High Profit Margin Dropshippers

by jta89
15 replies
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Hello All,

So I'm currently developing my third ecommerce store, and I am learning more and more each time with regards to marketing, seo, conversions etc. One point that I wanted to bring up with you guys was that with most companies that dropship their products will only give you enough room to make roughly a 30% margin. I would say this is the average for the companies I've dealt with so far. Now my question is, are any of you dealing with companies that offer higher profit margins such as 50-60%. I know that you save inventory/storage costs etc with dropshipping. I am not asking for your specific supplier details, or which markets you are operating in etc, just wondering if you can actually hit the 50-60% margin for dropshipping?

Thanks!!!
#dropshippers #high #margin #profit
  • Profile picture of the author stretch361
    Originally Posted by jta89 View Post

    Hello All,

    So I'm currently developing my third ecommerce store, and I am learning more and more each time with regards to marketing, seo, conversions etc. One point that I wanted to bring up with you guys was that with most companies that dropship their products will only give you enough room to make roughly a 30% margin. I would say this is the average for the companies I've dealt with so far. Now my question is, are any of you dealing with companies that offer higher profit margins such as 50-60%. I know that you save inventory/storage costs etc with dropshipping. I am not asking for your specific supplier details, or which markets you are operating in etc, just wondering if you can actually hit the 50-60% margin for dropshipping?

    Thanks!!!
    I've done dropshipping with a lot of companies, and really, it just depends on the niche. I've seen 50-60% in dropshipping in a few niches, but it mainly depends on competition. If you happen to find some keywords that have low competition on dropshippable products, you can jack up the prices since noone else is really selling it.
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  • Profile picture of the author alksense
    I work with some suppliers like that.

    They are usually the ones that offer more "high end" products within a niche.

    For example; you are much more likely to see those margins when selling a $500 bar stool than you would selling a $200 bar stool.
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  • Profile picture of the author jbthemummy
    Lot of dropshippers offer 50% or more dropshippers. It all depends on what product you are trying to sell and who the dropshipper is. Supplements might be something you should dabble into. I was selling at a little bit over 50% a while ago.
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  • Profile picture of the author spwerewolf
    Originally Posted by jta89 View Post

    Hello All,

    So I'm currently developing my third ecommerce store, and I am learning more and more each time with regards to marketing, seo, conversions etc. One point that I wanted to bring up with you guys was that with most companies that dropship their products will only give you enough room to make roughly a 30% margin. I would say this is the average for the companies I've dealt with so far. Now my question is, are any of you dealing with companies that offer higher profit margins such as 50-60%. I know that you save inventory/storage costs etc with dropshipping. I am not asking for your specific supplier details, or which markets you are operating in etc, just wondering if you can actually hit the 50-60% margin for dropshipping?

    Thanks!!!
    You can definitely make profit margins of more than 50%, all you need to do is undergo research on keywords or the product in detail.

    Most important, ask yourself if you would purchase that particular product for that particular price. If you think someone else will, go ahead and make money.

    I wish you all the best. Be positive, and you will surely make good profit. Its just a matter of time
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  • Profile picture of the author MrsKiwi
    I found a dropshipper with 100% margin so it is possible. They're a distributor. I tried going directly with the manufacturer but was told they didn't want any more online retailers. So I went to the next best thing which was a distributor.
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  • Profile picture of the author BarryAllen
    I've seen some products that have profit margins of 60-80%. I recently found a seller and he makes about 90% profit margin. I wonder if what he is selling is authentic however. Maybe they're just real enough to fool the buyer.
    BA,
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  • Profile picture of the author malia
    I wonder if what he is selling is authentic however. Maybe they're just real enough to fool the buyer.
    They are counterfeit items and what he is doing is illegal (I saw your other thread).
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  • Profile picture of the author albert12
    The best I have ever seen is WWB.
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    • Profile picture of the author jta89
      Originally Posted by albert12 View Post

      The best I have ever seen is WWB.
      Hey, what do you mean by WWB?
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      • Profile picture of the author Importexport
        Originally Posted by jta89 View Post

        Hey, what do you mean by WWB?
        He means WorldWideBrands, but I thought this thread was about high profit margins??? See this interesting thread Is WorldWide Brands worth the $299 membership fee?

