You’ll often hear influencers singing the praises of dropshipping as the best “side hustle” to gain some extra cash for those strapped for funds. For once they aren’t trying to clickbait you, there is some truth behind this. But why is dropshipping so often recommended?
Low Start-Up Costs
You don’t need an investment firm or even a loan to get your dropshipping shop off the ground!
Starting costs are low but will increase depending on how aggressive you want to get with advertising.
Shopify, being the preferred destination to host shops, has a one-week free trial and then becomes a monthly subscription.
Starting at $29 a month, you can give your store a home. As your operation grows it may behoove you to step up to the $79/month plan or even the high roller $299/month plan. But just starting up, give up your daily non-fat triple shot caramel frappe for a week and you’re on your way!
The great thing about Shopify is the plethora of free apps at your disposal. Topdser is Free and will help you streamline your shop by helping you import items, manage them, purchase support, and much more. Get Topdser Free
Note: There are transaction fees but those are an operational cost not a start-up cost!
While you can use the free Shopify domain name, your URL must contain “myshopify” in it. It’s highly recommended you develop a brand name and buy your own domain name. This instantly ups your credibility and starts building your brand.
There are many options for buying a domain name including, GoDaddy, Google Domains, and others. Keep in mind that customers are most comfortable with .com .org .net or even .co; however, these will run you more than .biz or .me domains.
Depending on your brand name, a popular domain will run you from $5-20 a year give or take. That’s one month you can deal without Netflix, scary I know, but it will be worth it!
This number could actually be $0 if you were so inclined. You wouldn’t make a dime unless you have heavy exposure from an already established social media channel, but it could still be $0. Once you are comfortable with your products and the look of your store, you can start thinking about your ad budget. You can google this and you will find a million videos of someone claiming to be a “six figure dropshipper” ready to give up their secrets, but you won’t gain much of a value.
Set a number you are comfortable with for a week and try it out. Start with $5/day and see how many conversions you get. This may be conservative for some or too much for others. The fact remains that if you cannot afford an ad budget, you are doomed to fail unless you are a very gifted social media rock star.
Don’t forget that you should have a social media account for your brand to help promote your products and make intriguing content. Twitter, Instagram, Facebook, and TikTok are all free and amazing ways to gain exposure.
Ad Budget: $30-150/month
Grand Total: $60-210/month! To put that into perspective, that is about $2-7 a day. Can you afford less than $10 a day to change your life?