Glossary

Markup

How many times the supplier price you charge at retail.

Formula

Markup = retail price ÷ supplier price

What it means

Product Score assumes a 2.5x markup when it estimates retail prices and break-even CAC. Many dropshippers aim higher; a higher markup raises the break-even CAC and makes paid ads viable for more products, as long as the price still converts.

Worked example

$8.00 × 2.5 = $20.00 retail.

Try your own numbers in the Dropshipping Profit Calculator

See Markup on real products

Product Score calculates it for every AliExpress product it scores, with a 0–100 Opportunity Score. Free plan, no card needed.