Brick-and-mortar retail gets expensive quickly. By the time you rent a location, get insurance coverage, and buy inventory, your costs can easily exceed $10,000. One reason why the dropshipping model is so attractive — and startup friendly — is that you don’t need to worry about common retail expenses. So, how much does it cost to create a dropshipping business in 2025?
How Much Does It Cost To Start a Dropshipping Business?
Dropshipping costs can vary—are you selling high-end watches or quirky pet sweaters? Your budget depends on what you’re selling, where you’re selling (think platform), and how you’re reeling in customers. Budgeting $500 to $1,000 should provide plenty of wiggle room. Many Shopify store owners launch their stores with a few hundred dollars, and some spend even less.
What Dropshipping Costs Should You Expect?
This checklist can help you calculate the costs of dropshipping in your area.
Business Startup Costs
Registering a new business usually ranges from $50 to $200, depending on the state. You also need a resale certificate or sales tax exemption, often free.
Platform Fees
The popularity of platforms like Etsy or Amazon doesn’t come cheap:
- One-time setup fees
- Referral fees
- Listing fees
- Transaction fees
- Shipping fees
Amazon charges you $0.99 per product sold or $39.99 a month for a subscription.
Supplier Subscription Fees
Some dropshipping marketplaces are free to use, like AliExpress. The downside is that it takes time and money to find trustworthy sellers.
Connecting with experienced third-party dropshipping suppliers makes things much easier. For a modest subscription, dropshipping apps like ZenDrop and CJ Dropshipping provide a huge catalog of vetted products from trusted suppliers.
Product Costs
With dropshipping, you don’t need to pay ahead of time for inventory; instead, the third-party supplier takes a percentage of the total sale. This keeps your initial investment low.
Sample Costs
When choosing your dropshipping niche, it can pay to order some preliminary items to check quality, fit, or style. Sampling usually costs $100 to $200.
Returned Goods
Every dropshipping supplier has different policies and fees if your clients return a product. About 25% of online customers admit to returning clothing.
Marketing Expenses
Advertising costs for e-commerce vary widely, especially with Facebook and Google ads. Fortunately, there are plenty of free ways to attract customers, from YouTube videos to awesome blogs.
How Much Does It Cost To Create a Dropshipping Business on Shopify?
Many store owners are pleasantly surprised by how little it costs to start dropshipping on Shopify:
- Shopify plans: The Basic Shopify plan costs $19 per month or $228 a year.
- Payment processing fees: Transaction fees are free with Shopify Pay or 2% with third-party processors.
- Store themes: Shopify includes some free theme layouts, or you can spend $149 to $399 (one-time costs) on premium themes with extra layout and marketing features.
Launching a basic dropshipping store on Shopify can cost as little as $50 a month — zero employee, insurance, or inventory expenses.
How Much Do Shopify Dropshipping Apps Cost?
Some Shopify dropshipping apps offer a free tier, including ZenDrop. Once you get into the swing of things, expect to pay about $29 to $49 a month depending on your total store products. The bottom line is that there are solutions for every budget.
Ready to start dropshipping? Zendrop makes it easy with vetted suppliers, fast shipping, and affordable plans. Try Zendrop today and start building your dropshipping empire! Learn more about Shopify dropshipping business costs by reaching out to our friendly team.