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Drop Ship Pricing: How Much is Too Much?

drop ship pricingIf you want a home business in ecommerce in order to be your own boss and make more money than you are paid on your current 9-5 job, you may be wondering about drop ship pricing: How much is too much?

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The price of your products is vitally important, just as important in an online business as in a traditional brick and mortar store; if not even more so. If you price your items too low, you will not be able to make enough profit to keep your home business afloat. If you price your dropship items too high, you won’t be able to make many sales.

  • Pricing Too Low: You may be toying with the idea that if you undercut all of your competition who are selling the same or similar items as yours, you can attract all of the buyers and make your profit by the sheer volume of sales you rake in. In theory, this might sound do-able. But in actual practice, this strategy is almost doomed to failure. Why? Because unless you can buy your products for a ridiculously low price, make a little tad of profit on each one and sell a slew of them; it won’t pay you to waste your time in marketing, sales, customer service and more. Besides that, rather than attract customers, prices that are much lower than your competitors are more likely to be perceived as cheap by shoppers.

  • Pricing Too High: Although you should never be afraid to price your dropship products according to their worth, over pricing isn’t a good idea. Put yourself in a shopper’s shoes and ask yourself what you would consider a fair and reasonable price for whatever particular widget you are selling. How much is too much?

One key point to bear in mind is that when you are selling for resale, you basically make your money when you buy rather than when you sell. This simply means that the lower the price you have to pay for your dropshipping products, the more profit you can expect to make on each one using fair market value pricing.

Drop Ship Access has almost 2 million high quality products available at genuine low, wholesale prices….low enough to ensure a healthy profit for you on every sale you make! Check out Drop Ship Access now and when you start listing your products, ask yourself this question--- Drop ship pricing: how much is too much?

If you liked this article, you may also like this one: Ecommerce Dropship Tips: SEO for eBay


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