how much money to start a dropshipping business
Published on: January 28 2023 by pipiads
Table of Contents About how much money to start a dropshipping business
- Shopify Dropshipping: How Much Money Do You NEED To Start In 2022?
- How Much Money is Needed to Start Dropshipping on Amazon In 2021
- Easiest Way To Start Dropshipping From Scratch (Exactly What I Did)
- $0-$16,000 In 30 Days Dropshipping With NO MONEY (Step-By-Step)
- How Much Money Do You Need To Start Dropshipping? (Shopify + FB Ads)
- How Much Budget Do You Need To Start Dropshipping In 2022
Shopify Dropshipping: How Much Money Do You NEED To Start In 2022?
so you want to start shopify drop shipping, but you're wondering: how much money does it take to actually get started and to start making money? that's a fantastik question. in this video, i'll be breaking down exactly how much it's going to cost you to start a successful shopify drop shipping business, as well as an overall e-commerce business and brand, and i'm going to cover a list of the most essential apps that you're going to need, as well as the optional apps as well, just as extras like literally everything- facebook ads, influencer marketing, photography- so let's go ahead and get started. super excited about this. one is actually a part of my free shopify mini course playlist on my channel. if you want to see the absolute best shopify content- how to build a successful 67-figure profitable shopify business- you can go ahead and take a look at this playlist. it's on my channel, uh, so this is gonna be linked down below, but to get started with this video, my name is dan vass. it's great to meet you. i've been living and breathing e-commerce for the past several years and i've sold millions of dollars in physical products online across a variety of different brands, and it's what i do every single day, like i'm in it, and it's not just me. i've grown an amazing team of several multi-million dollar ecommerce sellers who are also um growing their own businesses and brands, who have also have their own products as well. the most recent brand that i've been involved with is called bro day. you can actually take a look. we've recently hit 50k a month on amazon and a valuation of over a million dollars by clearbank, and we're growing every single day. throughout this video, i'm also going to be giving you three different budget levels that you can follow, and it will give you a great idea on how much it's going to cost to start your business, whether you're on a low budget, a medium budget or on a higher budget. so, to start off, first of all, we've got the shopify plan and there's a variety of different e-commerce providers that you can use. there's shopify, there's big commerce, there's woocommerce, there's magento, but by far the number one e-commerce website builder is definitely shopify. shopify has the largest market share. i've built all of my shopify stores on shopify and will continue to do so, you know, as long as shopify remains as good as it is. uh, they basically make it as easy as it can possibly be- almost drag and drop. you know, with a few plugins you can really make it drag and drop and it just makes the experience so easy and so user friendly. so i highly recommend shopify. of course, you can use one of the other ones that i mentioned, but honestly, without a doubt, shopify is the absolute best. it's used by all the most successful ecommerce stores in the world and you should also definitely consider using shopify for your store. so how much does shopify cost? shopify costs 29 a month for the basic plan. it does come with a 14 day free trial. if you use the link down below here in the description as well, as you'll find all the other useful links that i'm toking about here for literally everything, all the apps, everything i'm going to mention here down below. i'm going to try to jam pack this video with as much information as possible, just like i do all my other videos, because i want to have the absolute best ecommerce content online on the internet to help you get started. so shopify plan: 29 bucks a month, and then that's for the basic plan, which should allow you to get started and get going with your store, and then the one above that is the 79 a month regular shopify plan and, honestly, the only major difference with that one is that it allows you to set different prices for international stores, for global selling. so if you're only selling in the us or in one country, you don't need to worry about that, and if you want that option, uh, honestly, there's a lot of different plugins and apps that do that as well. like, shopify has an amazing app store on the platform. there are tons of different apps- and i'm going to tok about that as well- all the most essential apps that you do need to actually get started and grow a successful ecommerce business. now, after shopify, the next thing will be your domain. so what a domain is? it's basically your website. so when you are going to be opening your shopify store, obviously you need to purchase a website, you need to purchase a domain, and that's going to be, for example, wwwbrodayco, which is the domain of one of my brands, and for your domain, that's going to cost you about 20 to 50 if the domain is available. so a lot of domains online, of course, are taken. for example, you can't just go and buy wwwgooglecom because it's obviously taken by google, and so to check that, there's going to be a link down below. you'll find a partner link there with godaddy and google domains as well. those are the two best domain providers. it's the ones that i use. i don't use anything else. namecheap is okay as well. i'll include that one in there too. just gives you some flexibility, but it's going to cost you between 20 and 50. for your domain per year. now, one other thing that you absolutely need is an ssl certificate, and that usually costs money. but if you decide to go with shopify- which is what i recommend, uh, as i recommended earlier- then that actually comes included with an ssl certificate. what an ssl certificate is is basically- i'm sure that you've seen this- when you're online and you go on a website and it says: be careful, this website may be stealing your information, that's because they don't have a valid ssl certificate, and so shopify