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How to Profit with Free Shipping When Dropshipping

Published on: December 13 2022 by Anton Kraly - Drop Ship Lifestyle

In the world of dropshipping, free shipping is a crucial element in attracting and retaining customers. It can be challenging to offer free shipping while still making a profit, but with the right strategies, it can be done. In this article, we will discuss how to profit with free shipping when dropshipping.

1. Set a Minimum Order Value:

- Setting a minimum order value is an effective way to ensure that the cost of shipping is covered. Customers are more likely to increase their order value to meet the minimum and get free shipping.

- It is essential to set the minimum order value at a level that covers the shipping cost and still entices customers to spend more.

2. Negotiate Shipping Rates with Your Suppliers:

- Negotiating shipping rates with your suppliers can help you get better deals and save money on shipping costs. Lower shipping costs mean higher profit margins.

- It is advisable to work with suppliers who offer free shipping or low shipping rates, as this will make it easier for you to offer free shipping to your customers.

3. Use Shipping Calculators:

- Shipping calculators help you determine the cost of shipping based on the weight and destination of the package. This way, you can accurately calculate the shipping cost and factor it into your pricing strategy.

- It is essential to choose a reliable shipping calculator that provides accurate estimates.

4. Offer Free Shipping on Select Products:

- Offering free shipping on select products can be an effective way to attract customers and increase sales. Customers are more likely to purchase products that come with free shipping.

- It is important to choose products that have a high profit margin and offer free shipping on them.

5. Bundle Products:

- Bundling products together can increase the order value and make it easier to offer free shipping. Customers are more likely to buy a bundle of products that comes with free shipping than to buy each product separately.

- It is important to choose products that complement each other and offer a discount on the bundle.

Free shipping is a crucial element in dropshipping, but it can be challenging to offer it while still making a profit. By setting a minimum order value, negotiating shipping rates with suppliers, using shipping calculators, offering free shipping on select products, and bundling products, you can profit with free shipping when dropshipping.

How to Profit with Free Shipping When Dropshipping

In this podcast episode, Anton Crowley discusses how e-commerce businesses can offer free shipping on expensive and large items while still remaining profitable. He uses the example of selling surfboards to explain the process and shares some additional tips for increasing profits through shipping options.

Key Points:

- Offering free shipping does not mean that shipping costs are zero; it means that the business is absorbing those costs instead of charging the customer.

- To remain profitable while offering free shipping, there needs to be enough of a gap between the cost of goods sold and the sale price to cover expenses such as shipping, merchant fees, and advertising costs.

- By offering shipping options at checkout, businesses can increase profits through expedited or White Glove shipping services.

- It is essential to know your numbers and build in the cost of shipping when setting sale prices for products to ensure profitability.

E-commerce businesses can offer free shipping on large and expensive items while remaining profitable by building in the cost of shipping and other expenses when setting sale prices. Offering shipping options such as expedited or White Glove services can also increase profits. Knowing your numbers and maintaining a healthy profit margin is crucial to the success of any e-commerce business.

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