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A £100,000 sales month doesn’t tell you how much money remains in a business. In this episode, Lewis Smith and James Eardley go beyond the sales notifications and work through an illustrative month for a UK high-ticket ecommerce store.

They follow the example through VAT, product costs, advertising, payment processing and running costs, discussing a rounded result of about £25,000. Both hosts make clear that the outcome depends on the assumptions: your supplier terms, products, advertising performance and overheads can all change it.

Along the way, Lewis and James share what their early low-ticket stores taught them about margins. They finish with a listener question about whether to start with one Google Ads Performance Max campaign or create a separate campaign for each brand.

👉 Know someone trying to make sense of dropshipping sales figures? Share this episode with them.
https://www.youtube.com/watch?v=FDssjKrc-xE

Links and Resources Mentioned

🛒 Shopify → https://dropshipunlocked.com/shopify

📞 Professional Phone Line → https://dropshipunlocked.com/circle

📊 Dropship Unlocked Profit Tracker — The member tool Lewis and James discuss for checking order margins and VAT.

📣 Google Ads / Performance Max — Discussed in the advertising breakdown and listener Q&A.

🛍 AliExpress — Mentioned in Lewis and James’s experiences with low-ticket products.

📧 Google Workspace — Mentioned as part of the store’s running costs.

Key Takeaways

★ Start With The Right Sales Figure — The discussion distinguishes the amount customers pay from sales excluding VAT, then looks at the costs of generating those sales.

★ Supplier Terms Deserve Attention — Product costs make up a large part of the example. Lewis and James explain why strong supplier relationships and negotiated margins can affect the result.

★ Advertising Has To Fit The Numbers — Both hosts recall selling low-ticket products where the cost of attracting a buyer made it difficult to build a sustainable business.

★ Remember The Running Costs — Processing fees, subscriptions, email, apps and a phone line all need a place in the picture.

★ Results Depend On The Assumptions — The roughly £25,000 figure is the hosts’ illustrative outcome, not a universal margin or a personal earnings promise.

★ Use Campaign Results To Decide What Comes Next — Lewis describes starting with one Performance Max campaign for suitable products, learning from the data and separating stronger performers later.

Learn More

➡️ When people are ready to create time and financial freedom for themselves, they visit → https://dropshipunlocked.com/start?utm_source=blog&utm_medium=podcast&utm_campaign=ep209-100k-in-dropshipping-sales-how-much-do-you-actually-keep

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Topics Discussed

★ Revenue And What Remains — Why sales notifications don’t show the complete financial picture.

★ VAT In The Example — The difference between VAT-inclusive sales and sales excluding VAT, and Lewis’s explanation of input and output VAT.

★ Paying The Supplier — How product costs and negotiated terms affect the amount left to cover advertising and other costs.

★ Learning From Low-Ticket Products — Lewis’s experience selling ties and James’s experience with inexpensive products sourced overseas.

★ Allowing For Ad Spend — The hosts use £10,000 of advertising in their illustrative month and discuss why margin gives you more room to acquire sales.

★ Stock And Cash Flow — Lewis and James discuss the trade-off of supplier fulfilment and not buying stock upfront.

★ Processing Fees And Overheads — The costs they include for taking payments and running the store.

★ Improving The Same Sales Month — Supplier terms, ad efficiency, product selection, SEO, visibility in AI tools and unnecessary subscriptions all come into the conversation.

★ Thinking About What Comes Next — Lewis shares his perspective on retaining or investing business-generated money and the longer-term motivation behind building a business.

★ Listener Q&A: Performance Max — Why Lewis would start with one campaign, exclude unsuitable products and let the data guide later changes.

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★★★ Dropship Unlocked – Lewis Smith ★★★

How to Launch a UK Dropshipping Business Offering Next-Day Delivery...

...Even If You Don’t Yet Know Which Products To Sell.

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