Price margins for drop shipping?
Do you have any suggestions on what price margins to be expecting/negotiating for on a dropshipping item with retail price $00-$1500?
Many factors affect drop ship cost pricing and there’s no general margin guideline that I’ve found. Every drop shipping vendor handles cost pricing a bit differently. Dropship sellers are usually thrilled with 30% – 40% gross margin, but that can net out much lower, say 20%, after account costs and shipping charges are factored into your final charge.
Some vendors will negotiate this if you move a lot of stock, but if you’re just starting out, you won’t yet qualify for negotiated rates unless you already have a large blog or social audience that might convert to sales quickly.
I hope this gives you some idea of how this works and what you can expect in your pricing. Good luck!