The question every potential dropshipper asks:
Can you really make $5K, $10K, or $100K+ monthly dropshipping?
The guru pitch: “I made $1M in 90 days! Just copy my store! Anyone can do this!”
The beginner reality: “Spent $3,000 on ads, made $800 in sales, lost $2,500. Is this normal?”
The truth: Most dropshippers (81-90%) make under $1,000/month. The average dropshipper who sticks with it for 12+ months makes $1,200-$5,000/month after 40-70 hours weekly work and $10K-$50K invested in ads. Top 5% making $50K+/month exist but represent 0.5-1% after 3-5+ years. The model requires massive ad spend ($3K-$15K monthly minimum) to scale beyond $5K/month.
First – This Is Important…
Before we dive into dropshipping income reality, let me be upfront: if your goal is making $3K-$10K monthly without burning $10K-$50K testing products and ads—there’s a business model with drastically better success rates.
Click here to see the business model with better odds

After testing dropshipping myself (and losing $8K before breaking even), I’ve found the most reliable path to consistent income is local lead generation: building websites that rank for local services, then renting lead flow to businesses for $500-$2,000 per month—without inventory, ads, or customer service.
Why is this better than dropshipping?
- No ad spend required – Zero ongoing $3K-$15K monthly burns unlike dropshipping’s mandatory ad budgets
- 95%+ profit margins – Keep nearly everything vs dropshipping’s 10-20% after all costs
- No inventory risk – Zero $5K-$20K tied up in products that might not sell
- No customer service nightmares – Pass leads automatically vs handling refunds, complaints, chargebacks
- Predictable recurring revenue – B2B monthly payments vs hoping daily ad campaigns convert
- Better success rate – 20-30% reach $3K+/month vs dropshipping’s 5-10%
I’ll show you the real dropshipping numbers throughout, but if avoiding the capital requirements and failure rates appeals to you, understanding alternatives matters.
Click here to see the business model with better odds
What Do Dropshippers Actually Make? Real Data
Let’s start with actual income data from multiple industry sources tracking 1,000+ dropshipping stores:
Beginner Dropshippers (Months 1-6)
TrueProfit analysis of 1,200+ stores (2026):
First 3 months:
- 85-90% make: $0-$500/month revenue
- 8-12% make: $500-$2,000/month revenue
- 2-3% make: $2,000-$5,000+/month revenue
Months 4-6:
- 70-75% make: $0-$1,000/month revenue
- 18-22% make: $1,000-$3,000/month revenue
- 7-10% make: $3,000-$10,000+/month revenue
Critical detail: These are REVENUE numbers, not profit.
After costs (product, shipping, ads, fees):
- 90% make: $0-$300/month PROFIT (or lose money)
- 8% make: $300-$1,000/month profit
- 2% make: $1,000+/month profit
The brutal truth: Most beginners lose money their first 3-6 months testing products.
Intermediate Dropshippers (Months 7-18)
After 12 months consistent work:
Monthly revenue:
- 40-50% make: $1,000-$5,000
- 30-35% make: $5,000-$15,000
- 15-20% make: $15,000-$30,000
- 5-10% make: $30,000+
Monthly NET profit (after ALL costs):
- 40-50% make: $200-$1,500
- 30-35% make: $1,500-$4,500
- 15-20% make: $4,500-$9,000
- 5-10% make: $9,000+
Average profit after 12 months: $1,200-$3,800/month
This requires:
- $10,000-$30,000 spent on ads over 12 months
- 40-70 hours weekly work
- 20-50 product tests (90% fail)
For context on realistic ways to make money with Shopify, understanding these failure rates helps set proper expectations.
Advanced Dropshippers (18+ Months)
After 18-24 months:
Monthly net profit:
- Median: $3,500-$5,500
- Top 25%: $8,000-$15,000
- Top 10%: $15,000-$30,000
- Top 5%: $30,000-$100,000+
Super dropshippers ($100K+/month):
- Represent <1% of all dropshippers
- Typically 3-5+ years in business
- Have teams (not solo)
- Often own multiple stores
- Spent $200K-$500K+ on ads to reach this level
The Math: Why Most Dropshippers Don’t Make Money
Let’s break down realistic numbers:
Example Product: $50 Retail Price
Revenue per sale: $50.00
Minus product cost: -$15.00 (30%) Minus shipping: -$6.00 (12%) Minus payment processing: -$2.00 (4%) Minus platform fees: -$1.00 (2%) Minus ad cost per sale: -$18.00 (36%) Minus refunds/returns (10%): -$5.00 (10%)
Net profit: $3.00 (6%)
To make $5,000/month profit:
- Need 1,667 sales monthly
- Need 55 sales DAILY
- At 2% conversion: 2,775 visitors/day
- At $1.50 CPC: $4,163/day in ads = $125K/month ad spend
The reality: Most can’t afford $125K monthly ads to net $5K profit.
