The first website that beginners use for product sourcing in order to start dropshipping on eBay is Ali Express. This guide will take you step by step through the technical setup of Ali Express as a product sourcing supplier for dropshipping using DSM Tool.
You can learn more about how to find products to sell and generally how to work with Ali Express as a dropshipping supplier in the Complete Guide to Ali Express to eBay Dropshipping
In this article, you will learn:
- How to set up business policies
- How to setup shipping companies
- How to setup break-even
- How to setup template settings
- How to setup the DSM Tool Chrome Extension
- SET UP BUSINESS POLICIES IN LISTER SETTINGS-
You can only set up business policies in DSM Tool if you first set them up on eBay. Read the guide on how to set up business policies for Ali Express dropshipping to learn how to do that.
Once the policies are set up in eBay go to the Lister Settings and scroll down to find the Business Policies section and click on the Refresh button
Then follow these 3 steps:
- Click on the + button under Business Policies For A Specific Supplier to assign policies specifically to Ali Express
- Choose Aliexpress.com as the supplier and the Payment, Shipping, and Return policies you previously set up on eBay
- Click Create
You should see Ali Express being added to the table Business Policies For a Specific Supplier
Tip: Assigning Policies To Specific Suppliers
When you assign the policies to a specific supplier like the website Ali Express all of the products you will source from Ali Express using the Rapid Lister will be added to your store with these policies. Then, as your business grows, you could easily work with more websites as suppliers.
For example, if you learn how to work with CJ Dropshipping as a supplier you can setup eBay business policies for it, then assign them in DSM Tool to CJ Dropshipping. The Rapid Lister will assign automatically the right policies to the products according to where you source them from
- SET UP SHIPPING COMPANIES IN MONITOR SETTINGS -
Ali Express is a marketplace with millions of sellers. Different sellers offer different shipping methods at different shipping rates.
Tip: Click on the shipping section in every product page in Ali Express to see the shipping methods by country table
When you add a product to your store using DSM Tool the shipping rate is being added to the product cost during the selling price calculation.
Since there are many shipping options in Ali Express, the rapid lister choose the shipping options according to your preferences.
How Does The Shipping Rate Being Calculated
DSM Tool calculates the shipping according to the table of priority in the Monitor Settings under the Aliexpress.com settings.
In the example below the shipping method ePacket has higher priority than the shipping method AliExpress Standard Shipping
If you have a product that offers both ePacket and Ali Express Standard Shipping, the shipping rate will be calculated according to ePacket which has a higher priority.
Notice: If a product on Ali Express doesn't offer a shipping method that appears in the table then the shipping rate would not be added to the product cost when calculating the final selling price. You can manually add the shipping rate to the profit, but know that it will result in wrong profit calculations.
- SET UP BREAK EVEN IN LISTER SETTINGS -
The break-even percentage is part of the final selling price calculation and it is used to cover the selling and payment processing fees you have to pay when you make a sale to eBay and PayPal (if you use PayPal to process payments from sales).
The break-even percentage depends on many parameters such as:
- If you are using PayPal or eBay managed payments to process your fees - eBay managed payments gives overall a lower final selling+processing fee
- Which country are you from - that can change your payment processing fee.
For example, if you are located in the US and you sell to a US customer you will only pay 2.9% processing fee (on PayPal) but if you are located in Europe and you sell to a US customer you will pay 4.3% processing fee.
- Whether you have an eBay store subscription or not - without a store subscription your selling fee is 10% straight, with a store subscription it ranges from 4-9.15% depending on the product category
- Which websites you use as dropshipping suppliers - On some U.S retailers like Amazon you might have to pay tax on your purchases unless you are tax exempt
What Break-Even To Set Up When Dropshipping From Ali Express
A good rule of thumb is to set up 14.5% as your break-even percentage, that should cover both the selling fees and the processing fees, there are no taxes when purchasing products on Ali Express.
How To Setup Break-Even For Ali Express
Go to the Lister Settings and click on + Break-Even For a Specific Supplier
Then choose Ali Express from the dropdown , set the break-even percentage and click Save
- SET UP TEMPLATE SETTINGS -
The templates are used to customize the product description of your eBay store. It is recommended to set up a default template for your store.
When you import a new product to the Rapid Lister DSM Tool imports the information of the product and injects it into the template. The information is being injected into place holders which you can see and change when you edit a template
Since the template contains a written explanation about your shipping, return and payment policies you can set up what text will appear for Ali Express products in the Template Settings
Changing The Templates Policies Text
DSM Tool comes by default with a text that fits most Ali Express sellers but it is recommended to review the text and adapt it according to your specific business policies.
Make changes to the texts in the Templates Settings and then click Save
- SET UP THE DSM TOOL CHROME EXTENSION -
The Chrome Extension of DSM Tool is used as your virtual assistant outside DSM Tool.
It help you dropship from Ali Express with the following features:
- List in DSM button - used to import product information of a product from Ali Express to the Rapid Lister quicker than copy-pasting the entire URL of the product
- Copy-Paste Buyer Address - Saves you the time of the copy and paste when processing orders using one button to copy all of the buyer shipping address from DSM Tool and one button to paste it in all of the shipping fields in Ali Express
- Copy-Paste Tracking Information - A button in the Ali Express order tracking page that helps you update the tracking information for a product quicker
You can learn further about the DSM Tool Chrome Extension features in this section
How to Install the DSM Tool Chrome Extension
Make sure you use the Google Chrome browser
Go to the Chrome Extension page in DSM Tool and click on Get DSM Chrome Extension
In the Chrome Web Store click on Add to Chrome
A window will pop up, click Add Extension