Tool 02 · Chapter 1

Single-order profit calculator.

The first worked example in the book — page 7 — traces one $30 order through every cost line. This is that table, live. Change any number and watch what the order actually nets.

Inputs — one order
Net profit on this order
SINGLE-ORDER P&LRUNNING
Customer pays
Payment processing
Supplier
Advertising
Apps + platform
Refund/chargeback reserve
Net profit — margin

The single biggest variable is the advertising line. The book's example: at a $12 CAC this order nets $6.13; at $18 it nets $0.13; at $20 you're paying customers to take your product.

How to read the result

The number that matters is contribution per order — what is left after the product, payment fees, shipping, advertising, and a refund reserve. Three bands decide the next move:

  • Negative — the order loses money. Every sale makes it worse, so never scale a negative number. Fix the price, the offer, or the acquisition cost first.
  • Under 10% margin — profitable on paper, fragile in practice. One refund spike or a small rise in ad cost erases it.
  • 15–25% margin — the band a well-run store actually lives in. Stress-test it by raising the advertising line and watching how fast the profit disappears.

The advertising line moves the result more than any other input: a $30 order that nets $6.13 at a $12 acquisition cost nets just $0.13 at $18, and starts paying customers to buy at $20.

From the book: Chapter 1 traces this exact order hour by hour — including the part no one mentions: you pay the supplier with your own money days before the processor pays you. Chapter 2 turns this single-order table into the full model.
From the Book

This table is where the book starts. The rest of it makes the numbers work.

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