Like with most businesses, profit margins vary when it comes to drop shipping. It will depend on the company, their fees, and the products, and can range from 5% with electronics to 100 percent when it comes to accessories. When it comes to drop shipping versus doing it yourself, you may find that you save a lot of money drop shipping when you factor time into the equation.

First let’s go over the type of fees that a drop shipper often charges.

Monthly Memberships

Many drop shippers charge a membership fee to allow you access to the products. However, while some legitimate companies have a fee, there are those without the fee too. Let the monthly fee be a potential warning of a possible scam wholesaler before joining – but not the only warning.

Per Order Costs

Most drop shippers charge a fee each time they ship out an order to you, to help them cover cost of shipping and packaging. This is usually a low fee of less than 5 dollars per item.

Monthly Minimum Fee

You may also face a charge if you don’t sell a certain dollar amount of items each month. This is where the monthly fee may come into effect before you’re up and running, but then once you are making regular sales the fee is waived if you’re selling a certain amount.

Restock Fee

Some drop shippers charge you a restock fee if your customer returns an item. Sometimes they charge this to your customer and sometimes they charge you both a small fee for restocking.

Now, let’s look at the type of expenses and time commitment you may face if you do it yourself.

Storage Fees

You will need a place to house any items that you will sell to your customers. Depending on the size and storage requirements, this can get expensive.

Purchasing Costs

You will have to buy the merchandise first, which can be pricy to stock enough products. Then you might over buy and have to sell at cost – or worse, be left with inventory that you can’t sell.

Packing Costs

These costs can be expensive and will go up as your business starts selling more. Tape, packaging materials and more will cost you more money than it costs through a drop shipping company due to the volume pricing they get on these supplies. Plus, you’ll need to hire help, or do it yourself which can be very expensive.

Shipping Costs

While you will pass on some of those costs to your customer, you’ll pay more in shipping from the wholesaler to you, and then from you to your customer, which can cut into your profits.

When you add in the cost of your time to do all of these things, you can clearly see that starting a drop shipping business is normally going to be less expensive and suck up less of your time than doing it yourself. Why would you bother doing it yourself when you have so many options?

Cost of Paying a Drop Shipping Company versus DIY
Let's Make Your Website a Success
Wouldn't it be nice to generate some real business?

About Me

I've been designing and marketing websites and businesses for over 24 years and prior to this I worked in sales, marketing and big business for almost 18 years... which makes me not only old, but also highly experienced at this marketing and Internet stuff.  I've won lots of awards and helped thousands of people, and this website is a testament to the information I share freely to help others succeed online.

When I'm not designing websites, doing this online marketing stuff or writing. I love nothing more than getting out on a weekend and scuba diving. I'm a qualified rescue diver and love getting wet in the waters around Perth and Rottenest Island. I also cycle, which must be a sight as I'm not the thinnest of people (lol)... and a paddle on a kayak or a swim helps makes most weeks, perfect. At home I have a marine reef tank, which I just love and on top of that I've an awesome dog, called Ziggy.

What Can I Do For You?

I can work with you to design a website and marketing strategy that actually works. You'll get a website that looks fantastic but also attracts and engages your potential customers, helping generate leads, sales and profits.

What Will It Cost ?

A discussion about your requirements is completely free of charge.

Solutions are tailored to meet your budget and success goals as much as possible, and websites have been delivered costing just a few hundreds dollars a month or for one of payments of a few thousand... it all comes down to our discussions, if you want a website that generates millions of dollars in sales your budget will obviously be bigger, if you're a small business then your goals and costs will be more realistic, at least to start with.

What Should I Do

Click the button below and fill in the form, and I'll reply with a few questions... we can then have a discussion and get to know each other. You'll learn what I can do specifically for your business, gain some free advice and you can then decide if you want to work with me to help grow your business.