Dropshipping Dropshipper and Reseller Ultimate 5

Question 1

Which calculation gives a product's true profit per sale in dropshipping?

Accepted Answer

Selling price minus product cost, shipping, fees, and ad cost

Answer

Real profit subtracts every variable cost—product, shipping, transaction fees, and advertising—from the sale price.

Question 2

What is 'breakeven ROAS'?

Accepted Answer

The ad-spend return at which profit equals zero

Answer

Breakeven ROAS is the return on ad spend where revenue exactly covers all costs, yielding no profit or loss.

Question 3

A reseller should issue a 1099-K-relevant record because:

Accepted Answer

Payment processors report gross sales to the IRS

Answer

Payment processors report gross transaction volume on Form 1099-K, so sellers must track income for taxes.

Question 4

Which supplier red flag most strongly suggests a scam wholesaler?

Accepted Answer

Charging large upfront membership fees to access prices

Answer

Legitimate wholesalers earn from product sales, not steep fees just to view their catalog.

Question 5

What does MOQ stand for in supplier negotiations?

Accepted Answer

Minimum Order Quantity

Answer

MOQ is the smallest quantity a supplier will sell in a single order.

Dropshipping Practice Test