## Our Blog

Read useful & interesting posts written for dropshippers.

Read useful & interesting posts written for dropshippers.

In order to make a profit with your **dropshipping business**, you need to markup the supplier product price.

Firstly it is important to mention what is "**Markup Price**". **Markup** is the difference between a product's selling price and cost as a percentage of the cost. For example, if a product sells for 125$ and costs 100$, the additional price increase is **(125$-100$) / 100$) x 100 = 25%**

There are two different types of markup calculation and you can use any of them:

The first one is **Price Markup by Amount **is calculated by adding the amount you wish to the Retails price. For example, if a product costs **$100**, the selling price with a **$20** markup by amount would be **$120.**

The second one is **Percentage Price Markup** is commonly calculated as the difference between the wholesale price and retail price. For example, if a product costs $100, the selling price with a** 25%** markup would be **$125**.