The price you see on the product in the supplier's store is the cost that you will have to pay the supplier. In order to run a profitable business, you will need to set your own product prices. Here are some things to take into the consideration before defining the prices.
The Product Cost
The product cost can be a great indicator, how big you should set the markup. For example, if the product cost is around $5.00, it would be fair enough (depending on the product category) to mark it up 4 or 5 times and sell it for $20.00 - $25.00.
However, if the original cost of the product is $30.00, it wouldn't make sense for you to mark it up 5 times since the final price would be $150.00. For example, if you sell hoodies which cost you $30.00 to purchase from the supplier, then you are unlikely to sell them for a five times higher price to your customers.
The Product Shipping Cost
Some suppliers offer free shipping for their products, while others charge some dollars for the shipping. The shipping cost depends on the product weight, shipping method, and the country the product is shipped to, so it can be different. We would recommend to check the shipping cost of several products to know the average and add it to the product price. By doing that, you will never face any loses even your customer orders several products at once.
The Quality of Product
The quality of the product can also give some indications. If the product quality is very good, you can make the price higher, however, if the product quality is average, you shouldn't add a very big markup. Once customers get the product, they may feel that is not value for money, and want to return the item and ask for a refund.
You do not need to purchase product samples to evaluate the quality, and instead check product reviews on the Internet if possible.
To have a profitable business, the product price needs to cover all expenses that you will have such as marketing expenses, Shopify subscription, Oberlo subscription, and transaction fees.
Also, you may want to purchase a custom Shopify store domain or install some third-party applications to your store which can be costly.
How Much Does This Product Cost in the Another Store?
It is not recommended to start competing with other stores on price since that is not a good long-term strategy. There will always be a store that can sell the same products cheaper, however, other sellers' prices can help you to orientate.