How Much Money Do You Need to Start Dropshipping?

Do you want to join the hordes of entrepreneurs eagerly throwing their life savings into the depths of the internet abyss, all in the name of starting a dropshipping business? Look no further, for I have penned a guide to the financial black hole that is e-commerce (Im kidding, btw.).

How Much Money Do You Need to Start Dropshipping?

The Low, Low Cost of Entry

Ha! Did you think starting a business would be expensive? Think again, my friend. The beauty of dropshipping is that it requires very little upfront investment, just the bare essentials, to get your virtual shop up and running. How much, you ask? Oh, only a couple hundred bucks or so. Here's a quick rundown of what you'll need:

  • A domain name: Sure, you could go with a free option like "," but if you want to look like a legitimate business, you'll need to fork over some cash for a domain. Let's say $15 a year for a .com domain.
  • Domain name hosting: You need hosting to store about website online and accesibble when you are asleep. With Namehero that we recommend, you would spend less than $100, and get a website online for entire year, which is a lot less than Shopify that all the "gurus" recommend.
  • A website builder: We recommend Brizy because it's what all the cool kids are using (not really). You'll have to pay around $50, so you would unlock all the features and WooCommerce integration.
  • A payment processor: How else will you get paid for your nonexistent products? A popular option is Stripe, which charges 2.9% + 30 cents per transaction. Of course, you don't have to pay for this before you make a sale, but I think I would include this in this post :).
  • Marketing costs: This is where things get a little tricky. You'll need to invest in advertising to drive traffic to your site, but the cost will vary depending on how you choose to market your business. Let's just throw out a random number here... $500 to start?

All in all, you're looking at a cool $600 to get your business off the ground. Easy peasy, right? Not exactly $0, but not a $100,000

The Hidden Costs of Success

So you've spent your hard-earned cash, and you're ready to start raking in the dough, right? Wrong. Unfortunately, there is a multitude of hidden costs that come with running a successful dropshipping business. Here are just a few to keep in mind:

  • Supplier fees: Many suppliers will charge a fee for using their products, and these fees can add up quickly.
  • Return shipping: When your customer receives a faulty product, who pays for the return shipping? You do!
  • Customer support: Running a business means dealing with angry customers. This can be time-consuming and stressful, but it's also necessary to keep your business running smoothly.
  • Inventory management: You're not actually holding any inventory, but you still need to keep track of what's selling and what's not. This takes time and effort, and you'll likely need to invest in a software solution to help manage it all.

And let's not forget the ever-present threat of chargebacks, which can cost you hundreds or even thousands of dollars in lost revenue.

The Cost of Your Sanity

Of course, the highest cost of starting a dropshipping business is not monetary but rather the toll it will take on your sanity. You'll spend countless hours scouring the internet for suppliers, negotiating prices, and dealing with the various headaches that come with running an online store. You'll also face constant competition from other entrepreneurs, many of whom are better funded and more experienced than you are.

But hey, the beauty of entrepreneurship is that it's a rollercoaster of emotions, right? You'll experience the thrill of making a sale and the despair of a customer complaining about a product that you never actually touched. The ups and downs of running a business can be enough to drive anyone to the brink of insanity.

The True Cost of Starting a Dropshipping Business

Starting a dropshipping business is often touted as a cheap and easy way to make money online. But, as with most things in life, the reality is far more complicated. While it's true that you can get started with a relatively small investment, there is a multitude of hidden costs that can quickly add up. In this guide, we'll take a closer look at the true cost of starting a dropshipping business and what you can expect to spend as you get up and running.

Essential Costs

There are a few essential costs that you'll need to consider when starting a dropshipping business. These are the bare minimum expenses that you'll need to incur in order to get your online store up and running.

WordPress Hosting

The first cost you'll need to budget for is WordPress hosting. This is the platform that you'll use to build your online store, and it's the foundation upon which everything else will be built. A good WordPress hosting provider like NameHero can be had for less than $100 per year, making it an affordable option for anyone looking to start a dropshipping business.

Brizy Page Builder

Once you have your hosting set up, you'll need to build your website. This is where a page builder like Brizy comes in handy. Brizy makes it easy to create visually appealing pages and layouts, even if you have no coding experience. A yearly license for Brizy starts at just $49, making it an affordable option for anyone looking to build a professional-looking website.

Optional Costs

While the costs we've outlined above are essential for getting your dropshipping business up and running, there are a number of optional expenses that you may also want to consider. These expenses will vary depending on your specific needs and goals, but they can help you achieve greater success and growth in the long run.


Advertising is one of the most important investments you'll make when starting a dropshipping business. Without it, your store is unlikely to generate much traffic, let alone sales. You'll need to spend a few hundred dollars at a minimum on advertising, but be prepared to invest more as your business grows. The exact amount you'll need to spend will depend on your target audience, marketing strategy, and goals, but it's a crucial expense that shouldn't be ignored.

Tools and Services

There are a number of tools and services that you may need to invest in as you start your dropshipping business. This could include an email marketing platform, an analytics tool, a product sourcing service, and more. While these expenses are optional, they can greatly enhance your chances of success and make running your business easier and more efficient.

The Bottom Line

Starting a dropshipping business is definitely doable with a small investment, but there are many hidden costs that can quickly add up. To get started, you'll need to budget for essential expenses like WordPress hosting and a page builder and consider optional investments like advertising and tools and services. With a bit of planning and smart budgeting, however, starting a successful dropshipping business is definitely within reach.

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