Understanding Zendrop shipping costs and product prices

[KarolinP]

Hi, 

I'm trying to get started and I'm using Zendrop as my supplier. I'm a bit confused when it comes to setting my prices on my store. Lets say a product on Zendrop costs $1.80 but then has a different shipping price for different countries. For example $3.94 to the UK and $4.57 to the USA and some countries $10.32. How can I decide a price on my product when the shipping varies so much? I have a flat shipping rate on my shop. Does the customer then pay my flat shiping fee on top pf the zendrop shipping? I would appreciate some guidance.

Thanks

[Promer]

Hi @KarolinP 

Because  Zendrop's shipping costs vary by country, you have two main options:

• Absorb Shipping into Product Price – Set a product price that covers both the item and the highest expected shipping cost. For example, if you sell worldwide, price your product with the highest shipping fee in mind to avoid losing money.
• Flat Shipping Rate Strategy – If you already have a flat shipping rate on your store, make sure it at least covers the average Zendrop shipping cost. If your flat rate is too low, you might lose money when shipping to higher-cost countries.

To stay profitable, calculate the total cost per country (product + shipping), then set your price with a reasonable margin.

[KarolinP]

Thanks for your help. So with the first option I should offer free shipping? so if the product + shipping on zendrop is $12. What would you suggest I sell the product for?

[Promer · Accepted solution]

@KarolinP 

If your total cost (product + highest shipping fee) is $12, I’d suggest marking up at least 2.5x to 3x for a healthy profit margin. So, you could sell it for $29.99 or $34.99, depending on your niche and perceived value.

Also, check competitors' pricing for similar products to stay competitive. If free shipping isn’t converting well, you can test a slightly lower product price with a small shipping fee (e.g., $24.99 + $4.99 shipping) to see which performs better.

You can base on this selling price formula: 

Selling Price=(Product Cost+Highest Shipping Cost)×Markup Factor