AliExpress Dropshipping Calculator
Calculate your AliExpress dropshipping profits including product costs, shipping fees, platform fees, and payment processing. Get accurate profit margins for your store.
Product Details
Shopify: $29+, WooCommerce: $5-15
Stripe/PayPal: 2.9%
Profit Summary
Profitable Product
This product is projected to generate $0 in profit with a 0.0% profit margin.
ROI: 0.0% return on investment
Total Revenue
$0
Selling price × quantity
Net Profit
$0
Revenue - All Costs & Fees
Profit Margin
0.0%
Profit as % of revenue
Return on Investment (ROI)
0.0%
Profit vs. total investment
Break-Even Price
$0
Minimum price to cover costs
Cost & Fee Breakdown
Product Cost
$0
AliExpress supplier cost
Shipping Cost
$0
Delivery to customer
Platform Fee
$0
Shopify, eBay, Amazon fees
Payment Processing Fee
$0
Stripe/PayPal fees
Expected Refund Cost
$0
Anticipated loss from refunds
Total Fees
$0
All platform & payment fees
Total Costs
$0
Product + Shipping + Fees + Refunds
AliExpress Dropshipping Profit Calculator: Complete Guide to Maximizing Your Margins
What is AliExpress Dropshipping?
AliExpress dropshipping is a business model where you sell products from AliExpress suppliers directly to customers without holding inventory. When a customer orders from your online store, you purchase the item from AliExpress and have it shipped directly to your customer. Your profit is the difference between what the customer pays you and what you pay the supplier, minus platform fees and other costs.
This model has become extremely popular because it requires minimal upfront investment. You only buy products after a customer orders, eliminating the need for warehouse space, inventory management, and bulk purchasing. However, lower barriers to entry also mean higher competition and thinner profit margins, making accurate profit calculation essential.
Understanding Your Costs
Successful dropshipping requires tracking every cost component. Unlike traditional retail where you can estimate costs broadly, dropshipping margins are often tight enough that overlooking even small fees can turn a seemingly profitable product into a money-loser.
Core Cost Components
- •Product Cost: The amount you pay the AliExpress supplier. This typically ranges from $1-50 for most dropshipping products, though electronics and premium items can cost more.
- •Shipping Cost: Varies dramatically by method. ePacket (15-30 days) costs $2-5, standard shipping (10-20 days) costs $5-10, while premium/express shipping (7-15 days) can cost $10-25 or more.
- •Platform Fees: Shopify charges 2.9% + $0.30 per transaction (using Shopify Payments), plus $39/month for Basic plan. eBay and Amazon have higher fees (12-15%).
- •Payment Processing: Stripe/PayPal charge 2.9% + $0.30 per transaction. If you use third-party payment processors on Shopify, you pay an additional 2% fee.
- •Refunds & Returns: Expect 3-10% of orders to result in refunds. Fashion items see higher refund rates (10-15%), while electronics typically see lower rates (3-5%).
Shipping Methods: Cost vs Speed Trade-offs
Choosing the right shipping method is one of the most critical decisions in dropshipping. Faster shipping improves customer satisfaction and reduces refund requests, but significantly increases your costs and eats into profit margins.
Shipping Method Comparison
- •ePacket (15-30 days): The classic dropshipping choice. Costs $2-5 per item with tracking. Slower delivery but acceptable for budget-conscious customers. Best for low-priced items where faster shipping would kill margins.
- •Standard Shipping (10-20 days): Middle ground option at $5-10 per item. Offers better delivery times without premium pricing. Good for products in the $20-50 range where customers expect reasonable shipping.
- •Premium/Express (7-15 days): Costs $10-25+ but provides faster delivery and better customer experience. Essential for higher-priced items ($50+) where customers expect quick fulfillment.
- •Economy Shipping (20-45 days): Cheapest option at $1-3, but extremely slow. High risk of customer complaints and refund requests. Only suitable for very low-margin products where customers are explicitly told about long delivery times.
