How can I adjust my profit margin to double the product price?

NEVPAU
Visitor
1 0 0

How do i change my profit margin from 1 time the price of the product to 2 times the price of the product ?

Replies 2 (2)

Rick
Shopify Staff
946 89 146

Hey @NEVPAU 

 

Welcome to the Shopify Community.

 

I understand that you would like to increase your profit margin from 1x the price of the product, to 2x the price of the product. I can certainly see why you would want to do this.

 

Would it be possible to get some more context on your current product situation? Where are you currently sourcing your products, and is your profit margin currently 1x the cost of the product?

 

Increasing your profit margin ultimately depends on some important factors that need to be considered before setting a price:

 

  • The actual cost of the products that you have to pay in order to obtain them. 
  • Your expenses - marketing costs, transaction fees, Shopify subscription. 
  • The value you offer - you need to consider your own time spent curating your products, sourcing new products, providing customer support etc.
  • The shipping approach - if you are offering free shipping then you have to incorporate the cost of that into the product price.
  • Are there other stores charging less for the same products - this could be competition that will take sales from you because their prices are lower.

 

Perhaps you are dropshipping products on Shopify? If so, then you would be sourcing products from suppliers (commonly from places like AliExpress) and your total profit would be the difference between the product cost and the price that you charge your customers. If you are offering free shipping on your store, then you also have to factor that into the total profit, as you might be taking a hit there. 

 

We actually have an in-depth guide on our help centre which goes over everything I have mentioned above in greater detail. I would highly recommend checking it out as it's full of helpful information you can use when working out the correct product profit margins. As well as this, we also have a handy YouTube video about product pricing on our Learn With Shopify YouTube channel. Also, feel free to check out this blog post which outlines 3 simple steps to price your products.

 

Besides the pricing for your products, how is everything going on your store? Are you already implementing a marketing strategy in order to get traffic and increase sales on your store? Increasing your profit margin is all well and good, but you also need to consider the approach to actually achieving traffic and sales. If you don't have one already, creating a marketing plan is a really good idea to help you stay on track!

 

Rick | Shopify 
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Dirk
Shopify Staff
2220 247 506

Hey, @NEVPAU 

 

It sounds like you are using a dropship app? What you can do is is once the products are imported into your store, go into the admin > products > select the product and you can adjust the price of the product there. Simply set it to be double the price of what you are paying the supplier.

 

If there is anything else I can help you with, please let me know.

Dirk | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog