Dropshipping Refund Impact Calculator
Worse than losing the profit on a good order.
Cost of one refund
$28.76
2.6× the profit on a good order
A refund costs $28.76 — more than the $11.23 you make on a good one, so it takes 2.6 successful orders to recover each refund. Advertising is the reason: you paid to acquire an order you then reversed.
How the Dropshipping Refund Impact Calculator works
A refund costs more than the profit on a good order, so it takes several successful sales to recover each one. Advertising is why — you paid to acquire an order you then reversed, and no part of that spend comes back.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What does a refund cost a dropshipper?
The goods, which you rarely recover from an overseas supplier; the advertising that won the order; and the payment processing fee, which is generally not returned. The sale itself is the smallest part.
How many good orders does a refund cost me?
Divide the refund cost by your profit per order. On typical dropshipping economics it is commonly two to four — which means a 10% refund rate can consume a third of your profit.
Do I get the goods back?
Almost never on overseas fulfilment — return shipping usually exceeds the item's value, so most stores refund without requesting a return. That means the goods are a total loss.
How do I reduce refunds?
Faster shipping, accurate product photos and descriptions, honest delivery estimates at checkout, and responsive support that resolves complaints before they become disputes.