UNITED STATES—The global drop shipping market size is valued at over $102.2 billion. According to experts, it is estimated to achieve a compound annual growth rate of 28.8% by 2025. That means dropshipping is one of the most viable business ideas you might want to consider. 

While starting a dropshipping business with little or no capital is possible, investing some resources can help you get better results faster. This article will go over the basic things you will need to have your store up and running and how much they may cost.

Dropshipping software 

Running an online business can be hectic. You will need a system to help you manage repetitive tasks such as connecting to suppliers, updating inventory, receiving tracking updates, and sending orders. 

In other words, you need a software solution that will transform your simple website into an online store by automating business processes. However, getting the right software to accomplish these tasks can be challenging considering all the available options on the market. 

If you are lost on which software to use, SparkShipping’s dropship automation software can help you automate your dropshipping business at a minimum cost starting as low as $249. 


A website is a must-have when starting a dropshipping business. While it is okay to have a simple website for your startup, you need to make sure that your site looks professional and is super easy for site visitors to use; poorly designed websites can be a turn-off for many customers. 

The best thing about developing a website is that you can do it yourself. However, you may want to seek the services of a professional website designer to ensure that your site meets all the website metrics that matter. 

Sites like Fiverr or Upwork can help you find a freelancer website builder for as low as $100 or less.

When considering how much it costs to start a dropshipping business, it‘s crucial to carefully select profitable dropshipping products that align with market demand and have the potential for high sales.

Domain name 

A website in itself is not enough; you will also need to have a domain name. A domain name is a name that identifies and distinguishes your website from other websites. Buying a domain name means that you hold the right to use that name for a specified period, mostly one year.

After this period, you will have to renew your rights to use the name. Buying a domain will cost you anywhere from $0.9 to $15. Some hosting service providers offer the domain name for free as long as you host your website with them. 


Hosting can be defined as buying or renting a space for housing your website on the world wide web. Without hosting, your website cannot be visible on the internet. There are thousands of web hosting service providers in the market, so you may want to conduct some research before choosing your provider. 

Some of the things you should look out for when choosing a hosting service provider are speed, security, scalability, and support. Hosting service charges can vary widely based on providers and your needs. For a startup, a hosting service ranging from $10 to $20 should be sufficient. 

Ensure that you are fully aware of renewal costs because some providers offer a very sweet deal but are not upfront with hosting renewal costs, which can be costly.

Wrap up

Based on the factors highlighted above, the cost of starting a dropshipping business can vary widely depending on your needs. But you don’t need much money to start a dropshipping business. With $1,000 or less, it is possible to start your business and be on your way to becoming your own boss.