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