How to dropship on Shopify (and work out your numbers before you spend on ads)

To dropship on Shopify, choose a product with room for a healthy margin, pick a supplier and order a sample, set up your store with clear shipping, returns and contact pages, then price the product. Before you spend on ads, work out your break-even ROAS with the free break-even ROAS calculator.

Dropshipping means you sell a product without holding stock. When a customer orders, your supplier ships it directly to them. You keep what remains after paying the supplier, shipping, fees, refunds and any taxes you owe. Advertising comes out of that remainder too.

This guide uses euros and assumes you sell to customers in the EU, for example from the Netherlands, Belgium or Germany. New to the model? Start with dropshipping for beginners, then come back for the Shopify steps.

What does it cost to dropship on Shopify?

A Shopify plan costs €28 a month on Basic, €78 on Grow and €384 on Advanced, or less when billed yearly. These are the prices Shopify’s Dutch pricing page showed on 15 October 2026. Prices vary by region and change, so check the page before you buy.

Source: Shopify pricing page, Netherlands, 15 October 2026. Rates shown are Shopify Payments standard online card rates for the Netherlands; other cards, providers or account terms can differ.

New stores can try Shopify for 3 days free, then pay €1 a month for 3 months, according to the same page. The plan is only part of the bill: budget separately for supplier samples, any supplier app and your ad testing budget.

1. Choose a product with margin room

Choose a product whose selling price leaves room for fulfilment, refunds and advertising. Shopify’s own guide suggests two ways to find one: pick a product area you know, or one with proven demand and check it with keyword research tools such as Google Trends. It also says to look at marketplace sellers on eBay, Amazon and Etsy to see who you would compete with (Shopify’s dropshipping guide).

Favour products that solve a clear problem, are light and easy to ship, and are unlikely to be returned. Check whether people search for them on Google: existing search demand helps you decide whether Shopping is a sensible first test. See how Google Shopping ads work.

Then test the margin. For this illustrative scenario, we use a price of 2.5 times supplier cost, not an industry minimum or a guarantee of profit. At that multiple the supplier takes 40% of the price. If shipping, fees and refund losses take another 25%, a €25.00 product with a €10.00 supplier cost leaves €25.00 − €10.00 − €6.25 = €8.75 before ads. That is a 35% contribution margin, so break-even ROAS is 1 ÷ 0.35 = 2.86.

The 25% is an assumption, not a benchmark. Use price excluding VAT and costs excluding recoverable VAT; replace that allowance with your actual shipping, fee and refund costs.

2. Pick a supplier and order a sample

Test the supplier before listing a product. Shipping speed, quality and return terms affect both customer experience and the money left from each order. Shopify’s guide advises looking for suppliers with domestic fulfilment centres and trusted carriers.

Where to find suppliers: Shopify Collective lets Shopify stores sell each other’s products, with orders forwarded to the supplier, who ships to your customer. It is free for stores in a supported country and currency, so check yours. Shopify also supports dropshipping apps that import products and pass orders on. Compare a few, checking recent reviews, exact fees and which tasks still need your attention.

If a supplier does not reimburse returned or faulty products, you may have to refund the customer while still paying the supplier. Include that risk in your costs; our ecommerce return rate guide explains how returns affect the numbers.

3. Set up your store

Create your Shopify store, choose a plan and add your products: in the Shopify admin go to Products, then Add product, or import products with a supplier app (Shopify Help: adding products). Then make your delivery promises, policies and contact details easy to find.

Add a working payment provider and follow Shopify’s test-order instructions before you share the store. A payment test checks checkout; it does not prove that the supplier can fulfil an order. Use this first-order acceptance record to check the whole route before buying traffic:

Supplier apps have different test and routing processes. Confirm with the supplier which actions can create a chargeable shipment before testing hand-off. Before connecting Google, check Shopify’s Google & YouTube store requirements: at least one visible way to contact you, plus refund and terms policies linked in the footer. Read what Google Merchant Center does before you submit products.

4. Price the product

Start from your real costs: supplier cost, shipping, payment fees and an allowance for refunds. Then pick a price the market accepts. Test higher prices before assuming cheaper sells better.

For example, a product sold at €39.99 excluding VAT can leave €18.26 per order before ads once supplier cost, shipping, fees and an allowance for refunds are paid. The full line-by-line breakdown is in dropshipping profit margin after returns.

Keep tax treatment consistent. Use revenue excluding VAT and costs excluding recoverable VAT. If €39.99 is your VAT-inclusive checkout price, remove VAT before using these figures. Do not subtract the same refund loss twice.

