Net dropshipping margin = Selling Price − Product Cost − Shipping − Ads − Platform Fees. Aim for ≥25%.
Most successful dropshippers target 25–40% net margin before scaling.
Ad costs are the #1 profit killer — always calculate CPA before scaling.
25–40% net margin is considered healthy for dropshipping. Below 15% is very difficult to scale profitably.
Break-even CPA = Selling Price − Product Cost − Shipping − Processing Fee. Any ad spend above this loses money.