Calculate dropshipping profit margins for Shopify, Amazon, Etsy, TikTok Shop, and eBay. Include ad spend and return rate. Free dropshipping calculator, no signup.
A 28-year-old in Phoenix launching her first Shopify store with a $12 product priced at $34.99 and $5 ad spend per sale.
Result: True margin is only 31% — she increases price to $39.99 to hit her 40% margin target before launch.
A reseller in New Jersey comparing whether to sell a $25 gadget on Amazon or Etsy after all fees.
Result: Amazon nets $14.50 per sale versus Etsy $18.20 per sale — Etsy wins on margin, Amazon wins on traffic.
A creator testing TikTok Shop with a $19 product is unsure if 2% fees plus commission leave enough margin.
Result: Net profit per sale is $7.40 — viable at her targeted 1,000 sales/month for $7,400 monthly profit.
Aim for 20-40% net profit margin after all costs. With ad-heavy dropshipping, 15-25% is common. High-ticket dropshipping ($200+ products) can achieve 30-50%+ margins. Below 15% is risky — ad cost spikes can wipe profit.
Standard formula: Selling Price = Supplier Cost × 2.5-3x (to cover ads, fees, and margin). For a $10 product from AliExpress, target $25-$30 retail. Check competitors on Amazon to validate pricing isn't too high.
Include: (1) Supplier/product cost, (2) Shipping cost, (3) Payment processing (2.9% + $0.30 for Stripe/PayPal), (4) Shopify subscription (~$29-$79/month), (5) Ad spend (Facebook/Google), (6) Returns/refunds (~2-5% of revenue). Our calculator handles all of these.
Yes, but margins have compressed. Success requires: winning products (not saturated), strong creative ads, fast shipping suppliers (US/EU-based), branded packaging, and solid customer service. Generic AliExpress dropshipping is harder — branded niche stores work better.
Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit). If you spend $500/month on Shopify + apps and make $10 profit per unit, you need 50 sales/month to break even. Our calculator computes this instantly.
General ecommerce average is 1-2%. Winning dropshipping stores converting cold traffic target 1.5-3%. Warm audiences (email, retargeting) can reach 4-8%. Focus on conversion rate optimization (CRO) to improve profitability more than scaling ad spend.