5. Work out your break-even ROAS

Break-even ROAS is the revenue your ads must return for every euro spent to cover the costs included in your calculation. With €39.99 of revenue and €18.26 left before ads, you can pay at most €18.26 in advertising per sale.

That is your break-even CPA, or cost per acquisition. Break-even ROAS is €39.99 ÷ €18.26 = 2.19, rounded. Spending the full allowance leaves nothing for your Shopify plan, apps or profit, so aim for a lower CPA and a higher ROAS.

The profit on ad spend (POAS) equivalent is ROAS × contribution margin: break-even POAS is 1.0 when the same costs are included.

The standalone break-even ROAS calculator applies its return rate to revenue and product margin; it does not model this no-recovery refund loss directly. Use the per-product widget below, with €39.99 revenue, €14.00 supplier cost and €7.73 other costs, to reproduce €18.26 contribution and break-even ROAS 2.19. The inputs exclude VAT, use revenue before refunds and already include refund and chargeback losses. Do not deduct them again through a return-rate input.

The margin guide explains the full cost breakdown. Use the widget below with the same rounded inputs:

Compare with advertising ROAS on the same revenue basis. If the result looks unrealistic, change the price, supplier or product before spending on ads.

6. Get your first traffic

Choose a channel that fits how customers discover the product. Existing demand and the creative you can produce are useful starting points.

Start with a small test budget and compare spend with your break-even CPA. Track purchases before judging an ad; a few clicks rarely settle the question. The Google Ads budget calculator helps you see how much traffic a budget can buy, and Google Ads vs Meta for dropshipping compares the two paid channels in depth.

7. Connect Google Shopping (optional, later)

Shopify’s Google & YouTube channel syncs products to Google Merchant Center. When you are ready, install the channel, connect your Google account, select or create a Merchant Center account, and complete the store and shipping requirements. Follow Shopify’s current setup instructions.

Resolve product disapprovals before expecting listings to appear. Syncing products does not itself launch paid ads. As your range grows, group products by the margin and return they need with custom labels; see how to optimise Google Shopping ads.

What do EU sellers need to know about VAT, imports and returns?

For an EU Shopify store, plan for VAT where due, customs charges on imports and consumer withdrawal rights for most online goods. This is general information, not tax or legal advice: ask an accountant about your own situation.

Import VAT. Since 1 July 2021 the EU has charged VAT on all imported goods, with no exemption for small consignments. IOSS covers goods worth up to €150 shipped from outside the EU. Where it is not used, special arrangements apply instead, so ask your supplier which route its parcels take (customs formalities for low-value consignments).

Customs duty. For qualifying imported B2C consignments up to €150 intrinsic value using IOSS or postal routes, a temporary €3 duty applies per customs declaration line from 1 July 2026 until 1 July 2028. It is not a flat charge per parcel or per physical product. Other routes can face normal duties. Confirm the route and charge with your carrier and include it in landed cost, separately from VAT and handling fees. See the Commission’s guidance, sections 3.1 and 5.2.

Withdrawal right. For most goods, consumers have 14 days from delivery to withdraw without giving a reason. Exceptions include personalised goods and certain unsealed goods. Refund the payment and standard outbound delivery within 14 days of notice; unless you offered collection, you can withhold until goods or dispatch evidence arrive, whichever is first. Buyers pay change-of-mind return postage only if informed and you have not agreed to pay. Defective goods follow separate remedies.

Omitting withdrawal information can extend the period by 12 months. If you provide it during that extension, the buyer has 14 days from receiving it. The Your Europe business guide explains these conditions. Agree supplier terms separately: your supplier’s policy does not remove your consumer obligations.

Your own VAT and registration. Whether you must register a business, charge VAT and file returns depends on your country and sales. Ask your national tax authority or an accountant before your first order. Shopify’s own guide covers business structures for the US, so do not copy its steps for an EU company.

Mistakes and fixes

Next steps

1. Run the break-even calculator for your first product.
2. Check your margin with the margin calculator and Shopify’s current plan prices, and budget separately for samples, apps and advertising.
3. When you have many products, Product Segmentation supplies Merchant Center labels that your configured Google Shopping campaigns can use to give products higher or lower priority.

Sources

Checked on 15 October 2026.

• Shopify pricing: plan prices, trial offer and card rates (Netherlands storefront).
• Shopify: how to start dropshipping: product-area research, supplier advice and business structure.
• Shopify Help: Shopify Collective and adding products.
• Shopify Help: Google & YouTube store requirements and connecting the channel.
• European Commission: Import One-Stop Shop and customs formalities for low-value consignments.
• Your Europe: selling online to consumers and returns and the right of withdrawal.
• The 2.5 times price multiple is our own rule of thumb with the assumptions shown in step 1; it has no external source.