Dropshipping vs holding real inventory, the math finally clicked for me

I ran a little Shopify store out of Phoenix for about 8 months doing pure dropshipping with AliExpress suppliers. Margins looked fine on paper but after chargebacks and 3 week shipping times, I was basically working for $4 an hour. Switched to buying 200 units of my top seller from a US wholesaler and paid $2.50 per unit for storage at a local warehouse. My conversion rate doubled and my ad cost per purchase dropped from $14 to $8 because people trust a 3 day delivery. Has anyone else made that switch and seen fulfillment costs eat the gains back up?

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kai_bennett23d ago

Dropshipping still wins if you test products right.

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