Pricing Rules control how your products are marked up from the Product Cost to the retail price that your customers see.
These rules allow you to establish the margin you want to earn on each sale, and are driven by the “Multiplied Markup” or “Added Markup”.
A Multiplied Markup multiplies the original item price by the number you choose as the multiplier. For example, a product which costs $10 with a multiplied markup of 3 would result in a price of $30.
An Added Markup adds a fixed dollar amount to the original item price. For example, a product which costs $5 with an added markup of $3 would result in a price of $8.
You can also add the cost of shipping to the price of the product. This is a popular feature, as it enables you to offer free shipping without it impacting margins.
If you are a Wix store and added Modalyst through the Find Products to Sell page, we have automatically marked up your products 1.6x and added the cost of shipping into the price of the product.
How is your margin determined?
Your margin is the difference between what you owe the supplier and what your customer pays you for the order.
What happens when you receive an order?
When you receive an order, you must pay the supplier for the order, including the Product Cost and Shipping Rate. The supplier then sends your order directly to your customer. The supplier only gets your customer's name and mailing address - they do not receive a phone number nor email address.
The supplier will then ship the order directly to your customer! That is the beauty of dropshipping - you don't need to hold inventory, package the order, nor arrange shipping - the supplier does it all for you.