The dropshipping market is growing exponentially, and according to reliable sources, the industry is worth an average of $ 150 billion in market size. In 2022 and the coming five years, the industry is expected to grow steadily.
Thus, if you plan to start your dropshipping company, it is time to jump-start your journey. But most entrepreneurs ask themselves how much it costs to start a dropshipping business.
How Much Does it Cost to Start a Dropshipping Company?
In a nutshell, you can start your dropshipping business with minimal capital, especially if you have an active website, IT skills, and a free online store. However, if you want to build a profitable brand that will bring back enough profits, it is imperative to have a good budget when starting your business.
Arguably, the dropshipping business is the leading e-commerce business that is quite flexible and very easy to start. With this model, you don’t have to invest in inventory; thus, it eradicates costs associated with renting warehouses or hiring employees.
Also, the product is sent directly from suppliers to the customers, thus zero middlemen to share your profit margins. When considering the costs of dropshipping, it is essential to consider the following factors:
Cost of Setting up your E-commerce Platform
When starting your dropshipping journey, it is essential to consider some fundamental things, such as the dropshipping cost of setting up your Shopify store and acquiring a domain name. On average, the price of setting up a professional Shopify store is $ 29, and obtaining a good domain name is $19. If you have zero IT skills, you will need to hire website designers to ensure your store is customized and professional. Thus the average cost is around $ 73.90.
Cost of Sampling
Although there are some free dropshippers with no membership fee, another primary dropshipping cost you should consider is that of ordering and shipping samples. The price will differ depending on the niche of your products. The average cost involved in this process is $ 100.
Cost of Improving Functionality
Other costs involved are the costs of adding functionality to your store. You can incur an average of $ 15 to add features such as bulk pricing apps or pop-ups for your store.
Since the dropshipping market is very competitive, it is imperative to market your products. You can use marketing channels such as Facebook ads, email campaigns, or advertising your products on your social media accounts. The cost of marketing your dropshipping store is an average of $ 100 but can be lower or higher depending on the marketing channel you select. Of course, there are still some ways to drive free traffic to your store.
Suppliers and Products
It is also imperative to ensure that you find suppliers and products for your dropshipping store. You can find products from stores such as AliExpress and select your best products. The cost of finding suppliers and products for your store should not cost you anything.
What are the Limits of Starting a Dropshipping Company with no Money?
As stated earlier, you can start dropshipping company without incurring even a single cost if you opt for free services on the internet. However, you will incur some challenges in the process of setting up your dropshipping store.
Lack of Professionalism and Functionality in the e-Commerce Store
The online stores offer free apps or extensions. However, the free versions may not provide a professional user experience. Thus if you want a smooth experience in running your store, it is essential to pay close attention to the functionality of your store.
To remain competitive in the dropshipping market is imperative to have a good marketing strategy. If you opt to use SEO, it might take time to yield results. Since the competition is very stiff, try to dedicate resources to your marketing efforts.
Limits your Chance of Establishing a Great Brand
A good brand should have quality logos, images, and a professional website. If you fail to dedicate resources to the building of your store, your brand will hurt in the long run.
The average cost when you want to start dropshipping business in 2022 is $ 200- $ 300. Dedicating resources to building your dropshipping business is integral and helps to be outstanding in the market. The most crucial areas you should consider investing in are designing a premium Shopify theme, investing in quality images, and marketing your products via push notifications, email, or Facebook ads.