comes with an ssl certificate. if you look at the pricing list and what's included in each plan, it actually comes in all the plans. now, the next expense when you're starting off your shopify drop shipping store are going to be your product units. now, again with your product units, since we're doing drop shipping, you are not buying in bulk. so just a quick refresher here: what is drop shipping? drop shipping, just you know if we're going to bring it back to the basics here. uh, basically what that means: that allows you to start selling products. you can open a website, start a shopify, uh, put up a product on there, make a listing, uh, make a sales page and then basically start selling your product without actually having to buy any units up front. and then, as you get customers buying from you, you can then uh basically send that money to your supplier. you know you can pay your supplier and then you pocket the profit and your supplier will directly send the units to your customers. so, because we're drop shipping, you don't actually have to buy any units up front, meaning that you know you don't have to place any inventory orders, uh typically, as you would with something like amazon or in a traditional retail business. so you don't have to put up 500 or a thousand dollars or more to actually purchase those units up front. however, i do want to mention something very, very important. uh, the strategy that i've developed, that i've made the most amount of money with shopify, is called brand drop shipping, and this is a strategy that you see all around youtube now. literally every single youtuber toks about it, and it's something that i created myself. i come from an amazon background. that's where i started and then, when i actually got into shopify- this was about 2018. when i got into shopify, i realized that there were a few issues with uh dropshipping in the traditional drop shipping model. so, if you don't place any inventory orders up front, what's going to happen is that your logo- there's going to be no logo on the product and the customer is going to be receiving something that looks like it just came out of the factory. and you know, i myself, if i order from a reputable store, if i get a product and it looks like it just came out of a chinese factory- or any factory for that matter, it just looks cheap. um, you know, obviously that's uh not going to be the most uh the best thing for me, for the customer, and i'm no
How Much Money is Needed to Start Dropshipping on Amazon In 2021
so how much money is needed to start drop shipping on amazon? it's not as much as most people think, but it is a lot more than a lot of people think, so it's really important to understand this. so before we go over the exact amount needed to start drop shipping on amazon, we need to understand, first and foremost, how the business model works and, second, the different ways to buy products. so, just in a 20 second quick recap, how amazon drop shipping works is: we have an amazon store. we're going to list a bunch of products on that amazon store and we're not going to buy the product till someone buys it from us. so one of the places we drop ship from on amazon is walmart. so maybe there's a rug on walmart that's selling for a hundred bucks we listed on amazon for a hundred and thirty dollars. when someone buys the item from us on amazon, then, and only then, once someone buys the item from us on amazon, amazon says: congratulations, you got a sale, you got money. then, and only then, we go to walmart and we buy the item for a hundred dollars. so that's how drop shipping works. we don't actually buy products up front, and that's one of the things that is so appealing about drop shipping, a traditional business we might have to go get- we probably have to go get- a storefront. that would cost a lot of money: first month's rent, last month's rent, security deposit. you'd have to pay money to make the inside of the place look good, have to get insurance, have to hire employees. then we'd have to buy a bunch of products up front from you know manufacturers, distributors, wholesalers, get them in our store and then hope that people buy it, just like if we go to the mall. right, if we go to a mall or we go to, like, a clothing store, those store companies have those products. they they generally and they might have gotten them on term, but generally they will have purchased those products up front. they had to spend their money up front. then they put all the products in their shop in the clothing store in the mall and then when people come in and buy the product, that's when they make the money. so there's a lot of it's a lot of risk and a lot of money that needs to be spent up front. how drop shipping is different and when so many people are attracted to the drop shipping model is: we don't buy the product till we get money. so it's only once someone gives us money and they say, all right, you know, if it's on amazon you could drop ship on different places. but amazon says, all right, you got a sale. then and only then we actually spend money up front to buy the item from the supplier and ship it right to the customer, don't have any storage fees, there's no warehouse fees and there are risks to drop shipping. but as far as this risk goes of spending a lot of money up front, that risk is pretty much mitigated. it's pretty much not there when it comes to drop shipping. so how much money is needed to get started upfront drop shipping? well, there's two parts to this. the first part is there are people out there that don't have any money saved. they don't have any money saved, but they're able to drop ship. now you might say, aaron, are they able to drop ship? because when someone buys the item from you on amazon, you can then take that money they gave you and use it to buy the product. no, how amazon works is, once we sell the product, it takes amazon generally- and i could go in the detail in this- but it's generally two to three weeks till they pay us. so the customer buys the item from us on amazon, they're ex, they they're expecting to get the item in about a week. amazon will not give us the money that customer gave us for about two to three weeks, so we can't wait for amazon to pay us in order to go buy the product. now i've heard that