Why am I not profiting from my online store sales?

[FullCart]

My store is set up nicely. I had my mother-in-law make an order and she spent $37, this included $4.90 for shipping. I only made $3 from the sale because the shipping I paid is totally different than the shipping she paid. I also did an order myself, $32.87. The items were orginally $3.44, $3.44 and $4.03. Shipping was $4.09. Thats $15 and my profit is supposed to be $17.87. But after I fulfilled on Shopify and it is sent over to dropShipMan and I place order, Im paying triple(seems like) for shipping and my profit was less than $3. What am I doing wrong?!! Can someone please help me?

[Ron-Anderson]

Hi @FullCart,

In order to understand why there is such a difference, can you please provide more information about your shipping setup?

How is shipping being calculated on your store site? Are you using Shopify shipping rates or are they being calculated by a third-party calculator? And where are you printing labels for shipping? Or are your vendors paying for shipping and you pay them?

Best regards,

Ron

[FullCart]

I am using Shopify's shipping. I am dropshipping using Aliexpress. I use dropshipman 

[Ron-Anderson · Accepted solution]

Thank you for the additional info.

If you're calculating live rates with Shopify, they are significantly discounted from regular retail rates. It is likely that the shipping rates being provided by your dropshipping service are much higher because of this, which is why you're seeing a difference. You will need to manually configure your shipping rates at checkout to match the rates you're being charged by dropshipman. If Shopify doesn't provide enough flexibility to match the rates, you may need to consider using a third-party solution to configure your checkout rates more accurately.

The rates calculated at checkout and the rates calculated when you actually ship the order are not the same - meaning the rate the customer pays at checkout doesn't get passed on to the shipper. They're two separate calculations, but they do need to match or be configured to be as close to each other as possible, otherwise, either you or your customer will be over-charged.

Best regards,

Ron