How much does it cost to start a drop shipping business?
This is a question I get asked a lot. The startup costs are pretty low, let me break it down:
Shopify Store: $29
Yep, that’s pretty much it!
$39 start-up costs!
If you wanted to be fancy, you could pay for your own videos, pay for a fancy website theme etc, but those things are just nice to have. They are not essential.
However setting up is the easy bit, making money is the harder bit. You probably won’t make money right away. I hate to be cliche, but you have to spend money to make money.
Let’s say you decide to go via the Facebook ads route. You can easily burn an infinite amount of money trying to find a winning product. However, if you have done your research, and know what products are likely to be successful. Then it’s typical to spend around $300 before you start making money.
Let say you decide to take up google ads, from my own experience the threshold is slightly higher, typically around $500 is needed, to test different ad types and ad copies etc, before you will start turning over a profit.
If you are on a budget, you can take advantage of free marketing routes, like Instagram. Let’s say you are dropshipping BMX accessories (for example), simply set up an Instagram account, and likely every picture with the hashtag #bmx. It’s a slow process, but it will give you a ton of exposure (to BMX fans) and it will cost you nothing.
The cost depends on how aggressively you want to grow your business. But generally, you are looking at $39 to $1,000. If you are just liking Instagram posts, it is unlikely that you will turn over $1mil in your first year. With Facebook / Google, the possibilities are endless.The main cost of setting up a dropshipping store is more about the time-cost, rather than money-cost.