there's some people that have amazon accounts that are like 10 years old, where amazon was doing payment every single day without any holds. but that's generally not the boat that we're gonna be in and, to be honest, i don't even know if that, if that exists anymore, they might have. they might have changed all the accounts over. i know ebay is a little different too. i have a very seasoned, uh ebay account and paypal account. so if someone buys an item from me on ebay, i can transfer that money from paypal. i could actually do a transfer. you know, pay the 10. i forget what the fee is, but i can do a transfer literally right away, instantly, and have the money transferred right away and have use that money to drop ship the item. that's not how amazon works. amazon there's no real way for- unless you got like an old season account. but there's no real way to. there's no real way to be able to use the money that the customer uses to buy the product for us to buy the product. so because of that, we have to finance a product. we have to finance a product and there's a few different ways to do this. the first way is if you have savings. if you have savings, if you have savings- right, if you got a few thousand dollars saved up, or five, ten, fifteen, twenty thousand dollars, you can use that money to buy products up front. so when people are buying products through your amazon store, you can use your savings. you can have your savings, go down and use your savings to buy the product and then, once amazon pays you, then your savings go back up. the second way is you could use a credit card. you could use a credit or a debit card or not a debit card, that would just be cash, right, but you could use a credit card. you can have no money, so you can have no money saved. but if you have good credit, you can go with a credit card of a couple thousand dollars, five, ten thousand dollars, fifteen, twenty thousand dollars. you know people with good credit can get really big credit cards and then they finance everything on the credit card. so- and they they wouldn't even pay any credit card fees, because what would happen is, when you buy an item on a credit card, usually you have about 30 days to pay that back. well, amazon's gonna pay you in two to three weeks. so you start selling a bunch of items on your amazon store, you finance everything on your credit card and then in two to three weeks, when amazon pays you, you use that money to pay off your entire credit card and then, if you're doing it right, you'll actually have money left over and you'll make a profit, right? so maybe you, you know you pay off your 20 000 credit card. you completely broke even on that. but if you're running a 10 profit, you would actually have an extra 2 000 in profit on top of that. so that's the other thing you could do. the third thing you could do is you could get a loan. there are some people out there. they'll get a business loan- they're gonna personal loan- and they'll use that loan from the bank or from another place to to basically use that money as cash to fund the business up front. so those are the the three different ways to to fund the business, and that answers the question: how much money is needed to start drop shipping on amazon. as far as the actual dollar amount, you don't need a lot because there it's, there are people. you can start drop shipping products that are 10, 20 bucks. so even if you don't have a lot of money, i mean you don't have to list the gazillion products, you don't have to list high-end products, you can literally start. if you have, let's say, bad credit and you only have 500 dollars saved, you can literally start listing 10, 20, 30 products and you don't have to list a bunch of them. and if you're, you know, really on a budget, you don't even have to hire a team of people, like i got a team of va's, you could just do it yourself manually. so, um, but if you have more money, then you could possibly hire a team of va's or a couple of va's to help you out, and then you could possibly, you know, instead of selling, you know, 10, 20, 30 items and a couple of those a day, you could really load your store up and get to the point where you're selling 500, a thousand, two, three, four, five, six thousand dollars of uh products a day. if you guys see, i'd show you guys my um right. if we go to my amazon store- oh, that's ebay- if we go,
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Easiest Way To Start Dropshipping From Scratch (Exactly What I Did)
trying to start a dropshipping store can be overwhelming. with so many different steps and strategies, it's hard to even know where to start. so in this video, i'm going to share my exact strategy for starting a new drop shipping store from scratch, and in the last couple months, i've built a new store with this strategy, and that store has already done close to 900 000 in sales. so if i had to start over today, this is exactly what i would do. if you're new here, my name is jordan and i'm currently documenting the entire process of growing my online business with as much transparency as possible, so that i can lead by example and help you start your own online business this year. so if you're interested in starting your own online store and you want to follow my journey, make sure to subscribe for new videos every single friday. all right, let's get started. firstly, i want to show you some live results that i'm getting with this exact strategy. so it's around halfway through the day and i've already generated around 3 800 in sales on this store. the profit margin is pretty good as well. i've done almost fifteen hundred dollars in profit, which is almost a forty percent profit margin, and if we take a look at yesterday's stats, you can see i sold around sixty seven hundred dollars and made around eighteen hundred dollars in profit. i just wanted to prove to you that this is working right now. so you know it's worth your time to watch this whole video. so there are four main things that go into building a successful drop shipping store. the first one is your product. the second one is your store. the third is your marketing and how you get customers, and the fourth is running your business and shipping out your orders. now i'm gonna break down each of these one by one as simple as