To a lot of people, dropshipping sounds like a very lucrative business that can fulfill your entrepreneur dream. However, the truth is, like any other businesses, starting has never been free, and there will always be an upfront cost. But how much does it exactly cost to start a dropshipping business?
In this article, we will break down all the necessary costs you need to start a dropshipping business. Do keep in mind that the calculations made in this article can only act as a guide, and the costs may vary by country, niche, and ultimately your decisions.
- Shopify: account and theme
Opening a Shopify account is the very first thing you need to have when you start a dropshipping business. Shopify is the number one ecommerce platform out there. They have a 14-day free trial, and it would cost $29 per month after that with their basic plan.
After you’ve opened an account with Shopify, the next step is to choose a theme for your store. Now, there are thousands of themes to choose from, some are free and some are paid. What we suggest is you should always start with free themes that are provided by Shopify first. You would rather invest your money wisely on areas you need the most, something that can help you make more sales – advertising (we will talk about this later in the article).
Cost of Shopify $29
- Shopzie: account
Shopify only covers the store part of your business, and now it’s time for the dropshipping part. Like Shopify, Shopzie also has a 14-day free trial, and after that it would cost $19 per month for the starter plan, and $79 for the pro plan. When you are just starting out, our starter plan is the best choice for you.
Getting a dropshipping automation tool like Shopzie is a must because it saves you an incredible amount of time. If you ask anyone that is in the dropshipping industry, all of them would agree that it is necessary to invest in a technology like Shopzie that increases the productivity and efficiency of your business. With functions like 1-click fulfillment and product import, you can a save a lot of precious time.
Cost of Shopify $29 + Cost of Shopzie $29 = $58
- GoDaddy: domain
Once you’ve set up your account with Shopify and Shopzie, it’s time to secure your domain. The best recommendation we have when it comes to purchasing a domain is GoDaddy. You should always try to buy domain names that end with “.com”, “.net”, or “.co” as these three URL extensions work best with ecommerce.
You can get started for as low as $3.99 to $19.99 USD per year. A simple tip is that you can also try searching on Google for “GoDaddy coupon” and you can get additional savings with it. We also don’t recommend going for premium domains as those may cost you thousands of dollars.
Cost of Shopify $29 + Cost of Shopzie $29 + GoDaddy Domain $3.99 = $61.99
- Google or Fiverr: logo
If you are a graphic designer, then you don’t have to worry about getting a logo done. But this doesn’t mean you have to dish out money even when you are not.
You can simply go to Google and head to their Images section, and type in “your niche logo”. For example, “dragon logo” will be what you can search for. Once the results come up, do not use any of the logos there right away as you might get in trouble with copyright infringement. To avoid that, you need to click on Tools under the search bar and change the Usage Rights to Labeled For Reuse. By doing so, you will only see logos that can be legally used.
If you don’t like any of the logos you’ve found on Google, Fiverr would be your best and cheapest alternative. Fiverr is a freelancer marketplace and you can hire talents to get a logo done for as little as $5.
Tip: ask for a transparent background in PNG format for your logo. This will eliminate the white box around it and make your logo look more professional.
Cost of Shopify $29 + Cost of Shopzie $29 + GoDaddy Domain $3.99 + Google Logo $0 = $61.99
- Facebook: advertising
This one is a biggie. Advertising is probably the area where you will spend the most amount of money on, and most dropshippers concentrate their advertising on Facebook. However, unlike other areas in starting a dropshipping business, marketing is very hard to put a specific price tag on it. It’s almost impossible to say exactly how much money you need to spend on marketing because this all depends on your country and niche. The cost can range from as little as $5 a day to thousands of dollars a month. Facebook does not have a minimum spend and you have complete control of your ad budget. But through the research we’ve done, a good starting point to spend on advertising is roughly around $300.
Cost of Shopify $29 + Cost of Shopzie $29 + GoDaddy Domain $3.99 + Google Logo $0 + Advertising $300 = $361.99
- Shopify: apps (optional)
Apps are totally optional, but you might find a few of them very useful. The Shopify App Store offers thousands of different apps, some of them are free and some are paid. But for calculation sake, let’s say that you’ve found a paid app that your business absolutely can’t live without. For example, an app like Abandonment Protector that retains your customers’ abandoned orders through email marketing. It costs $8 per month with a 30-day free trial.
Total startup cost for dropshipping
With all things combined, we’ve concluded that it costs approximately $359.99 for you start a dropshipping business:
Cost of Shopify $29 + Cost of Shopzie $29 + GoDaddy Domain $3.99 + Google Logo $0 + Advertising $300 + App $8 = $369.99 TOTAL
To some, this may seem a lot of money. To others, this seems like an appropriate amount. Whatever your thoughts may be, just remember that the total sum you spend to start your business is an investment. It doesn’t matter what we’re doing, whether we’re buying stocks or launching businesses, we invest in things because we believe in them to have a profitable return.
With that said, here are also 3 tips for you to save money when you’re starting dropshipping.
3 tips to save money
- Credit card cashback: there are a ton of credit cards available in the market that offers cashback for every transaction you have. Since you’re building a business, you should have a separate credit card for all the expenses of your business. This way, you can quickly generate cashback from your credit card and easily manage your expenses.
- AliExpress cashback: You can earn up to 10% cashback on AliExpress every time you process your orders through Shopzie. Similar to credit card cashback, this method can save on your future purchases.
- ePacket: When you’re choosing products to dropship, you should always try to look for something that offers ePacket. This delivery option is the cheapest and fastest compared to other ones on AliExpress, plus it also comes with tracking information. Shopzie’s Chrome extension has a filter that quickly helps you find products that offer ePacket, without you clicking into the product listing.
We hope that this article can give you a better idea of how much it costs to start dropshipping. Spending money to launch a business can sometimes seems like a lot, but we’re doing it because we want to achieve the financial freedom that we dream of. The costs that are calculated in this article can only act as a rough guide. Once your online business starts to grow, it’s normal to expect to have bigger costs, but even bigger returns.