Dropshipping Supplier Cost Calculator
Defect rate changes the ranking.
Cheaper all in
Supplier A
by $0.75 per order
Defect rate is the line that changes the ranking. A 4% defect rate on a $38 refund adds $1.52 per order — often more than the price difference between suppliers. Delivery time then affects refund rate on top of that.
How the Dropshipping Supplier Cost Calculator works
A supplier's real cost is the price plus the shipping plus the defect rate times what a refund costs you. On a 9% defect rate against a £38 refund, the cheaper supplier is frequently the expensive one — and delivery time then affects refunds on top.
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
How do I compare dropshipping suppliers properly?
All-in cost per order: price, shipping, and defect rate times the cost of a refund. A supplier 20% cheaper with three times the defect rate usually loses.
What does a defect actually cost?
The refund, the goods you never recover, the payment fee that is not returned, and the advertising you spent to win the order. On a paid-traffic model that last one is the biggest.
Is a sourcing agent worth it?
Usually, once volume justifies it. Agents typically cut unit cost, cut shipping time and reduce defect rates, and any one of those three can pay for the relationship.
How do I test a supplier?
Order to yourself first, at your own address, and time it. Then order ten and check consistency. Suppliers that are excellent on a single sample and inconsistent at volume are common.