How shipping costs change a dropshipping margin
Put shipping you pay and shipping you charge into a dropshipping margin before you set a price or buy ads.
Write down two shipping numbers
One number is what you pay to move the item to the customer. The other is what you charge them, if you charge shipping at all. A quote that only lists product cost is not ready to price.
Ask the supplier for the ship window and the countries they will not ship to at the same time. A cheap product cost with expensive freight to your country is a different offer from the product cost alone.
Decide where the freight shows up
You can fold freight into the product price, or show it as a shipping line. Either way, the customer total has to cover product cost, the freight you pay, and fees. Hiding freight in a low product price does not remove it.
On this calculator, percentage fees apply to that customer total. On the hosted store, the platform fee is a share of merchandise only, and a listing is rejected when the price cannot clear supplier cost, the estimated card fee, and that platform fee. Ads and refunds are still extra there.
Recalculate before you advertise
Run the two shipping numbers through the profit calculator, then through the product idea checker if you also want the sample and second-supplier notes. If the remainder disappears once freight is included, do not buy ads to “make the margin back.”
When the numbers clear, keep the quote with the variant you priced. A second supplier should be asked for the same variant and the same destination, because freight is part of the comparison.
Questions
Should I offer free shipping?
Only if the product price still covers the freight you pay, plus fees. “Free shipping” moves the freight into the price. It does not delete it.
Which shipping cost belongs in the margin?
The freight you pay. Shipping you charge is part of what the customer pays. Using only one of those numbers overstates the remainder.
Where do I enter this on Dropship Scout?
Use the profit calculator for price, both shipping amounts, fees, and ad cost per sale. Use the idea checker when you also want a note on the ship window, similar listings, and whether you have a second supplier.