Hello. I am a new seller/site owner on Shopify. I started a drop shipping/print-on-demand clothing shop. I had my first sell of about $70. Of which, I expected at least $40 to go to the vendor who’s POD clothing I sold. However, over $60 of the sell is being deposited into my bank and around $5 was taken by Shopify for “fees.” This cannot be right and I am surely missing something or misunderstanding how drop shipping works. Surely the vendor deserves the majority of the sell amount and I should only be pocketing around $10, right? What am I doing wrong?
Thanks for reaching out in our Community Forums and for sharing your concern, I’d be happy to help.
I understand your concern regarding the breakdown of funds from your first sale. In print-on-demand models, the product is produced only when an order is received, which means there are no upfront costs. Depending on your integration, you will receive the product payout and then need to proceed to the print-on-demand supplier to finalize the purchase and initiate the fulfillment process. I suggest reviewing your store’s settings and reaching out to your supplier for more information about the integration.
Regarding pricing, the profit margin can vary based on your vendor agreement and pricing structure. I recommend reviewing this Printful Guide to learn more about pricing your products to maximize your return.