Revenue Is the Number That Lies. Here's the One That Doesn't.
A store can post a growing $10,000-a-month revenue screenshot for four straight months while quietly losing more money every month — this plan works through a real worked example where a 120-order, $10,000 month nets a $2,010 loss because contribution margin, not revenue, is negative. It builds outward from the one formula that should be worked out before you pick a product: break-even ROAS equals 1 divided by your contribution margin, checked against an industry average near 2.87x where roughly half of all stores fall below 2x.
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Built From Real Numbers
Compares all six e-commerce models side by side — dropshipping, print-on-demand, digital products, handmade, wholesale resale, and private label — by startup cost, margin, and real risk, so you pick a model instead of drifting into one.
Covers the sales tax nexus traps that followed South Dakota v. Wayfair, including how a third-party fulfillment center can create nexus in twenty states you've never set foot in, and the FTC's 30-Day Rule on shipping delays.
What's Inside
- A break-even ROAS and contribution margin calculator to run before you choose a product
- A six-model comparison table: dropshipping, private label, digital products, handmade, wholesale, and print-on-demand
- Sales tax nexus guidance covering the marketplace trap and the fulfillment-center trap
- The FTC 30-Day shipping rule and what a delay notice legally requires
- Payment processor risk: rolling reserves, the MATCH list, and how to avoid a same-day termination
- A digital products path for veterans starting with no capital — priced at $9 to $49 per product
- A state nexus monitor and a fulfillment compliance gate checklist
- A 90-day launch plan tracking contribution margin per order
