I am writing a brand new article here. In this article, I am talking about how much money do you need to start dropshipping on Shopify 2024. Read this article and get a clear idea of the Shopify dropshipping business budget.
Before I start to hear a quote from the man Behind Husky the owner of HUSKYBEARD says,
“Be comfortable with losing at least $500 before you start to become profitable. Opening up an actual retail store involves spending nearly $10000 before any revenue comes in, So spending only $500 on an e-commerce business is an extremely small investment that can change your life.”
How Much Money Do You Need To Start Dropshipping On Shopify?
Shopify Dropshipping Budget
The most stripped-down skeleton budget for opening a Shopify dropshipping store. It will be number one for your Shopify subscription. We’re going to use Shopify. Because it’s the most popular eCommerce platform out there.
The good news is Shopify has a 14-day free trial, and after that, it’s $29 per month. So you have a little time to get into the flow of being an eCommerce business owner before you have to pay for your subscription with Shopify.
Also, you need Shopify dropshipping app like oberlo. Who has a forever-free plan to help you to import products to your dropshipping store? Also, you need some apps like sale source.
The sale source or hitter app actively helps you to source Shopify dropshipping winning products. That is proven to sell and spy on your dropshipping competitors and find the best dropshipping products.
The sale source costs $49 per month, and the hitter app is free. My recommendation is a sales source If you’re serious about dropshipping business. Then the sales source must buy it.
Also, you need a domain. You can easily buy a new domain through Shopify or NameCheap. They ask you about it as you are setting up your Shopify account. Then, choose your domain from the Shopify dashboard. Which will cost about $14 for the year.
Which are one dollar and sixteen cents per month. So it is worth that cost, and your website looks so much more professional.
If you also need more professionals in your dropshipping business, you need some more apps such as the best currency converter, loox for social proofing your dropshipping store with reviews and cross-sell.
Which are all found in the Shopify app store. A lot of apps have free trials. So you can check them out before you pay for them. But I would budget about 60 dollars a month.
Dropshipping Marketing Cost
I hope you are all ready. Because marketing is going to be your highest cost, it’s going to be your biggest customer attraction. Luckily, you don’t have to spend money on lots of product images and videos if you’re using a sales source.
Because you’re able to download product images and videos from aliexpress, then use tools like invideo to edit videos then and edit photos using canva. You’re more than welcome to use the pictures that are used on aliexpress.
The images used on their platform are open-source images. So you don’t need to worry about copyright issues. But you will need a budget for your social ads. The average conversion rate in the eCommerce business is somewhere between two and three per cent.
That will vary by product type and country. But this is the average going rate that means. Suppose you get 400 people to your store. You can expect 10 of them to purchase. But how do you get 400 people to your Shopify dropshipping store?
WorldStream has pegged it that the average click-through rate for Facebook is at 0.9 per cent. But let’s assume that your Facebook ads are perfect and your click-through rate is one per cent.
Then get 400 people to your store. You need to reach about 40,000 people. The price for 40,000 impressions will vary depending on your audience. Is, for example targeting the UK. It Will be more expensive than targeting India or Bangladesh.
According to the ad stage. Which is marketing software. The average cost per thousand impressions is $12.45. We’ll round that to $12.50. Now we have an equation to work. So we’ll do 40,000 divided 1,000 times by $12.50 equals $500.
Now we might not need 40,000 impressions or 400 people to come to our store. So let’s half that and get 200 people to our store.
TikTok and YouTube are also growing marketing channels. As a result, there are fewer advertisers than there are users on the platform. That’s why CPM will be much lower than on Facebook.
You’ll be able to reach a larger audience on a lower budget. I think the minimum on TikTok is about $25 per day. But keep in mind that this is still going through. It’s the learning stage.
Let’s have a look at our dropshipping business startup cost summary. So we have Shopify at $29 per month, Sale source at $49 per month, Your domain at $1.16 per month, and your marketing budget at $250 per month.
We’ll also add optional apps that cost $60 per month. So this will either come to $329.16 per month or $389.16 per month.
Make sure you have this written down that is an extremely low cost to start up a brand new business from scratch. Let’s have a look at another inspiring quote from an expert drop shipper artsy wall founder Matisse Ozatsukis says,
“The budget [for the first three to six months] from my experience, should be around $1000. Most of it should definitely go on marketing for testing Instagram influencers and Facebook ads, I’d say about 50% to 80%. The rest should go on the plugin domain and store costs. Also preferably some courses if you’re new to the business model, and to Shopify.”
The Final Word
You should be ready to go and plan your budget. Now, if any of you are drop shippers and you have already started your stores. I would love to hear what you think of this budget.
I would love to hear from you in the comments below. Thank you so much for reading this article. How much money do you need to start dropshipping on Shopify?