How to price a product? This is a common question in the world of dropshipping and ecommerce in general. There are a lot of factors that have to be considered when figuring out the best product pricing strategy. However, dropshipping with Sellvia, you can forget all about the troubles of having to figure it all out for yourself. Let’s see why joining Sellvia gives you a unique opportunity to create a successful dropshipping business!
A general understanding of how to price a product
Properly pricing your products is one of the keys to establishing a successful business. Despite this fact, many ecommerce entrepreneurs do not initially consider their product pricing. It is often even the last thing they think about. As a result, they tend to settle for the first price that comes to mind, blindly copy their competitors, or what’s worse of all, simply guess the price.
So, how do you set the price for your products?
Dropshipping is not your typical business model, so the final price of the products is estimated differently. Here are some factors you should consider before you set a price for your product.
Understand your target audience
When you set up a business, you must complete a market analysis to understand your customer. What you get from this is an overall understanding of who your customers are, what they buy, how they react to certain prices, etc. From there you can set up your product pricing much more easily and target much more effectively.
Know your expenses
One of the main principles of a pricing strategy is to make up for your costs and make a profit. So, basically, you need to account for things such as the product’s initial price, how much you need to mark up the product, and how many items you need to sell to make a profit. Moreover, you must not forget about the overhead expenses. Overhead costs may include rent, packaging and shipping fees, etc. To build a profitable venture, you need to include all of the mentioned above factors in the final price of your product.
Keep track of your competition
A very helpful factor is looking at your competition and comparing your price to theirs. Are their products more affordable than yours? Most likely, your customers will search for other options as well, so you need to prepare a better offer.
Follow the market trends
If you want your venture to bring in profit regularly, you need to understand in what direction the market might be heading. It can be something as basic as looking into what business actions your competitors are taking and how they arrange their offers or studying the new laws and regulations that may affect your business.
How to price a product with Sellvia
To assemble our product offer, we carefully study the latest trends and the hottest products to add to our catalog.
Once you decide to join Sellvia, you’ll have access to the best-selling goods that come with top-quality product pages and marketing campaigns.
Before we go any further, it is important to mention that all of our products have been tested on our own stores to identify the best possible strategies.
As a full owner of your dropshipping business, you can markup your product as you see fit. However, we will provide you with a recommended price for all the products.
A recommended price is our estimation of what the product’s price in your online store should be. What does it consist of?
The initial price of the product
We carefully study our competitor’s prices and adjust the recommended prices accordingly. Most of the products can be found on the websites of the world’s largest online retailers. However, as we source our products directly from a supplier, we (and you) work with a much lower initial price.
The shipping cost
Of course, the shipping cost for each product differs, however, we offer the most beneficial shipping terms and options. For instance, we offer fast shipping provided by the USPS service. Thanks to it, the products will arrive to your US-based customers in 1-3 business days. In the shipping cost, we already factored in the packaging price of the items and their storage price.
The marketing expenses of promoting the product
Without paid advertising, it will be extremely difficult to accomplish sales and create a profitable business. But why would you want to neglect this aspect? Nowadays, it’s as easy as ever to run and launch full-blown advertising campaigns on social media platforms such as Facebook. However, you need to be willing to spend a little bit of money on these advertising methods.
To effectively advertise your product, you’ll need to spend $10-$15 on promotions for each product. As a result, you need to add these $10-$15 to the final price of the goods.
Don’t forget: to make a profit from selling a specific product you also need to factor in a small increase in price. With the recommended price we provide you, you can instantly see how much profit you can potentially earn. However, you are free to markup the product as much as you want. Of course, the higher you markup the price the higher your profit margin will be.
Now, let’s look at some of the world’s largest retailers, to see their product pricing and offers.
Amazon product pricing
Here is the same exact product at a similar price, however, the shipping costs that Amazon offers are less attractive than what you get with Sellvia.
AliExpress product pricing
We can find the same product at AliExpress as well. Even though its price is comparable to the Sellvia’s, there’s a huge difference in the shipping terms. In the world that we live in, everything needs to be done as soon as possible. And, while this AliExpress seller gives an estimate of 30-50 days delivery time, Sellvia offers you a 1-3 business day delivery to any destination in the US.
Moreover, by subscribing to our Service, you will also get notified about the 🔥Top Selling Products. This list of products includes the goods that we heavily recommend you to promote via paid advertising, as you will get the maximum profit margin.
Essentially, by choosing to dropship with Sellvia, you get an opportunity to get the products at the best possible prices and get an impressive profit margin as a result of selling them.
Final thoughts on Sellvia’s product pricing
Sellvia is a unique ecommerce ecosystem designed to boost the financial performance of ecommerce entrepreneurs. Our customers receive only the best products that bring in huge sales numbers and that are aimed at a wide audience of people. As you can see, we try to create the best possible conditions for you to grow your dropshipping ventures and achieve great results.
With Sellvia, you receive access to a catalog of best-selling products, top-quality product pages, and ready-to-go marketing campaigns. We provide you with various recommendations and support you along the way. Nevertheless, you are not limited to our suggestions, you can run your online store as you see fit and set the prices you think will provide you with the highest possible profit earnings.