Ecommerce Encyclopedia

‟Ecommerce is a powerful means to connect the unconnected to global trade” - Arancha Gonzalez

What are dropshipping costs?

Dropshipping costs

To get your dropshipping website up and running, you have to pay for the following dropshipping costs:

1. A domain

A custom domain is a must if you want your website to look professional and reliable in customers’ eyes. The cost of buying a domain can vary from $20 to thousands of dollars, which mostly depends on the specific domain you want to buy.

2. Subscription fee charged by platforms

The platform you choose to base your website on will charge you a monthly subscription fee. This fee can vary from $20 to $2000 depending on the platform and the paid plan you choose.

If you choose to start with ShopBase, your subscription only costs $19 per month.

To get your products known and sold, you might need to pay for the following dropshipping costs:

3. Apps

Apps are optional as you are totally able to start selling without installing them. However, app installation is highly recommended as some sorts of apps will help you run and grow your business in a better way. The better apps, the higher prices.

The cost of installing apps into your website can vary from $20 to thousands of dollars, depending on the specific apps that you choose.

4. Advertising

Getting your website installed with powerful apps doesn’t mean customers getting to buy your products right away.

If you can’t wait for organic traffic to flow to your website, you shoud consider paid ads. Currently, there are many types of paid ads to choose from, but Facebook ads is probably the most-picked because of its diverse, wide audience.

Advertising cost often starts at several hundreds of dollars to get your products enough time and space to be exposed with potential customers. And there is no limit for ad cost. If there is one, it’s probably your ad budget that limits your ad cost.

To get paid by customers, you will have to pay for the following: 

5. Payment processing fee

You will be charged for every single transaction you make through the payment gateway you choose. The fee could vary depending on the payment gateway you choose to use and the country where you’re based. It could be 1.5% of total value of transaction if you’re based in the US and you use PayPal.