What is Dropshipping?

Dropshipping is a retail technique in which an online store does not store the products it sells. Instead of that, the store buys the product from a third-party supplier and gets it delivered straight to the customer. This decreases the requirement for initial investment in inventory and storage expenses.

Importance of a Dropshipping Calculator

Utilizing a Dropshipping Calculator is crucial for calculating the profit margins in your business. It assists you:

• Calculate the expenses related to both production and shipping of the item
• Determine the prices at which items will be sold and the percentage of markup
• Make sure your company stays financially successful
• Take into consideration other expenses such as payment gateway charges, marketing expenses, and taxes

Step-by-Step Guide to Using a Dropshipping Calculator in India

1. Access the Dropshipping Calculator Page
   • Go to the dropshipping calculator page located on our website
2. Please input the cost of purchase (₹)
   • Locate the input field titled Purchase Price
   • Submit the amount you paid for each item in rupees
   • If necessary, modify the range slider located under the input field
3. Please input the price at which the item is being sold (in ₹)
   • Locate the input field labeled Sales Price
   • Please input the selling price of each product in Indian rupees
   • If necessary, modify the range slider located beneath the input field
4. Input Orders Received
   • Locate the input field labeled Orders Received
   • Please provide the overall quantity of orders you’ve gotten
   • Modify the range slider located under the input field as required
5. Insert the Quantity which has been Cancelled
   • Locate the input field labeled Cancelled Qty.
   • Please provide the total count of canceled orders
   • If necessary, modify the range slider located next to the input field
6. Input the price of advertising per product (₹)
   • Locate the input field labeled Ads Cost per Product
   • Insert the price of advertising for each individual product in rupees
   • Modify the sliding range bar next to the text box if necessary
7. See Results
   • Various result boxes can be found on the right side of the page
   • These boxes show your profit/loss, revenue generated, total purchase cost, ads cost, RTO cost, orders delivered, RTO quantity, total order value, and margin
8. Read Summary
   • Find the summary section located beneath the result boxes
   • The summary will give a basic overview of your potential earnings or losses depending on the information entered
9. Sample
   • Buying products at ₹500 each and selling them at ₹1000 each with 100 orders, 80 delivered, will show your total profit/loss with a detailed summary

FAQs

By utilizing this manual, you can effectively calculate your business’s profitability through the dropshipping calculator.