How Dropshix Calculate and Monitor Your Product’s Price

WooCommerce + Dropshipping Made Simple

As mentioned on Importing AliExpress Products to WooCommerce Resource Article. When you import a product through Dropshix, the product status become "Active" and it will be monitored for the price and stock movement from the AliExpress market. The pricing of your items will be calculated based on several variables. Each of the variables mentioned above is proportioned with a scale of priority with the distribution as follows.

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1. Your "Profit Profile" that you set on Dropshix Configuration (85%).

It's very advised to use the Advanced Pricing configuration, but even if you deactivate the Advanced Pricing Configuration the basic configuration still took the major part for Dropshix in determining and calculating your product price. Your setup will mostly affect the price of the products you have in your store.

At the highest package level (VIP and VVIP package), your items will be scanned every 4 hours a day. This is to make sure that your price and stock are always updated and as close as possible to your source stores (AliExpress stores) condition. So it minimizes the possibility of losses you might encounter in this business. AliExpress is one of the fastest in the price/stock movement, a lot of items become unavailable in a matter of hours.

When Dropshix scans the items, it will take the latest data from source store. If it detects a price or quantity change it will immediately calculate whether it will still be available for you to sell at the current price you have or is it going to need to be recalculated to avoid loss. When it recalculates the price, the first thing it does is to pick up your profit profile and make a new calculation based on the new information. 

For example, if before the price up your item is sold at $45 because the source store price is $37 and your profit profile is set to the fixed margin at $8. Then it will renew the price to $53 since now the source original price is $45.

This is to avoid your loss because the source price goes up. Especially if you're offering free shipping because you put the shipping cost inside your profit margin. This is a basic flow that most similar tools have. But Dropshix also has an advanced pricing structure. How about if the source original price goes above the range I set? The answer lays on the next point of this article.

 

2. Markets prices and how the trend of the product price compared with other stores (10%).

When the scanning process starts, Dropshix also runs another script in the background that will search data from other websites through Google search, Bing, Alibaba, Amazon, and eBay (very rare happen but also checked are data from Lazada, Walmart, and other stores using Shopify/WooCommerce that has high traffic) for the similar item that is currently scanned. Dropshix doesn't collect the data but just pin it and record it in our breakthrough technology named PAT (Pinned Archive Token) and use it in the later process when needed.

If the original price from source store is detected goes up over the first price range, this will automatically trigger this script for further action (the 10% priority means). PAT will automatically sum and average the data from those stores that were pinned and check with your price with this calculation

NP = ((( AVG - CP ) / Profit ) * 100% ) * CP

Where:

  • NP = New Price (Suggested)
  • AVG = Average Price from PAT
  • Profit = Profit margin from current price vs original price (regardless your profit profile)
  • CP = Current Price

The NP will be prepared and only activated if your CP already beyond "Upper Price Difference" or "Lower Price Difference" number. So if you don't want Dropshix to interfere too much with your price, set Upper Price Difference and Lower Price Difference to a high number as possible (ie: 100).

PAT also consider the trend of the price of the item scanned, in case the trend of this item is sold fast enough and the stock in the source store is actually lower than the activity on the internet. It will put your first calculated price (Profit Profile based price). Because PAT consider that the item is trending and has high demand so it's safe to put high price as a protection in the case when someone shop at your store the item already gone from source store.

3. Your personal order and transaction record (5%).

The last thing that will be also be calculated (note: this is really rare happen) is your order record for this item. As you know, Dropshix notes every order made for an item. This is for your marketing strategy so that you know which item is selling better than the other.

Regarding price monitor, there are 3 conditions:

  1. Good record (high sales): It will ignore the price calculation made by the previous setting.
  2. Bad Record (no sales or not making a profit): It will use the price calculation by the previous setting.
  3. No record: It will use the price calculation by the previous setting.

 

So that is how Dropshix monitor and calculate your pricing. It's pretty advanced and was made based on my experience doing dropshipping myself.

I use dropshix with a few of my closest friends to earn money from Dropshipping, we started to think to share this plugin when our wife and our family started to get interested in dropshipping. I thought why not put this into WordPress.org repository, this way we won't need to have a high effort to manually update and help people learning drop shipping and use Dropshix. 

Then from there, their friends of friends start to join in, until the point where it's too exhausted to explain and have it customized for each user. Not to mention the resource it took from the server, then one of my friend's wife said "Why not create a membership package? This way it won't be a full free tool but still an open source software.". I and my friend Aan thought this is an amazing idea and start rebuilding everything until now. That's why it has 2 names Dropshipping-xox and Dropshix. The name transition comes from months of the development process. A full history of Dropshix will be in another article.

We believe that Dropshix is the only one Open Source WooCommerce Dropshipping tool with advanced and premium features, and made with the record of few successful drop shipping business. We have proved it works, now we are sharing this tool to you. Will you take this opportunity?

Please like and follow our facebook page or follow my twitter to receive updates, support, and engage with other tops drop shippers.

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