What profit margins do you make by dropshipping?

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I would be interested to hear from sellers who buy from dropship suppliers.

What profit margins do you work on after purchasing and selling costs are taken into account?
#dropshipping #make #margins #profit
  • Profile picture of the author Shaolinsteve
    Originally Posted by Importexport View Post

    I would be interested to hear from sellers who buy from dropship suppliers.

    What profit margins do you work on after purchasing and selling costs are taken into account?
    I don't see how that would help you. Can you explain the type of products that you are selling then maybe you can get a better understanding on profit margins because every product and every niche is different, so it will always vary.
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    • Profile picture of the author Importexport
      Sorry I did not make myself clear enough. This is more in the nature of a survey to help in writing an article.

      I do not even need to know what product types are being sold. I do understand that margins may vary depending on the product type and value.
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author AliPali
    I think it can vary between 20% - 50%
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  • Profile picture of the author MSutton
    I have been dropshipping off and on (mostly off) since 2003 or somewhere around there. My profit margin has been anywhere from 35% to as much as 50%. That is using the true meaning of profit margin. Many people confuse margin and markup and further yet, many people have no idea what the equations for each really is.

    However, I know that this is not typical of what markup dropshippers make. In fact, many stocking retailers don't even make 50% margins. I only did because I only ever dropshipped items that were extreme niche items where I knew I could make large markups or cases where I knew I could find buyers that would buy way above street retail for various reasons.

    The only way I see that one can make decent markup and margins in dropshipping is to be on the cutting edge of what is selling and be ready to sell before eveyrone and their brother (and mother) gets on-board and starts selling and prices start falling. Another way is if you are good at convincing certain buyers to buy at your higher price. However, in this day and age that has become harder to do on the internet since it is so easy to comparison shop.
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  • I think it depends on what you sell, and how many "middle men" you have to go through to get the product to your customers. For a better profit margin, try to work directly with the supplier who manufactures what you sell. If you get items from a dropshipper who sourced them from a supplier, you are paying more fees and taking a smaller cut of profits. Get as close to the source as you can.

    Tiana with ecomdash
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  • Profile picture of the author redchris007
    I make and sell high quality vinyl lettering, for wall art decals . wall quotes decals. Car graphics . car bumber stickers or bespoke lettering of the customers choice. I only use 5/7 year quality vinyl. I am looking for resellers with websites/blogs or ebay/amazon accounts. I can offer 40% discount on All my products. Plus supply you with the photos and all the text/information you need to list the products. If you would like to no more just get in touch.
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    • Profile picture of the author MSutton
      Originally Posted by redchris007 View Post

      I make and sell high quality vinyl lettering, for wall art decals . wall quotes decals. Car graphics . car bumber stickers or bespoke lettering of the customers choice. I only use 5/7 year quality vinyl. I am looking for resellers with websites/blogs or ebay/amazon accounts. I can offer 40% discount on All my products. Plus supply you with the photos and all the text/information you need to list the products. If you would like to no more just get in touch.
      Amazon takes over 15% effective commission rate and so does eBay/Paypal, so your 40% discount is, well, pffft. Thanks for the spam, but no thanks.
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  • Originally Posted by Importexport View Post

    I would be interested to hear from sellers who buy from dropship suppliers.

    What profit margins do you work on after purchasing and selling costs are taken into account?
    50-80% by using scissors and knives made in Pakistan
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    • Profile picture of the author Importexport
      Originally Posted by MarketResearchAmazon View Post

      50-80% by using scissors and knives made in Pakistan
      Are you dropshipping from Pakistan? To which country do they ship those scissors and knives for you.?
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author MSutton
        Originally Posted by Importexport View Post

        Are you dropshipping from Pakistan? To which country do they ship those scissors and knives for you.?
        LOL. I just think he's/she's just promoting his/her Amazon software/system. The 50-80% margin, if true, won't last long on any marketplace. Others will find them and start selling them and then the buy box war begins. Next thing you know, you're selling at a loss to get rid of your inventory. LOL. In the end, the overall margin dwindles to near nothing.
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        • Profile picture of the author Importexport
          Originally Posted by MSutton View Post

          LOL. I just think he's/she's just promoting his/her Amazon software/system. The 50-80% margin, if true, won't last long on any marketplace. Others will find them and start selling them and then the buy box war begins. Next thing you know, you're selling at a loss to get rid of your inventory. LOL. In the end, the overall margin dwindles to near nothing.
          I agree. He/she is posting many times without contributing much of use. This is why I asked those questions.

          I think dropshipping from Pakistan to the US for example would be difficult proposition, and if he/she is doing so with those margins, it would be sensible to keep it a secret.
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          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author MSutton
    If you look at both the Chinese sellers and the USA sellers who dropship from Chinese retailers they vastly have poor feedback scores and don;t last long before they get suspended. Yet Amazon welcomes chinese sellers with open arms. Fact is, buyers on Amazon just don;t read anything and don't pay attention to where a sellers says he/she ships from. And even if they do read that it's coming from China, most have no idea what to really expect in terms of delivery times. It's a recipe for disaster, especially on Amazon where there is virtually no seller protection whatsoever. This would be the same if dropshipping from just about any foreign country.

    Hell, if one could really make a go out of drophipping from china, I could be making money hand over fist as I know quite that are legit. It's just not a viable, at least not on a marketplace.
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