Under 30% of the sale price for most physical products.

Should I include refunds?

Yes. Model 3-10% refunds; they hit both revenue and product cost.

Is dropshipping still viable?

It is viable with a real brand and repeat purchases, not with one-off commodity items.

Dropshipping Profit Calculator

Most dropshipping stores fail on customer acquisition cost, not on product cost.

Enter your numbers above.

Break-even CAC is the number that matters

Before you run a single ad, know the maximum you can pay to acquire a customer. For a $50 product with $18 of product and shipping cost and 3.5% fees, that ceiling is about $30.

Everything above that is your actual profit. Everything below means you are buying revenue at a loss.

Related: see how the same sale nets out on every marketplace. Compare platforms

FAQ

What is a good CAC?: Under 30% of the sale price for most physical products.
Should I include refunds?: Yes. Model 3-10% refunds; they hit both revenue and product cost.
Is dropshipping still viable?: It is viable with a real brand and repeat purchases, not with one-off commodity items.

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Dropshipping margins live or die on the storefront fee

Every point of payment fee is a point of margin. Model it before you scale ad spend.

See Shopify pricing →

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