How does offering free shipping impact product pricing in dropshipping?

[Crosby19_sean95]

Still new to ecommerce and dropshipping in specific. If I offer free shipping to my customers how does that work? For example, right now I'm looking at a product that has a listing price of $14. The shipping time is 4-7 days and it costs $10 to ship. The suggested retail price is $28. If I want to offer free shipping, am I essentially purchasing the product from the supplier for $24? If I want to maintain a $14 profit, should I bump up the price to $38?

[JoesIdeas]

Yes that's correct.

I would experiment with free shipping thresholds, for example free shipping for orders > $50. That can help you increase your average order value because people will add more products to unlock the free shipping bonus. That also helps you maintain profit margin for single item orders.

[Crosby19_sean95]

Thank you for the confirmation! I just wanted to make sure I was going about it the right way. I sent you a dm in regards to another issue I'm running into. I would appreciate the help. Thanks!