possible. so let's get started with products. so without a winning product, it's pretty much impossible to have success with drop shipping. thankfully, there are a ton of products out there that you can sell. every single week, new winning products pop up, so the opportunities are always fresh. there's really only three things that i look for when determining if a product is a winning product. the first thing is if the product has been recently trending on facebook and instagram. what i mean by trending is that there is a ad that is getting a ton of views, shares, comments and likes and people are going crazy for the product. this is a great sign that you can make money off of this product because people are already interested in it. as long as you do something a little bit better than the person that's already selling it, you can swoop right in, compete with them and make money selling that same product. this is exactly what i've done for every single one of my winning products and it's worked time and time again. the next thing i look for is mass appeal. my favorite type of products are the ones that can be sold to the masses. i don't love the extremely narrowed down products that only apply to a small set of people. yes, they will buy the product, but if we ever want to scale and build something big, we need something that we can sell to almost everybody. it's okay if it's a little narrow, like it's only for women or it's only for men, but the broader the better. the last thing i look for is good profit margins. what i consider to be good profit margins is being able to sell the product for three times the cost it takes to ship it out to the customer. so if the product costs you around 10 to send it to your customer, you want to be able to sell it for at least 30, and that's pretty much all i look for in a winning product. let me show you a live example of exactly what i'm toking about. okay, so this product is an absolute banger. basically, it is a garden privacy fence that you set up in your backyard. as you can see, this product was launched on march 8th of this year and they've already got over 70 000 likes on this post. if you check out the comments, people are going crazy for this. they love it, they really enjoy the product. but the people that are selling it aren't doing a good job and if we look at their video, it's not really that good. and then if we go to their website, it's the same thing. it's really not that good. this product has great profit margins as well. you can see that it cost around four dollars on the low end to ship to a customer and they're selling it for anywhere from 1999 all the way up to almost a hundred dollars per sale. so if you came in and made a slightly better video, a slightly better website, you could clean up off of this product and make a ton of money. so, like i said, that product is an absolute banger and a perfect example of a winning product. now, how do you find these products? the tried and true method that i've been using for years is simply just looking on your facebook and instagram feed. every single day, you're going to get targeted with ads for drop shipping products eventually, and every time you get targeted with one of these ads, you need to show facebook that you're interested. so you want to go to the ad, you want to like, you want to comment, you want to go to the website, you want to click add to cart and show facebook that you're trying to buy stuff like this. so they will start recommending you more products and your feed is just going to become the best product research tool that you have. that's my favorite method, but i also created a tool that automates this process. so if you want to check that out, click the link down below. alright, so step number one is finding a product that fits this criteria. so once you've got that product, now you've got to build a store. now there are a couple different types of stores that you could build. you could build a general store, which is a store that has a bunch of random products all around it. you could build a one product store, which is a store that only focuses on selling one main product, or you can build a hybrid store, which is what i recommend. building a hybrid store combines the benefit of a one product store and a general store. with a general store, you have freedom to test a bunch of products, and with a one product store you're limited, but you're gonna have a higher conversion rate and people are gonna trust you much more than a general store. with a hybrid store, you're creating the same branded feel that a one product store would have, but with the freedom to test a bunch of products. i think it's better if i just show you an example. so this is a sample store that i created. that would actually be perfect for the product i just showed you. the store is called flora flow. as you can see, it's pretty much focused entirely on home and garden based products. it has a nice branded design, it has a good logo, it's easy to browse and shop around and overall, it feels like a trustworthy site. i recently made a video on exactly how i built this store, so after you watch this one, feel free to check that out. the one tip i will give in this video is to model your store off of what's already working. this is not some brand new design i came up with. i just put my own little twist on what was already working. you don't have to reinvent the wheel. you just have to take what's working and add a little bit of your own sauce to it. so i would advise taking your product, building a store like this and filling it up with products that are similar to the one you're selling. here's another really good example of a hybrid store. this one is called arctik shirt and, as you can see, they sell a bunch of home decor products as well. they have the moon lamp, this kitchen set, they have bedding. they have all types of products, but the store is really nice, branded and feels extremely trustworthy. in my opinion, this is the best approach for beginners, so give it a try. next up, you need to get some traffic and customers to your website. personally, my favorite method for starting with a new store is facebook ads. it does cost a little bit of money to run ads on facebook, so i recommend that you have at least a couple hundred dollars.
