Enter your cost of goods and selling price to find out your breakeven ROAS (hover over the “?” on each value to learn more)
Cost of Goods/Service (COGS) is how much you will pay to get the product delivered to customers including any additional fees.
How much are you selling this product for?
A cost multiplier is usually above 3 for low ticket dropshipping or in the range of 1 to 1.5 for high ticket dropshipping / service based businesses.
The profit margin is simply the selling price minus COGS (Cost of Goods and Services). The profit margin will tell you a lot: How much you will earn, how much you can spend on marketing, when you will break even and more. It is also know as the Break Even Point (BEP).
Break Even ROAS (Return On Ad Spent) is the number to know. This will tell you if your marketing is profitable or not.Your product profit margin is not 100%. The BE ROAS will be the determining number for profitability. As long as your ROAS is above B.E ROAS, you are profitable.