The landed cost math that quietly kills dropshipping margins
Everyone obsesses over finding a "winning" product. Almost nobody obsesses over landed cost drift — and it's the actual silent killer of margins at scale.
Here's what happens: you find a product, supplier quotes $4.20/unit, shipping looks like $2.80, you price at $29.99 and the math looks great on a spreadsheet. Three weeks in, you're running 200 orders/day. Suddenly:
Your supplier's "stable" price moves because you're now a bigger order, not a sample buyer
Shipping zones you didn't account for start eating $1-3 extra per order
Return/refund rate (which nobody models at the research stage) quietly takes another 4-6% off net
The product didn't stop winning. Your unit economics did — and most people never notice until the account is already bleeding.
The fix isn't a smarter ad. It's re-running your cost math at three volume tiers (10/day, 50/day, 200/day) using actual supplier quotes at those tiers, not the sample price, before you scale spend. If the margin doesn't survive tier 3, you don't have a winning product — you have a working demo.
Vet the supplier relationship at scale, not at sample size. That's the whole game.
