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Reducing Dropshipping Shipping Costs

Published on: June 4 2023 by pipiads

Hey guys, it's Jim from Econ Insiders and in today's video, we're going to be discussing how to set up your shipping rates for the best possible outcome. Shipping rates are often overlooked but can be the reason why you're not getting as many sales as you would like. So, let's dive into it.

Main Points:

- Free Shipping: If you're selling products under $50, it's best to offer free shipping. This reduces friction and makes it easier for customers to make a purchase.

- Testing Shipping Rates: Once you find a winning product, start testing different shipping rates. A good starting point is $3 for shipping and then $5.

- Shipping Banners: Having a banner that says Free shipping over $50 can boost your average order value. However, this is only effective if you're selling a product that can be bought in multiples.

- High Priced Items: If you're selling high priced items that are perceived to be hard to ship, such as canvases, you can charge shipping. However, make sure to keep it reasonable and test different rates.

- The Psychology of Shipping: It's important to consider the psychology of the customer. If you're charging $5 for shipping on a $10 item, it can turn customers away. On the other hand, charging $15 upfront for a pair of sunglasses may seem reasonable to customers.

In conclusion, setting up your shipping rates can make or break your e-commerce business. Make sure to test different rates and consider the psychology of the customer. Start with free shipping for products under $50 and work your way up from there. Keep in mind that every product and market is different, so it's important to test and analyze your results.

The UGLY Truth About Dropshipping That No Guru Will Tell You

In this video, the speaker answers commonly asked questions about dropshipping, including the misconceptions about it being a get-rich-quick scheme. While technically true that you don't need to store inventory or fulfill orders, the reality is that success with dropshipping has pros and cons and isn't as straightforward as it seems. Dropshipping is an ecommerce business model where an online store doesn't carry inventory for the products it sells. It's legal and legit, but you need a seller's permit and a business license in the US. The margins for dropshipping are much less than other ecommerce business models, making it less profitable. High ticket items yield more revenue per sale and are the best products for dropshipping. Dropshipping can be automated, but customer service is still necessary. You can dropship from your own website, Amazon, or eBay. Payment transactions occur when you accept payment from your customer and pay your supplier for the raw cost of goods. You can find dropshipping suppliers through directories, dropship companies, trade shows, or by using Google. Amazon dropshipping and eBay dropshipping have specific rules to follow, and returns are handled by the customer service of the seller. Multiple dropshipping suppliers can be used as long as orders are routed correctly. Dropshipping is a good business model because it's a risk-free way to sell products online, requires little upfront investment, and can be run from anywhere. However, the margins are low, and there's little brand recognition. Private label branding is the best ecommerce business model to maximize profits.

Best Aliexpress Alternatives For Dropshipping (3-5 Day Shipping)

In this video, the speaker discusses their success with drop shipping and how they are able to achieve fast shipping times without using AliExpress. They reveal the suppliers they use and provide options for those looking to improve their shipping times.

Main Points:

- AliExpress is not sustainable for scaling your online business due to long shipping times, product and quality variations, and communication issues.

- CJ Drop Shipping and Source and Box are two suppliers that can provide faster shipping times and lower costs compared to AliExpress.

- Private suppliers are recommended for those looking to take their business to the next level and improve quality, shipping times, and branding.

- Using post-purchase upsell apps like ReConvert can increase average order value and revenue.

Improving shipping times is crucial for the success of a drop shipping business and there are options available beyond AliExpress. CJ Drop Shipping and Source and Box are two viable options and private suppliers can provide even better quality and shipping times. Utilizing post-purchase upsell apps can also boost revenue.

