How to overcome shipping and customs cost variations in a dropshipping business?

Overcoming Shipping price variability from dropshipper

Typically due to border control measures the shipping and customs cost will keep changing in the dropshipping scenario. The seller is just notified about this via email. However, if he/she does not adjust the price to absorb these variations, seller could end up making losses on the sales. The situation can be handled using Konigle’s Pricing Assistant in the below scenarios.

This can be handled inside Konige by:

  • Setting a fixed price offset in the price lock. This will be applied when there is a new price set by the dropshipping app. This will have no effect if there is no change in the price the is done externally.
  • Performing a one time price offset using the price editor to absorb the change in the shipping cost and then set the fixed price offset in the price lock

Steps to lock your price:

  1. Select you dropshipping store from the drop-down list

  2. Click on the All Tools from left side menu and then go to Product Price Lock

  3. You can see all the setting available for dropshipping account, first of all you will have to enable the Dropshipper knob on the right-top side

    Let us understand the few setting before we move forward.

    • Price Difference: This tells us when to do the price correction. We do not want to revert the price when there is very minute change in the price
    • 'Incoming Price Multiplier: It is the factor by which you want to set the selling price compared to the price pushed by your dropshipper. Here, you can set your margin and also consider factors such as logistics and delivery cost.
  4. We can also fine tune our compare at price to always show product at discount.

    Let us understand what these setting do:

    • Lock compare at Price: Here also, you need to turn the knob on to lock the compare at price. If you do not turn this on the compare at Price will remain same.
    • Compare price Multiplier: This sets the compare at price by the factor specified in the text box. We want to set this to be higher than Incoming price multiplier so that your product is always shown as discounted.
  5. The last step is to set-up the pricing strategy. This is pretty clear from what it says.

  6. That’s all, you can save this setting and can always come to price lock page to see how Konigle has corrected your price based on your need and you are always selling in profit :rocket:

Further read