How much does it cost to start dropshipping
Dropshipping has become an increasingly popular business model for newbies, and it’s an attractive option for those looking to start an online business with minimal upfront investment. However, there’s a common misconception that dropshipping is “free” and costs nothing.
In reality, like any business, dropshipping involves some expenses that need to be accounted for. Many “experts” claim that it’s possible to start a dropshipping business for less than $100 or even for free. While technically possible, is that minimum budget really enough to build a fully functional, competitive online store? Can you expect to achieve actual sales and profits on such a tight budget?
This article will break down the actual cost to starting dropshipping in 2025, from setting up an online store to marketing and order fulfillment, so you can get started with reasonable expectations and ultimately succeed.
What are the biggest costs of dropshipping?
While dropshipping doesn’t require you to buy inventory upfront, there are still a lot of costs involved in running this business. For example, setting up an online store, finding suppliers, and marketing your products. While you don’t pay until a customer purchases a product, other expenses can quickly add up.
Here are some of the most basic costs when starting a dropshipping business:
Setting up your online store
Domain registration fees typically cost $10 to $20 per year. Once you’ve registered your domain, you’ll need to choose a platform to run your store on (such as Shopify or WooCommerce), which may charge a monthly fee or a fee for each sale.
Take Shopify, the most common, for example.
Shopify Basic Plan: $36/month
A domain name (from Shopify or a registrar like GoDaddy or Namecheap) costs about $15 per year.
Transaction fees: Shopify charges 2% of sales, which works out to $240 per year for $12,000 in sales.
Product Samples and Returns
After setting up your Shopify online store, the second most important platform to choose is to choose a supplier to source from or dropship from, and see if they have an app that allows you to access the products you want to import and sell in your store.
Indeed, finding a trustworthy dropshipping supplier or platform is critical to success. Most platforms charge a subscription fee or transaction fee, but there are also platforms that offer free plans. Finding a reliable supplier is one of the most important investments in your dropshipping business. Some supplier directories are free, but some require a fee to access their network. In addition, you may want to order product samples to check the quality before selling, and each sample may cost between $10 and $50 or even more. While product sourcing is usually a one-time cost, it is crucial to carefully vet suppliers to ensure product quality and reliable shipping. This can save you money in the long run by avoiding bad customer experiences. You should test products before listing them to ensure quality and customer satisfaction. We recommend testing 1-2 products per supplier.
The average cost of sampling is about $200, which varies depending on the market segment and product type.
Expert advice: Don’t rely on just one supplier. To avoid inventory issues or poor service, consider looking for other suppliers and diversifying your options.
Marketing and Advertising
Marketing and advertising are essential to attracting customers to your store. Initial advertising costs (especially social media ads or Google ads) may be low in the beginning, but can increase as your business scales. A small budget of $100 to $300 per month is common for new stores, but larger budgets may be required as you scale up your advertising campaigns or work with influencers. These costs depend on the marketing channels you choose, but a sound marketing strategy is essential to driving traffic and sales.
Main Marketing Channels:
- Ads on Facebook, Instagram, and TikTok.
- Google Shopping ads: for expensive items.
- Optimizing your store for organic traffic is called SEO.
- Content marketing includes influencer partnerships, videos, and blogs.
Estimated Marketing Expenses:
- An initial advertising budget of $500 to $1,000 per month for Facebook ads and Google ads.
- SEO tools (e.g. Shopify SEO plugin) cost about $30 per month.
- Content creation: Hiring an independent contractor to create a blog post or video can cost between $100 and $300, but it’s not necessary.
What is the total cost of starting a dropshipping business?
- Domain name: $15/year
- Shopify store (Basic plan): $36/month (plus 2% transaction fee)
- Dropshipping platform (like AppScenic): $29/month
- Product samples: $200 (one-time)
- Marketing (Google/Facebook ads): $500-1000/month
- Required apps (SEO and conversions): $60/month
Total startup costs: about $2,000 (one-time setup)
Of course, the total cost can vary based on a number of factors, including your location, the number of products you want to test, the LLC you choose, the dropshipping platform you choose, and whether you take a dropshipping course.
We have no way of knowing how much it will end up costing you, but what we can tell you is that your dropshipping business will cost you more than $1000 if you start with minimal costs.
As a professional dropshipping supplier in China, Shipbrandx will support you every step of the way. We offer a wide range of products and services to help you streamline your business, from reliable sourcing to efficient delivery. We encourage you to start your business with a solid budget and a clear growth strategy. Plan for the future, track your spending, and scale up gradually. In this way, you will be more likely to build a profitable and thriving dropshipping business with the support of Shipbrandx.
Are you ready to start your dropshipping journey? Contact Shipbrandx today, we will help you build a successful business with reliable products, efficient solutions, and professional support. Don’t hesitate to take the first step to expand your business now
Typical costs include an e-commerce platform (such as Shopify), a domain name, marketing (such as Facebook or Google Ads), supplier fees, and optional tools such as automation software.
Technically, yes. Some platforms offer free trials, and you can also officially promote your store through social media. However, paid advertising is usually required to drive sales quickly.
No. Therefore, an initial inventory investment is no longer required.
Most startups spend $100 to $500 on initial advertising to test the product. However, prices vary depending on the platform, audience, and product demand.
Potential hidden costs include transaction fees, chargebacks, returns, and optional software tools that can improve business performance.
Yes, dropshipping can be profitable if you choose the right products, price them correctly, and manage marketing costs wisely.
Shopify is a popular choice, offering plans starting at $39 per month, but WooCommerce (free with WordPress) and other platforms like BigCommerce and Wix also offer alternatives.
Not always, but it depends on your location and the requirements of your supplier. Some suppliers may require a reseller license or a business license.
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