More Realistic Scenario: Making $2,000/month
To net $2,000 monthly at $3 profit per sale:
- Need 667 sales/month (22/day)
- At 2% conversion: 1,110 daily visitors
- Ad spend required: $1,665/day = $50K/month
Still requires $50K monthly ad budget to net $2K.
This is why 90% of dropshippers don’t make meaningful money.
What Affects Dropshipping Income
Multiple factors determine whether you make $100 or $10,000 monthly:
Factor 1: Product Margins
Low-ticket ($10-$30):
- Profit per sale: $1-$5
- Easy to sell but need massive volume
- Most beginners stuck here
Mid-ticket ($50-$150):
- Profit per sale: $10-$40
- Better balance of volume vs margin
- Where successful dropshippers operate
High-ticket ($200-$2,000+):
- Profit per sale: $100-$600
- Harder to sell but fewer sales needed
- Requires trust-building and authority
The trap: Most beginners sell cheap products requiring 500-1,000 sales monthly to make $3K-$5K.
Factor 2: Ad Costs (The Profit Killer)
2026 ad costs:
- Facebook/Instagram CPM: $15-$35
- TikTok CPM: $10-$30
- Google Shopping CPC: $0.50-$3.00
- Customer acquisition cost: $15-$60 average
What this means:
- If your profit per sale is $10 and CAC is $20, you LOSE $10 per sale
- Need $30+ profit per sale minimum to survive
- Most products don’t support these margins
Reality: 70% of dropshippers can’t afford their customer acquisition costs long-term.
Factor 3: Winning Product Frequency
Testing statistics:
- 90-95% of products tested fail
- Average: Test 10-20 products to find 1 winner
- Winners typically die after 30-90 days (competition copies)
- Must continuously test new products
Cost to find winners:
- $300-$1,000 per product tested
- 15 tests = $4,500-$15,000 before finding winner
- Then winner dies in 60 days
- Back to testing
This constant testing consumes most profit.
Factor 4: Niche Selection
High-paying niches:
- Home improvement: $2,500-$8,000/month median
- Fitness equipment: $2,000-$6,000/month median
- Pet supplies: $1,800-$5,500/month median
Low-paying niches:
- Fashion/jewelry: $500-$2,000/month median
- Phone accessories: $400-$1,500/month median
- Generic home goods: $300-$1,200/month median
The difference: Margins and competition levels.
The Hidden Costs Gurus Don’t Mention
Most dropshipping income claims ignore these costs:
Startup Investment Reality
Minimum to start properly:
- Shopify + apps: $100/month
- Domain: $15
- Product testing budget: $3,000-$5,000
- Initial ad budget: $2,000-$5,000
- Total first 3 months: $5,000-$10,000
Most beginners try with $500-$1,000 and fail immediately.
Monthly Operating Costs
To run at scale:
- Platform fees: $80-$300
- Apps/tools: $100-$400
- Ad spend: $3,000-$15,000+
- Product samples: $100-$300
- VA/customer service: $500-$2,000
- Total: $3,780-$18,000/month
Before making a dollar of profit, you’re spending $3,780-$18,000 monthly.
The Time Investment
Weekly hours required:
- Product research: 10-15 hours
- Ad creation and testing: 15-25 hours
- Customer service: 10-20 hours
- Order management: 8-12 hours
- Supplier issues: 5-10 hours
- Total: 48-82 hours/week
Full-time work with no guaranteed income.
For those exploring realistic online business models, understanding time vs income ratios matters more than revenue screenshots.
Real Dropshipper Case Studies
Let’s look at actual examples:
Case Study 1: Fashion Niche (12 Months)
Investment:
- Total ad spend: $18,000
- Tools/platform: $1,800
- Product samples: $600
- Total: $20,400
Results:
- Revenue: $45,000
- Gross profit: $18,000 (40% margin)
- Net after ads: $0 (break-even)
- Time: 2,400 hours
Effective hourly rate: $0/hour
Worked full-time for a year to break even.
Case Study 2: Home & Garden (18 Months)
Investment:
- Total ad spend: $32,000
- Tools/platform: $2,400
- VA help: $9,000
- Total: $43,400
Results:
- Revenue: $180,000
- Gross profit: $72,000 (40%)
- Net after all costs: $28,600
- Time: 2,800 hours
Effective hourly rate: $10.21/hour
18 months to earn $10/hour effective.
Case Study 3: High-Ticket Furniture (24 Months)
Investment:
- Total ad spend: $85,000
- Tools/platform: $3,600
- Team: $24,000
- Total: $112,600
Results:
- Revenue: $680,000
- Gross profit: $340,000 (50%)
- Net after all costs: $227,400
- Time: 3,600 hours
Effective hourly rate: $63.17/hour
2 years and $112K invested to reach $63/hour effective.
Pattern: Successful dropshippers invest 2,000-4,000 hours and $20K-$115K over 12-24 months to reach $2K-$10K monthly.
Platform Comparison: Where Do Dropshippers Earn More?
