How much should I add to my product's cost for profit and who pays for delivery?

[Beka84]

hello

i wonder how much procent will i put to product when i sell it? If buy it for 10 dollars how much will i put on it to sell it?

another question is, who pays for delivery? Seller or deliverer?

[Rick]

Hi @Beka84 

Based on the information you have provided, it sounds like you might be dropshipping on your store is that right? If so, what app are you using, and where are you sourcing your products?

Deciding on a markup percentage for your products certainly requires some thought. You want to make sure that you price them higher than what you are purchasing them for, and you also need to consider things like your time, competitor pricing, business costs etc. We have an excellent guide here which explains how to price your products when you are dropshipping on Shopify. It gives you some examples and also a breakdown of the various costs to consider. 

You also asked who pays for the delivery. Presuming you are indeed dropshipping, then ultimately there are a few different strategies you can take here and the choice is up to you. A popular strategy is to have flat/tiered shipping rates on your store, and let the customer who is placing the order on your store pay for delivery. When the customer places the order, the funds for shipping gets sent to you first. You would then place the order with the supplier of the products (AliExpress for example) and pay them to ship the order to the customer.

When you are dropshipping, you are essentially the middle person in the transaction, but in my example above the customer would be the one paying for the delivery. You could also decide to have free shipping on your products, which means the shipping costs are covered by you and would need to be considered when pricing your products. 

If you are new to the idea of dropshipping, then I would highly recommend checking out our ultimate guide to dropshipping. It will give you a good starting point to learn more about this model of eCommerce.

[Beka84]

Hi @Rick 

i want to sell products on my e store and buy via Oberlo. I am in Sweden but think to sell in Norway as well

[Rick]

Hi @Beka84 

Thanks for letting me know that you are planning to dropship using the Oberlo app. You can of course sell worldwide from Sweden, many merchants have stores that dropship all around the world.

The Oberlo app is designed to integrate with AliExpress, so that is where you would be placing the orders which would be forwarded on to your customers. If you are new to dropshipping in general, we have a handy beginners guide to Oberlo here that you can check out to learn the basics. 

You previously had some questions about shipping also. There is an Oberlo Help Center guide on setting up your shipping settings which goes through various topics such as the shipping strategy we discussed previously. 

Have you decided exactly what products you'd like to sell on your store? If you need some help honing your product selection, there are many resources both on Shopify & Oberlo that you can learn from. Below I've listed a few to get you started!

• Finding the perfect dropshipping products
• Oberlo courses and dropshipping resources
• Things to know before getting started