The key to HIGH PROFIT drop shipping
Not promoting anything here, just want to share a thought I had about dropshipping and how it's influenced my business decisions moving forward.
I used to be obsessed with finding any product I could, usually cheap, less than £100 items and drop shipping on ebay, using other retailers as the unknowing dropshippers! I used an app that compared product prices to find the cheapest online. I thought I was a genius!!
I was making money, granted, however every sale I made, I would only be scraping a tiny margin, maybe 10-30%. And I would still have to make the sales to make even that!
So I thought, what if instead of selling cheap items and making 30% (30% of £100 = £30) why not sell high end items that people still buy online (30% of £1000=£300)! So in each case, I make one sale, both with the exact same margin, but in the latter, I make ten times the profit! From one sale! In other words, I would need to make an extra 9 sales which is more time, more effort and potentially more money spent in advertising.
It was a no brainer and a real AHAA moment for me! Hope it makes you think about your business if you're dropshipping and helps you make more profit! I have now moved away from ebay because working out the fees constantly was a pain and I chose to find a solid long term supplier and set up on my own store. I do not miss those ebay fees!
Check out my store, any feedback welcome and greatly appreciated! myluxurybed.co.uk