Understanding the "Shipping" in Dropshipping

In this video, we will be discussing shipping and dropshipping, which is a common concern for many e-commerce store owners. There are different options available for shipping policies, such as free shipping, flat rate shipping, or matching your supplier's cost for shipping. However, it is crucial to research and understand your supplier's shipping policies and costs to ensure profitability. Here are some important points to consider when deciding on a shipping policy:

- Shipping and dropshipping are essential for e-commerce store owners

- Customers often have questions about shipping policies and options

Choosing a Shipping Policy

- Free shipping is a common option but can be difficult to offer for all products

- Flat rate shipping offers consistent pricing but can be a risk for the store owner

- Matching your supplier's cost for shipping is a safe option but requires research and may be less competitive

Choosing a Carrier Account

- Suppliers often have their own carrier accounts, which may offer pre-negotiated lower rates

- Using your own carrier account gives you more insight into shipping costs but may be more expensive

- Consider the most expensive shipping costs and ask your supplier about average shipping expenses and shipping times

Other Considerations

- Some suppliers have shipping costs within their feed or use dimensional weight

- Research carrier account calculated pricing and calculators to help decide on carrier accounts

- Understanding and researching your supplier's shipping policies and costs is crucial for profitability

- Consider the different shipping policy options and carrier account options to find the best fit for your e-commerce store.

How To Start Dropshipping With $0 | STEP BY STEP | NO SHOPIFY & NO ADS! (FREE COURSE)

My name is Isabella and I am the owner of two successful online businesses that earn six figures. Today, I am going to show you how to build a profitable dropshipping store with zero dollars, without using Shopify or ads. This means you can start your business without worrying about dumping money into it.

- I will show you how to build a successful dropshipping store with no money

- Shopify and ads are not necessary to start

- I care about your pockets and want to help you save money

- I only ask for a like and subscription in exchange for this valuable information

Why start a dropshipping store:

- Great for those starting out with no upfront investment

- Can be done from anywhere in the world

- No need to worry about inventory or shipping products

Finding a winning product:

- Use TikTok, AliExpress, Amazon, and Google to research products

- Hula hoops are a popular fitness product to sell

- Profit margins can be high if marketed properly

Creating a business name and logo:

- Use a free business name generator to find unique names

- Use a logo maker like Zarla to create a professional logo for free

- Starting a profitable dropshipping store doesn't have to cost a lot of money

- With the right product and marketing strategy, success is possible

- Don't be afraid to use free resources to build your business.

👀 What You NEED To Know Before Dropshipping

Despite successful dropshipping case studies, some people still believe that dropshipping is dead and not worth the time and effort. However, these beliefs are based on false assumptions and misconceptions.


1. Epacket shipping kills dropshipping.

- While Epacket shipping may be cheaper and faster, there are still customers who are willing to wait for their products. Additionally, successful dropshipping stores focus on targeting customers who make impulse purchases and are not concerned with shipping times.

2. Amazon will steal all sales.

- Amazon is a strong competitor, but successful dropshipping stores sell products that trigger emotions in customers, making them want to buy the product immediately. These stores target customers who enjoy impulsive purchases.

3. Dropshipping is saturated.

- Market saturation is a product problem, not a fulfillment problem. Successful dropshipping stores sell unsaturated products that are unique and interesting.

4. Donald Trump's war with China has killed dropshipping.

- While the Epacket shipping option may have changed, there are still alternative shipping options available. Aliexpress standard shipping and Aliexpress suppliers opening up fulfillment centers in the USA provide four to seven day shipping times for four to five dollars.

5. Most people who dropship will fail.

- While this may be true, it is not because of a lack of knowledge about Facebook ads or other marketing techniques. The main reason for failure is the lack of real-world experience gained from actually marketing and selling products.

Successful dropshipping stores focus on targeting customers who make impulse purchases and selling unique, unsaturated products. While there may be challenges and a learning curve, those who are willing to invest the time and effort can be successful in dropshipping.

Shopify Shipping Settings For Dropshipping - Extra 30% In Revenue

In this video, the speaker discusses how to utilize shipping costs to make an extra 10% on every order. They explain that while Aliexpress offers free shipping on many products, charging a shipping fee can increase the average order value. The speaker goes over different pricing models and pros and cons of each, such as offering free shipping for higher conversion rates but lower order values, or charging a shipping fee for lower conversion rates but higher order values. They also suggest incentivizing customers to make larger purchases with free shipping on orders over $50. The speaker provides step-by-step instructions on how to set up different shipping options and pricing models. The video ends with a call to action to comment, like, and subscribe.

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