How to Price Products in a Dropshipping Store the Correct Way

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How to Price Products in a Dropshipping Store the Correct Way

Do you know how to price products in a dropshipping store the correct way? Maybe copying the competition and lowering a dollar or two sounds just perfect. People will buy for the smaller price and you don’t need to worry. Right?


Do you know how to price products in a dropshipping store the correct way? Maybe copying the competition and lowering a dollar or two sounds just perfect. People will buy for the smaller price, and you don’t need to worry. Right?

Sorry, wrong.

First of all, it’s impossible to know if the other shops are selling for that price. What is their advertising strategy? Did they already develop a brand that sells to loyal clients almost regardless of the cost?

Because of these questions that you can’t answer, it’s evident that the strategy has to change. Fortunately, there is a solid way to price products in a dropshipping store, relying on parameters you do control.

Up next, we’ll take a closer look at what you can do in that matter.

1. Select Your Suppliers

Don’t worry: you do not need to be a Mathematician.

Leave the impulsiveness to the buyers. It doesn’t matter how awesome a product is, or how eager you are to sell it. Make sure to take a look at all possible suppliers.

There are good deals that could represent a significant profit margin with the sale of a few hundred items. Therefore, the price at a supplier’s website is essential to price products in a dropshipping store.

It’s not the only point to consider, though.

From where will most of your public order? Not every supplier adds the shipping cost to the price. That said, make sure not to get a bad deal, paying too much and receiving just a little because of the shipping cost.

Which seem to be small concerns are actually the difference that will allow you to put the better price. However, this is only the first step. After your quick research, it’s time to continue the strategy.

2. Fix a Markup

Set a Markup on Cost that matches your goals.

Accepting only anything isn’t the right decision at any time of a dropshipping business. Not at the beginning, nor when it’s a reliable e-commerce website.

Keep in mind: It’s mandatory to set a markup on cost, which is the percentage of the sale price that is pure profit. Stick to it and adjust all the rest to achieve your line. Changing the markup to cover any expenses or difficulties is the perfect recipe for failure.

How much should it be?

That’s entirely personal. However, you must be realistic. The margin in this type of business will never be stratospheric. Anything from 5 to 20% could be entirely possible. Would that be enough? That depends on what you want, your goals.

2.1 Decisive but Flexible

Defining desirable markup is crucial. However, proper management considers variations that can and should occur.

What can be altered?

Products of a higher value, with which a 10 to 15% markup on cost would represent a reasonable profit, can differ from low-cost products. The latter can have up to 50% of markup when it doesn’t make much a difference to the customer. Everything will depend on how the market behaves according to products and price, and if you know it well.

There is a lot of good content on how to calculate the right markup on the Internet. If you are looking to really dive into it, seek more knowledge. It will help you to price products in a dropshipping store accordingly.

3. Use Psychology in Your Favor

The brain is a powerful tool but can sometimes act like a fool.

You have found the best price at a supplier’s website. After adding your markup, you have the best possible selling price. Everything should be ready to publish your items on the web, right?

Wrong again. Be patient.

There is something called pricing strategy in the world of marketing. Basically, it’s about how a price can take effect on our decisions. People buy because a specific part of their mind is triggered, not because the price is the best possible one.

For example, you may sell the same product for $9.99 but not for $10. Sounds crazy, right? The pricing strategies don’t work all the time, but as an aggregate, they will result in many sales.

In order to influence people through the prices, focus on two things:
The first number matters the most, even if there is only a 1 cent difference;
Broken prices call attention and fake promotion, such as $4.59.

By applying this rule to every single product, no exception, you will price products in a dropshipping store that have a reason to be.

4. Define Your Focus

A brand? A generic dropshipping store? What’s your deal?

With the three first steps, you are all set to price products in a dropshipping store of your choice. However, there is an extra consideration that should be taken into account.

It’s possible for brands, primarily if they sell themselves as premium suppliers, to profit more. It all depends on how aggressive marketing and advertising are in that sense. It involves luck, too.

Profit will always involve price, but it will be multiplied by the number of sales. Therefore, decide:
Premium shop with expensive products, reliable customers and lower number of sales; or
Non-expensive store with lots of cheap products and a higher number of sales.

Now you are good to go and apply your pricing strategy.


Most sellers of products and services struggle with prices. Most of them copy the competition and lower their rates. Instead, valuing what you are selling and having a solid strategy is the way to go.

Dropshipping stores need suppliers that offer the best possible deal. Both the product and shipping rates should be efficient in costs. Half the problem is solved with a small step.

Then, you need to fix a markup that will provide enough profit to maintain the business and keep you motivated. It’s a percentage that represents what isn’t the acquiring cost.

Last but not least, use psychology to work in your favor. People don’t perceive prices as they are, and that can be an advantage.

And of course, all of that must be bound to your entire strategy for the dropshipping store, or else nothing will work. Always keep the winning mindset of an entrepreneur.

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