How Much Does It Cost To Start Dropshipping?

Ever dreamed of running your own online store without stocking shelves, packing boxes, or investing thousands upfront? That’s the appeal of dropshipping—a low-risk business model that’s helped thousands of entrepreneurs break into ecommerce with a laptop, a product idea, and a little hustle. But how much does it cost to get going?

“Ideally, you start with at least enough to order some test products or get a basic Shopify plan,” says Jacqui McLellan, a Shopify Community program moderator who works closely with merchants and partners. “But the more money you start with, the higher a leg up you get, as with most things in life.”

From ecommerce platform fees to paid ads, supplier fees to sales tax obligations, building a successful dropshipping business takes more than just picking a product and posting it online. Here’s a realistic look at startup costs, ongoing expenses, and budgeting tips to help you launch a profitable business in today’s global dropshipping market—with key insights from Jacqui.

Breakdown of dropshipping startup costs

• Website and ecommerce store setup
• Business registration and licensing
• Product samples
• Marketing and advertising costs
• Dropshipping tools and integrations
• Supplier fees and product costs
• Shipping costs and fulfillment
• Taxes and compliance

Costs can vary widely based on your dropshipping business model and how much you're willing to invest upfront. Here are some basic expenses to consider as you launch your new ecommerce business.

Website and ecommerce store setup

Creating your ecommerce store is a key step in starting a dropshipping business. Shopify is one of the most popular ecommerce platforms among dropshippers, thanks to its user-friendly interface and built-in tools tailored to online retail.

The basic Shopify plan costs $29 per month (paid annually), while also supporting unlimited product listings and up to 10 inventory locations. It integrates with major dropshipping apps like DSers, Spocket, and CJdropshipping, which automate order fulfillment and inventory syncing.

You can also create product collections, offer discount codes, and use Shopify’s abandoned cart recovery tool to improve conversions. Hosting, SSL certification, and a customizable online storefront are all included in the monthly fees, but a custom domain must be purchased separately for $16 annually. (Otherwise, you can use the free “.myshopify.com” domain.)

Business registration and licensing

Depending on your location and business structure, you may need to register your business or apply for a business license. Business registration fees range from $50 to $500 in the US, depending on where you live, with annual fees ranging from $0 to $800.

Setting up a legal business entity, like an LLC, can also help you avoid double taxation, protect your personal assets, and establish credibility with customers.

Product samples

Ordering product samples lets you test both product quality and shipping speed. Skipping this step means you risk selling poor-quality products or leaving customers with long delivery times.

“I don’t see a lot of people that are very successful with dropshipping without product samples,” says Jacqui. “Ideally, you want to know what you’re selling to other people.”

The price of sample products depends on your supplier, the type of product, and shipping costs. For example, products with a typical retail price of $20 to $50, sample orders (including shipping) often cost between $50 to $100. Shipping costs can bea significant part of the sample price, especially if you use express services. While some suppliers require a minimum order quantity (MOQ), many let you purchase single products for testing.

Marketing and advertising costs

Marketing is essential for driving traffic and sales, especially in a competitive dropshipping market. Most dropshippers start with paid ads on platforms like Facebook, Instagram, or Google, spending $5 to $10 per day. Expect to invest at least $100 to $200 per month to effectively test and scale your campaigns. Google’s Ads Cost Tool can help you estimate your budget.

Influencer marketing is another option. Nano-influencers (fewer than 10,000 followers) may charge $20 to $100 per post, while micro-influencers (10,000 to 100,000 followers) can cost several hundred. Larger influencers often charge $1,000 or more.

Email marketing platforms like Shopify Email, Mailchimp, and Klaviyo help with retargeting and nurturing potential customers. Consistent emails keep your brand top of mind for interested but undecided buyers. Most platforms offer free plans for small lists—costs typically range from $20 to $50 per month as your audience grows.

Dropshipping tools and integrations

Shopify offers a range of dropshipping tools that connect your store to reliable suppliers. Apps like DSers, AutoDS, and Spocket help with product imports, pricing updates, and automated order fulfillment.

“You could get away with not using an app, it’s just going to be a lot more work,” says Jacqui.

Most tools offer free trials, but expect to pay $20 to $50 as you scale, depending on the features and order volume.

Supplier fees and product costs

Most dropshipping suppliers don’t charge upfront fees, but the per-item cost is typically higher than traditional wholesale or bulk pricing. Some also add a dropship fee—such as $1 for the first order and 25¢ for each additional one.

Product costs vary depending on what product you’re selling and who you’re buying from. You need to factor in those prices before you can figure out your profit margins. For example, electronics are typically more expensive to source than fashion accessories. The lower sourcing costs may allow you to have bigger markups and make more per sale.

