How to Calculate Dropshipping Profit
What is Dropshipping Profit?
Dropshipping is a retail model where the seller takes orders without holding inventory. The seller earns the margin between retail and wholesale price, minus advertising and platform fees.
Formula
Step-by-Step Guide
- 1Profit = Selling price - Supplier cost - Shipping - Advertising cost per sale - Platform fees
- 2Platform fees: eBay 12-13%, Amazon 8-15%, Shopify 2% + payment processing fees
- 3Advertising cost varies: Facebook/Instagram 3-15 GBP per sale
Worked Examples
Frequently Asked Questions
What is Dropshipping Profit?
Dropshipping is a retail model where the seller takes orders without holding inventory. The seller earns the margin between retail and wholesale price, minus advertising and platform fees
How accurate is the Dropshipping Profit calculator?
The calculator uses the standard published formula for dropshipping profit. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Dropshipping Profit calculator use?
This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Dropshipping Profit calculator use?
The core formula is: Profit = Selling price - Supplier cost - Shipping - Advertising cost per sale - Platform fees. Each step in the calculation is shown so you can verify the result manually.
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