Last year my dropshipping business came just short of hitting hit 1 Million in Revenue. There were a lot of specific changes to the dropshipping landscape in 2022…that caused this.
In this article, we’re going cover how you can make $1 million drop shipping this year.
To achieve a goal like this, you need a detailed plan. You can’t just have a tentative plan like “test a bunch of products and hope one eventually hits that I’ll be able to scale.” You’ll struggle to achieve any real results with a broad plan like that b/c it’s not specific enough.
Of course, it’s impossible to predict the results you’ll be able to get a year out from now. A lot can change in a year. But with a detailed plan, it’ll be MUCH easier for you to make slight adjustments along the way.
If you don’t have one yet, that’s fine. I’m going to give you mine..,and exactly how I plan to do these numbers this year. You can feel free to model this plan…or use it as inspiration to develop your own.
This is based on last year’s ACTUAL performance and my projected numbers for this year. Also, if you’re unfamiliar with any of these dropshipping business models, there’s free playlists detailing everything you need to know on my YouTube Channel Here.
So, this year I’m expecting about 10% of that million to come from Poshmark Dropshipping. On poshmark I’ve been averaging about 20% margins.
I do mark my prices up significantly higher on poshmark…but there are also higher seller fees on this platform too.
10% of 1 million is $100,000….and with 20% margins that will leave me with about $20,000 in profit. …or about $1,667 per month…or $55+ per day
These numbers should be relatively easy to hit…and I’ve been doing them pretty consistently for about a year now already.
I also expect about 20% of that million to come from dropshipping on Facebook Marketplace and Facebook Shops. 20% of 1 million is $200,000…and with 40% margins (which is around what I averaged last year) that’s $80,000 profit. …about $6,667 per month…or $222 per day.
Now, Facebook is the biggest wildcard in this plan to be completely honest. If Facebook continues throttling traffic the entire year, I might struggle to hit these numbers. BUT, I believe Facebook traffic will come back with a vengeance at some point this year.
And I’ve been averaging $170 days lately with mediocre traffic across all my accounts. So to expect about $50 more than that isn’t farfetched at all. Especially when you consider that for a large portion of last year I was doing $600 and $700 days (AFTER paying my VAs).
So, the level of success here is certainly going to depend on the changes Facebook makes and whether they’re pushing marketplace sales or not….but I’m of the mindset this year we’ll see an increase in marketplace sales.
They’ve invested way too much time and money in building both marketplace and shops….AND integrating it into everyone’s facebook and Instagram accounts….that I’d be EXTREMELY surprised if they just let it die off.
After Facebook and Poshmark, I expect 30% of that million to come from Etsy Dropshipping. 30% of 1 million is $300,000.
I’ve been averaging 20% margins roughly on Etsy as well, but that 20% does already account for software costs from printful (which is the company that manages my entire Etsy drop shipping business for me - from inventory management, to printing the designs, to shipping, you name it).
So that 20% is completely hands off for me. Minus a few customer service messages every once in a while.
20% of $300,000 is $60,000 in profit…or $5,000 a month…or $167 per day.
Also, on Etsy, there’s a $0.20 fee every time you list some thing. That’s clearly minimal and doesn’t affect much, but I wanted to mention it.
On top of that, I brought on a full time graphic designer (to put his own spin on recreating popular designs already selling well on the platform). I pay him $150 per week on Average…or $600 per month to design EVERYTHING. And then he just sends me the designs (and one of my listing VAs uploads them to Printful & Etsy).
Finally, I expect 40% of it to come from Amazon Dropshipping.
Finding the right products is crucial here. All you really need is a few products with decent profit that sell over and over again (b/c there’s so much sales velocity on Amazon that you’ll get dozens of sales a day easily).
Also, keep in mind that Amazon drop shipping is 95% managed with software as well. The only time consuming things that I don’t automate with software are product research (which is aided by software) and order fulfillment. And you can hire a VA to do both of those.
On Amazon my margins can change based on the products that are selling consistently that month (it changes month to month usually as buy boxes rotate).
But last year I averaged just under 20% profit too. 20% of $400,000 is $80,000 profit…or $6,667 per month…or $222 per day.
These numbers aren’t crazy at all either. I’ve had months with $500 days consistently…and months with $100 days consistently.
On Amazon, it’s all about keeping up with product research b/c you want to build a large portfolio of profitable product listings you’re a seller on (reason being - you won’t win every buy box all the time - you'll share it).
So that’s my detailed plan to hit $1,000,000 in revenue Dropshipping this year. I’m sure it won’t go exactly like this. And I’m sure I’ll have to pivot several times as things change and I need to adapt.
Also, this is me giving you complete transparency. You can see that out of $1,000,000 in rev….I’m only expecting about $240,000 in profit.
And if you account for just under $2,000 paying all my VAs every month…the number drops to $216,000.
And to take even further, if you’re watching people talk about Shopify specifically…those numbers often don’t account for ad costs too (which are an even larger portion of it). So always keep that in mind.
If you'd like to watch the complete video explanation of this, check it out below.