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Two weeks ago, I launched a product on Amazon. Each product is 9 lbs that is 9 inch x 5 inch x 5 inch so it is on the heavy side. My cost to me is $5.50 if I purchased 6000 pcs.
I was contacted by company that does roughly 70 units a day for this product. They do not hold the inventory but drop ships. Their current supplier can not handle the volume which is why he is reaching out to me. They want to purchase from me for $17 shipped to the consumer which is how much they current pay their supplier.
I thought it would be a great opportunity if I made the cost work . However, after going through how much it will cost to ship, I do not think I can get my total cost low enough.
When I go on UPS or Fedex website, it will cost around $24 to ship. Is a bulk shipping discount enough to make this deal work out? or is that $17 number they gave me a BS number for them to get a lower and unreasonable low cost?
I was contacted by company that does roughly 70 units a day for this product. They do not hold the inventory but drop ships. Their current supplier can not handle the volume which is why he is reaching out to me. They want to purchase from me for $17 shipped to the consumer which is how much they current pay their supplier.
I thought it would be a great opportunity if I made the cost work . However, after going through how much it will cost to ship, I do not think I can get my total cost low enough.
When I go on UPS or Fedex website, it will cost around $24 to ship. Is a bulk shipping discount enough to make this deal work out? or is that $17 number they gave me a BS number for them to get a lower and unreasonable low cost?
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