I calculate all the time. And here’s something i discovered.
When i see the numbers, screenshot posted, i get very cautious, because those numbers might just be a big fat lie.
This just hit my inbox while i was doing a calculation, on how much is on the surface vs how much is the net profit.
I’ve also found alidropship, which made me started a little into dropshipping. I won’t call it successful just yet so i didn’t wanna go all neg about it.
But what caught my attention is their journey and also other’s journey posted in their forum. Why am i so skeptical of it now? Because i’ve run some numbers.
So a guy there claim to have earned 10k in 2 months. Is it do-able? I don’t doubt it. But when you dig further into the cost of goods, shippping, and then ROI, i just highly doubt it’s running at a very good profit. We’re talking about net profit, not gross sales. His gross sales is 10k, his net sales may be just very minimal.
Then on the owner of the plugin, in his case studies, the item is sold at around 5 or 6$, and the COG+shipping of it is 5 or 6 as well. What is his net profit? 0 to 1$ per customer. So how many customers do you need to aquire before you hit 1k ? well, 1k it is. If you need to aquire 1k, what is the numbers you need for 10% CR ? 10k customers. Now run the campaign solely on shoutout, each shoutout cost 25$ minimum, and times that with how many shoutout you need to run to get that CR.
When questioned about their net profit, they either ignore it, or gave vague answers.
I’ve ran some test on the majority of his niche, using the same method, and only 1 niche made me 2 sales. Can i make more? Yes i can, by lowering the cost of it to bare minimum and that means almost 0 profit due to competition and etc.
// I dont doubt what it can be done on dropshipping, but the numbers may just be a marketing ploy to get people to buy their product. The guy who earned 10k in 2 months is also selling his site claiming it has now made a total of 24k. Gross sales, remember, not net profit.