Knowledge Base

What kind of profit margins are there with drop shipping?

Drop shipping profit much depends on what kind of products you are selling. It’s 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.

We recommend having a profit margin of 40%-70%. You can also try this formula that works well for our own Dropshipping projects:

$0<Supplier Price<$2=Your Price: $7.95. Your minimum drop shipping profit: $5.95

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

$5<Supplier Price<$30=Your Price: Supplier Price x 2. Your 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. Drop shipping profit starts from $35.

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