How to Deal with Loss on the AliExpress Platform? How to Plan Effectively?

What to Do If You Lose Money on AliExpress Platform Activities? How to Plan Them?

In the field of cross-border e-commerce, AliExpress, as one of the world-renowned e-commerce platforms, has provided numerous small and medium-sized enterprises with opportunities to enter international markets. However, when participating in platform activities, merchants inevitably encounter various problems, among which losing money during activities is one of the most headache-inducing situations for merchants. How to avoid such situations and what strategies to adopt in activity planning have become questions that every seller needs to carefully consider.

Firstly, we need to clearly understand the reasons for losing money during activities. Generally speaking, losing money during activities may stem from several aspects first, unreasonable pricing. Many merchants set product prices too low, even below cost price, in order to attract traffic and sales, resulting in discovering after the event that they not only failed to make a profit but also incurred significant losses. Second, excessively high logistics costs. The logistics process in cross-border e-commerce is complex and expensive. If a reasonable logistics plan is not made, it may lead to additional cost pressures. Third, unclear understanding of activity rules. Platform activities often come with complex rules and requirements, such as minimum discounts and purchase thresholds. If merchants do not fully understand these rules, they may find themselves in a passive situation.

To address the above issues, we can optimize and adjust them from the following angles

One, scientific pricing is key

Before participating in activities, merchants need to have a clear understanding of their product costs. This includes raw material costs, production processing costs, warehousing and logistics costs, as well as operational costs. Only by mastering these data can they formulate reasonable selling prices. At the same time, they can refer to the market prices of similar products to ensure that their pricing is competitive but not overly aggressive. For example, a cross-border e-commerce practitioner shared his experience of hosting promotional activities on AliExpress I analyzed the competitors' pricing system and found that our main products were about 5%-10% higher than those of peers, but this did not affect sales because customers value product quality and service more.

Two, optimize logistics solutions

Logistics is an important component of cross-border e-commerce and directly affects the consumer shopping experience. During the period of large batches of orders, merchants should communicate with logistics companies in advance to secure more favorable prices and faster services. They can also consider using overseas warehouse models, storing some popular items locally to shorten delivery times and reduce transportation costs. According to relevant data, the return rate of goods shipped via overseas warehouses is approximately 30% lower compared to traditional cross-border direct mail, which is crucial for enhancing customer satisfaction.

Three, thoroughly study activity rules

Each e-commerce platform regularly launches various types of promotional activities, such as Double Eleven, Black Friday, Cyber Monday, etc. Although these activities bring huge traffic, they also come with strict entry thresholds and assessment standards. Merchants must carefully read the activity guidelines, clarify participation conditions, and prepare in advance. For instance, some activities require the store rating to reach a certain level to register; others may impose restrictions on inventory quantities. Only with adequate preparation can merchants stand out in the activities.

Four, focus on user experience

Regardless of before or after the activities, maintaining good user experience is one of the key factors for success. On one hand, reasonable after-sales service policies can be set to solve potential problems, such as simplifying return and exchange procedures and ensuring fast customer service response. On the other hand, brands can actively promote brand stories through social media channels to enhance user stickiness. It is worth noting that AliExpress has recently vigorously promoted the worry-free purchase service, encouraging merchants to provide more comprehensive protection measures, which has won more loyal fans for businesses.

In conclusion, facing various activities on the AliExpress platform, merchants need to maintain a cautious attitude while being bold enough to try innovative ideas. By scientifically pricing, optimizing logistics, familiarizing with rules, and focusing on user experience, it is entirely possible to effectively avoid the risk of losing money during activities and achieve performance growth goals. Of course, all of this is based on a solid foundation, namely, thoroughly understanding market trends, accurately grasping customer needs, and continuously improving one's capabilities. Believing that with persistent efforts, every cross-border e-commerce practitioner can find their own opportunities in this vast blue ocean!