So for anyone who’s still a bit confused about this, there’s basically two main drop shipping methods you can use to sell your items.
Here they are.
This is when you put the price of your item at zero and then set the comparison price at something like nineteen dollars. Then you set up the shipping and handling costs within Shopify at let’s say $9.99.
Now you can advertise the item as free and customers only have to pay the shipping and handling fee, which is a nice frame.
It makes the whole offer really juicy and attractive.
Free plus shipping is my personal favourite because it works really well for cold traffic and you can hit people right away with a crushing offer. Converting cold traffic into profit is just so much easier when you can make an awesome offer and come from the right frame.
I recommend using free plus shipping only for items that have a total cost of less than $4 on AliExpress.com. Ideally, your total product costs should be between $1.50-$3 in order to make profit.
So let’s talk about the second method.
2) Discount Plus Free Shipping
The second common method of drop shipping is where you advertise your items at a discount and offer free shipping. This allows you to sell items that have a higher price than $4 on AliExpress.com.
Let’s say you want to sell a product that costs $8 total.
It’s impossible to sell this item with free plus shipping and make a profit or even break even. So in that case you could charge $19.99 for the item and set the comparison price at $39.99 for example.
Then you advertise the item with a 50% discount and you offer free shipping. This way you make a total of $19.99 with every sale.
And once you deduct the product costs and advertising costs, you’ll still be left with a nice profit margin.
Keep in mind that it’s usually harder to convert discount plus free shipping offers.
There’s benefits and downsides to both methods. Your decision should be mainly guided by the item costs of the item you’re selling.
Both methods work well 🙂
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