Today, in this article we will talk about ways in which you can price your Shopify Dropshipping products. We are already considering that you want high profits by selling your products. It is very important to sell your products at a high profit margin. For example, if you are selling a charcoal toothpaste and you bought it for your store at $3 and paid an additional charge of $4 and then resell it for $20 on your website. By doing this you are getting a profit margin of around $13.
This is what you are supposed to do as well. You need to make sure that you maintain high profit margins just in case your customer doesn’t receive the order and you have to send another product to your customer. You need to have some amount of cash already with you to resolve all kinds of issues.
Another thing that you need to keep in mind is that you don’t have to necessarily sell very costly products even if you have good profit margin. For example, you are selling a $200 product on your site and you have a profit margin of $50 on your product that will still be risky as it takes a lot of time for you to actually receive the $200 from your customer. In case there comes up any issues regarding the product which are selling, it will hamper your savings. You will need money to resolve those issues. So, the point that we want to make here is that you need to sell cheaper products on your site with high profit margin.
Now, a lot of you can come up with question like how high should we expect the profit margin to be? To know the answer to this please keep on reading further:
- Spy on your competitors: The answer for this is to spy on your competitors. Keep a closer look on other Shopify Dropshipping stores of your niche. Focus on products that you are trying to sell within the Aliexpress. Take a look on all kinds of Dropshipping stores even stores like beauty supplies stores. Check out all the stores which sell same niche products as yours.
- Price similarly or the same: When you look closely on the pricing of your competitors you get the idea of how to price your own Products. Your competitors already have a lot of followers on Instagram and Facebook pages and people are already buying their products at the same price that they are selling their products. For example, if some of your competitors is selling a tube for $30, you can also do the same. So, the point we want to make here is that you can sell your products for the exact same price that your competitors are doing in the Drosphipping business.
- Keep testing: If you are unable to find the same kind of pages that are selling products similar to your niche, you may try something new and try your hands on a market that hasn’t been touched by others yet. If you don’t get enough sales on that product you can drop it a little bit. Start with $30 then you can go down to $25 and hen $20 and so on. Keep on testing till you find out what your audience exactly want to buy. If people are buying your product at $12 then raise the price to $15. Now if you still get enough sales, increase the price to $20. Don’t make a mistake of selling your product for $12 when you can sell it for $20. Testing is very important for pricing.
A lot of people come up with questions like why they are not getting enough sales even if they price low? Some people even ay that they have priced their products as low as Walmart. But one thing you need to remember here is that you are not Walmart. People buy products widely from Walmart because it sells commodity-based items like basic $2 toothpaste. You are supposed to sell product like charcoal toothpaste that is something which is sold on social media. It is such a specific product.
You need to remember that you are not Walmart but an Instagram page which is sells Niche products to a group of people who genuinely care about your products. So, you must do value added posts and sell value added products. If you convince your audience that you are selling a valuable product so that they buy from your store even at higher price. If you are not making sales and you are just dropping your price from $10 to $6 and so on. The point that we want to make here is that lowering your price doesn’t mean that you are adding value to your products.
You have to remember that it’s the value of the product that will cause you sales and not the cheap price on Shopify. You should also find the right audience that will buy your product. You will get enough sales if your audience is right. You have to find the product that is suitable for your audience or the audience that is suitable for your product. Then you have to provide value to your posts and your products. If you can convince your audience that your product is actually valuable then you can at least sell your product for $20. Lowering the price less than that will not help you much instead the best way to go is to add value to your product.
If you are a beginner then you have to keep in mind that there will be no use lowering your price because you are not Walmart or selling commodity items but your store sells specific products like charcoal toothpaste. Its not about lowering your price but its about how high you can price your products and still make people buy them.