We’ve received the question about minimum investment required to start a Shopify Dropshipping Store, hundreds of times.
The reason we haven’t formally addressed it yet, is because this answer varies.
It depends on your budget, financial capability, willingness to take risk, to name a few of the many factors.
Therefore, generalizing a one size fits all answer, is not really ideal.
This post is about helping you create a Shopify Dropshipping Store on a tight budget.
It is not the ideal way to start a business.
So if you have a couple thousand to invest invest into your business, this post won’t pertain to you.
If money is tight, enjoy the video as Rito walk you through a lean Shopify startup:
To succeed with a budgeted startup of any kind, you must be resourceful.
You’re aware of a process, value and task importance and act accordingly.
You’ll also be able to pin-point which products are working and which aren’t.
Minimum Investment Needed
Company Formation & GST
Some countries require you to form a company and acquire a Goods & Services Number for tax purposes.
If you’re not living in one of those countries, ignore this aspect.
You can hire lawyers, consultants etc, but if you’re resourceful, you can handle this step for about $20.
Shopify Basic Plan
While Shopify does offer a 14 day free trial, but in order to ensure your checkout process works and to properly launch your store, you’ll need to pay the basic fee of $29 per month.
There are several other options available, but these are the two main options with great prices and trusted service.
You can expect to pay about $10 per domain name, per year.
This is where things begin to get tricky.
Because of varying financial situations and willingness to experiment, initial budgets will vary from marketer to marketer.
There is not a one size fits all answer to this.
Using our strategies, it will cost you about $25 to test the efficacy of each product with Facebook ads.
If you’re able to think critically and perform due diligence, you should be able to identify winning products fairly quickly.
Some people will find that the very first product they test is a winner.
Other may try a half dozen before they find something that converts well.
The point is, it varies from person to person.
Experience is the purest form of knowledge, and the only to identify which products are going to work for you, your brand and with your facebook ads, is to test.
With all of that, you should be able to successfully test 20 products with a budget of $500.
Once you reveal your winning product(s), you’ll be able to scale your ads from there.
You can literally build a 6 figure business around a single winning product.
We’ve revealed several different ways to identify winning products as well as different ways to generate sales.
One of the most effective ways aside from Facebook Advertising, is getting shoutouts from Instagram Influencers.
An Instagram Influencer is somebody who has a large, active instagram following.
Now we’re not talking about Justin Bieber or Selena Gomez, we’re referring to people with followings up to half a million people.
This method is really only good for a short period of time and for a single product.
You can learn more about Instagram Influencer Marketing here.
Usually, you can get started with this method for about $200.
Since this is a short term business model, we tend to focus on FB Ads Rather than Instagram Shoutouts.
Many people skip this step when factoring in Shopify Dropshipping minimum investment costs.
But here’s the thing, most payment processors, companies like Shopify, Stripe, and PayPal, take anywhere from 2-10 days to deposit funds into your account after a customer completes a transaction.
But you don’t want your customers to have to wait 2-10 days for you to ship their products. That is bad business and will quickly result in not only refund requests, but a loss of returning business.
This is precisely why it’s good practice to keep a small amount of capital on the side for order fulfillment.
You should be able to fulfill your initial orders with $200.
The total required minimum investment to start a successful Shopify Dropshipping Store is $779.
That’ll do it for Episode 27 – Great work!
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P.P.S. Click here for Episode 28!