Industry benchmarks for Apparel Dropshipping
Break-even ROAS for apparel dropshipping lands between 1.9x and 2.3x, because supplier cost plus shipping consumes 45-50% of a $40-50 order before a single impression is served. Prospecting CPMs on Meta for broad apparel audiences run $14-24 in most Western markets, and cold-traffic conversion sits at 1.4-2.6%. Returns and exchanges add another 15-25% drag, since sizing is the single largest reason apparel comes back. That leaves roughly 48-52 cents of contribution per revenue dollar, which is what sets the 2x floor.
The dominant lever here is average order value, not cost per acquisition. Lifting AOV from $45 to $60 through two-item bundles, tiered discounts, or curated collection pages cuts break-even ROAS by 15-20% without improving ad efficiency at all. The second lever is fit accuracy: published model measurements and per-SKU fit notes typically remove 4-8 points of return rate, and every point of returns avoided is pure contribution. Negotiating supplier cost down by even $2 per unit moves break-even more than most creative testing does.
Frequently asked questions
Break-Even ROAS Calculator for Apparel Dropshipping, answered.
What is a good ROAS for apparel dropshipping?
Above roughly 2.0x is profitable at typical dropship margins, and the category average achieved ROAS is about 2.1x. Below 1.9x you are paying for the privilege of shipping orders.
Why is break-even ROAS so high in apparel dropshipping?
Supplier cost and shipping together eat close to half of revenue, so each dollar of sales returns only about 50 cents of contribution, putting break-even near 2x.
Should returns be included in the break-even calculation?
Yes. Fold your expected return rate into effective COGS. A 20% return rate on a $45 order raises break-even ROAS by roughly 0.3-0.4x.