The first time i done dropshipping I looked for something I was interested in, which was computers.
I found a dropshipper who done computers spares accessories etc. This dropshipper charged a monthly fee, which at first I was a bit concerned about. I done all the checks and signed up to his site.
Got my first order sent to a friends house to check the parcel had no signs of his site etc and to check the quality of the packaging. Passed on both accounts. Started looking on ebay to see what other sellers were selling for example a graphics card. After taking out the fees and posting & packaging I would make around 10% profit when i sold one. The fees are broken up in this,
1) Instalment fee
2) Final value fee
3) Paypal fee
The buyer has to pay for the p&p which is included in the price. Any item iwas selling i would list as 10 to sell. I would then list them as a buy it now which would cost me 40 pence to list 10 items. If I had listed 10 items by themselves depending on the price I was selling them at it would have cost alot more.
Before you would put your item on, ebay would tell you how much it will cost in final value fees if you list it as a buy it now. So now you know the fee.After ebay have taken out their fees, paypal then take their fees when the item has been paid for. In my case it was 3/4% + 20p of the whole selling price including p&p.
So after all this, you would then pay your dropshipper for the item sold. Lets say graphics card sold for £39.99p. Instalment fee is 40 pence, final value fee is £3.89p Paypal fee is £1.56p
Total is = £5.85p
Dropshipper charge for graphics card is £24.15p including p&p. Total cost so far is = £30.00 Profit you receive is £9.99 This is just a example of one item.The computer market is one of the hardest areas to make much profit. If you can make 10% you are doing well. Don't forget as well i was paying a monthly fee also. So to recoup my fee i would need to be selling hell of alot. Bear this in mind if you decide to dropship.
I found a dropshipper who done computers spares accessories etc. This dropshipper charged a monthly fee, which at first I was a bit concerned about. I done all the checks and signed up to his site.
Got my first order sent to a friends house to check the parcel had no signs of his site etc and to check the quality of the packaging. Passed on both accounts. Started looking on ebay to see what other sellers were selling for example a graphics card. After taking out the fees and posting & packaging I would make around 10% profit when i sold one. The fees are broken up in this,
1) Instalment fee
2) Final value fee
3) Paypal fee
The buyer has to pay for the p&p which is included in the price. Any item iwas selling i would list as 10 to sell. I would then list them as a buy it now which would cost me 40 pence to list 10 items. If I had listed 10 items by themselves depending on the price I was selling them at it would have cost alot more.
Before you would put your item on, ebay would tell you how much it will cost in final value fees if you list it as a buy it now. So now you know the fee.After ebay have taken out their fees, paypal then take their fees when the item has been paid for. In my case it was 3/4% + 20p of the whole selling price including p&p.
So after all this, you would then pay your dropshipper for the item sold. Lets say graphics card sold for £39.99p. Instalment fee is 40 pence, final value fee is £3.89p Paypal fee is £1.56p
Total is = £5.85p
Dropshipper charge for graphics card is £24.15p including p&p. Total cost so far is = £30.00 Profit you receive is £9.99 This is just a example of one item.The computer market is one of the hardest areas to make much profit. If you can make 10% you are doing well. Don't forget as well i was paying a monthly fee also. So to recoup my fee i would need to be selling hell of alot. Bear this in mind if you decide to dropship.
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