Why you can't start a Drop-Shipping business for free!

I know that by now you heard all the gurus out there tell you how easy it easy to start a drop-shipping business and all those lies about how you don’t need to invest any money when getting started. Starting a drop-shipping business can definitely be much cheaper than starting a physical business or any other type of E-Commerce business however it is not FREE! There are a few things that you need to invest in before you can really get started. Below I will get into each one of the things that you need to initially invest in when starting a drop-shipping business and how much it will cost you on average.

1. Web Hosting And Domain

Starting a Drop-Shipping E-Commerce business will require you to first build a website which your customers can use to order products from. Two of the most popular website creation platforms are Shopify and WordPress and I actually wrote a whole article comparing both of them in order to help you choose which is the best for you. You can check it out here.

Whether you choose to host your drop-shipping site on Shopify or WooCommerce or any other platform, you will always need to pay a fee to do so. Heck, even if you have your own home server to host the website on you still need to pay money to buy one. So that’s definitely something that will cost you some money to start with. If you choose to go with Shopify then you will need to pay a minimum of $29 a month in order to run your store. If you choose to build your site on WordPress using the WooCommerce plugin, you will have to invest in web hosting from companies such as BlueHost or HostGator which will cost you arout $3.5 a month (The catch is that you have to pay for a whole year (12 months) upfront). Now, you might be asking which is the best choice for me? I will be writing an article about this very soon, stay tuned.

Together with hosting you will also need a domain for your store. This is not a huge expense but it will cost you around $10 – $15 annually to own a .com domain. A premium domain will make your site look better and will increase the trust factor, which will of course lead to higher conversion rates.


Visit the Shopify website to find out more information 👆

Visit the Bluehost website to find out more information 👆

Professional Store Development:

If you are not very techie, good with design or don’t have enough time then the setup and development of your store is something you might want to outsource and let a professional do the job for you. If you are looking for the best and most affordable E-Commerce development packages then you are definitely at the right place. Check out our Custom Store Development service as well as our ‘Ready To Go Stores’ for more information.

So there you go, settings up your store and getting it hosted is the first thing you will be spending some money on when getting started. Let’s move on?

2. Decent Advertising Budget

Now, you might have come across many different opinions on this one however I would like to give you my honest opinion based on both my experience as well as the experience of 90% of beginners I know, who have starter a drop-shipping business.


Many gurus out there will tell you that you can easily start making money with your drop-shipping store by investing as little as $5 dollars on a Facebook AD. This myth has been going on around for ages and it just can’t be further from the truth… (Spoiler: They just want you to buy their course). Success never comes without failure, and you know this pretty damn well if you’ve been in the game of business or have been trying to achieve your goals for quite a long time. If you understand this then there is nothing that should make you think that by running a single Facebook AD will make you succeed from the first try (unless you are in that 0.0000001% of people who got lucky on the first try). Facebook Ads, like everything else, takes practice and lots of testing. In reality what the gurus are trying to say, or trying not to ;),  is that for every product you are planning to run ads for you need to spend $5 for 3 ad-sets that will all run for at least 3-5 days until you have enough data from Facebook to make a wise choice whether the product is worth all the testing. That’s $45 – $75 PER PRODUCT! Oh and guess what… as a beginner you will usually need to test between 5-10 products until you find one that actually sells well with your choice of audiences.


So would it be fair to say that you will need at least $750 to just deep your toes the water and start gaining some experience with product testing? Now, because I like to be very honest with you I will cut to the chase and advise you that if you don’t have at least $2,000 -$3,000 ready to invest in your drop-shipping business you should not start. Why? Because product testing takes money and you can not be emotional about it. You need to be ready to invest money without thinking about it, therefore it is much better to have a larger budget to play around with than a small one. The reason for this is because if you only have a small budget and need to get a job every time you run out of money while testing products you will end up doing what 90% of people who start a drop-shipping business end up doing…. GIVING UP AND QUITTING!

3. Mentorship

When it comes to mentorship I know that you might already have a lot of resources you are getting information from and that’s awesome! There are many communities and gurus out there sharing tons of very valuable information in order to build trust and grow a large following. The problem is, there are so many opinions out there that it only causes you to waste time and get overwhelmed. As Gary Vee says, stop strategising! TAKE ACTION!


The best thing you can do is find a mentor that has reached the level you want to reach and listen to what they say and most importantly, take action. Sticking to one source of free information can also work for this part however from my experience when you PAY for something you most often PAY ATTENTION. When you get something for free it is so much easier to get destructed and lose focus just because you didn’t work to earn that material.


So you now know everything you need to successfully start an Drop-Shipping business. Most importantly you should have now realised that you can’t start a Drop-Shipping business for free, unless you already have everything I mentioned above. You can always try and do it without these things and hope in getting lucky, however your chances of succeeding will be very limited. My advice to you is to save up some money and start your business with a strong budget that will allow you to get all the tools you need and fail multiple times without having the need to quit due to money shortage.

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