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How to Price Dropshipping Products for Maximum Profits

pricing dropship products for profitAnyone about to venture into the world of ecommerce might appreciate learning how to price dropshipping products for maximum profits.

There can be no doubt that ecommerce is the easiest way to start your own business and work from home online, and dropshipping takes this up a notch to make it even easier, faster and less costly.

The fact is that anybody who is willing to work hard can be tremendously successful with a home dropshipping business, but one of the main things you need to understand is how to price for profit.

First of all, let’s start with the number one, top and most important point about dropshipping and pricing for maximum profits---heads up:

You make your money when you buy, not when you sell.

If this doesn’t make any sense to you and you’re sitting scratching your head, wondering how you can possibly make money while you’re buying and spending money, it’s like this….the price you pay when you buy dropshipping products for resale will determine the amount of profits you are going to make from the sale of those products.

For example, if you want to dropship televisions and you pay your product supplier $400 each for them, then discover that the average retail sell through price for the model you are selling is only $400, how can you make any profits?

You won’t.

It wouldn’t matter if you sold 1,000 of these televisions a day; you are not going to come out ahead. In fact, by the time you cover your operating expenses such as website costs or maybe eBay or Amazon fees---you will be going in the hole.


So, the trick is to price your dropship products so that you can make plenty of profits on each sale. The only way to do that is to find a wholesale dropship product source who gives you genuine wholesale prices so that when you turn around and sell at retail prices, you make a goodly profit.

 Here are some tips on smart pricing:

  • Have a pricing strategy. For instance, you might have one or two products that are nothing but loss leaders. You know you aren’t going to make much of a profit on them, but that’s okay as long as you just break even because these loss leaders will lure shoppers to your listings or website and then they will hopefully buy other products, too, which you CAN make a healthy profit on. A good example of this is for eBay dropship sellers to have one famous name item starting at a very low bid, such as $0.99. This will get you a lot of traffic and potential customers for your other items. Don’t panic and think you’ll be paying big bucks and losing your shirt on these loss leaders because you can count on the going for the fair market value, no matter how low you started the bidding.

  • Use pricing intelligence, which in this case doesn’t refer to your IQ but to spying on your competition. Keep track of what your competitors are doing as far as pricing and then make sure you offer something that will offer customers just a little bit more. This might be expedited shipping, free shipping, etc. One word of caution: Do not try to get into a price war with your competitors. Nobody wins in a price war. Instead, beat them with better customer service or one of the strategies mentioned above.

Use these tips on how to price dropshipping products for maximum profits and start living large with your own home business!


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