6 ms·

I am a dropshipper and average margin on products I sell is 60-100%. I don't sell course because i really doubt I could make much money by doing that when I ca

I am a dropshipper and average margin on products I sell is 60-100%. I don't sell course because i really doubt I could make much money by doing that when I can just keep dropshipping. I never bought any course but I had a startup so I am familiar with sales and how you make conversion happens.

LargeWu 6y ago
Yeah, I mean, if you have it solved, then that's great. I just tend to see a lot of comments in some communities I'm in to the tune of "I spent $2000 setting up my store, lots of traffic, no sales, please help". It's often touted as a get-rich-quick scheme when in fact it takes a lot of hard work and an understanding of how to sell.
voldacar 6y ago
> margin on products I sell is 60-100% what kind of products do you dropship?
- tehwebguy 6y ago
  This is the one question no dropshipper will ever answer.
  - aesclepius 6y ago
    Cocaine, and/or illicit substances.
  - m463 6y ago
    I remember reading an article a long time ago... wait here it is: https://www.cringely.com/2009/03/14/parrot-secrets/ https://www.cringely.com/2009/03/14/parrot-secrets/ This guy had found a niche for an online business. I can't help but wonder how many competing cookie-cutter copies of the businesses were started the day that article was published.
    - gowld 6y ago
      Cringely is amazing. He runs his whole persona under a name that directly confessed how bad his thinking his, yet has somehow made a long career as a pundit.
      - m463 6y ago
        Not saying he's a big fish in a small pond, but how many people consistently write about tech topics like he does? I don't mean how many people write about tech, I mean how many people write about tech - and the who, and the why... and the why not.
  - TimTheTinker 6y ago
    Actually sometimes a dropshipper will be willing to say what sold really well last year (if they're seeing poor sales on that item during the current year).
  - math0ne 6y ago
    My sister does this and she was a hairdresser so she mostly operates in the beauty product sector but also has had a lot of luck with things from IKEA this year.
  - econcon 6y ago
    It's not hard to figure that out, make bunch of fake Facebook accounts in different age groups and disable ad blocker, you'll get bombarded from ads on store. Then go to that advertisers profile and checkout their all running ads on their page, you can easily Google how.
  - tim333 6y ago
    The generic product area like clothing or whatever is probably ok. Got to protect the secret sauce though.
- arkitaip 6y ago
  The actual products almost never matter because they change all the time. Some only have a sales period of a few weeks. What dropshippers do is to automate data gathering and number crunching to figure out the next products to focus on.
  - econcon 6y ago
    Yes that's why you need to keep spying on competitors using fake fb accounts and establish a protocol of quickly testing and dropping the duds without investing feelings into it and scaling only the winner. Most newbies fall for sunk cost fallacy.
- ToFundorNot 6y ago
  That's what I'm curious about. With that margin I'd guess CPG with a re-branded product. Most retailers are lucky to see anything north of 50% gross margin. I would have imagined a drop shipper having closer to 20%.
  - thdrdt 6y ago
    Margins on electronic components like resistors are huge. But you have to sell loads of them to make some money. So a 60-100% margin tells us nothing.
  - econcon 6y ago
    Actually many times I sell products which are available elsewhere for 1/2 the price like on Amazon or wallmart but it doesn't stop people from US buying those products. Not everyone has time or smartness to acquire perfect price info of the market.
- econcon 6y ago
  You sell everyday product which look cool and might also be available on Amazon or wallmart but people don't buy it. Keep in mind the ones buying either don't have time (to look up on Amazon if it's selling for cheap there) or are impulsive buyers.
thdrdt 6y ago
Your numbers tell us nothing. You could be selling very cheap items once a month.
- econcon 6y ago
  Sales price is between $30-$80 max
Stratoscope 6y ago
> I am a dropshipper and average margin on products I sell is 60-100%. At the risk of being nitpicky, it sounds like you may be talking about your markup, not your margin. Markup = ( SalePrice - YourCost ) / YourCost Margin = ( SalePrice - YourCost ) / SalePrice Each is typically expressed as a percentage, and we're talking about the gross margin here, not the net (net margin takes into account other business expenses). If your gross margin is 100%, it means you got the product for free: Margin = ( SalePrice - 0 ) / SalePrice = SalePrice / SalePrice = 1 = 100% And your markup is infinite: Markup = ( SalePrice - 0 ) / 0 = SalePrice / 0 = Infinity or beyond [1] More typical examples: buy a product for $50 and sell it for $100, your markup is 100%, and your gross margin is 50%. Or buy for $25 and sell for $100: Markup is 300% and gross margin is 75%. [1] https://en.wikipedia.org/wiki/Division_by_zero https://en.wikipedia.org/wiki/Division_by_zero But what if your SalePrice is also 0? I asked our Lenovo Smart Display about this: "Hey Google, what's zero divided by zero." She replied "No one knows. It's possible that zero divided by zero is some unknown number mathematicians have yet to discover. Maybe they'll name it after you!"
catlas3r 6y ago
> I am a dropshipper and average margin on products I sell is 60-100%. Name checks out.

