Dropshippers, before scaling any product might have potential, the first thing you need to is figure out product cost. In most case, sell price should be at least Besides product cost, the price have to cover profit margin, online traffic, international shipping and whatnot.
Let’s do a price research. I’ll randomly pickup a product at Amazon as below.
16$ for 3 pack, lets find out product cost at 1688,
16 RMB per unit, which is 48 RMB for 3 pack, around 7$. Less than half the price of the product cost.
What about shipping? It is 400g as per factory. UPS(4 days to US) 39rmb/1000g. So the shipping could be 39/1000*400 = 15.6rmb which is 2.3$ give or take.
|item||price / rmb||price / usd|
|product cost||48 rmb||7$|
|international shipping||15 rmb||2.3$|
As you can see selling price 16$, have to cover product cost + internetional shipping which is 9.3$, and Amazon FBA&CPC, and 20% gross profit on top of that.