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$0-$16,000 In 30 Days Dropshipping With NO MONEY (Step-By-Step)
this is exactly how i made sixteen thousand dollars my first month online. i'm gonna be going over exactly how i was making thousands of dollars in my first month online as a total beginner through a method you might know of, which is shopify drop shipping. so make sure you guys leave a like and subscribe to this channel and let's get into how i did it. so if you have no idea what shopify drop shipping is, you essentially create an online website, you add products to your store and then advertise your store and eventually make tons of money in the process. and so during this time, i was 17 years old and i was scrolling on tiktok. i found out people were literally posting tiktoks about their products and they were getting millions of views, which would end up getting them thousands of dollars in sales. and, honestly, after seeing so many people get rich off of tiktok drop shipping, i knew i had to hop on the wave. i stumbled across this tiktok page called my soul lift, and this guy's second video on tiktok got 36 million views, and pretty much what he was selling were these soul lifts that you put in your shoes to make you look taller, and me, being five eight- i'm a lot shorter than most of my friends that are six foot six foot three and you know, if you're short, like five five or five six, compared to other guys, you're going to feel insecure. so i knew there was a market for this product. a lot of shorter guys would want this product, especially if they're gonna go on dates, go to prom or whatever it is. i see a lot of short people actually buying this product and i knew i had to do the same exact thing he was doing, because clearly he was getting a lot of views and he was getting a lot of followers during this tiktok. now this guy was selling this product for 20, but i knew there was drop shipping suppliers like zen, dropper, alibaba, and i knew i could get this product for way cheaper from those platforms. and since i knew i could get this product for way cheaper, it was time to create my own website and start selling this product so i could start making some money. now the first thing you want to do once you found your product is you want to go on shopifycom and create your 14 day free trial, and once you created your free trial, you can use either xendrop or oberlo to import the products you found for way cheaper and start customizing your store now. my number one advice for every single person that's creating a shopify store is: take inspiration from people that are already selling your product, and in my case, this guy's soul lift website is very, very simple. you do not want to over complicate your website. you want to have no more than three main colors, as this example. he's using red, black and white, nothing else. you don't want to have 10 different colors on your website makes it really hard for a customer to concentrate on what your brand is really about. you don't want to have long descriptions. you want to have videos and gifts in your product descriptions. customers are not there to read descriptions. they're there to look at what the product is doing and you don't want to bore them out with long descriptions and paragraphs because, at the end of the day, you want them to check out. you don't want them to keep reading and get bored of your website. and if you guys are looking for a complete tutorial on how to start a drop shipping store and create a website from scratch, i'll go ahead and link up a really good tutorial up here. so make sure you guys watch that if you don't know what you're doing. and now let's get into the part on where we advertise this product. so, when it comes to marketing the product, you want to go ahead and make two social media pages, and the most important platforms, in my opinion, when you start off, are tik-tok and instagram. other platforms like facebook, pinterest and youtube come later, after you start making some money, but definitely focus on those two in the beginning. if we go ahead and look at this guy's instagram page, it's very, very simple. you know. you don't want to go crazy and buy a lot of followers on instagram. you can honestly buy 500 followers on buzzoid. it's a very cheap website to buy instagram followers just to give you some credibility. on tiktok, you do not want to buy followers because it is going to affect the algorithm. but instagram, go ahead and buy 500 followers just for that boost of credibility. and when it comes to building the website, when it comes to creating the social media pages, just want to take inspiration from your competitors and people who are already making money and getting views from your product and see how the descriptions are, how their profile picture is, and just take inspiration because you want to do what's already working and that's the best way you're going to start making money, especially when it comes to drop shipping. so once you found your product, you created the website, you started your social media pages. it's now time to order the product so you can actually start making tiktoks off of it. tik tok icon. they say: what are the? what are the numbers? now, the one thing i do recommend is order your product from amazon. you can literally look up the same exact product. you can get an unbranded one with no logo on amazon so you can actually start making videos off of it and amazon prime it so it comes in one to two days. so once your product arrives, you can finally start making tiktoks. finally, and the way you want to do it is recreate their viral tiktoks, and you want to keep doing it every single day and be consistent. no, it doesn't matter if you post three of the same videos that went viral, because with tiktok, it's all about making sure you know you're doing something that's already working and that's already went viral. don't try to make original ideas and make your own tiktoks. for the first few weeks of testing a product, want to recreate viral videos exactly how they work. the only thing you have to do when recreating a viral video is: try