Shipping costs and fulfillment

Decide whether your customers or your ecommerce business will cover shipping fees—each approach has its pros and cons.

Pass-through shipping—passing shipping costs onto the customer—can lead to cart abandonment due to sticker shock. On the other hand, this simplifies budgeting, especially if your supplier unexpectedly raises shipping rates. Absorbing the cost lets you promote free shipping—a strong incentive for buyers. But of course, this means you pay for shipping, which adds to your costs.

Shipping costs can be free, flat-rate, or vary by product weight and destination. For example, light items like phone cases might cost $1 to $3 to ship, while heavier items like small appliances can run $15 or more. Suppliers on platforms like AliExpress often offer free shipping, but delivery can take two to four weeks, which may hurt customer satisfaction. Faster options like ePacket or DHL can cut shipping time to less than 10 days but raise costs, potentially impacting your pricing strategy.

“You also have to make sure that your products go everywhere you want to sell,” says Jacqui. “Otherwise, you’re going to be refunding a lot of orders, and you don’t always get your credit card fees back if you do refunds.”

Taxes and compliance

Depending on where you and your customers are located, you may need to collect, remit, and pay sales tax. Tools like TaxJar or Avalara can automate this, though they have recurring monthly fees.

Stay informed on what’s happening with tariff policies, which can impact your business expenses.

“You really have to find a reliable source for your information and keep watching it,” says Jacqui. “If you don’t change what you’re charging people based on what you’re being charged by your supplier, you’re going to end up losing money.”

Also, plan for income tax on your profits, especially if your dropshipping store scales quickly. Set aside a portion of each sale for tax season—how much you owe varies by city and state.

There are four main taxes you may have to pay:

• Self-employment and income tax

• Sales tax

• Source tax

• Customs tax

If you set up an LLC or C corp, consider hiring an accountant or using a service to manage your taxes.

How much does it cost to start dropshipping with Shopify?

To start dropshipping with a lean setup, expect to spend $200 to $600 monthly, depending on the tools, plans, and marketing you choose. This includes your Shopify subscription, domain registration, access to apps, and initial marketing costs.

Here’s a point-form breakdown:

• $29 per month for Shopify’s basic annual plan

• $16 for domain registration

• $0 to $100 for a dropshipping app like Sprocket or DSers

• $100 to $300 per month for paid ads

• $0 for organic marketing on Instagram, Pinterest, TikTok, and other social media

• Optional tools like email marketing (Shopify Email at $0 for first 10,000 emails per month) or SEO tools (Mangools at $50 or Ahrefs at $0)

“The more your business grows, the more you might need other things,” says Jacqui, “like a higher paid plan for your dropshipping app to handle more orders, or for your email marketing app to send out more emails.”

Still, compared to an actual retail store or warehouse model, the cost to start dropshipping with Shopify is an extremely small investment. For many, it’s one of the fastest ways to test a business model with minimal costs and risk.

Tips for starting a dropshipping business on a budget

• Start small with ads
• Focus on organic dropshipping
• Pick a profitable niche
• Use free tools and trials

Technically, you may be able to start a dropshipping business with no money at all. But if you’ve got a small budget to play with, here’s some advice on maximizing its impact.

Start small with ads

If you plan to use paid ads, start with a small budget. You might spend $5 to $10 per day testing different creative and targeting strategies. Once you understand what generates sales and customer interest, you can scale your ad spending.

Focus on organic dropshipping

Organic dropshipping is a strategy where you don’t pay for ads. Instead of ads, you make organic content, like how-tos for using your product, to draw in your audience and organically sell the product to them. Organic traffic strategies like creating videos for TikTok and Instagram, posting on Pinterest, and adding relevant keywords to your site for search engine optimization (SEO) can drive free traffic to your ecommerce store.

Pick a profitable niche

Choosing the right niche helps you find the best dropshipping suppliers and connect with your target audience. For example, if you want to sell biking equipment, you can find dropshipping suppliers who specialize in those products and use marketing strategies to target cyclists as a demographic.

Because having a niche gives you a defined audience, it also supports better content marketing—like using cycling memes on Instagram—and partnerships with influencers embedded in the communities you’re targeting.

“Look into what others in your niche are doing, and just post often, post with the right tags, the right trends,” Jacqui says.

Use free tools and trials

Many ecommerce platforms and dropshipping tools offer free trials. Take advantage of them while you’re still testing your business model. Look for free SEO tools like Ahrefs, image editors like Canva, and email platforms like Shopify Email to help you launch with minimal business startup costs.