What kind of profit margins are there with dropshipping?

What kind of profit margins are there with dropshipping?

 

A significant part of one's dropshipping profit depends on what kind of products one is planning to sell. It is often a good idea to stick to low price with a high margin potential. Such products usually cost within a $1-$20 price range and these products generally can be priced at $20-$50 or more. The most successful dropshipping websites have proved that such profit margin range is optimal.

 

It is recommended to have a profit margin of 40%-70%. This following formula was proved to work well for numerous dropshipping projects:

 

$0<Supplier Price<$2= Your price:$7.95. Minimum profit: $5.95

 

$2<Supplier Price<$5= Your price:$9.95. Minimum profit: $4.95

 

$5<Supplier Price<$30= Your price: Supplier price x 2. Profit: 50%

 

$30<Supplier Price<$50= Your price: Supplier price x 1.75. Profit margin: $22.5 -$37.5

 

$50<Supplier Price<$100= Your price: Supplier price x 1.5. Profit margin: $25-$50

 

Supplier Price>$100=Your Price: Supplier Price x 1.35. Profit starts from $35.

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