Work out your real dropshipping profit after supplier cost, shipping, ad spend, and platform fees.
Most failed dropshipping stores are profitable on paper until you add ad cost per order. Always include your true cost per acquisition, not just product and shipping, or your margin is a fiction.
Net profit is your selling price minus every cost of fulfilling that order: product, shipping, advertising, and platform plus payment fees. Many sustainable dropshipping stores aim for at least 20 to 30 percent net margin after ads, because thin margins leave no cushion for refunds, chargebacks, or rising ad costs.
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