So, how much does it cost to start a dropshipping business? Spoiler alert: way less than you think. But while it doesn’t require a huge upfront investment, it’s not totally free either. The good news? Dropshipping is still one of the most affordable ways to start selling online.
In this guide, we’ll break down the real costs of starting a dropshipping business in 2025. From selling channel fees to marketing spend, we’ll cover what you can expect. We’ll also show you how dropshipping tools like AutoDS help you cut expenses and scale smarter with full automation.
Dropshipping is a low-cost business. You don’t need inventory, and you only pay suppliers after a customer orders. No upfront stock, warehouses, or logistics.
You can get started with no money with free trials, free listings, and organic marketing methods. That said, it has its limitations.
Start with an MVP. Test products on low-cost platforms, then reinvest profits into ads and a more robust selling channel.
If you’re looking to get started with almost no investment, AutoDS offers a $1 trial for 14 days to test full automation, source products, and launch your store with minimal costs.
How Much Does It Cost To Start A Dropshipping Business?
Dropshipping is often marketed as a “low-cost” business model. And it is! But that doesn’t mean it costs $0. While you can totally start dropshipping with no money, eventually, there will be some minimal expenses. From selling channel subscriptions to transaction fees and marketing spend, every store owner faces certain costs.
Here are the most common costs you can expect.
Selling Channel Fees
Every dropshipping store needs a home to sell from. That could be a dedicated website or a marketplace; both work just fine. That said, each one has its pros and cons, as well as its costs. While some have a monthly subscription fee, others are free but charge per transaction.
Wix & Shopify: Monthly Subscriptions
Wix and Shopify are two of the most popular platforms for building your own online store. Both work on a monthly subscription model. For Wix, business plans start at $17/month and include a free domain (so you don’t need to pay for that on a separate bill).
Shopify starts at $39/month for the Basic plan, with advanced tiers for scaling. Good news? They offer a trial for the first three months at just $1/month.
🆕 Beginner’s Tip: If you want to get started on Shopify but don’t know where to start, you can create a dropshipping store in minutes with AutoDS’s Shopify AI store builder.
They both have more advanced plans at higher costs, but you can always start with the basic plans and move up from there.
On the bright side, there are no listing fees since you’re running a custom store. But you’ll still pay the standard 2.9% + $0.30 per transaction as a processing fee.
Another cost to consider? Dropshipping apps (some free, some paid). Because these are mostly site builders, you’ll probably need tools to handle marketing, drive traffic, and handle your dropshipping logistics.
For example, for dropshipping automation, AutoDS is the go-to app to source and import products, monitor stock, automate pricing rules, and more. It centralizes everything into one place, so you don’t need to pay for multiple apps.
Ready to see how easy it is for almost no money? 👉 Start your AutoDS trial for just $1 and start your dropshipping journey today, hassle-free.
WooCommerce: WordPress Flexibility
WooCommerce is a free WordPress plugin that lets you build a custom dropshippinng store. But free comes with a few extras. Mostly, you’ll need to cover hosting, about $3/month, plus a domain, which is around $12-$20/year, depending on where you buy it.
Then, like Wix and Shopify, there are no listing fees. But you’ll still pay the usual 2.9% + $0.30 per transaction on selling fees.
On top of that, many store owners use paid WordPress plugins to add features. Prices vary, but they can add up. If you’d rather skip the pugling jungle, AutoDS gives you everything in one place, from product sourcing to fulfilling orders.
eBay: Listing and Final Value Fees
Planning to sell products on eBay? Here’s what you should know: unlike Shopify or WooCommerce, eBay is a marketplace. This means you’re listing your products alongside thousands of other sellers. The big upside? You get to tap into eBay’s massive existing customer base without having to build traffic from scratch.
Even better news? There’s no monthly subscription, so you’ll just have to pay for listing, transaction, and final value fees. Here’s what to expect in terms of costs.
First, listing fees. But no worries: your first 250 monthly listings are free, a reasonable number if you’re just starting out. After that, it’s $0.35 per listing (though rates can vary by product category).
Then, selling and processing fees. No big deal here, you’ll just have to pay the standard 2.9% + $0.30 per transaction, same as other platforms.
But here comes the big one: final value fees. eBay takes between 3-15% of the total sale (including shipping). The exact percentage depends on your product category. For example, women’s clothing hits the 15% fee, while musical instruments take just a 6.7% fee.
The fee can go lower for more expensive items. Bottom line? Do the math based on your category, the insertion fee (which also varies), and how expensive the final value is. If you want to pay lower eBay fees, you can just opt for a monthly subscription.
