Hi Guys,
just wanted to make a progress thread to keep account and give/get help to/from You.
First I know that my Business is not a Fastlane Business. Dropshipping doesn't let me CONTROL the game. But it's an entry for me to generate a recurring income which I can use to import good-selling products.
I live in Germany and I found a Product category which is popular, but there are often not many or no products available with shipping from a german warehouse or from the EU. Also many products in this category aren't available on amazon. This gives me an advantage. I made a deal with 2 dropshipping suppliers.
1. Supplier: Sends from France (2-3 Days in Germany with DHL): This supplier has some good prices but if I don't meet the MOQ(Minimum-Order-Quantity) of 10 I have to pay 5€ per Product and 5€ fee per order. Also the dropshipper doesn't accept refunds if the product is already unwrapped. I think I will test this supplier, If everything works good (few refunds) and he delivers on time, I will negotiate on the fees, refunds and prices.
2. Supplier: This one has Warehouses in Germany. He gives me at first x% off his retail price (some of them are very low). No shippment fees, he takes back all products. This one is the best so far.
I will be selling from 30-50 products.
So my plan is to list the products on Amazon:
1. I make an own product page for every product and optimize it so it's better for Amazon SEO and Conversion.
2. I try to get all buy-boxes of existing product-pages from others.
3. I get into Amazon PPC.
4. I get some spammy power links to boost my Amazon Product Page to google Serp #1. (It's easy to rank amazon
) I think most of the keywords will have xxx-x,xxx monthly searches.
5. I use Adwords for google search ppc.
Another thing many people discuss is the low profit margin. As many products aren't on Amazon yet or not highly optimized, I can even get a good profit margin with my dropshipping prices.
ProfitMargin = Profit/SalesPrice
I aim to get my profit margin 30%+.
My current tasks are:
-Analyze the market: compare prices(dropshipper, lowestpriceinternet, amazon), see if the product is on amazon, see if the product is already available from the EU or DE.
-Get my Vat-No Ready to open a correct amazon seller account
-Calculate if I should list a product and what price is optimal:
Here are a few of my calculations(correct me if I'm wrong):
1. Whats the Profit or Profit margin if I price the product at 95% of the current lowest Amazon price?
SellingPrice = 0,95*AmazonPrice
ProfitMargin=((SellingPrice-(SellingPrice-DropshipPrice)*0,19)-SellingPrice*AmazonFeesRate)/SellingPrice
2. Whats the selling price If I want 30% Profit Margin?
Vat is 19% in Germany.
SellingPrice=-1,19*DropshipPrice/(1,19*0,3-AmazonFeesRate)
Regards
f0reclone
just wanted to make a progress thread to keep account and give/get help to/from You.
First I know that my Business is not a Fastlane Business. Dropshipping doesn't let me CONTROL the game. But it's an entry for me to generate a recurring income which I can use to import good-selling products.
I live in Germany and I found a Product category which is popular, but there are often not many or no products available with shipping from a german warehouse or from the EU. Also many products in this category aren't available on amazon. This gives me an advantage. I made a deal with 2 dropshipping suppliers.
1. Supplier: Sends from France (2-3 Days in Germany with DHL): This supplier has some good prices but if I don't meet the MOQ(Minimum-Order-Quantity) of 10 I have to pay 5€ per Product and 5€ fee per order. Also the dropshipper doesn't accept refunds if the product is already unwrapped. I think I will test this supplier, If everything works good (few refunds) and he delivers on time, I will negotiate on the fees, refunds and prices.
2. Supplier: This one has Warehouses in Germany. He gives me at first x% off his retail price (some of them are very low). No shippment fees, he takes back all products. This one is the best so far.
I will be selling from 30-50 products.
So my plan is to list the products on Amazon:
1. I make an own product page for every product and optimize it so it's better for Amazon SEO and Conversion.
2. I try to get all buy-boxes of existing product-pages from others.
3. I get into Amazon PPC.
4. I get some spammy power links to boost my Amazon Product Page to google Serp #1. (It's easy to rank amazon
) I think most of the keywords will have xxx-x,xxx monthly searches.5. I use Adwords for google search ppc.
Another thing many people discuss is the low profit margin. As many products aren't on Amazon yet or not highly optimized, I can even get a good profit margin with my dropshipping prices.
ProfitMargin = Profit/SalesPrice
I aim to get my profit margin 30%+.
My current tasks are:
-Analyze the market: compare prices(dropshipper, lowestpriceinternet, amazon), see if the product is on amazon, see if the product is already available from the EU or DE.
-Get my Vat-No Ready to open a correct amazon seller account
-Calculate if I should list a product and what price is optimal:
Here are a few of my calculations(correct me if I'm wrong):
1. Whats the Profit or Profit margin if I price the product at 95% of the current lowest Amazon price?
SellingPrice = 0,95*AmazonPrice
ProfitMargin=((SellingPrice-(SellingPrice-DropshipPrice)*0,19)-SellingPrice*AmazonFeesRate)/SellingPrice
2. Whats the selling price If I want 30% Profit Margin?
Vat is 19% in Germany.
SellingPrice=-1,19*DropshipPrice/(1,19*0,3-AmazonFeesRate)
Regards
f0reclone
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