How to calculate income and expenses

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Despite the minimal start-up costs, dropshipping is not such an obviously profitable way to earn money. In a simplified sense, the profit in this scheme is equal to the commission from the sale of each product. It strongly depends on the category, but cannot be too high (only rare suppliers recommend setting a markup of 100%), since raising prices too much means losing the fight with competitors. From this commission, you need to cover all costs, primarily the following:

Advertising expenses.
Hosting, online store support.
Payment for content for product cards.
Acquiring commission.
Taxes and fees.
Employee salaries (if any).
It's good if you can minimize costs. For example, bahamas telegram number database instead of an expensive full-fledged online store on a reliable hosting, launch a channel in Telegram or invest in SEO instead of targeted and contextual advertising, integrations with bloggers. But a cheap way always requires more time and effort to get the same "output" than when using more expensive tools. Another option for reducing costs is to find a supplier with low prices and more favorable conditions. But then there is a risk that the goods will be of lower quality or there will be problems with deliveries.

The number of clients directly depends on the volume of traffic that comes to the site. According to IRP research , the average conversion from visitors to buyers is about 1.5-2%. Accordingly, out of 100 users, only 1-2 people will most likely make an order, and from each one you will only be able to earn a part of the sales price.