1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Dropshipping - What is a good profit margin

Discussion in 'BlackHat Lounge' started by rayee, Apr 25, 2017.

  1. rayee

    rayee Power Member

    Joined:
    Jun 21, 2012
    Messages:
    575
    Likes Received:
    68
    What is the best profit margin and saleable as well? Any comments
     
  2. sewacuz

    sewacuz Newbie

    Joined:
    Apr 23, 2017
    Messages:
    37
    Likes Received:
    24
    As with regular retail sales, it depends on the niche. The more niche, the higher your profit margins *usually* are. If you're selling iPhone cases, forget it. You'd be lucky to make 10%. If you're selling model trains, you could be fetching 200%.

    There's no generic number we can tell you that'll work for everything. Don't forget, drop shipping is still a full business. You are doing everything a regular retail shop does except handling inventory. You're effectively just outsourcing logistics, but everything else is still a regular business. I'm not sure why everyone thinks drop shipping is some magical, easy, way to make money. It's not. All it is is a business with outsourced logistics.
     
  3. SunnyLeon

    SunnyLeon Jr. VIP Jr. VIP

    Joined:
    Oct 13, 2013
    Messages:
    518
    Likes Received:
    178
    Gender:
    Male
    Location:
    Outside the Matrix
    1
    how did you get those margins for phone cases ? I can tell you from experience you`re way off.
     
  4. beregrijj

    beregrijj Newbie

    Joined:
    Apr 25, 2017
    Messages:
    18
    Likes Received:
    2
    Gender:
    Male
    I've been dropshipping for 3-4 months now (with FB ads) and the profit margins are always different. You should worry mostly about
    1. GREAT product (not something you like, but the potential customer does)
    2. GREAT photo/video AD (self explanatory0
    3. GREAT Landing page with a good product description

    If you nail those 3 things, you won't have to worry about anything else
     
  5. sewacuz

    sewacuz Newbie

    Joined:
    Apr 23, 2017
    Messages:
    37
    Likes Received:
    24
    Why would you assume every business is exactly the same? You might pull 200% on an iPhone case, if you don't mind having next to zero sales volume. If you want to have any decent volume, which is what the OP is concerned with, then you margins will suck.

    I also have numerous years of experience, so that doesn't mean much.
     
  6. virtualpurity

    virtualpurity Jr. VIP Jr. VIP

    Joined:
    Nov 12, 2012
    Messages:
    764
    Likes Received:
    442
    Occupation:
    SEO, Hosting
    Location:
    /root
    Home Page:
    The product is worth as much as the story you are trying sell for the product and whatever you think the customers are ready to pay.
    There are products that can go up to 500% in margins.
     
  7. rejoin14

    rejoin14 Regular Member

    Joined:
    Jul 4, 2016
    Messages:
    205
    Likes Received:
    35
    I have recently read that the average profit margin in ecommerce is like 40%. (This depens of course on products, customers and so on)
     
  8. rayee

    rayee Power Member

    Joined:
    Jun 21, 2012
    Messages:
    575
    Likes Received:
    68
    Guys, can you give specific product range / product you are targeting. The above threads are so vague .. Great product .. Ok i know great product but which product? Which niche?