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May 21, 2022

How to Start a Dropshipping Business with a Minimum Budget

If you’ve started to contemplate dropshipping, you’d need to figure out how this business model works and how to launch it without huge money investment first. Follow this complete dropshipping tutorial to save time and get rid of difficulties you might face while building a dropshipping business with a minimum budget. 

What is Dropshipping?

You want to establish a dropshipping business but have no idea what to start with? Define what dropshipping is first!

Dropshipping is a modern eCommerce business model that allows the launch of an online store and sells products without keeping them in stock. This means you simply take orders from clients and transfer them to manufacturers or wholesalers, who, in turn, deliver the items to buyers.

Such a business type doesn’t require huge investments, therefore, it’s an excellent opportunity for entrepreneurs to run one’s eCommerce site. Moreover, you can set your own rates, thus making a good profit from each order. 

How Much Dropshippers Make? Setting Expectations

The good news is that you can earn on dropshipping as much money as you want as there is no limit to earning in this business. 

There are many examples when dropshippers make up to $50,000, $100,000 yearly, or even more. How do they do that? The trick is to find the right suppliers and build an efficient brand!

Create an eye-catching online store, choose popular, high-quality products, and establish an excellent marketing strategy to boost sales. And remember, your income expectations must be reasonable, otherwise, you risk being led astray by imminent difficulties.

Dropshipping business, along with other business models, has an element of luck. Therefore, you may earn somewhere between $300-3000 in the first two months of your work. However, you can improve your luck and earnings accordingly if you put more effort into it.

How Much Money Do I Need to Start a Dropshipping Business? 

Like most business models, dropshipping needs investment to launch and compete with similar eCommerce platforms. However, you won’t have to spend a high budget on starting a successful dropshipping business from scratch. For the first month, you’ll need less than $250 for purchasing all the necessary tools like:

  • Shopify eCommerce website ($29/month);
  • SEMrush SEO & SEM Tool (the first month is FREE);
  • and Facebook Ads ($200 on fast products promoting).

Thus, you’ll get some quick sales right in the first month and be able to invest a bit more money in your website promotion. However, consider that you’ll have to pay $99.99 per month for SEMrush SEO & SEM Tool starting from the second month, so you should have this money on your account when signing up as well.

How to Start Dropshipping Business Step-by-Step

Once you figure out what dropshipping is and how lucrative it could be and ensure you want to run a dropshipping business, you’ll need to draw up a plan of action. We’ve taken care of it and made a step-to-step guide for you so that you could start right away!

1. Pick Your Category

Choosing a category is one of the most crucial steps towards efficient sales, as this will influence your online store success. Do detailed research to determine what niche is demanded and popular these days, and figure out its competition level. Keep in mind that you have to focus on the category with a vast target audience to earn money right after launching your site.

Use the SEMrush tool to follow the trends on every keyword that relates to your niche. Thus, you’ll be able to define whether this category is sought after or not. Moreover, there are free tools like Google Keyword Planner or Google Trends, which can also help you analyze what users look for when buying certain items online.

2. Do Competitors Research

After you pick the appropriate niche, you’ll need to research the competitors’ platforms as well. Check out what methods and tactics they use to draw more customers’ attention. 

Define their ranking keywords and backlinks using the SEMrush tool we’ve mentioned before. Thanks to this step, you’ll get a better understanding of the market and your target audience’s preferences.

3. Find a Supplier (Aliexpress)

Your choice of a supplier will influence the sales of your online store. Therefore, you have to ensure you picked a reliable and quality retailer for your dropshipping business. There are two most popular and demanded suppliers for dropshippers:

  • Alibaba;
  • and AliExpress.

Alibaba is a wholesaler marketplace, so it’s focused on wholesale customers. If you’re going to create a platform for bulk purchases, this option is perfect for you.

However, most of the dropshippers deal with retail buyers, therefore, they prefer the AliExpress retailing marketplace. This platform offers products at lower rates than Amazon and eBay, so you can earn a lot when selling items from AliExpress. All you need to do is make sure the chosen supplier has a good rating, regular product cost, and free shipping in your business location.

4. Create a Store

In this step, you can finish your research and proceed to build your online store. Ensure your eCommerce site makes a superior impression on your prospective customers. For that purpose, use the best Shopify themes of 2021


Besides, showcase all the necessary information about your business to be trustworthy in users. To highlight the most critical details and CTAs, you can also implement catching fonts. If you’re not sure, you can do it on your own, hire a professional eCommerce developer, or follow the efficient tips on what fonts to use to attract more potential clients.

5. Start Ads Campaign

Finally, don’t forget to start a Facebook ads campaign to draw users’ attention in social media. Be aware that once you launch the campaign, you’ll get your first sales. But make sure your Facebook ad is eye-catching and traffic-generating.


Summing up everything said above, dropshipping is an excellent opportunity to start a business for those who don’t want to spend an impressive budget on opening a store. However, it has its stresses, and you’ll have to work hard to get great results and immense earnings. 

Nevertheless, once you follow the recommendations mentioned in this article, you’ll be able to achieve your first income within the shortest time. So, plan and consider your actions carefully, and no challenges will prevent you from building a profitable dropshipping business.

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