How to Open an AliExpress Store: Process and Fees
E-Commerce
Open an AliExpress Store: Process and Fees
In today's global e-commerce landscape, AliExpress stands as a leading cross-border platform, offering businesses a prime opportunity to expand internationally. This guide covers the detailed process and costs of setting up an AliExpress store to help you start your cross-border journey successfully.
AliExpress Store Setup Process
Account Registration
Register as a seller using a business or sole proprietorship account.
Business Verification
AliExpress allows businesses and sole proprietors to open a store. Verification requires either a corporate Alipay account or an Alipay account registered in the name of the business owner.
Technical Service Fee
Sellers pay an annual technical service fee, which varies by category. Top-performing stores that maintain excellent service quality and achieve a strong sales volume by year-end may be eligible for a refund on this fee.
Brand Category Application
Sellers with brand ownership or authorization can open official, specialty, or franchise stores, depending on brand qualifications. Sellers without brands may skip this step.
Store Approval
Submit all required documents for AliExpress review. Once approved, your store is officially open.
AliExpress Operating Costs
AliExpress operating costs mainly include the annual platform fee, commissions, advertising costs, logistics, and payment fees.
Platform Annual Fee
Fee Structure: Sellers must pay an annual fee, typically ranging from 1,000 to 10,000 RMB, depending on the category.
Refund Policy: In certain categories, sellers meeting annual sales targets may qualify for partial or full refunds, helping to offset initial costs.
Commission
Per-Order Commission: AliExpress charges a commission on each order, generally between 5% and 8%, depending on the product category. Sellers should refer to the platform's category-specific guidelines.
Important Note: Commissions are automatically deducted from seller earnings, so it’s essential to factor these fees into your pricing strategy.
Advertising Costs
AliExpress offers various promotional options to increase product visibility, which can incur additional expenses:
PPC Ads: Pay-per-click (PPC) ads function similarly to keyword ads, where sellers set keywords and pay per click. The budget is flexible, but costs rise with higher click volume.
Affiliate Marketing: This involves third-party traffic promotion, with sellers paying a commission based on sales generated through the affiliate.
Promotions: AliExpress provides promotional tools, such as flash sales and volume discounts, which may incur service fees or require an advertising budget.
Logistics Costs
Logistics costs depend on the delivery method and destination:
Platform Shipping: AliExpress offers official shipping solutions like AliExpress Standard and Premium Shipping, with fees based on order weight, dimensions, and destination.
Third-Party Logistics: Sellers who choose self-shipping or third-party logistics bear these costs. AliExpress has specific requirements for logistics speed and service; partnering with reliable logistics providers is recommended.
Payment Fees
Transaction Fees: AliExpress charges a transaction fee on each sale, with the rate varying based on the buyer’s payment method.
International Payment Options: AliExpress supports a variety of international payment options, which help sellers reach a wider audience but may come with additional fees for currency exchange and transaction processing.
PhotonPay: Innovative Digital Financial Infrastructure
Selecting the right payment platform is key to reducing costs and simplifying financial management in cross-border e-commerce. PhotonPay, a trusted provider of cross-border payment solutions, offers the following benefits for AliExpress sellers:
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Protect your funds and extend your runway.
Provides instant access to a robust suite of capabilities for seamless international finance.
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Create domestic and multi-currency accounts in minutes With PhotonPay, sellers can manage transactions in multiple currencies within a single account, reducing the time and costs associated with frequent currency exchanges. Integration with the AliExpress platform allows for centralized financial management, increasing operational efficiency.
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Secure, Reliable Transactions PhotonPay’s advanced encryption technology and risk control systems provide strong security for cross-border transactions, ensuring lower payment risks and building customer trust.
Using PhotonPay as a payment solution not only helps AliExpress sellers reduce operating costs but also improves payment experiences and financial management efficiency. Register with PhotonPay today to enhance your cross-border payment experience.
Additional Fees
Store Design: Sellers aiming to improve their store’s look may invest in templates or page design, resulting in design costs.
Customer Service Costs: This includes return and exchange logistics costs, especially important in cross-border transactions, which may require additional time and fees.
Conclusion
AliExpress operating costs impact sellers' pricing and cost structures. Sellers need to plan for each expense carefully, optimizing cost control based on product profitability to ensure sustainable growth.
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