Dropshipping is a great way to make money online as it is low-risk and low-cost. As a dropshipper, you don’t have to buy large amounts of stock upfront and you don’t have to worry about shipping and handling.

But the key question is, how do you get paid? Here’s what you need to know.

Adding a Profit Margin

The most common way to get paid as a dropshipper is to add a profit margin to the product. This means that you will add a certain percentage to the total cost of the product, which will be your profit earnings.

For example, if the merchant’s total price for a product is $10, you might decide to add a 10% profit margin, meaning your total cost for the product will be $11. This means that you will get $1 for every product sold.

Being Realistic

It’s important to remember that your profit margin needs to be realistic. ECommerce is highly competitive and if you set your prices too high, customers will go elsewhere.

It’s a good idea to do some research and check out the prices of similar products on other sites. This will give you an idea of what customers are willing to pay and what kind of profit margin you can realistically add.

Summary

In summary, dropshippers make money by adding a profit margin to their product. The merchant will give you their total price, and then you add whatever you like to that as your profit earnings. Just remember to be realistic with your profit margin as eCommerce is very competitive.