LargeWu 6y ago

Yeah, I mean, if you have it solved, then that's great. I just tend to see a lot of comments in some communities I'm in to the tune of "I spent $2000 setting up my store, lots of traffic, no sales, please help". It's often touted as a get-rich-quick scheme when in fact it takes a lot of hard work and an understanding of how to sell.

voldacar 6y ago

> margin on products I sell is 60-100% what kind of products do you dropship?

tehwebguy 6y ago
This is the one question no dropshipper will ever answer.
- aesclepius 6y ago
  Cocaine, and/or illicit substances.
- m463 6y ago
  I remember reading an article a long time ago... wait here it is: https://www.cringely.com/2009/03/14/parrot-secrets/ https://www.cringely.com/2009/03/14/parrot-secrets/ This guy had found a niche for an online business. I can't help but wonder how many competing cookie-cutter copies of the businesses were started the day that article was published.
  - gowld 6y ago
    Cringely is amazing. He runs his whole persona under a name that directly confessed how bad his thinking his, yet has somehow made a long career as a pundit.
    - m463 6y ago
      Not saying he's a big fish in a small pond, but how many people consistently write about tech topics like he does? I don't mean how many people write about tech, I mean how many people write about tech - and the who, and the why... and the why not.
- TimTheTinker 6y ago
  Actually sometimes a dropshipper will be willing to say what sold really well last year (if they're seeing poor sales on that item during the current year).
- math0ne 6y ago
  My sister does this and she was a hairdresser so she mostly operates in the beauty product sector but also has had a lot of luck with things from IKEA this year.
- econcon 6y ago
  It's not hard to figure that out, make bunch of fake Facebook accounts in different age groups and disable ad blocker, you'll get bombarded from ads on store. Then go to that advertisers profile and checkout their all running ads on their page, you can easily Google how.
- tim333 6y ago
  The generic product area like clothing or whatever is probably ok. Got to protect the secret sauce though.
arkitaip 6y ago
The actual products almost never matter because they change all the time. Some only have a sales period of a few weeks. What dropshippers do is to automate data gathering and number crunching to figure out the next products to focus on.
- econcon 6y ago
  Yes that's why you need to keep spying on competitors using fake fb accounts and establish a protocol of quickly testing and dropping the duds without investing feelings into it and scaling only the winner. Most newbies fall for sunk cost fallacy.
ToFundorNot 6y ago
That's what I'm curious about. With that margin I'd guess CPG with a re-branded product. Most retailers are lucky to see anything north of 50% gross margin. I would have imagined a drop shipper having closer to 20%.
- thdrdt 6y ago
  Margins on electronic components like resistors are huge. But you have to sell loads of them to make some money. So a 60-100% margin tells us nothing.
- econcon 6y ago
  Actually many times I sell products which are available elsewhere for 1/2 the price like on Amazon or wallmart but it doesn't stop people from US buying those products. Not everyone has time or smartness to acquire perfect price info of the market.
econcon 6y ago
You sell everyday product which look cool and might also be available on Amazon or wallmart but people don't buy it. Keep in mind the ones buying either don't have time (to look up on Amazon if it's selling for cheap there) or are impulsive buyers.

thdrdt 6y ago

Your numbers tell us nothing. You could be selling very cheap items once a month.

econcon 6y ago
Sales price is between $30-$80 max

Stratoscope 6y ago

> I am a dropshipper and average margin on products I sell is 60-100%. At the risk of being nitpicky, it sounds like you may be talking about your markup, not your margin. Markup = ( SalePrice - YourCost ) / YourCost Margin = ( SalePrice - YourCost ) / SalePrice Each is typically expressed as a percentage, and we're talking about the gross margin here, not the net (net margin takes into account other business expenses). If your gross margin is 100%, it means you got the product for free: Margin = ( SalePrice - 0 ) / SalePrice = SalePrice / SalePrice = 1 = 100% And your markup is infinite: Markup = ( SalePrice - 0 ) / 0 = SalePrice / 0 = Infinity or beyond [1] More typical examples: buy a product for $50 and sell it for $100, your markup is 100%, and your gross margin is 50%. Or buy for $25 and sell for $100: Markup is 300% and gross margin is 75%. [1] https://en.wikipedia.org/wiki/Division_by_zero https://en.wikipedia.org/wiki/Division_by_zero But what if your SalePrice is also 0? I asked our Lenovo Smart Display about this: "Hey Google, what's zero divided by zero." She replied "No one knows. It's possible that zero divided by zero is some unknown number mathematicians have yet to discover. Maybe they'll name it after you!"

catlas3r 6y ago

> I am a dropshipper and average margin on products I sell is 60-100%. Name checks out.