        If I may add my 2c worth, people mean different things by the words profit margin.

        In my importing business I never settled for a selling price less than cost x 250%. That works out at a margin of 60%, but clearly some people think 250% would be my profit margin.

        By the way, that figure was my bare minimum, and no, I never dropshipped because I wanted high profit margins.

        Example: One of my students reported on WF that they bought a product for $1 per unit, added $1 cost in packaging, and sold for $25. Is that 1,250% margin or is it 92%?

        It seems that those who want to boast prefer the higher figure, but if 92% of your revenue is profit that shows the sort of margins you can make if you think outside the very tight square of the dropship business model.
        Signature
        Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
        Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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        • Profile picture of the author kb11
          Originally Posted by Importexport View Post

          He means WorldWideBrands, but I thought this thread was about high profit margins??? See this interesting thread Is WorldWide Brands worth the $299 membership fee?

          If I may add my 2c worth, people mean different things by the words profit margin.

          In my importing business I never settled for a selling price less than cost x 250%. That works out at a margin of 60%, but clearly some people think 250% would be my profit margin.

          By the way, that figure was my bare minimum, and no, I never dropshipped because I wanted high profit margins.

          Example: One of my students reported on WF that they bought a product for $1 per unit, added $1 cost in packaging, and sold for $25. Is that 1,250% margin or is it 92%?

          It seems that those who want to boast prefer the higher figure, but if 92% of your revenue is profit that shows the sort of margins you can make if you think outside the very tight square of the dropship business model.


          When you mention "cost" does that also include the shipping charges or landed here in the USA.
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          • Profile picture of the author Importexport
            Originally Posted by kb11 View Post

            When you mention "cost" does that also include the shipping charges or landed here in the USA.
            I have people in 23 countries using the methods in my book, so it means landed cost in whatever country you are located in. All costs as far as getting the product into your possession are included.

            It does not include your delivery costs to your customers.
            Signature
            Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
            Safely source from China and other countries and import the easy way http://provenchinasourcing.com

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            • Profile picture of the author kb11
              Originally Posted by Importexport View Post

              I have people in 23 countries using the methods in my book, so it means landed cost in whatever country you are located in. All costs as far as getting the product into your possession are included.

              It does not include your delivery costs to your customers.


              Thank You.
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  • Profile picture of the author byalik
    The profit margin would be 1250%..interesting though, what type of product was it
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    • Profile picture of the author Importexport
      Originally Posted by byalik View Post

      The profit margin would be 1250%..interesting though, what type of product was it
      Sorry I can't disclose which products my students are importing.

      Many of them ask me for help when they first start, and although the answers are usually in the book anyway, I explain again for them. The result is that I often know which products are being sourced, and it would give them more competition if I disclosed that information.

      I have to respect their confidentiality. What I can say is that the story posted on the forum by that particular student is not uncommon.

      So many people have been brainwashed into thinking that dropshipping is the only way to start selling physical products that they do not understand that there is a much more profitable way, even with a small starting capital.

      You will notice that the title of this sub-forum is "Wholesale, Dropshipping." There is no mention of importing.

      That is why I am compelled to post on threads talking about wholesale, when in reality I am telling people to forget about wholesale (or dropshipping which is buying at wholesale in small quantities.)

      Wholesale is for dummies. Only those who don't know any better will settle for the inflated prices charged by wholesalers when they can buy small quantities direct from the very places where those wholesalers buy.
      Signature
      Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com/
      Safely source from China and other countries and import the easy way http://provenchinasourcing.com

      {{ DiscussionBoard.errors[8824060].message }}

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