Each is typically expressed as a percentage, and we're talking about the gross margin here, not the net (net margin takes into account other business expenses).
If your gross margin is 100%, it means you got the product for free:
But what if your SalePrice is also 0? I asked our Lenovo Smart Display about this: "Hey Google, what's zero divided by zero."
She replied "No one knows. It's possible that zero divided by zero is some unknown number mathematicians have yet to discover. Maybe they'll name it after you!"
Yeah, I mean, if you have it solved, then that's great. I just tend to see a lot of comments in some communities I'm in to the tune of "I spent $2000 setting up my store, lots of traffic, no sales, please help". It's often touted as a get-rich-quick scheme when in fact it takes a lot of hard work and an understanding of how to sell.
Cringely is amazing. He runs his whole persona under a name that directly confessed how bad his thinking his, yet has somehow made a long career as a pundit.
Actually sometimes a dropshipper will be willing to say what sold really well last year (if they're seeing poor sales on that item during the current year).
It's not hard to figure that out, make bunch of fake Facebook accounts in different age groups and disable ad blocker, you'll get bombarded from ads on store.
Then go to that advertisers profile and checkout their all running ads on their page, you can easily Google how.
My sister does this and she was a hairdresser so she mostly operates in the beauty product sector but also has had a lot of luck with things from IKEA this year.
The actual products almost never matter because they change all the time. Some only have a sales period of a few weeks. What dropshippers do is to automate data gathering and number crunching to figure out the next products to focus on.
Yes that's why you need to keep spying on competitors using fake fb accounts and establish a protocol of quickly testing and dropping the duds without investing feelings into it and scaling only the winner.
That's what I'm curious about. With that margin I'd guess CPG with a re-branded product. Most retailers are lucky to see anything north of 50% gross margin. I would have imagined a drop shipper having closer to 20%.
Actually many times I sell products which are available elsewhere for 1/2 the price like on Amazon or wallmart but it doesn't stop people from US buying those products. Not everyone has time or smartness to acquire perfect price info of the market.
I don't sell course because i really doubt I could make much money by doing that when I can just keep dropshipping.
I never bought any course but I had a startup so I am familiar with sales and how you make conversion happens.