What profit can you make on dropshiping ?
Is it more like 5-10 % or is it more ?

Surely it all depends on the individual item and the price offered by dropshippers?

Originally Posted by woodleyB

Surely it all depends on the individual item and the price offered by dropshippers?

Exactly.

However if you are looking for a generalisation then it would normally be less than wholesale. A 5-10% margin would be normal for dropshiped video games, DVDs, and Blu-rays is about right. However you could find some items with great margins.

Originally Posted by Tunes

Exactly.

However if you are looking for a generalisation then it would normally be less than wholesale. A 5-10% margin would be normal for dropshiped video games, DVDs, and Blu-rays is about right. However you could find some items with great margins.

Glad you agree :niceone:

It all depends on product: are they clothes, are they electronics, are they DVD or video games, branded or unbranded...the list goes on...

There's large profits to be made dropshipping with Gamejelly (www.gamejelly.net). Feel free to ask any questions if you have any.

Depending on the item, I'm looking at between 5% and 28% on the small product range I've selected.

Depends on the market though. A better way to work might be to look at what you can buy an item for and what you can sell it for and then see what your margin is at those prices to decide whether it's worthwhile for you to sell that product.

I'f you want, I can send you a spreadsheet I've put together where you can put in your cost & sell prices and carriage and it'll work out your ebay & paypal fees and give you your markup and margin. I find it useful if a customer asks me for a discount, I can see quickly how giving them for example £3 off or free shipping will affect my margin.

Of course I'm no expert!

Hope that helps a little.

Jay

Hi Jay,
Do you think you could email me that spreadsheet? I cant PM you yet, as you havent made 10 posts.
woodley_b (@) hotmail.com

Thanks

Just sent it through to you.

Hope it helps!

Jay

The margins on dropshipping will always be less than wholesale as a rule. This is because essentially, someone else is doing 1/3 - 2/3rds of the work for you. They've sourced the supplier, they've sorted out the stock, they've shipped the item. Wholesale you should make more, but it takes a lot more work.

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.