What is the competitive markup percentage for dropshipping?

37 0 3

I am new to this dropsshipping venture and would like to know what would be the competitive percentage to add to the wholesale price. I have looked at articals that say 30%, but I don't know if that is enough any insite is appreciated.

Little Jasper
Replies 4 (4)

4 0 1


According to my simple experience.

You can add a discount code for large quantities, for example, you want to apply the discount to many pieces of at least 100 pieces in the cart.

If 99 products are added to the cart, the discount code will simply not work.

You can also insert the discount code in the bar at the top of the store for those who wish to purchase a large number of products.


I hope I gave you the right solution.

Best Regards.
Talal Alnomas
4 0 1

Also, you can apply the discount automatically when the customer executes the discount conditions 

Best Regards.
Talal Alnomas

Shopify Staff
1101 98 196

Hi, @littlejaspers.


Thanks for posting to the community, and congratulations on your new business venture!


To determine the best margins for your products you will need to consider a few things. You want to be sure you are charging enough to cover your expenses and to make a profit. For example, you will need to calculate your Shopify plan, any paid apps you use, advertising, and shipping cost.


Additionally, it does depend on the products you are selling. Are your products relatively cheap to source? Or are they higher ticket items? If they are higher ticket items you will generally mark them up less as the profit is much higher. However, if they are cheap you will mark them up more substantially. Essentially there is no magic number.


When it comes to shipping, we generally recommend you provide free shipping to your customers, and include the cost of shipping within the product price itself. For example, if a product costs $3 with $1 shipping, you will use $4 as your base cost, and could potentially charge your customers between $8-10 leaving you with a $4-6 profit. This ensures you are never paying for shipping out of pocket. 


Regarding advertising, I would love to know your current strategy. Are you planning on using paid ads such as Facebook and Instagram? If so, definitely check out our free course on social media marketing! Or, are you considering using influencers or even free options? Remember, you can have the best store on the internet, but if no one knows it's there you will not see any results. 

Skye | Social Care @ Shopify
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Shopify Expert
1823 56 281

Hi @littlejaspers 


Please keep in mind the shipping cost and your marketing expense as well.