Dropshipping is an incredibly affordable way to start making a bit of cash online. If you have a limited budget, then you can get started with dropshipping pretty easily. However, do bear in mind that there are some dropshipping costs that you need to be aware of.

On this page, we are going to talk about these dropshipping costs and, hopefully, by the end of this, you will know the answer to the question, 'How much does it cost to dropship?'

Costs of Starting a Dropshipping Business

When it comes to answering 'How much does it cost to start dropshipping,' there is a lot to think about. Obviously, a good chunk of the costs won't need to be paid for until a customer has paid you (i.e. when you buy the actual product to send out), but a few dropshipping costs are going to be there, whether you are selling items or not.

Products & Suppliers

There are a lot of dropshipping suppliers out there. If you want to start dropshipping, then you are going to need to choose at least one of them. The problem is that most of these dropshipping suppliers will charge membership fees, which are prohibitively expensive if you are not really selling anything. This is why we recommend that you use SaleYee.

SaleYee is completely free to use, and you will have access to over 20,000 products across thousands of sellers. This means tracking down a dropshipping supplier is going to be dead simple.

No matter what dropshipping niche you are planning to operate in, SaleYee is going to have exactly what you need. SaleYee is probably the quickest way to hook yourself up with a multitude of different suppliers. You do not need to use any other method.

Marketplace

Obviously, you need somewhere to list your products. If you don't have a web store, then your products won't sell. Simple as that. This means that you will need:

· A domain name

· A web store application

Now, in theory, you could save a sizeable amount of cash here by hosting your own web store. This could save upwards of $20 per month. However, it is not something that we would recommend. If you opt for cheap hosting, then you have no guarantee that your site will be loading up fast. This could turn customers away. It is best to run your website on Shopify. This will set you back $29.99 per month, but it is worth it. The Shopify platform is easy to use. It is expandable and, perhaps more importantly, your website will be up when you need it to be up. This means your customers can buy from you.

Your domain name will be roughly $15 per year.

If you do opt for Shopify, then you will need to expand the platform a little bit with some plugins. Some of these are free, but others may cost a sizeable sum of cash. Choosing optimal plugins for your site may set you back $100-$200, if not a little bit more. It is worth it as they can lead to more sales, however.

Marketing

Do you have to pay for dropshipping marketing? Yes. Yes, you do. Obviously, there are ways in which you are able to market your business for free, but these methods are long-winded and time-consuming. If you only use free marketing methods, then it may take months and months for you to see your first sale.

Obviously, since these free marketing methods will be taking up a sizeable amount of your time, you won't be able to focus on other aspects of your business. This means that your dropshipping company will suffer.

The amount of money that you spend on your marketing each month is up to you. If you do it right, then it shouldn't matter how much you are spending on your marketing, because you will be able to turn a profit. At the start of running a dropshipping business, we wouldn't recommend starting with under $1,000 per month. The more you spend, the better. This money will be mostly spent on advertising on social media, although some people will also market themselves on Google Ads too. You may even want to dabble in YouTube ads too.

Other Business Expenses

You will also need to think about a few other business expenses. Not all of these will be ongoing costs, and they will differ depending on where you are located. However, it is vital to think about things such as the cost to register your business when it comes to thinking about how much does it cost to start dropshipping.

You will need to look into the rules and regulations for your area to get a rough idea for how much you should be spending on the other business expenses, but at the start, it is likely going to be around the $200 mark to get your business fully registered.

Some people may also want to get a dedicated phone number and mailbox for their business...just to give their company a bit more of a professional look. This can be anywhere from $50+ per year just for the phone number, but the mailbox may set you back several hundred dollars. This means that it may not be something that you want right at the start. That money is probably better spent on the marketing side of your business.

Conclusion

Dropshipping is going to set you back a rather sizeable sum of cash if you want to do it properly. However, in the grand scheme of things, the dropshipping costs are going to minuscule in comparison to any other type of online business.

Theoretically, you could get started with dropshipping with the smallest amount of cash possible, but we wouldn't recommend doing it unless you can spend at least $1000 a month. Although, at that point, the sales should roll in rather quickly.