I’m just starting out in business. How do I determine what price I should charge a drop shipper, versus a wholesale price to a retailer? For example, some of my products are suggested retail of 29.00, with a wholesale of 12.99. Would dropship be expected to be the same as wholesale?

Since when you are wholesaling you don’t have to handle individual packages and ship them, you can afford to charge 60% or less of retail. When you drop ship you still have to break cartoons and repackage and ship individually so what your charge has to cover the cost of doing this. Remember you don’t have selling and marketing costs so the price is somwhere between wholesale and retail but enought to cover your shipping and handling costs.

2 Responses

1. robert w Says:
   December 4th, 2009 at 7:55 am

   If you drop ship typically you charge them for shipping to the customer plus a packaging fee for the trouble and cost of shipping one at a time. This can be $3.00 or so.

   Rob
   References :

2. ynot Says:
   December 4th, 2009 at 8:04 am

   Since when you are wholesaling you don’t have to handle individual packages and ship them, you can afford to charge 60% or less of retail. When you drop ship you still have to break cartoons and repackage and ship individually so what your charge has to cover the cost of doing this. Remember you don’t have selling and marketing costs so the price is somwhere between wholesale and retail but enought to cover your shipping and handling costs.
   References :

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