to have better lighting, try to have better quality, but other than that, recreate the video exactly how you saw it, because if it got millions of views, you don't want to change up anything, whether it was the background or anything like that. you want to recreate the video exactly how you saw it. so once you start posting on tiktok, i recommend posting three times a day, every single day. the times that work for me around 3 pm to 5 pm eastern. obviously, everyone is different. you have to test out different times. those are what worked for me. do not miss a single day of posting, because if you miss a day you can really screw up the algorithm. so definitely i don't recommend doing that now. if you're in a different country- you're not in the us, you know. if you're in europe or italy or anywhere like that- try to recreate those tiktoks, but just do them in your own language, because you don't have to try and get to a us algorithm. you can literally try and get in your country's algorithm and trying to see if that works. but once you're making those tik toks, you know you're testing the product. repost everything on instagram reels and be consistent on instagram and be consistent on tiktok and you have to make sure you're doing this every single day to see if the product is gonna make you a lot of money. now remember you can't have a link in the bio of your tiktok page until you have a thousand followers, so that first week you have to be trying to get a viral video and push out your content and that will eventually get you a thousand followers. if the first few weeks you can't get a thousand followers, then you have to look at your product or the content you're making, because one of the things you're doing wrong and getting a thousand followers is not that hard if you have a good product and if you're recreating viral content and guys, this is truly the five step process on how i was able to make thousands of dollars my first month online without spending any money on ads. in terms of drop shipping, this is very, very doable, especially i
How Much Money Do You Need To Start Dropshipping? (Shopify + FB Ads)
what's up, guys? it's your boy, Jordan, back with another ecommerce video, and in this video I want to tok about something that is on everybody's mind when they're first getting started out. I want to tok about how much capital I believe is required to start and grow a online business with Shopify dropshipping. I'm gonna cover what I started with. what I struggled was with that budget and ultimately, what I think you should have before you go ahead and dive in and start the process. if you like the quality my content, give me a thumbs up and hit that subscribe button down below. also, if you're interested in growing your e-commerce business, click the link in the description below to join my 3 Facebook groups. there are over 2000 entrepreneurs in there and I am always in there answering and helping you guys out in whatever way I can. without further ado, let's get right into the video [Music]. first and foremost, one of the main things that a lot of youtubers and gurus fail to highlight when they're showing you the dream of having an online business is that there is capital and money that you need to have up front before you get started. there's a lot of people like to market it, as you can just take these five dollar budgets and you can see how them- to a thousand dollars a day, with no worries, and it's really easy and all that stuff, and sure that is a possibility. that's. the best thing about an online business is that there is room for quick scalability, but unfortunately that is not the norm and it is likely that you're going to lose money going into this venture. think of it as like starting any other business, because it is like any other business. you need capital to get started before you begin the process now. having said that, you also have to understand that there is definitely a benefit to the drop shipping business model in the fact that you don't need tens of thousands of dollars to get started before you get your business up and running, because you're not needing lots of capital to go ahead and buy all this inventory and get it stoked up in a warehouse somewhere. that's not an investment that you're gonna have to make. so there is definitely benefit to the model in terms of not needing to start with that much capital. but a lot of people market it as you need no capital or you need next to no money to get started, when this is far from the truth when trying to come up with a figure to determine as the amount of money that you need to start shouts like drop shipping. it's quite difficult because, truthfully, you can start with less than a thousand dollars and find success with it, because the majority of the budget that you're working with is going to be used on testing products and going through products until you find one that is a winner, and then you can scale that and make profit off that. but before you find that first winner, you're just going to be straight up spending money with maybe a sale here, maybe a couple sales there, but you're not gonna be getting an explosive return that you see in all these screenshots and all these marketing campaigns that people throw at you, because that's not the reality. you have to go through a bunch of losses and a bunch lost products before you find one that eventually stiks. so now I'm gonna share with you what I started with and how long it took me to find a winner. but just understand that you can't find success with a low budget, but the process is significantly easier if you have more money to work with. so for me personally, I don't come from a family of business people. I don't come from a family with a ton of money to throw at me to venture my businesses. to be honest, the capital that I raised to start my business was money that I took from a student loan that I wasn't even supposed to spend on my own ventures, but I took it anyways because that was the only money that I had access to. so when I was just starting out, I had about six hundred dollars in my savings account to work with, and I was