥5 (e.g., PayPal + Shopify transaction fees) Marketing Cost ¥30 (Facebook ad spend) Returns/After-sales Allocation ¥3 (average 1 return per 10 orders) Other Expenses ¥2 (Shopify subscription, domain, customer service, etc.) Total Cost ¥75 Note: This doesn’t include your profit expectations yet. How to Calculate Your “Bottom-Line Price”   Many people set prices on a whim: “The product cost is ¥30, so I’ll sell it for ¥60. That should be enough to make a profit.” But in dropshipping, this kind of pricing is basically suicidal. Your costs are much more than just the product price — you have shipping, advertising, platform fees, after-sales costs, and more. If you don’t calculate these clearly, you might think you’re making money on a sale, but in reality, you’re losing. So let’s get clear on a crucial concept — the bottom-line price. What is the bottom-line price?The […]

Hey there! The New Year is here again—the time for joy, cheer, and a little extra hustle in your business. But here’s the thing: New Year isn’t just for celebration; they’re also a golden chance to connect with your customers and partners. So, let me ask you: How are you going to make your New Year’s greetings unforgettable this year? Let’s dive in and make those festive vibes work for your brand! Why New Year’s Day Greetings Are Essential for Brands  New Year’s Day greetings might seem like a small gesture, but their impact on your brand can be huge. They go beyond seasonal cheer—they’re a strategic way to connect with customers and partners on a deeper, more personal level. Building Emotional Loyalty A thoughtful New Year’s  message shows your customers that they’re more than just a transaction. It creates an emotional bond, making them feel valued and appreciated. This kind of connection builds trust and loyalty, encouraging them to stick with your brand in the long run. Standing Out in a Crowded Market Every brand is vying for attention, and a genuine, well-crafted New Year’s  message can set you apart. It’s a simple way to show that you care about your customers and partners, not just your sales. In a world of generic “Happy New Year” your effort can make your brand the one they remember. Laying the Foundation for Long-Term Relationships New Year’s Day greetings aren’t just about being polite—they’re a way to strengthen professional ties. Whether it’s a customer, a business partner, or a supplier, a sincere message of appreciation shows that you value their relationship. It’s a small act that lays the groundwork for collaboration and […]

In April 2025, U.S. President Donald Trump announced a series of tariff policies dubbed “Liberation Day.” He claimed these tariffs would boost American manufacturing, protect jobs, and imposed additional duties on goods imported from dozens of so-called “worst offenders,” raising tariffs on Chinese products to as high as 125%. At the same time, these measures are having a profound impact on businesses operating on platforms like Shopify and on the broader cross-border e-commerce landscape. The steep rise in import costs has fundamentally reshaped the e-commerce environment, forcing sellers to embark on a quest for new supply chain solutions. In the following sections, we’ll dive into the latest developments and explore the far-reaching implications these changes hold for online businesses. Tariffs: What They Are and How They Work Simply put, tariffs are taxes you pay when buying goods from another country. In most cases, tariffs are calculated as a percentage of the product’s value. For example, if an item is worth $10 (roughly £7.59) and the tariff rate is 25%, you’d need to pay an additional $2.50 (about £1.90) in tax. Now, if a 125% tariff is applied to goods imported from China, that means a $10 product would incur an extra $12.50 in tax. So who pays this tax? It’s the companies that bring foreign goods into the U.S.—the importers. They’re the ones responsible for paying the tariff to the government. When is the tax paid? Right when the goods go through U.S. customs, the tariff has to be paid. Of course, businesses often have their own strategies. They may choose to pass on some or all of that added cost to consumers, making shoppers ultimately bear the burden. Overview […]