How to Account for Drop Shipping Costs for eCommerce Sales
Selling goods without the expense of stocking inventory is the main attraction of drop shipping. Drop shipping is a process in which a company sells products not kept in stock. When the customer places an order, the store fills it by contacting a drop shipper. The drop shipper mails the product directly to the customer using either the store's packaging or a plain brown box. The goal of the drop shipper is to send the product on behalf of the store and remain invisible during the purchasing process.
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Instructions
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Determine the total cost of drop shipping, which is the price of the cost of goods sold.
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Develop a computer spreadsheet program to track expenses and sales. Use such spreadsheet headers as "Product ID," "Product Name", "Product Type", "Markup" and "Sales Price".
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Use an Internet search engine to research which drop shippers offer the lowest price and current availability of the product.
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