also working with a business partner with mine who had about 200 to 300 dollars to work with as well. so in total, we had less than a thousand dollars to get started, get everything going and start testing products before I launched my successful general store. I launched a niche store that failed drastikally and I lost four hundred dollars out of the nine hundred dollar budget that we had to work with. so I started my general store with five hundred dollars to my name. now you might look at that as some grand success story. like I went from five hundred dollars to a million dollars in sales and while that did happen, there were other factors that happened along the road that allowed me to do that. in my case, with that five hundred dollar starting budget, we blew through all of that money and, just about a month's time, granted, there were a couple sales that came in and it's not like I spent five hundred dollars to come back to zero dollars, but after spending five hundred dollars to generate five hundred dollars in revenue, you lose money. you don't make money at the end of that process. so, yes, we have five hundred dollars back in the account to work with again, but that is not profit. that is not money that I can take and spent all over again. so from there, we took that money and we just kept going and going and going, lost it all all over again and I was back to square one. so for me, I had to grind a how to hustle and pick up a side thing and which was editing videos, get a little bit more capital to get things going again. and, to be honest, it was incredibly difficult to keep sourcing this capital and keep failing. and I was asking my best friends for money, I was asking my grandparents for money, I was asking people close me for money. and while now I'm in a position where I'm financially secure enough to keep growing this business, that was not the ideal situation. if I could have been in a position where I could have started with $2,000 to get my store up and running and get testing products. that would have been absolutely perfect, but I wasn't in that position. so, yes, if you're starting with a low budget like $500 or somewhere around there, there is a chance for you to succeed. but don't think that that $500 is going to be the budget that gets you your winning product and allows you to scale to six figures and beyond, because I'm gonna be brutally honest with you, that is likely not going to happen. I will say, maybe there is a couple exceptions to this. for example, if you're working with a one-on-one mentor who is guiding you and showing you everything that you need to do, you're going to be spending a lot less money figuring it all out because you already know what to do. but even when working with a mentor, you're gonna have to go through some losing products before you find one that's a winner and one that stiks. so that's kind of the first thing. and second, if you purchased a course or have some type of material, it's the same principle: if you have something to go off of in, you know what to do. you want to spend that money to fail. excuse me, but for me, when I was starting out, I never got mentorship. I never got, of course, because I couldn't afford it. so for me, I had to get in the trenches, I had to get in the mud and, like, figure this stuff out for myself. so, yes, I lost money, yes, I got back to zero, but ultimately I was able to work through all that and figure it out. so, when it comes to you, what is the budget that you should have to feel comfortable when getting started with dropshipping? now, you just heard my story, so take this number with a grain of salt because, regardless of what your situation is, if you want to succeed and you have the drive to make it happen, you're going to succeed. if you just keep working day and day, don't let what I'm about to say discourage you. if you're starting from position that's lower than this, but I truly believe that if you're studying Shopify drop shipping business by yourself, you need about 1,500 to 2,000 dollars to get started comfortably and feel happy.
How Much Budget Do You Need To Start Dropshipping In 2022
in this video i will expose a lot of dropshipping gurus which are preaching complete. i'm gonna tell you the biggest lie everybody tells you- so they can actually make more money from you. all right, it's basically giving you wrong expectations on how much money you will make with drop shipping versus how much you will invest. okay, most people on youtube will tell you that drop shipping is a low budget business. you don't need a lot of money. you can start with a few hundred dollars and, if you really need to, you can actually get started with this tiny budget where you basically have a few hundred dollars for shopify subscription and for just to run some ads or even do tik-tok or get organic traffic, and you're basically gonna make money from that a little bit and slowly, gradually, build your money from drop shipping and then invest a bit more into it and just scale quicker and quicker and quicker. okay, unfortunately, it's not how it works. as a beginner, you have two options: doing it by yourself or doing it with a person who's going to tell you what to do. most people who are super broke cannot afford a person who are going to tell them what to do. so no, coach, basically you do it by yourself. if you do it by yourself instantly, you're going to burn through a lot of money. okay, there's no other option. you will lose money for sure, because you're gonna do mistakes, as every beginner does. it's not a bad thing, it just happens because that's how the world works. okay, beginners do crucial mistakes. they don't know what to focus on, they don't know what their problem is. they they try to fix things which don't matter and which are not even their problem and basically, you're just going to burn through money. there is no point in doing drop shipping if you have a few hundred dollars in your bank account. like. it doesn't make sense at all, because why would you do that if you just have a few hundred dollars in your bank account? go to a job like a regular human being, get money