Dropshipping is a popular business idea that has helped many individuals to make a living not only for themselves but also for their families.
However, just like all businesses the first thing that comes to mind is that how much money is required to start a dropshipping business.
Here are a few pointers which would help you calculate the initial cost for your dropshipping business!
#1 First things first
Although there are a lot of websites out there that say that dropshipping business can be started from zero investment, which is no more than clickbait. Yes, dropshipping is one of those businesses which can be started with relatively low funding but still saying that it can begin from zero investment might be a bit of a drag.
#2 Website costs
An eCommerce website is an essential requirement for dropshipping business, and there are plenty of options in this regard. Ideally one can get a website build for $20, and with an additional fee of around $20-$30 a month.
One should avoid going for a custom-built website as that would only increase your overhead cost and these days there are numerous platforms that not only offer great front-end layout but also effective backend functionality.
#3 Marketing costs
Since you want to market your product, therefore, the most convenient and cheapest platform to do is social media. However, your marketing cost depends on various factors such as type of product, advertisement production cost, platform, and country.
On average, a marketing campaign costs around $100-$200 on a social media platform. However, it is suggested that instead of spending a huge budget on platforms, divert that to the production of the campaign as if you manage to design camping that is thought provoking and relatable then your marketing budget would reduce automatically, as the advertisement would speak for itself.
If you get the marketing campaign right, you could literally amaze yourself as sometimes small ideas can bear great results. Therefore instead of spending huge amounts on hiring good actors and doing everything professionally, get your thinking cap on and think of something that would help you not only capture the attention of the audience but also have a social message.
#4 Dropshipping costs
The next in line is the dropshipping cost, here it all depends on your supplier, if the company whose product you are selling is big and has good deals from the courier companies, you might actually have to pay very small amounts in terms of dropshipping costs.
However, if you are importing products from a country then you would have to seriously think about your dropshipping cost as it would be higher than the native products.
#5 Calculating the total cost
Dropshipping business does not require a lot of money and if one is smart they could start a business with a small amount, all you need is a website which can easily be built from $30 and you would also need some money for dropshipping, both of these could be achieved in $100.
The main cost is marketing and it entirely depends on you how much you are willing to spend on it. Therefore in a nutshell it can be said that dropshipping business can easily be started from a couple of hundred dollars and then it would entirely depend on your product and marketing, how much they can help you.
Dropshipping is one of those few business ideas which does not require any skill and can be started with a small budget, therefore now is the right time to start dropshipping.