The ten checks
- Your price covers landed cost, shipping, fees, a refund allowance and the ad cost per order (the pricing formula).
- You know your break-even CPA before the first ad goes live (the break-even ROAS guide).
- You have set a test budget you can lose in full, and a date to stop.
- Delivery times are stated on the product page, in plain words.
- Your refund policy is clear and easy to find.
- You have ordered the product yourself and checked it matches the photos.
- You have a second supplier, or know how long finding one would take.
- Payment and platform fees are in your numbers, not guessed.
- You will record contribution, not just revenue, every week.
- You will not raise ad spend until ad cost per order is below break-even CPA on enough orders to trust.
These are checks, not a promise of profit. Many products fail the test budget; the point is to learn that cheaply.
Free: the Profit Leak Scorecard. Enter your last 30 days and see your break-even CPA, real ad cost per order, net margin and which cost line costs you most. Run the scorecard.
Go further
Find the biggest leak in your margin.
Profit Recovery Checklist
$9 · 30-day refund
A 10-point audit, an interactive tool and a printable PDF, with a contribution margin calculator, for margin, refund and conversion leaks.
Know your ROAS floor before you spend.
Ad Spend Template
$17 · 30-day refund
A 4-tab interactive calculator for your break-even ROAS, maximum profitable CPA and budget rules.
Questions
How do I know if a dropshipping product can be profitable?
Work out the price from landed cost, shipping, fees, refunds and the ad cost per order, then check that your break-even CPA leaves room for profit before spending on ads.
How much should I spend testing a product?
An amount you can lose in full, set in advance with a stop date. The right figure depends on your break-even CPA and how many orders you need to trust the result.