and then come back to drop shipping. it does not make sense to get started if you don't have money. okay, because all that time you're gonna spend to learn about drop shipping and make it work with this tiny budget- even if it would work- that amount of money you could just make from working eight hours per day in a regular job- okay, you're not gonna make millions in the beginning if you have less than a thousand dollars you can spend on this, then you will make for sure more money through just going to a job than trying this with a low budget. because the reality is, in the beginning you don't make money with drop shipping. when you get started, you instantly go to a negative to actually make money. and you need to also understand the dimensions here, because, let's say, you lose three thousand dollars in the beginning and then you actually end up in the long term making 50k in profit. okay, that return on investment is insane. if you would think about that in the crypto market or in the stok market, that would be crazy. returns absolutely like insane more than 10x returns. right, three, 3k put in. you lose them basically because you put them in and you take out 50. that's insane. however, when you start a business, it's viewed like this crazy thing where i have to wait, i have to lose money to actually make money later on. no, that's, that's too much for me. i i don't want to do that, and people just stop. so they hear that they need to lose money to actually make some money and they understand it's not for them, which is also fine. and this video is basically to weed out people who are not made for this. okay, and again, you have two options. either you invest the money into ads and try to do things by yourself and burn through a lot of money, and i've seen this happen time and time again. if you just try things by yourself, you fix mistakes which are not real. and you don't fix mistakes which are real, okay. so you test the product. it doesn't work, you change the product. and then you test the next one. it doesn't work again, you change the next product. you basically constantly do this over and over again and lose money. in reality, for example, your problem was your ads, but you don't know about that because you think this product is not perfect, that's why i need to change it- and you try to do the same style of ads and they don't work. or it's the other way around, where you change up a bunch of ads, a bunch of store variations and stuff like that, when in reality your product sucks. okay, it's impossible to identify what your problem is because you don't know. you think that you know, but in reality you don't. where people actually get started with my program, they see issues which are completely not real. they tell me: hey man, why i'm here, why i really need your help, is i need to understand email marketing. i really need to understand how the whole flow of email marketing works, and that's what you need to teach me. and i asked them: okay, so, so, how much? how many sales did you make? what's what's, what's your story? and they tell me: yeah, i have like 50 sales. why the would you need emails right now? you don't. and i tell them: listen, your problem is not connected to email emails at all. if you would have the perfect email flow right now, you would maybe make twenty dollars a week, fifty dollars a week extra. okay, that's not what you need right now. you need to make real money by solving your problem. and, for example, it could be you have a terrible product, or your pricing sucks, or your offer is terrible, or your ad structure is bad, or you don't understand how to select products. and you constantly test product over and over again, which all don't fit the real criteria of success. you think a product just has to be problem solving, has the wow effect and a lot of aliexpress orders and like a good margin. that's basically that it's enough to test it. and you test it and it doesn't work. and you keep testing those products which fit all of those things. or, even worse, you test something which you personally like and you only test products which you think are really, really good because you love them, which doesn't matter at all. and you do all those things and i'm there to open your eyes. okay, i look at that and i tell you: hey, man, your question is like what you're asking me right now. even if i give you the perfect answer to that, it's not gonna help you. so don't ask me that, ask me this. this is your problem, all right, and i guide them in the direction of what the real issue is and how we solve that. and this is the exact reason why people don't see succeed by themselves. if i think back and look at everybody who i just had contact with in terms of either they wanted to join, but i didn't accept them, or i wanted them to join, but they didn't want it, or or they joined. if you have all those people which were like a lot of people, if i think back to all of them, 98 of people who didn't have a person who's guiding them didn't succeed. and this number is probably even way higher in the real world, because those like people who reach out to me, at least they have some sense of urgency, in some sense of understanding that they have a problem, because if they wouldn't understand that they have a problem, they wouldn't reach out to for help. okay, so the real number is even worse and 98 of all the people we toked to who didn't have a mentor before was really really good, which is also extremely rare- or which we didn't start with- didn't succeed. and if i tok to people who make decent numbers, who already make like six figures per month and basically want to join the program to actually get more help and to scale further, every single person who ever joined, who made real money, had a person who guided them through it. okay, everybody, it's not a matter of maybe this is better for me or i don't need a coach, or i don't need a person who's gonna guide me through it. it's you for sure. a hundred thousand percent will be faster in reaching your goals if you're gonna have a person who achieved your goals already and they tell you exactly what to do. o.