Published on

Shopify Dropshipping: How Much Money Do You NEED To Start In 2024

Shopify Dropshipping: How Much Money Do You NEED To Start In 2024?

If you're considering starting a dropshipping business using Shopify in 2024, one of the first questions you may have is how much money you will need to get started. In this article, we will break down the startup costs month by month for the first six months of your business, giving you a realistic estimate of the expenses you can expect. This will help you plan your budget and ensure you have enough funds to launch and run your dropshipping store successfully.

Month 1: Getting Started

  1. Shopify: Shopify is the e-commerce platform of choice for dropshipping. Fortunately, Shopify currently offers a special deal where you can get three months of access for just $1 per month. This will give you full access to their platform and all its features. (Note: You can also enjoy a three-day free trial before signing up).

  2. Domain Name: By default, Shopify provides you with a temporary domain name with a random string of letters and numbers. However, to appear professional and build your brand, you will need to purchase a custom domain name from Shopify. The cost is $15 per year.

  3. LLC Registration: While not necessary, it is advisable to form a business entity such as an LLC to protect yourself legally and simplify taxes. The cost of registering an LLC varies by state but averages around $120.

  4. Canva: Canva is a great tool for web design and creating assets for your store. While it has a paid plan, the free plan offers enough resources to design your store without spending any money.

  5. Google Workspace: If you want a professional email address associated with your domain name, you can use Google Workspace (formerly G Suite). The cost is $6 per month.

  6. Ads: In the first month, you will not have any products to sell, so advertising costs will be zero.

The total estimated expenses for the first month will be around $140.

Month 2: Building Momentum

  1. Shopify: As mentioned earlier, Shopify offers three months of access for just $1 per month, so no additional expense here.

  2. Domain Name: No additional cost, as this is a one-time yearly expense.

  3. LLC Registration: No additional cost, unless you choose to register a business entity if you haven't already.

  4. Canva: Canva remains free to use, as mentioned earlier.

  5. Google Workspace: $6 per month continues to be your cost.

  6. Ads: Depending on the availability of ad vouchers from platforms like Google Ads, Microsoft Ads, or Meta Ads, you may not have to spend any money on ads in the early stages. If you do spend, it will likely be a minimal amount.

The total expenses for the second month will be around $7.

Month 3: Steady Growth

  1. Shopify: Shopify starts charging its regular price of 39permonthforthebasicplan.Ifyouchoosetoprepayannually,thecostreducesto39 per month for the basic plan. If you choose to prepay annually, the cost reduces to 29 per month.

  2. Domain Name: No additional cost.

  3. LLC Registration: No additional cost, assuming you've already registered your business entity.

  4. Canva: Canva remains free to use.

  5. Google Workspace: $6 per month continues to be your cost.

  6. Ads: Depending on your product performance and profitability, ad spend can vary. You may reinvest profits into ads, but the exact amount will depend on your individual store's needs and performance.

The total expenses for the third month will be approximately $45.

Month 4: Scaling Up

  1. Shopify: $39 per month continues to be your cost.

  2. Domain Name: No additional cost.

  3. LLC Registration: No additional cost.

  4. Canva: Canva remains free to use.

  5. Google Workspace: $6 per month continues to be your cost.

  6. Ads: As you learn which products and ads generate successful results, you may choose to invest more money in advertising. The amount can vary significantly depending on your store's growth and profitability.

The total expenses for the fourth month remain at approximately $45.

Month 5: Expanding Your Reach

  1. Shopify: $39 per month continues to be your cost.

  2. Domain Name: No additional cost.

  3. LLC Registration: No additional cost.

  4. Canva: Canva remains free to use.

  5. Google Workspace: $6 per month continues to be your cost.

  6. Ads: Depending on the profitability of your store, you may increase your ad spending significantly. This amount can vary greatly depending on your store's growth, profits, and ad strategies.

The total expenses for the fifth month can range from $45 to a potentially significant ad spend.

Month 6: Optimizing and Fine-Tuning

  1. Shopify: $39 per month continues to be your cost.

  2. Domain Name: No additional cost.

  3. LLC Registration: No additional cost.

  4. Canva: Canva remains free to use.

  5. Google Workspace: $6 per month continues to be your cost.

  6. Ads: The ad spend may vary based on your store's profitability and growth goals. You will likely allocate more funds to successful ads and scale down or eliminate underperforming ones.

The total expenses for the sixth month remain at approximately $45.

Summary

Starting a dropshipping business on Shopify can be done with a relatively small budget. The total expenses for the first six months range from 140inthefirstmonthtoroughly140 in the first month to roughly 45 per month afterward. These estimated costs cover the essential expenses you need to start and run your store, including the Shopify plan, domain name, LLC registration (if desired), Canva for web design, Google Workspace for email management, and potential ad spend.

Remember, the costs mentioned above are the minimum essential expenses. As your business grows and scales, you may choose to invest more in advertising, product research tools, or additional services to optimize your store further.

Keywords

Shopify, Dropshipping, Startup Costs, Budget, E-commerce, Expenses, Ads, Web Design, Domain Name, LLC Registration, Canva, Google Workspace, Advertising, Profitability, Scaling.

FAQ

  1. How much does it cost to start a dropshipping business on Shopify in 2024?
  2. What are the essential expenses for starting a dropshipping store on Shopify?
  3. Can I start a dropshipping business on a limited budget?
  4. How much should I budget for advertising in the early stages of my dropshipping store?
  5. Are there any free tools I can use for web design and email management for my dropshipping store on Shopify?