I'm making between 10-30% on all of my dropship products and making 30% on my wholesale products but they are not selling well.

Originally Posted by andy-al

With my dropshipper, my profit margins are around 30% of the trade price Im paying.
Say my Dropshipper is selling an item for £10, Ill add on 30% Profit = £3. Selling the item for £13 + VAT, Ebay/Shop & PayPal Fees.

Wholesale prices, Ive just brought a product wholesale, at £8 each, on each of those items ill be making £5 profit after all fees taken off. So thats estimated 60% Profit?

Cant complain at that

But like the others have said, it depends on what the item is, who the supplier is etc. Buying the items Wholesale yourself should mean you can source products at a cheaper price. With dropshipping, your paying someone else a cut of your money for them to have sourced that product.

It also means you've now got to pay £2 shipping on each of those £8 products if you're selling on ebay, putting you back down to 30%

*edit*

Oh and Jaybone if you're reading this, could I get a copy of that spreadsheet too

£5 Profit after all fees taken off, I class postage and packaging as a fee, which the buyer pays for anyway

Can someone send me the spreadsheet jaybone created, my e-mail address is jwwk@hotmail.com.

Thanks

Originally Posted by andy-al

Wholesale prices, Ive just brought a product wholesale, at £8 each, on each of those items ill be making £5 profit after all fees taken off. So thats estimated 60% Profit?

Cant complain at that

Ahh.. we're speaking at cross purposes. You're talking in markup (take a product at £10, mark it up by 1.3 or 30% = £13). I was thinking in gross profit margin (Sell a £10 product at £13, 23% of that £13 is profit)

So on your example above, I make it 38.5% gross margin - still a very tidy piece of business!! :niceone:

Makes no difference really - would be interesting to know how other people here express profit though

I'm trying to get up to around 20-25% GM using dropshipping if I can but it's tricky.

Jay

All people who asked for the spreadsheet have been emailed.

Hope it helps!

Jay

Could you send a copy over to lewis.m [at] blueyonder [dot] co.uk?

Cheers

*edit*

And while I'm posting, it's not all about profit margins anyway.

I'd much rather make £1 profit on something I sell 30 of a day, than £30 profit on something that sells once a day

There are some articles and threads on mark=up, margins and gross profit.

Here's the best I can think of -

Markup / Gross Profit / How to Price Your Goods

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Originally Posted by Lewis_

Could you send a copy over to lewis.m [at] blueyonder [dot] co.uk?

Cheers

*edit*

And while I'm posting, it's not all about profit margins anyway.

I'd much rather make £1 profit on something I sell 30 of a day, than £30 profit on something that sells once a day

Spreadsheet sent. Guys, don't be afraid to let me know if the spreadsheet's useful for you or not.

True. But I'd rather sell 10 of something I make a small profit on than 100 of something I make a small loss on.

I plugged some figures together in my earliest product selection which looked good until all ebay/paypal fees were all listed. The margin turned out to be as low as 7% on a couple of items - that's fine, I just need to ensure high volume sales on that item or drop it. All part of the sales strategy and margin just helps me know roughly what profit is being made on an item and how much I can come down by if pushed.

By the way, good news - I just sold my very first dropshipped item at 28% GM

Jay

ZSelectricals, your spreadsheet is sent.

Seems popular the spreadsheet... Glad to help