💡 Pro Tip: Use the AutoDS eBay fees calculator to know exactly how much you’ll pay before you list. It even shows you when it’s worth upgrading to an eBay store subscription so you’re not overpaying.
Facebook Shops: Low Entry Cost
One of the best things about Facebook Shops is that is free to start. No subscription fees, no listing fees. That makes it super beginner-friendly compared to other channels.
However, there are typical transaction and logistics fees. First, Facebook takes 5% per shipment, or a flat $0.40 fee if the product is under $8. Then, there are chargeback fees. This basically means that if a buyer disputes a purchase, Facebook temporarily holds the transaction amount until the case is resolved.
Amazon: Professional Selling Plans
Amazon is one of the biggest marketplaces in the world. Selling here comes with many advantages, like huge exposure and customer trust. But it also comes with a few layers of fees.
Let’s start with the good news: there’s no mandatory monthly subscription (yay!). The not-so-good news? Amazon charges $0.99 per item sold. This is fine if you’re testing with just a few products. But if you sell more than 40 items a month, then opting for a monthly subscription becomes more cost-effective.
That’s where the Professional plan comes into play. It’s $39.99/month with no per-item fee. It also offers access to multiple selling tools within the Amazon ecosystem, like ads, analytics, and bulk listings.
But that’s not it. Amazon also takes a referral fee on every sale. This is usually around 8%-15%, depending on the product category (just like eBay, it’s higher for niches like jewelry and lower for electronics).
TikTok Shops: Social Commerce On The Rise
TikTok Shop is a newer option that’s quickly becoming a favorite among dropshippers, especially if you’re just starting out. Why? Because it’s free to join, it doesn’t have subscription or listing fees, and commissions are pretty low.
First, it has a 5% – 6% commission per sale, and new sellers sometimes get promo discounts as low as 2% for the first 90 days. Second, the payment processing fee is already included in that previous commission, so you don’t get hit with an extra charge.
That said, keep this in mind: because TikTok is driven solely by the content you create, most of your budget goes into creating and running TikTok ads. That’s where you’ll spend most of your budget, instead of platform fees.
Etsy: Handmade and Unique Products
Etsy’s fees are a bit higher than most other platforms. Let’s see:
- Upfront fee of $19 to open your Etsy shop.
- Listing fee of $0.20 per item that renews every four months.
- Transaction fee of 6.5% of the sale price, including shipping and gift wrapping.
- Payment processing fees vary by country, but in the US it’s typically 3% + $0.25 per transaction.
This makes Etsy a bit more expensive than other selling channels to get started. But if you’re tapping into creative, custom, and vintage niches, it’s definitely worth it.
International Selling Fees
As a general rule, whenever you sell abroad (whether on eBay, Shopify, or any other selling channel), you’ll likely face extra costs. For example, currency conversion fees, higher payment provider rates, or international shipping fees. On top of that, many countries require you to collect and remit local sales tax. Will cover these in a little bit.
But you should know that, beyond taxes, platforms like eBay charge international selling fees, which are automatically deducted from your payout. These are calculated on the total sale amount. That includes the item price, shipping, handling, sales tax, and any extra charges. Rates vary depending on both the buyer’s country and where the product ships from.
Payment Provider Fees
Every time a customer pays you, the payment processor takes a small cut. That’s the payment provider fee. Think of it as the price of accepting credit cards and online payments.
The exact fee depends on the gateway you use and where the customer is located. A couple of typical examples:
- PayPal: 2.9% + $0.30 per transaction for US sales, and 4.4% + a fixed fee for international transactions (the fixed part varies by country).
- Payoneer: around 3% of the transaction amount when a customer pays with a credit card.
💡 Pro Tip: Don’t forget to factor these fees into your pricing strategy so you don’t lose money. AutoDS can automate your profit margins so you’re always covered from extra fees eating into your sales. Just set your rules and let the system manage everything for you.
Shipping Costs, Taxes & Customs Duties
Ugh, I know…the boring part: shipping, taxes, and customs. All things nobody likes, but unfortunately, we have to address them too. These are easy to overlook, but taking these costs into account can make a big difference in your margins. Let’s see:
1. Shipping costs. These are set by your supplier. Domestic shipping is usually cheap (sometimes even free), while international shipping averages around $20. Costs vary depending on where the product ships from and where it’s going.
💡 Pro Tip: AutoDS lets you factor shipping costs directly into your product price. That way, you can advertise free shipping (a huge conversion booster) while keeping your profit margins safe.
2. Taxes. These depend on the buyer’s country. For example, in the US, many states now require you to collect sales tax on online orders, which can range from 4% to 10%. In the EU and UK, you’ll need to factor in VAT (value-added tax), which usually falls between 15% – 25% depending on the country.