Shopify Dropshipping
Average income:
- Beginners (0-6 months): $200-$1,500/month
- Intermediate (6-18 months): $1,500-$6,000/month
- Advanced (18+ months): $5,000-$25,000+/month
Advantages:
- Full control over branding
- Better margins (no platform fees like Amazon)
- Custom checkout experience
Disadvantages:
- Must drive ALL traffic via ads (no organic marketplace traffic)
- Higher ad costs required
- More technical setup
Amazon Dropshipping
Average income:
- Beginners: $300-$2,000/month
- Intermediate: $2,000-$8,000/month
- Advanced: $8,000-$40,000+/month
Advantages:
- Built-in marketplace traffic
- Customer trust (Amazon brand)
- Prime shipping expectations
Disadvantages:
- Higher fees (15% referral + FBA fees)
- Stricter policies
- More competition
- Account suspension risk
eBay Dropshipping
Average income:
- Beginners: $200-$1,200/month
- Intermediate: $1,200-$4,000/month
- Advanced: $4,000-$15,000+/month
Lower income overall due to buyer expectations for lower prices and slower shipping.
Why 90% of Dropshippers Fail
The statistics are brutal:
Only 10-15% of dropshippers make consistent profit (3+ months profitable).
Why?
Reason 1: Underestimate Capital Requirements
Most start with: $500-$2,000 Actually need: $5,000-$15,000 minimum
Run out of money before finding winning products.
Reason 2: Can’t Afford Customer Acquisition Costs
The math doesn’t work:
- CAC: $20-$40
- Profit per sale after ads: $3-$8
- Net: Losing money per sale
Burn through budget quickly.
Reason 3: Product Testing Costs Exceed Profits
Reality:
- Test 15 products at $500 each = $7,500
- Find 1-2 winners
- Winners die in 60 days
- Back to testing
Constant testing prevents profitability.
Reason 4: Give Up Too Early
Most quit at month 4-8:
- Invested $5,000-$12,000
- Made $1,000-$4,000 revenue
- Net loss: -$3,000 to -$10,000
- Burned out from 60-hour weeks
Success requires 12-18+ months for most.
The Better Alternative
Here’s what dropshipping rarely delivers:
Predictable income without massive ad budgets and constant product testing.
Local lead generation delivers this:
- No inventory or product sourcing
- No ad spend required (SEO-based)
- No customer service nightmares
- 90-97% profit margins
- Predictable recurring B2B revenue
- Reaches $3K-$10K monthly in 8-14 months vs 18-36 for dropshipping
Per site model:
- Build: 40-80 hours
- Rank: 3-6 months
- Generate 10-30 leads monthly
- Rent: $500-$2,000/month
- Maintain: 2-5 hours/month
To make $5,000/month:
- Dropshipping: 18+ months, $20K-$50K invested, $10K+ monthly ad spend, 60-80 hrs/week
- Lead gen: 8-12 months, $3K-$8K invested, $0 ad spend, 20-40 hrs/month
Those researching how to actually make money dropshipping should calculate real costs vs lead gen alternatives.
Common Objections Answered
“But people make millions dropshipping!”
Yes—0.1% do after 3-5+ years, teams, and $200K-$500K+ invested. Is that the bet you want to make?
“I can start dropshipping with $500!”
Technically yes. Realistically no. You’ll test 1-2 products, fail, and quit. Need $5K-$15K minimum to have real shot.
“What about organic social media traffic?”
Works for <5% who build massive followings over 18-36 months. Most need paid ads.
“Isn’t lead gen saturated?”
19,000+ US cities × 50+ service niches = 950,000+ opportunities. Dropshipping has millions of competitors globally.
The Bottom Line
Realistic dropshipping income expectations:
- Months 1-6: $0-$800/month (90% lose money)
- Months 7-12: $300-$3,000/month (70% still unprofitable or barely break-even)
- Months 13-18: $1,200-$5,500/month (50% reach here, most quit before this)
- 18+ months: $2,000-$10,000+/month (Only 10-15% achieve consistently)
To reach $5,000/month requires:
- 18-24 months consistent work
- $20,000-$60,000 invested in ads
- 60-80 hours weekly ongoing
- Constantly finding new winning products
- $8,000-$15,000 monthly ad budget to maintain
And carries massive risks:
- 90% failure rate
- Capital intensive
- Ad account bans
- Product winner lifespan measured in weeks
- Platform dependency
- Never becomes passive
Local lead generation offers:
- $5,000/month in 8-14 months (vs 18-24)
- $3K-$10K total invested (vs $20K-$60K)
- 10-20 hrs/week after build (vs 60-80 ongoing)
- No ad spend required ($0 vs $8K-$15K monthly)
- 20-30% success rate (vs 10% dropshipping)
Stop chasing the dropshipping dream that works for <10%. Build digital assets with better odds and lower capital requirements.
Click here to see how lead generation beats dropshipping for realistic income without $50K+ ad spend or 80-hour weeks.

Mark is the founder of MarksInsights and has spent 15+ years testing online business programs and tools. He focuses on honest, experience-based reviews that help people avoid scams and find real, sustainable ways to make money online.