Markup on AliExpress goods: how to price for your client

Markup vs margin: what is the difference

People often mix these two up, and the price ends up lower than planned.

• Markup is calculated on cost: price = cost × (1 + markup).
• Margin is calculated on the selling price: margin = (price − cost) ÷ price.

An example with illustrative numbers. Cost of an item is 1,000, markup is 35%. The selling price is 1,000 × 1.35 = 1,350 and you earn 350. The margin is then 350 ÷ 1,350 ≈ 25.9%, not 35%.

If you want a margin of exactly 35%, the price is 1,000 ÷ (1 − 0.35) ≈ 1,538.46. That corresponds to a markup of about 53.8%.

What to include in cost

Calculate markup on what you will actually spend, not on the price shown in the cart. Usually that includes:

• the item price for the chosen variant and quantity;
• paid shipping, if it isn’t included in the price;
• the exchange-rate difference between quoting your client and paying for the order;
• bank or payment-system fees, if you pay them.

What exactly you add is up to you: everyone’s terms differ.

Currency buffer

Your client pays you now, but the AliExpress order is paid later, and the exchange rate can move in between. To avoid losing money on the rate, add a small percentage on top of the converted cost: a currency buffer.

An example with illustrative numbers. Converted cost is 1,000, buffer is 3%: 1,000 × 1.03 = 1,030. A 35% markup on that gives a price of 1,030 × 1.35 = 1,390.50. You choose the size of the buffer.

How this works in Invoice Builder

• Markup is set per line, as a percentage or a fixed amount, so different items can have different values.
• Supplier prices are converted to the document currency using Exchange Rate API data, and you can add a currency buffer. If a rate is missing, you enter it by hand: the extension never substitutes a rate silently.
• Tax and discount apply to the whole document. The extension does not determine tax rates: you enter the value.
• Your client sees only the final prices and totals. Your cost and the markup line are not shown.

The step-by-step workflow is described in How to invoice a client for an AliExpress cart.

Work it out on your own cart

Invoice Builder for Chrome calculates the price with markup, tax, discount and a currency buffer straight from your AliExpress cart and builds the PDF for your client.