3. Customs. These are charges on goods imported across boarders. Rates vary depending on the product type and country of import. Globally, these duties range from 0% to around 37%, with an average around 5% – 6%. Luxury goods often face higher rates, while basic items may be duty free.
📦Supplier’s tip: AutoDS supports local suppliers (like US or EU warehouses) to help you avoid unnecessary cross-border fees and shorten delivery times. Just choose locally supported suppliers or filter by region on the AutoDS marketplace, and that’s it—no international selling fees.
Marketing Costs
Even with the best products and a great store, nothing sells without marketing. For most dropshippers, this ends up being the biggest expense. But it’s also the one that drives growth, so look at it as an investment.
From ads and influencer collabs to promoted listings, there are plenty of ways to get eyes on your products. Let’s break down the most common marketing costs and what you should expect to spend on each.
How Much Do PPC Ads Cost?
Pay-per-click (PPC) ads are one of the fastest ways to drive traffic to your dropshipping store. You just set targeting rules to reach your ideal customers, and you only pay when someone clicks your ad.
The cost per click depends on the platform. On Facebook, for example, the average CPC is around $0.90—more affordable than other channels like Instagram or YouTube.
But here’s the good news. You don’t need a massive budget to start. Many dropshippers begin with just a few dollars a day, then scale as they start to see conversions. Done right, PPC can turn into a steady stream of sales and a solir return of investment.
📢 Marketing Tip: Test your ads on winning products first. AutoDS’s product research tools help you spot items with high demand so you’re not wasting clicks (and cash) on the wrong products.
Budgeting for Influencer Marketing
Have you considered influencer marketing? This is a great place to start. Instead of starting with zero reach, you tap into someone who already has potential buyers from your niche. From fitness to beauty, there’s an influencer in every category.
Something to keep in mind is that prices vary. It basically depends on the influencer’s following and engagement. Here’s a quick look at average costs per post: =
- Nano-influencers (1K–10K followers): $10 – $100
- Micro-influencers (10K–50K followers): $100 – $500
- Mid-tier influencers (50K–500K followers): $500 – $5.000
- Macro-influencers (500K–1M followers): $5.000 – $10.000
- Mega-influencers (1M+ followers): $10 000+
A tip? Don’t assume bigger is always better. Influencers with a smaller following can drive higher engagement and conversion at a fraction of the cost.
eBay Promoting Costs
If you’re selling on eBay, promoted listings are one of the best ways to stand out from the crowd. eBay offers two main options:
- Promoted Listings Standard: this works o a cost-per-sale model. You set an ad rate (anywhere from 2%-100% of the item’s sale price), and your listings get extra visibility across eBay. The best part? You only pay if the item actually sells through the ad.
- Promoted Listins Advanced: This is closer to classic PPC ads. You bid on keywords, pay per click, and compete for higher spots in eBay search results. The average CPC is around $2.50 per keyword, but you can control costs by setting a daily budget. If you don’t get enough clicks, you only pay for the traffic you receive.
Cost of Facebook & Instagram Promotions
Another way to market your store is through Facebook and Instagram promotions, better known as “boosted posts”. This is when you pay Meta to push your content to a larger, targeted audience. It’s simple, fast, and beginner-friendly, which is why many new dropshippers start here.
Boosted posts run on a cost-per-mille (CPM) model. This means you pay for every 1000 views. On average, the CPM is around $8.17 per 1000 impressions. That said, costs vary depending on your niche, audience, and competition. The more targeted your audience, the higher the price (but also the better chances of reaching real buyers).
Is It Possible To Start Dropshipping For Free?
Yes, it’s totally possible to start dropshipping with no money. Two reasons why. First, you can get started using free tools and marketplaces or take advantage of free trials.
And second, that’s the beauty of dropshipping: you don’t need an upfront investment. No stock, no warehouses, no logistics. You only pay suppliers after a customer buys from you, which means you can launch a store with almost zero risk.
That said, dropshipping with $0 has its limits. If you’re serious about scaling, you’ll eventually need to invest a little. Let’s break down how to get started with minimal costs.
Dropship Automation with AutoDS
Time is money. And wasting it on manually copying and pasting product info, tracking inventory, updating prices, and fulfilling orders will drain plenty of both. It’s prone to costly mistakes, slows down your growth, and makes it nearly impossible to scale once orders start piling in.
That’s where automation steps in. AutoDS takes care of the entire workflow for you. From sourcing and importing products to real-time price and stock monitoring, all the way to automatic order fulfillment.
And the best part? AutoDS offers a $1 trial for 14 days so you can get started with almost no money. Launch your dropshipping business in just hours, get full access to automation tools, and start selling right away. (Yes, it’s technically not $0, but a single dollar to kick off your store is as close to free as it gets).
