Money Matters

How Much Money Do You Need to Start Dropshipping? ($100? $500? $1000? $3000?!)

We answer the question: how much do you REALLY need to start dropshipping with Aliexpress?
►► Free $10,000/Month ebook:
►► Step-By-Step Dropshipping course:


►► Start Dropshipping with $50:
►► How to Create a Shopify Store:
►► 8 Side Hustles:
►► Free Logo Maker:
►► How to Pick Products with Fred Lam:

When dropshipping, you have 3 major costs/expenses/things to budget for:

1) Setting up your store.
2) Marketing your store and testing products.
3) Purchasing the products that customers buy.

***How Much Does it Cost to Create a Store?***

Most viewers watching this video will be looking to build their store with Shopify. That means it will cost $29/month for the subscription, and then $14 for the domain name. That means you need just $43 up front.

However, there are two optional costs that are good to consider:

1) Purchasing a logo from Fiverr for $5.50

To build your store, you will need a logo. You can make a logo for free using a free logo maker. But a professionally designed logo will look a lot nicer in your store. For such a low cost, it is well worth it if you can afford it.

2) Purchasing an Upsell Shopify Plugin for $47/month

The SMAR7 Bundle Upsell is very beginner friendly. But it’s also more expensive than a Shopify subscription! UGH! However, once you stumble upon a winning product, putting upsells on top of it will more than pay back the cost of this plugin.

So what you can do is you can leave this off your buy-list and purchase it once you’ve found your winning product. You can then install this app and then put an upsell on top of your winning product. You don’t need to buy it up-front.

***How Much Does it Cost to Market & Test Products?***

While you can use free traffic sources, they are slow. To take advantage of paid traffic, it is going to cost you money. In this video, we discuss Facebook ads. We recommend being prepared to test at least 20 products.

When we say “test products” with Facebook ads, we mean adding a product to your store, and then running a small ad for it on Facebook promoting it. If the ad is profitable, you scale that item up and it becomes a “winner.” If it loses you money, then you kill the ad and test something new.

To run ads, I normally recommend starting with a $5/day budget and running it for 4 days. That means that each test will cost $20/product. So to test 20 products, it is going to cost $400. Along the way it is very likely you’ll make some sales of products even if they turn out to be “losers” – but it’s good to budget for this just in-case.

If this is quite a lot of money (we understand!) here are some tips for you:

1) Plan to split it up over 2-3 months. You don’t need to run all of the 20 product test at once: you can do it gradually at your own pace.

2) Use side hustles to save up the extra cash. It will definitely be work – but it is well worth it. There are ways to pick up jobs from home and to save up this money to reinvest into a business.

***How Much Does it Cost to Buy Products Customers Purchase?***

Something that a lot of people don’t talk about when discussing this question is the cost to purchase items that customers buy. If you spend all of your startup money on marketing & setup costs, then you’ll have nothing left to purchase the products customers buy. And if this happens – your business is sunk!

Unfortunately, money that customers pay you will not be send to you instantly. Stripe pays out every 7 days, and PayPal is likely to hold your money for 3 weeks (potentially more) until they trust you. This means you’ll need to have money prepared in the meantime to pay for items until the money the customers paid you has cleared.

One of the most common reasons new businesses fail is due to cash-flow issues. If you don’t want to be part of that statistic, then make sure you prepare in-advance by doing one of the following:

1) Have a credit card. You will get the money the customers paid you well in-advance of when your payment will be due on it. Plus you’ll get bonuses too (such as free air miles and cash back rewards to offset fees).

2) Have a debit card with $200-300 on it prepared in-advance to purchase the items from Aliexpress.


50 thoughts on “How Much Money Do You Need to Start Dropshipping? ($100? $500? $1000? $3000?!)

  • Hey guys – don't be shy, if you've got any questions please ask them. We'll try and answer as many as we can 🙂

  • THANK YOU. I'm all in, and I keep finding that any question I have can be answered right here.

  • I’m currently 25, I’ll turn 26 and I want you as my teacher because I’m having difficulty creating my website due to my current budget at the moment.

  • Thank you Ma'am Sarah! If print on demand business how much money to start:)

  • I'm looking for a job for no other reason than to start my dropshipping store. Also going to get certified by Google for Google Ads so I can put myself out there for that as well. I've worked for others and even in this economy of jobs-a-plenty it's difficult to get a job especially for the older workers groups. Employers are way too picky. So instead of working for them anymore, I'm going to work for myself.

  • Thank you, miss, from the depths of the transparency and clarity of your thesis about the beginning and the potential risks, as well as curbing the ambitions of the owners of quick earning without the effort they make. I wish you happy times, God bless you.

  • Hello Sarah!

    i love your videos! I would be interested in what kind of apps you recommend for people who have saved more money. for me there is no question of quitting my full-time job to have the time to send out all these e-mails. Above all, the whole thing shouldn't fail because I didn't want to take time for something that could happen automatically.

  • Question: I have a personal credit card because I'm new to print on demand and dropshipping. What should I do if a product blows up and I go over my credit limit? Do I switch to a business credit card? What if my credit score wasnt high enough to do so?

  • Hey
    I want to open a dropshipping store and after that i convert this into a brand store
    Is it the right time to start

  • I know it's not likely but what if you did have a breakout product but your credit card limit is only £1000? Or is this just something that isn't going to realistically happen so soon so no need to worry.

  • Hello
    I have one question how we can test 20 product gradually on one store or have to make different stores and buy different domain which extra cost for per product.
    Please explain me

  • Sarah never disappoints. You’re always going over my expectations. Thank you 🙏🏾

  • I really love your honesty here. This is what I've been looking for. Thank you so much sarah this really helps me alot.

  • Thank you Sara for being so thorough, this is the exact info I was looking for 💜

  • Questions, how do you push your distractions out of the way so you can actually do your work? Also it would really cool if you could show us your daily routine for work and how it's functioning for you. Thank you Sarah, your videos are fantastic

  • one thing I don’t understand after watching a lot of dropshipping videos is do I need only one shopify store for all items (even if the items are unrelated, i.e beauty products and electonics) or do I need to pay for a shopify store for each item that I want to sell? I haven’t seen any videos that explain this. Thank you for all your videos!

  • You're amazing in your teaching! I haven't started up yet because I want to make sure all my bases are covered before hand, but you're making me real confident that I can do this! Thank You and Keep Posting Videos!

  • I’m still considering a Shopify store and want to know how many items can I post in my store once I set up and if the item isn’t selling well can I replace with another item? Thank you

  • I have been working with g e o r g e e a s y l e a r n i n g m e t h o d .xyz I have been getting paid every week. I can say I am living my best life. Thank you g e o r g e e a s y l e a r n i n g m e t h o d .xyz

  • US supppliers or AliExpress who should I go for if I wanna drop ship in US?

  • Lot more competition these days and a lot more savvy buyers who can spot a dropshipper from China.

  • Cash flow part was so helpful – I'm planning a big-ticket items so might do much smaller testing at first haha

  • Thank you so much for this video! What about delivery cost? Don't you need to pay them upfront to the supplier?

  • Sarah I love you so much and I'm extremely grateful that you exist

  • Thanks for these videos Sarah they really are a blessing 👌🏽

  • smar7 bundle upsell – $47 p.m.
    run test ads over 4 days.
    may take over 10 test products to find 1 profitable product. (or 20).
    $400 for ads.

  • Hi Sara, Is that better to do dropshipping on Amazon platform instead of opening a shopify store. Please let me know.

  • You're brilliant. Thank you for the lessons and advice.

  • Hey, I am so interested to learn dropshipping. Which the best platform to learn dropshipping?

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