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econcon

I am a dropshipper and average margin on products I sell is 60-100%.

I don't sell course because i really doubt I could make much money by doing that when I can just keep dropshipping.

I never bought any course but I had a startup so I am familiar with sales and how you make conversion happens.

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> I am a dropshipper and average margin on products I sell is 60-100%.

At the risk of being nitpicky, it sounds like you may be talking about your markup, not your margin.

  Markup = ( SalePrice - YourCost ) / YourCost

  Margin = ( SalePrice - YourCost ) / SalePrice

Each is typically expressed as a percentage, and we're talking about the gross margin here, not the net (net margin takes into account other business expenses).

If your gross margin is 100%, it means you got the product for free:

  Margin
    = ( SalePrice - 0 ) / SalePrice
    = SalePrice / SalePrice
    = 1
    = 100%

And your markup is infinite:

  Markup
    = ( SalePrice - 0 ) / 0
    = SalePrice / 0
    = Infinity or beyond [1]

More typical examples: buy a product for $50 and sell it for $100, your markup is 100%, and your gross margin is 50%.

Or buy for $25 and sell for $100: Markup is 300% and gross margin is 75%.

[1] https://en.wikipedia.org/wiki/Division_by_zero

But what if your SalePrice is also 0? I asked our Lenovo Smart Display about this: "Hey Google, what's zero divided by zero."

She replied "No one knows. It's possible that zero divided by zero is some unknown number mathematicians have yet to discover. Maybe they'll name it after you!"

Yeah, I mean, if you have it solved, then that's great. I just tend to see a lot of comments in some communities I'm in to the tune of "I spent $2000 setting up my store, lots of traffic, no sales, please help". It's often touted as a get-rich-quick scheme when in fact it takes a lot of hard work and an understanding of how to sell.

Your numbers tell us nothing.

You could be selling very cheap items once a month.

Sales price is between $30-$80 max

> I am a dropshipper and average margin on products I sell is 60-100%.

Name checks out.

> margin on products I sell is 60-100%

what kind of products do you dropship?

This is the one question no dropshipper will ever answer.

I remember reading an article a long time ago...

wait here it is:

https://www.cringely.com/2009/03/14/parrot-secrets/

This guy had found a niche for an online business.

I can't help but wonder how many competing cookie-cutter copies of the businesses were started the day that article was published.

Cringely is amazing. He runs his whole persona under a name that directly confessed how bad his thinking his, yet has somehow made a long career as a pundit.

Not saying he's a big fish in a small pond, but how many people consistently write about tech topics like he does?

I don't mean how many people write about tech, I mean how many people write about tech - and the who, and the why... and the why not.

Actually sometimes a dropshipper will be willing to say what sold really well last year (if they're seeing poor sales on that item during the current year).

My sister does this and she was a hairdresser so she mostly operates in the beauty product sector but also has had a lot of luck with things from IKEA this year.

It's not hard to figure that out, make bunch of fake Facebook accounts in different age groups and disable ad blocker, you'll get bombarded from ads on store.

Then go to that advertisers profile and checkout their all running ads on their page, you can easily Google how.

The generic product area like clothing or whatever is probably ok. Got to protect the secret sauce though.

The actual products almost never matter because they change all the time. Some only have a sales period of a few weeks. What dropshippers do is to automate data gathering and number crunching to figure out the next products to focus on.

Yes that's why you need to keep spying on competitors using fake fb accounts and establish a protocol of quickly testing and dropping the duds without investing feelings into it and scaling only the winner.

Most newbies fall for sunk cost fallacy.

That's what I'm curious about. With that margin I'd guess CPG with a re-branded product. Most retailers are lucky to see anything north of 50% gross margin. I would have imagined a drop shipper having closer to 20%.

Margins on electronic components like resistors are huge. But you have to sell loads of them to make some money.

So a 60-100% margin tells us nothing.

Actually many times I sell products which are available elsewhere for 1/2 the price like on Amazon or wallmart but it doesn't stop people from US buying those products. Not everyone has time or smartness to acquire perfect price info of the market.

You sell everyday product which look cool and might also be available on Amazon or wallmart but people don't buy it.

Keep in mind the ones buying either don't have time (to look up on Amazon if it's selling for cheap there) or are impulsive buyers.

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