How does offering free shipping impact product pricing in dropshipping?

Crosby19_sean95
New Member
4 0 0

Still new to ecommerce and dropshipping in specific. If I offer free shipping to my customers how does that work? For example, right now I'm looking at a product that has a listing price of $14. The shipping time is 4-7 days and it costs $10 to ship. The suggested retail price is $28. If I want to offer free shipping, am I essentially purchasing the product from the supplier for $24? If I want to maintain a $14 profit, should I bump up the price to $38?

Replies 2 (2)

JoesIdeas
Shopify Expert
2224 203 593

Yes that's correct.

 

I would experiment with free shipping thresholds, for example free shipping for orders > $50. That can help you increase your average order value because people will add more products to unlock the free shipping bonus. That also helps you maintain profit margin for single item orders.

• Creator of Order Automator (automate tagging, fulfillment, Amazon, notifications + more)
• Shopify developer for 10+ years, store owner for 7 years
• I also make guides like Shopify Automation Tips and How to Deal with Fraud / Chargebacks
Crosby19_sean95
New Member
4 0 0

Thank you for the confirmation! I just wanted to make sure I was going about it the right way. I sent you a dm in regards to another issue I'm running into. I would appreciate the help. Thanks!