What is a good markup multiplier for dropshipping?

A good markup multiplier is 3x to 5x your wholesale sourcing cost. For example, if an item costs $10 to source and ship, you should retail it for $30 to $50 to cover ad CAC and processing fees.

How does refund rate affect dropshipping profits?

Every refund requires you to return the retail price to the customer while losing the original sourcing shipping cost and ad CAC. Maintaining a refund rate below 5% is critical to preserving net profit margins.

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