drop shipping profit margin

in Forum: Business planning

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Nov. 18 2008 at 10:36 AM
Posted by: ariel “Quote Reply
I'm looking for advice about building a relationship with a drop-shipping based website. I have a retail and wholesale business (products related to breastfeeding - bras, pads, pillows, pumps, etc.) already and was approached by a company that has websites that market related products and would like to add my line. They asked me to give them a price quote for my products and I'm lost! What percentage of the consumer's price should I be charging them? Ariel
Nov. 18 2008 at 4:39 PM
Posted by: TigerTaco “Quote Reply
You can see their sites and the products already being sold, and you will be getting references from their existing vendors (right?:^) so why not pick up the phone and make a new friend ... birds of a feather flock together and we can't be shy about asking for answers from those who know best. Chris Miller, a simple taco maker. Tiger Taco , Nice Taco Blog
Nov. 19 2008 at 1:40 PM
Posted by: fsoxrock “Quote Reply
Ariel, You should consider adding 15-20% to the wholesale price of your product for the drop-ship program. This is an approximation of the costs that would be incurred if they were to buy directly from you and have to warehouse the inventory. Chris is right, it would be very beneficial to ask the other vendors how they calculate their drop-ship prices. Hope this helps. Good luck with your business! Nancy Founder, Owner Furniture Sox, LLC http://www.FurnitureSox.com