Dropshipping Profit Margin: Everything You Need to Know
Running a dropshipping store without owning inventory can be very profitable. But you must be aware of the profit margin statistics and what they represent for your business. Analyzing your profit margins is critical if you want to be successful in the long run. It enables you to identify and dropship more profitable products rather than less profitable ones. Profit margins can be calculated in two ways: gross profit margin and net profit margin.
Gross profit margin illustrates how successful your dropshipping store is for each sale. Net profit margin considers all the additional expenses you incur when running an ecommerce store. This is the ultimate measure of profitability for a corporation.