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How To Price Your Dropshipping Products

Published on: December 4 2022 by Hayden Bowles

How To Price Your Dropshipping Products

How To Price Your Dropshipping Products

what's good everyone hating your coming
back at you with the brand new video in
this one we're gonna tok about how to
price your products now I'm also going
to cover shipping because that's
something I get all the time people
wanting to know what they should charge
for shipping whether they're doing a
retail product or a free plus shipping
so I'm definitely to get into all that
that's all gonna be covered in this
video let's jump right in so I find a
product on Aliexpress I want to sell it
I did my research it's a good product I
want to put on my store but how do I
actually price it that's a question you
might ask yourself all the time I fall
in the same boat every single time
here's how I do it first of all I do
more research
just because you've already done the
research and found the product does not
mean that research is over while doing
that research you should also be
studying your competitors you should be
studying people like big retailers
Walmart Target Best Buy
depending of course on what your niche
is different large stores like that big
brands see what their pricing things for
because their prices are gonna be higher
than what you should be charged because
there's pay for employees a building
more transportation actually get it to a
physical location all these additional
expenses so that's why they have to mark
it up so much so you can significantly
undercut them this camera for example
this perfect example this camera I'm
filming this on I believe six hundred
seventy dollars at Best Buy
I got on Amazon for five hundred forty
that's like $130 different something
like that it's the difference in price
that right there
get an extended warranty got a few SIM
cards a tripod all this different stuff
so that's why Amazon is winning people
like that knows a third-party supplier
through Amazon doing Amazon FBA perfect
example right there so you need to be
charging less than what big retailers
are charging because these people need
to feel as if they're getting a deal
also you need to know what's called a
value gap what does this mean someone
thinks something's worth 20 bucks right
they're here but they're not going to
pay $20 for it why would they right so
you're gonna have to charge like 10
bucks 12 bucks 13 8 something down in
that range so they feel like there's a
big value gap because if there isn't a
value gap why are they going to pay what
they think it's worth nobody pays what
they think something's worth they buy
something especially a random product
when just throw it through Instagram
where they have no intention of buying
something or Facebook whatever ads
you're running shoutouts Facebook ads
whatever platform you're on
nobody's intent is just to go there to
buy so they're not gonna buy something
for a regular price they have to feel
like they're getting a good deal that's
how you market that's how you get people
to immediately take action that's how
you give people to make an impulse
decision and buy your product
a value gap charge low if you get
something for $3 yeah you can go sell it
for 20 30 40 you don't necessarily need
to be greedy if you can do it for less
you'll sell a lot more so it's quantity
over quality do you want to sell a lot
more get more pixel data be able to you
know build a larger look like audience
scale that up or do you want to sell a
lot less for hire or whatever just you
need to do the research fade out that's
how I go about pricing my product I make
sure there's a value gap I look at what
big retailers are doing and I build the
value gap based on that as well as a lot
of other factors now for a free plus
shipping offer what do you do for that
for shipping I've toked about this in a
few other videos how I normally don't do
a retail price for shipping I'm not
gonna charge 995 for shipping I'll do
something a little bit different
something random 981 1137 629 some
random number like that those tend to
work better for me might not work better
for you but there's something to test
out it's an interesting thing that most
people don't think about but as for how
to price your shipping if you're doing a
free plus shipping offer try to keep it
under about $3 product cost so that's
your total cost not including
advertising you could do for that just
depends on your price of shipping so if
you're paying 3 bucks for the product
you can sell it for about 9 to 13 I'd
say I think it's a little high when
people try and push for like 1495
shipping but again that's completely up
to you to test and figure out for your
own store to see what works better but
I'd say if you have a $3 product cost
keep it in about that 8 to 11 dollar
range for shipping that'll leave you
your margins for your shoutouts your ad
campaigns whatever it is and hopefully
you can get a nice good 20 to 40 maybe a
higher profit margin now if you listen
to me at all in this video it's the next
30 seconds or so pay attention listen
ready okay you do not not want people to
pay two times what do I mean by that to
fees is a no-go you don't want someone
to pay for the product and then shipping
you don't want that because in their
mind they're breaking it down is two
separate cost why would you not just
include one or the other into the other
one right free plus shipping you're
including the product cost and all your
costs onto the back end and shipping or
do a retail product maybe at a sale or
whatever discount you know value gap
have all everything included into the
front and then free shipping because you
can also use free shipping on that as
another incentive more scarcity whatever
oh oh my god free shipping for the next
24 hours so don't have to fees you don't
need it cut it out put all your margins
and out to the front end of the back end
pick it don't have them pay two fees
there's no need to do that now as we're
actually just in general pricing I see
people who literally spend four dollars
on a product and they can effectively
sell that for a hundred and twenty
dollars that's amazing
most people aren't going to do that
you're gonna find something for three
four bucks sell it for twelve to twenty
make your margin that's a good range you
know obviously every product every niche
every store is different you have to
test to figure out what works best for
you but that's my advice that's how I
priced my products that's high price my
shipping that's how I do the research
and figure out both so I hope that
helped you out in some way I'm trying to
keep these videos a little bit short I'm
shooting like the four to eight minute
range per video I'm trying to bring you
the most VPM value per minute than any
other channel out there I put that in my
YouTube About section that just means I
go through things quick I get straight
to the point no BS no fluff I'm not
gonna waste your time and I hope that
you have enough respect for me to not
waste mine as always be sure to hit that
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got you guys see in the next one please