Part 4/9:
Despite the allure of running a drop shipping store, one must scrutinize the profitability of the model. Typically, margins range from 10% to 30%, which pales in comparison to private label and wholesale models that yield 50% to 66% profit margins. Consequently, while a drop shipping business allows for a low-cost startup, the potential for high returns is more limited.
Higher Ticket Items
For those considering drop shipping, focusing on higher ticket items can yield better revenue per sale, providing a more sustainable business model.