How to Calculate Profit Margin for Dropshipping Business?
- AliExpress Orders – Unfortunately, AliExpress doesn’t allow you to export past orders, meaning you’ll have to manually add up product costs. This is fine for beginners but becomes time-consuming and error-prone as your store scales.
- Shopify’s COGS Field – Shopify lets you enter product costs manually, but this method has two major drawbacks:
- It doesn’t account for price fluctuations from AliExpress suppliers.
- It doesn’t include shipping costs, which can vary significantly.
- Bank Statement Method – Export an Excel file of all AliExpress payments from your bank or credit card statement, then sum them up. However, this makes it difficult to separate product costs from shipping costs unless you use a dedicated card for your store.
- Facebook Ads Manager & Google Ads Dashboard – Check your ad spend daily, weekly, or monthly.
- Shopify Reports – Some Shopify plans provide insights into ad spend.
- Stripe & PayPal: 2.9% + $0.30 per transaction
- Shopify Payments: Similar to Stripe, but Shopify charges an extra fee (0.5% - 2%) if you use third-party processors.
- Shopify Plan Fees
- Apps & Software
- Influencer & Affiliate Payments
- Taxes & Accounting Fees
- Shopify – Revenue, refunds, and discounts
- AliExpress, CJDropshipping – COGS & shipping costs
- Ad platforms like Facebook, Google, TikTok– Ad spend
- Payment Gateways – Processing fees
- Net Profit
- COGS & Shipping Costs
- Processing Fees
- Conversion Rates
- Profit Margins
- See your actual profit in real time
- Track all expenses, including COGS, shipping, and ad spend
- Make data-driven decisions to scale your business
Irene Le
Content Manager at TrueProfit & eCommerce Marketing Specialist
Irene Le is the Content Manager at TrueProfit, specializing in crafting insightful, data-driven content to help eCommerce merchants scale profitably. With over 5 years of experience in content creation and growth strategy for the eCommerce industry, she is dedicated to producing high-value, actionable content that empowers merchants to make informed financial decisions.
