Dropshipping: How Much Does It Cost To Start?

August 17, 2019 0 Comments
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AliexpressGet inventory for your Shopify store

A Shopify store is one of the most inexpensive online businesses you can start. Below you can see your expected startup costs for a dropshipping store.

Shopify– Obviously you need a Shopify account for your store. The first 14 days are free, after that you pay $29.99 a month.

Domain name– You need a domain name for your store. I suggest taking a few days to decide on a domain name that you really love. If you have multiple domain ideas and you are struggling to decide, I suggest asking a few friends what they think. 

Don’t be lazy and settle for a .net domain or some other extension, make sure it is a .com domain. Also get the privacy option so people can’t see who owns the domain. I recommend Godaddy.com for your domain purchase. Expect to spend about $25 for a domain name with privacy.

A logo– You need a logo to represent your store. You can make one yourself in photoshop if you have the skills to do so. If you can’t make your own logo I suggest using freelancer.com or fiverr.com to find a good logo designer.

Be prepared to tell the designer what you want the logo to look like and what colors you want to use. You can expect to pay about $15 for a decent logo.

List building Shopify app– Their are a gazillion list building Shopify apps. People that use the spin for a discount apps seem to be getting the most emails. I suggest trying one of those on your store. Expect to pay about $10 a month.

Aweber– Aweber is an email marketing company that can be integrated with your list building Shopify app. Aweber will store all of your email subscribers and allow you to contact them in the future when you have news related to your store. 
Aweber cost $19.99 a month for up to 500 emails. The price goes up as your email list gets larger.

Advertising budget- You need some money set aside to advertise your store. I would suggest at least $250 for the first month. I recommend use Facebook ads to promote your store.

Those are the only items you have to spend money on if you want to start a dropshipping store. All together you need $350 to get your store live and start advertising it.

I also recommend the items below which won’t cost you a thing to use.

Oberlo Shopify app– This is the Shopify app most dropshipping stores use to import products into their online store. Luckily they have a starter option that beginners can use at no charge. The starter version lacks features like order tracking and the ability to place bulk orders, but it is still a solid option for new stores.

Once you start making consistent sales I suggest upgrading to the  basic version which i $29.90 a month

Improved Contact Form Shopify App– This is a free Shopify app that allows people to contact you if they have questions about your products. I use it on my print on demand (POD) Shopify store, it is very easy to setup.

Shopify theme– I suggest starting your store with a free Shopify theme. They are usually pretty plain, but they will work find for a brand new store. Once your store starts to make a little money you can purchase a premium Shopify theme.

Aliexpress account– It doesn’t cost anything to join Aliexpress.com. The only time you will spend money is when you purchase an item to be sent to one of your customers.

Conclusion

As you can see, dropshipping has a very low barrier to entry. You can get started with $350. That is great because many online business opportunities require a large upfront investment.

The low barrier to entry also means more competition. With so much competition you have to find ways to pick better products and market them at a lower cost if you want to succeed with your store.

Filed in: Dropshipping, Ecommerce • Tags: ,

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