Pro Tip: Consider offering multiple shipping options at checkout. Charge customers extra for faster shipping ($5-15 premium) while providing a free/cheap option for patient buyers. This captures both customer segments while protecting your margins.
Choosing Your Selling Platform
Where you sell directly impacts your profit margins. Each platform has different fee structures, customer expectations, and competition levels.
Platform Comparison
- •Shopify (Recommended for Beginners): Monthly fee of $39-399 depending on plan. Transaction fees: 2.9% + $0.30 (using Shopify Payments) or 2.9% + $0.30 + 2% (third-party processors). Full control over branding, pricing, and customer experience. Best for building a long-term brand.
- •eBay: No monthly fee for basic accounts, but high final value fees (12-15%). Great for testing products with built-in traffic, but harder to build a brand. Best for one-off sales and product validation.
- •Amazon: $39.99/month for Professional plan. Referral fees of 8-15% depending on category, plus fulfillment fees if using FBA. Huge built-in audience but fierce competition and strict requirements. Not recommended for beginners.
- •Own Website (WooCommerce/WordPress): Lowest fees (just payment processing at 2.9% + $0.30) but requires technical skills and marketing budget. Only viable if you can drive traffic through ads or social media.
Pricing Strategy for Dropshipping Success
Most successful dropshippers target a 25-40% profit margin after all fees and costs. This means if your total costs (product + shipping + fees) are $20, you should aim to sell for $28-33. Lower margins leave no room for refunds, advertising, or unexpected costs, while higher margins may price you out of the market.
Pricing Formula
- •Step 1 - Calculate Total Costs: Product cost + shipping + expected refunds (3-10% of product+shipping). Example: $10 product + $3 shipping + $1.30 refunds = $14.30
- •Step 2 - Account for Percentage Fees: Platform fees + payment processing typically total 5-7% on Shopify, 15-18% on eBay/Amazon. Use formula: Total Costs / (1 - Fee Rate - Target Margin). Example: $14.30 / (1 - 0.06 - 0.30) = $22.34
- •Step 3 - Add Fixed Fees: Add payment processing flat fee ($0.30). Example: $22.34 + $0.30 = $22.64. Round to $22.99 or $24.99 for psychological pricing.
- •Step 4 - Validate Against Market: Check competitor pricing on Google Shopping, Amazon, and eBay. If your price is 50%+ higher, margins may be too aggressive. If 20%+ lower, you have room to increase profits.
Common Dropshipping Pitfalls to Avoid
Mistakes That Kill Profits
- •Underestimating Refund Rates: Many beginners assume 0-1% refunds, but real rates are 3-10%. Always factor this into pricing or you will lose money on 1 in 10 orders.
- •Forgetting Platform Monthly Fees: Shopify's $39/month seems small, but if you only sell 10 items, that is $3.90 per order in fixed costs. You need volume to make the math work.
- •Using Cheapest Shipping Only: Slow shipping increases refund requests and damages reputation. Balance cost with customer expectations for your price point.
- •Competing on Price Alone: If your only advantage is being 10% cheaper than competitors, you will constantly face margin pressure. Focus on branding, customer service, and bundling to justify higher prices.
- •Ignoring Advertising Costs: Organic traffic is rare for new stores. Budget 20-30% of revenue for Facebook/Google ads until you build a customer base. This turns a 30% gross margin into a 0-10% net margin.
When to Pivot or Abandon a Product
Not every product is viable for dropshipping. Use these benchmarks to decide when to move on:
- •Profit Margin Below 15%: Barely enough to cover refunds and unexpected costs. Unless you can achieve massive volume, pivot to higher-margin products.
- •Product + Shipping Exceeds 70% of Sale Price: Leaves only 30% for all fees and profit. Unless fees are unusually low (own website), you will struggle to break even.
- •Refund Rate Above 15%: Product quality or shipping times are unacceptable to customers. Find a better supplier or switch products.
- •Competitors Undercut You By 30%+: Either they have better supplier relationships, lower volume costs, or they are losing money. You cannot compete on price alone.