Margin for dropshipper

[Christiane]

I've been asked if I would dropship our products today. Had never considered it but now I have staff, large premises, etc, well, am a bit tempted!!

What kind of margins does a dropshipper expect? Is 15 to 20% enough? I don't have a clue....

I've looked on dropshipping forums but the info is mostly aimed at dropshipper, not the supplier.

Thank you!
Bea

[downsouth]

factor in things like time to process order, packaging, postage (some suppliers load this postage cost a little)

Without knowing your products its hard to tell. PM if you wish

I've seen some dropshippers products with a retail price of say £24.95, offer retailers prices of £12.50-£14.50 + P&P

But it all depends on the price you produce/source the product at.

[Stampy]

As a seller of drophshipping products, I would look at being able to make a minimum of 25% mark up, to take the product to RRP. It's just not worth it otherwise, factoring payment processing costs etc. and the amount of work needed for marketing etc.

[Moocha]

If you can offer a good returns policy, they you should do well, most drop shippers policies are completely unreasonable, but the ones that are good seem to do pretty well.

[BusinessIdeas]

I've been asked if I would dropship our products today. Had never considered it but now I have staff, large premises, etc, well, am a bit tempted!!

What kind of margins does a dropshipper expect? Is 15 to 20% enough? I don't have a clue....

I've looked on dropshipping forums but the info is mostly aimed at dropshipper, not the supplier.

Thank you!
Bea What products do you deal with?

[wezza]

I used to sell products that were dropshipped for me at 10% commission. As you can imagine, the margins were so small, it wasn't worth my time so I ditched it.

I now would not go lower than 20% commission, depends on the product but 20% would be my absolute minimum. Ideally, 25%-30%.