What will you be able to do, exactly? Here’s a quick snapshot of how you can use those 14 days to launch and grow with AutoDS:
- Source products from 30+ trusted global vendors, as well as exclusive AutoDS private suppliers. Also, access a curated list of AutoDS’s hand-picked products that are already trending. No wasting time guessing what to sell.
- Import listings to your store in just a few clicks with different methods, from one-click to bulk importing.
- Automate pricing and stock monitoring so you never oversell or lose money on supplier changes.
- Fulfill orders automatically and keep your seller accounts safe with Fulfilled by AutoDS. AutoDS helps you keep everything running smoothly with automated tracking numbers and returns.
- Manage multiple stores from Shopify, eBay, Wix, Amazon, WooCommerce, and more from a single dashboard.
- Optimize listings with AI to create high-converting titles and descriptions in seconds.
All of this and more without manually copy-pasting a single line of product info. Ready to launch and scale with no risk? 👉Start your $1 trial
Selling Channel Tips
Another way to start dropshipping with no money is choosing selling channels that let you start for free. For example:
- Facebook Marketplace has no subscription or listing fees, just a selling fee per transaction.
- eBay is free for up to 250 listings per month, more than enough to get started and wait for revenue to invest.
- WooCommerce is a free plugin. If you already have a domain and hosting, you can use this one without paying extra.
- If you’re willing to spend just a bit, Shopify’s $1 trial for three months is a solid choice.
Free Marketing Methods
Who said you can’t do marketing for $0? Paid ads are powerful, but you don’t have to spend money right away. Free methods include:
- Social media content. TikTok, Instagram Reels, and Pinterest have huge viral potential. If you do it right, they can be your best friends for organic reach.
- SEO basics. Optimize your product titles and descriptions for search engines. This way, you make sure your listings get organic visibility when potential customers are searching for your products.
- Influencer swaps. Partner with nano-influencers who may promote in exchange for free products.
📢 Marketing Tip: Don’t know what to boost to reach new audiences? Try AutoDS’s Ads Spy Tool to spot trending products already going viral. Then, recreate that content for your own channels without spending a cent on ads.
Cut Costs and Scale
Getting started for free is possible. But the real goal is to cut unnecessary costs while scaling smart. You don’t need dozens of tools for each different task. And second, you don’t need to start big to sell either.
First, centralize everything in one single platform instead of juggling multiple apps for product research, order fulfillment, and inventory tracking. With AutoDS, you can manage your entire dropshipping workflow from one dashboard, saving money, time, and sanity.
Second, start with an MVP (minimum viable product). That simply means launching a basic version of your store with a few carefully chosen products, just enough to test the waters. From there, you can validate what works, drop what doesn’t, and gradually scale up.
Frequently Asked Questions
How much money is required to start dropshipping?
Technically speaking, you can start dropshipping for completely free. However, there are some fees that we cannot avoid, like taxes (if applicable), payment provider fees, and selling fees.
How much does it cost to start dropshipping on eBay?
It costs you almost nothing to start your eBay dropshipping business. However, you need to pay eBay for dropshipping on the platform. eBay dropshipping fees include listing fees ($0.35 for each extra listing beyond the free 250 listings a month), and final value fees.
How much does it cost to start dropshipping on Shopify?
Shopify’s Basic plan is $24/month, plus the 2.9% + $0.30 transaction fee. You may also pay for apps to run your store, though AutoDS covers most essentials like product imports, automation, and order fulfillment in one tool. With Shopify, you’ll need a small budget upfront, but it’s one of the most scalable options.
Can you start dropshipping for free?
Yes, you can start dropshipping for free, at least to test the waters. That’s the beauty of the dropshipping business model. You can use free trials, start selling on free-to-list channels like eBay or Facebook, and promote your products through organic social media. Over time, though, you’ll want to reinvest in ads and automation to actually scale your business.
Start Your Dropshipping Journey with AutoDS
If you’re looking to start a low-risk business, great news: dropshipping is one of the most affordable ways to start an online business. Sure, you’ll face some costs. Think taxes, transaction fees, selling channel subscriptions, marketing, and shipping. But they’re far way lower than traditional retail. And if you’re smart about using free tools, low-cost platforms, and organic marketing, you can launch your store with minimal investment.
But here’s the trick: automation. This can be your best friend when looking to minimize costs and maximize results. AutoDS helps dropshippers cut expenses, save time, and scale faster with full automation. From sourcing products and managing inventory to fulfilling orders and monitoring prices, everything runs in one place.
And if you need more inspiration to start your dropshipping business, here are helpful reads:
