- 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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