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Dropshipping pricing strategy

Dropshipping pricing strategy

As the world struggles with a pandemic, retail is moving or emerging in to the electronic space. One of the most common questions asked by dropshipping sellers is “What price should I set for products in my online shop”?

One of the most crucial factors in the sales process, agree, it is really the PRICE. And no matter what products you choose to sell, effective pricing strategy will help you avoid loss and grow your sales exponentially.

There are many different pricing strategies to choose from, depending on the specifics of the goods, their competitiveness, the supply of suppliers, or your intended business model. There are those who say that the only “right” strategy is that your prices should always change, so you discover what works and what doesn’t. Make sure you find your own strategy!

Whether you try or not, choosing a free pricing strategy is one of the first steps in starting an e-commerce business. Many sellers would benefit from taking the time to evaluate different pricing strategies and how they affect their profit margin. Also learning about the potencial buyers of your chosen market.

You should first consider what type of goods you are selling. Pricing may not be the same for every product type. For example, electronics are sold at higher volumes, but usually at lower margins, and fragrances and home decor at higher margins. After choosing a product niche, look for the types of products you can sell and consider your pricing strategy.

Start by talking to your supplier about recommended prices. It’s worth sending a short email to your sales representative to see if they have pricing recommendations for their product types. Some suppliers can give good advice on setting a retail price, as well as that a good relationship with your representative can be very beneficial before your store goes live.

All businesses analyze information that helps them make the right decisions, calculate the base price and its competitiveness, and promote sales at discounts. Because pricing strategies define the principles for pricing new products, we will provide you with a variety of very useful pricing strategies:



First and most easiest strategy – fixed markup – it can be done by fixing the exact amount of money or fixing percent of markup.

For example, computers which are cost an average – 1000€, one possibility select markup 50€ (5% of avg. price) or 10% markup – so which one is more profitable? In this case, choosing markup by fixing percent, profit could be 100€.

Another example, your business sells stationery supplies, the average price is 20€. Fixing 10% markup, the profit would be 2€, or choosing a fixed amount 3€ – profit would be bigger.

In summary, selling products with the bigger value it is better to select markup by fixing percent and if selling lower value products – fix the exact money of markup.

by levels

This strategy is perfect for business which has various prices range from 10€ to 1000€. There is a possibility to add a markup level for products that cost 10€ to 20€.

For low price products, possible markup could be higher, like 40%, price range 100€ – 200€ markup could be 30%, and in price range 800€ – 1000€ – 10% markup. This is the best way to avoid overcharging your goods, just choose a different level of markup. You can choose as many commodity price levels as you need.


This is the easiest strategy to make a profit just follow the Manufacturer’s Recommended Retail Price. However, you must always be careful, because competitors may choose a different strategy, then your prices may no longer be as attractive as competitors.

A very clear way of selecting markup in the opposite way – Mark-down form Manufacturer’s Recommended Retail Price. It is only Manufacturer’s recommendation for pricing, it does not mean, that all sellers will follow this recommendation and choose MRRP. The strategy of making Mark-Down from MRRP is the way of being competitive in the market.


Setting price with the cents ending, by the customers’ psychology it looks like the price is lower (good looking). For example, the product cost 99.95€, in this case, the customer says that the product cost 99€ instead of 100€. That is why customers better choose sellers with a “lower” price. In addition, selling products in such a marketplace as e-Bay or Amazon, price with cents ending is listed in the higher position.

Now that we understand some basic pricing strategies, here are some pricing tips to consider:



It could be not enough to set one of some strategy above, to run the business with the profit. There additional shipping or marketplaces fees that need to be covered. By choosing an additional mark-up strategy, your business will always make a profit, no matter what basic pricing strategy is chosen.

There are two different why’s how to look attractive to the clients – make the price lower and add shipping costs or make the price higher with free shipping. Which one is better? There is no one answer that is right. This strategy allows you to make the best pricing policy for your business. An additional fee could be added to the price or shipping costs – it depends on your decision. The most important thing is to advertise one choice or the other, as both options are attractive to the customer.



If the manufacturer sets the minimum advertised price (MAP) and the products can not be sold below MAP. There are “hard MAP” products which are pushed to indicate the pricing by the manufacturer and “soft MAP” products – when the manufacturer gave pricing guideline. The seller has to follow the pricing rules to be profitable and competitive.


This is one of the most common strategies of all. Although, this strategy is time-consuming. It is recommended to select some featured products from the main website page, add them specific pricing to be more competitive and attractive for customers. Trendy products with good price would increase website traffic and allows clients to buy additional products from “saved money”.

Discounts changing

Seasonal discounts, sales, special offer, Black Friday offer – it does not matter how many products (100, 1000 or more) you are selling, Dropship inventory automation tool will allow easily modify product prices in a few seconds.

The right pricing strategy is very important and needs to be adjusted in a timely manner, taking into account, of course, competitors. Don’t be afraid of change! Your supplier may change the prices of their products frequently depending on the season or available balances. Don’t be afraid to change and price on your site also.

And what if you had to manually change the prices of 10,000 items on your site? In such cases, of course, it may make sense to keep prices more constant, but with automated solutions, you can change the prices of as many as 10,000 products in a matter of seconds. Convenient – right?

Sales markets today are developing very dynamically and are competitive, so choosing the right prices  is the most important factor determining today’s your earnings.

Create the best pricing strategy for your business with drop-ship inventory automation and management software. Say “hello” to WiseXML.

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