Starting a dropshipping business is like starting any other business: it takes money. But here’s the kicker — you don’t need a ton of cash to start, especially compared to other business models. In fact, you can get started with as little as $200–$500. However, how you spend that money is the real game-changer.
Let’s break down the costs you’ll face in the first month of starting a dropshipping store — including testing at least three products (because, let’s be honest, not every product is a winner).
1. Setting Up Your Online Store (Shopify)
Let’s start with the basics: You need a platform to sell your products. The most popular option is Shopify, and it’s the easiest for beginners. But there are also cheaper alternatives like Woocommerce (if you already have WordPress).
- Shopify*: $1/month for the Basic Plan (3 first month). $39/month from month 4.
- WooCommerce* (free to install) but you’ll still need a hosting plan (~$10/month for Bluehost).
But for simplicity, let’s assume you’re using Shopify for your first month.
Cost: $1-$39
2. Designing Your Store & Branding
A good-looking store doesn’t have to cost a lot of money. You can find free themes on Shopify or affordable ones for as low as $100–$200 if you want something premium.
For branding (logos, banners, etc.), you can either do it yourself with free tools like Canva, or hire a freelancer on Fiverr for about $30–$50.
- Free Theme: $0
- DIY Branding: $0 (Canva is free)
- Freelancer Branding: $30–$50
- Premium Theme: $100–$200 (One-time cost) Debutify* is a well used theme among dropshippers.
Debutify* is a top choice for dropshippers who want a clean, professional, and high-converting store—without needing to code or hire a designer. It includes powerful built-in features like upsells, trust badges, and sticky add-to-cart buttons, saving you money on paid apps. Instead of paying a big one-time fee like most premium themes, Debutify offers a monthly subscription—perfect if you’re just starting and want to stay flexible.
Total for Branding: $0–$200
3. Product Testing & Advertising
Now, the fun part: finding products to sell. This is where you’ll be putting your money to work. You need to test at least 3 products before you can confidently say “this one’s a winner!”
For testing ads, let’s say you start with Facebook ads (which are still one of the most cost-effective ways to drive traffic).
Here’s the breakdown:
- Ad Budget: Testing 3 products means you’ll need to run ads to see which one converts. You can start small with $5–$10 per day per product. But we would diffinetly recommend $50/day if your budget allows it. Lets go midway in the example below.
- Product 1: $25/day for 3 days = $75
- Product 2: $25/day for 3 days = $75
- Product 3: $75/day for 3 days = $75
- Total Ad Spend for Testing: $225
- Other Costs:
Total Testing Budget: $225 (for ads)
4. Product Cost & Shipping Fees
You only pay for products after someone makes a purchase in your store. But, you need to account for the cost of goods sold (COGS) and the shipping fees (which can vary depending on the supplier).
For this example:
- Average product cost: $3–$15 (depending on your niche).
- Shipping cost: $5–$10 (if you’re using AliExpress or similar suppliers).
If you sell one product at $25, your cost breakdown could look like this:
- Product: $10
- Shipping: $5
- Total Cost for 1 Product: $15
- Profit from 1 Sale: $25 (selling price) – $15 (cost) = $10
For testing, let’s assume you sell 3 products at different price points:
- Product 1 (lower cost, higher volume): $10 product cost + $5 shipping = $15
- Product 2 (medium cost): $12 product cost + $7 shipping = $19
- Product 3 (higher cost, lower volume): $20 product cost + $10 shipping = $30
This will vary greatly depending on the niche and supplier, but for now, let’s assume you need $50 for product costs in total to test all 3 products.
Total for Product Testing: $50
5. Miscellaneous Costs
You might want to add a small buffer for things you might forget or unexpected costs. This could be:
- Apps: You’ll likely need an app for order fulfillment or product imports (like DSers*). Many of these have free plans, but if you upgrade to a paid version, it can cost around $10–$30/month.
- Emergency Expenses: Extra for testing ads or unplanned purchases (like additional design work or apps).
Buffer: $100 (to give yourself room to breathe and not stress if the money starts running low)
📊 Total Cost to Start Dropshipping (First Month)
Let’s add it all up:
- Shopify (Store Setup): $1
- Branding & Store Design: $0–$200
- Advertising & Product Testing: $225
- Product Costs: $50
- Miscellaneous Buffer: $100
Grand Total: $376–$576
💡 My Recommendation: Start with a $1,500 Buffer
Starting with around $1,500 will give you the breathing room you need to comfortably test products, run ads, and pay for any unexpected expenses without stressing out when the money runs out. This amount allows you to get the ball rolling, test several products, and have enough cushion for the first few months as you find your stride.
Why $1,500?
It gives you enough runway to experiment and optimize your strategy — and let’s face it, the first few tries won’t always be perfect. With $1,000, you’re not just starting; you’re investing in learning the process and finding success.
🚀 Final Thoughts
Starting a dropshipping business doesn’t require a huge investment, but it does need a smart approach to budgeting. Testing products properly with enough ad spend and using tools to streamline your store setup will give you the best chance of success.
So, if you’re looking to give dropshipping a fair shot, I recommend you aim for that $1,500 buffer to truly test the waters without constantly looking over your shoulder at your bank balance. Stay focused, and the money you put in can come back multiple times over if you find the right product-market fit.
✅ Related Article:
Top 5 Dropshipping Apps for Beginners (2025 Guide)
Discover essential tools that help you source products, automate your store, and manage orders efficiently — even on a small budget.
*Disclaimer: This page contains affiliate links. I may earn a small commission if you make a purchase, at no extra cost to you. I only recommend tools and services that I personally use or believe can help you succeed in your dropshipping journey.
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