What does this calculate?
Net profit per sale: retail price minus wholesale, your shipping cost, ad spend per sale (CPA), and payment processor fees (Shopify's default 2.9% + $0.30 or whatever your processor charges). The actual dollars hitting your bank account, not just retail-minus-wholesale.
What's a healthy dropshipping margin?
After all costs, sustainable Shopify dropshipping margins are 18-30% net. Below 15% you're one ad-cost increase from breaking even. Above 30% you're likely under-priced on ads or have a unique product/brand.
How do I improve dropshipping margins?
Three levers: (1) cheaper wholesale via cheapest-in-stock routing across multiple distributors, (2) capture vendor cashback/trip incentives by force-routing during qualifying windows, (3) better ad CPA via tagged-collection targeting. Ordnance automates all three.