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  • 2. Find a Supplier for Your Store
  • Understanding Supplier Product Costs

Understanding Supplier Product Costs

HIGHLIGHTS:

  • Once you set up a reseller (dealer) account, your supplier should provide you with a price list

  • Take the time to become familiar with the fee structure:
    • Shipping - free? set amount? actual "real time" shipping charge?
    • Dropship fee - per item? per order?

  • Your goal is to figure out the all-inclusive wholesale cost (including shipping, dropship fees, etc.) for each product you plan to sell

  • You do NOT have to offer your customers the same shipping options & charge them the same amount for shipping that your supplier uses & charges you!

  • The amount your supplier charges you for shipping will simply affect the all-inclusive wholesale cost you will pay

  • The amount you charge your customers for shipping will simply affect the amount you receive from your customers

  • About MAP (Minimum Advertised Price):
    • MAP is the lowest amount you are allowed to sell the product for
    • MAP is wonderful because it protects your profit margins (retailers can't keep undercutting each other)
    • You should tattle-tail on competitors who are violating MAP

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