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My name is Richard, and I created Do Dropshipping after I saw so many paid dropshipping courses popping up. The goal of Do Dropshipping is to put these “gurus” out of business by giving everyone access to the information that they need to start their own dropshipping business today. No more paid dropshipping courses!

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4 Comments

  1. Hi,

    Regarding importing products in bulk as they scale on sales, it’s not dropshipping anymore but building a real E-commerce business with inventory, shipping, handling etc.

    Have you ever done that ?

    Thanks !

    • Do Dropshipping - Author Logo

      Hi! Personally I don’t have any experience with importing products in bulk, but I know it’s a great step to take when your dropshipping store is ready for it (getting enough sales over a duration of time for certain products – so you know these products are selling well, and will hopefully sell well in the upcoming weeks or months).

      And, as I said in the article, you can do a lot of extra things when you’re shipping the items yourself (or with a fulfillment service). Like branding your package or adding a personal card from your store.

  2. Hi,

    First of all, thanks for all your content 😉

    Your product price methods are interesting. But I’m afraid they don’t leave enough room for marketing budget.

    For example in the first example you take (Cost of goods + shipping) and you add 10$. Which means that with 10$ you have to pay advertising + fixed costs + taxes in your country + possibly your team + yourself. It doesn’t leave a lot of room for your Cost Per Purchase.

    In the second example, the numbers are approximately the same.

    I’ve heard another technique wich is to take (Cost of goods + shipping) and multiply by 3. But it could lead to high prices. I used this technique back in early 2018 for my first store (which I closed because I was employed at that time ans hadn’t enough time).

    But today I’m getting back into dropshipping as a self-employed and I’m not sure which pricing strategy to use.

    What do you think about that ?

    Thanks 😉
    Thibault

    • Do Dropshipping - Author Logo

      Hi!

      Awesome that you liked my article!

      Thank you for your comment. Your other technique definitely sounds good, but as you said, the prices could get high quickly. For example, if you have a product of $10 + $3 for shipping, then the product would be $39 ($13 *3). Which is a nice price, but it all depends on the perceived value of your product. (read here more about what perceived value is)

      For example, would you rather buy a $39 watch or a $39 towel?
      Or what do you think looks more expensive? The $19.95 cat toy or the $19.95 painting? Of course, you could market the cat toy in such a way that its perceived value is much higher (like: “Get this limited edition cat toy now. It’s signed by the president himself!”)

      For marketing costs, I suggest reading this from Oberlo they explain their how much money you will need for marketing by using Click Through Rate (CTR) and Conversion Rate.

      And for the costs of your team and yourself; the costs of your team will come when your store has gotten a lot of traffic and sales (that moment that you can’t handle it any more your self and you’re making more and more profits). And the best way to pay your self is to say that you will get the profits after your store is doing good. I suggest putting all your profits back into your dropshipping store at the beginning. This way you can grow and you don’t have to worry about paying yourself, but if you really want to pay your self, then you need to see how much profit you have left each money and then just calculate how much you want to put back into your dropshipping store and how much you keep for yourself. Not sure if that was clear, let know!

      And for taxes, yes that’s a big one as well. You should sit down with a bookkeeper or tax adviser to see how much taxes will eat from your profits. This way you know how much you need to add to your price.

      I know this was a long comment. So I hope everything is clear to you! Let me know if you got any more questions or if it wasn’t clear. I’ll be happy to help you!

      Good luck!

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