The **Final Price **calculation for the drop shipping arbitrage practitioners can be calculated in multiple ways. In general all of the methods are using 4 parameters:

**Final Price - **The selling price at the target website (e.g. eBay)

**Source Price **- The buying price (cost price) at the source website (e.g. Amazon)

**Break Even - **All the sale related fees (e.g. eBay selling fee, Paypal fee and Amazon taxation on top of the price)

**Desired Profit** - In different formulas will be counted differently, in DSM it is a % of the source price

The traditional methodology takes the source price, adds the break even** **percentage calculated from source price** **and adds the desired profit, again, calculated from the source price.

At DSM we believe that safety is first, therefore we are using a simple mathematical trick to make sure that the break even calculation will be taken from the target price and not from the source price

Let's show an example of a final price calculation to an item with a $10 source price, 20% break even and 20% desired profit

We hope you find this information useful, please contact us for any further question