Does dropshipping pay off: an honest calculation and the most common mistakes

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Dropshipping is often presented as a business without risk: no warehouse needed, no need to buy products, a laptop is enough. The first part is true. Only the risk does not go anywhere – it moves into the advertising budget, which you spend before knowing whether anyone will buy.
This part of the guide contains the calculation that adverts do not show: what remains from one sale once all the costs are added up, how long it takes to reach the first profit and which mistakes almost all beginners make.
In short
- The difference between the purchase price and the selling price is not profit. Shipping, customs duty, payment fees, advertising and returns still come off it.
- The biggest and least predictable cost is advertising per sale.
- The first months are usually loss-making: you pay for tests until you find a product and an advert that work.
- If someone promises quick profit and sells a course, their business is the course.
What remains from one sale
Below is an example with hypothetical figures, not an average or a promise. Only the amount of the customs duty and the payment rate are real; you need to enter your own prices for the product, shipping and advertising.
| Line | Amount | Where the figure comes from |
|---|---|---|
| Selling price to the buyer | 30.00 € | Example |
| Product at the supplier | −8.00 € | Example |
| Shipping from China | −4.00 € | Example |
| Customs duty | −3.00 € | 3 € per type of goods in a parcel worth up to 150 €, from 1 July 2026 |
| Import VAT | −3.15 € | 21% of the sum of the product, shipping and customs duty |
| Payment fee | −0.70 € | 1.5% + 0.25 € – Stripe’s rate for standard EEA cards in Lithuania |
| Advertising per sale | −10.00 € | Example; depends on the product and the advertising |
| Allowance for returns | −1.50 € | Example: 5% of the price |
| Remains | −0.35 € |
A product that is “marked up almost four times” earns nothing in this example. And that is still without the shop’s monthly fee, apps, your working hours and taxes on the income from the activity.
What changes the result
| If this changes | Remains from the sale |
|---|---|
| Advertising costs 6 € instead of 10 € | +3.65 € |
| Advertising costs 15 € | −5.35 € |
| The product ships from an EU warehouse: no customs duty or import VAT, but the supplier’s price with shipping is 16 € instead of 12 € | +1.80 € |
| The buyer buys two products in one order, and the advertising is the same | Almost the whole margin on the second product stays with you |
This, too, is only arithmetic with the same hypothetical figures. It shows not how much you will earn, but which lines determine the result: the cost of advertising and the average basket value.
Why advertising is the main unknown
You can find out the supplier’s price, shipping and taxes in advance. The cost of advertising per sale – you cannot. It becomes clear only after the money is spent: how many people saw the advert, how many clicked, how many of them bought. First campaigns are almost always more expensive, because you do not yet know which audience, photo and text work.
That is why dropshipping is not really a “business with no investment”. The investment is the advertising budget for tests, and part of it will be spent on products that do not work out.
How long until the first profit
There are no reliable statistics on how many beginners reach profit and how quickly – the figures you will find online mostly come from the advertising of platforms and course sellers. The honest answer is this:
- The first sale can happen within the first days after launching advertising – and means nothing if it cost more than it earned.
- A profitable sale appears when you find the right combination of product, price and advertising. That takes testing more than one product.
- Stable income – when buyers come back and buy without advertising. With products from China and delivery taking several weeks, that rarely happens.
Plan as though the first months will be tuition fees. If you cannot afford to lose that amount, it is not worth starting.
The most common mistakes
- Not calculating to the end. Customs duty, VAT or the payment fee is left out of the price.
- The product has never been seen. Selling something the seller has never held in their own hands.
- Hiding the delivery time. This ends in refunds and payment disputes, and those in a blocked payments account.
- Too many products at once. The budget is split so thinly that none of them gets enough data.
- No limit. “One more campaign” without a predetermined amount you are willing to lose.
- Forgetting taxes. Trade is an activity – it has to be formalised and the income declared. Which form suits you is explained in the ACS.lt article “Self-employment: registration certificate or business certificate”.
- Paying the supplier outside the platform. Then no protection applies any more.
What course sellers promise
Warning signs
- Screenshots of turnover instead of profit. Turnover is sales before all costs.
- “Passive income” and “no experience needed”. Customer service, returns and advertising are daily work.
- Pressure: “the price is valid today only”, “3 places left”.
- The price of the course is higher than the budget needed for the test itself.
- A promise to refund the money “if you don’t earn”, with conditions that are impossible to meet.
Everything you need to start is public: platform price lists, tax rules, suppliers’ terms. Paid information rarely tells you anything that is not in official sources.
A separate risk is payments to unknown “suppliers” and “mentors”. The police daily incident reports for October 2026 describe how in Trakai district a company received forged account details of its foreign partners by email and transferred 54 374 €, and in Vilnius district a man transferred 199 900 € to the crypto wallets of a supposed seller for two cars being bought in Slovakia and did not receive the cars.
Who dropshipping suits after all
- Those who already have an audience or free traffic – then the advertising line shrinks.
- Those who want to test a product before buying a batch.
- Those who have a budget for tests and are prepared to lose it.
If you have an audience but do not want products, customer service and returns, the same audience can be used to recommend other people’s products for a commission – without an advertising budget and without stock.
Frequently asked questions
Does dropshipping still pay off in 2026?
It can, if the product’s margin in euros covers advertising and taxes. For a cheap product from China this has been harder since July 2026 because of the 3 € customs duty.
How much money do you need to start?
A shop costs a few tens of euros per month. The main amount is the advertising budget for tests, which you set yourself and may lose.
How much do dropshipping sellers earn?
There are no reliable statistics. The figures published are mostly turnover, not profit, and come from those who sell courses or platforms.
Is it worth buying a dropshipping course?
The information needed to start is free and public. If a course costs more than your test budget, the money is better spent on the test.
Sources
- Muitinės departamentas. Nuo 2026 m. liepos 1 d. mažos vertės siuntoms iš ne Europos šalių bus taikomas muitas
https://muitine.lrv.lt/lt/naujienos/nuo-2026-m-liepos-1-d-mazos-vertes-siuntoms-is-ne-es-saliu-bus-taikomas-muitas-qx4/ - Stripe. Pricing & Fees (Lithuania)
https://stripe.com/en-lt/pricing - Shopify. Pricing
https://www.shopify.com/pricing - Lietuvos policija. Paros įvykių suvestinės
https://policija.lrv.lt/lt/ivykiu-suvestines/
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