How much does it cost to start a Dropshipping business?

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Without doubt, Dropshipping system is a smooth and effortless way to start a business with the lowest possible cost, but lets us show you the most important things you need to understand before you start using this system,

As a dropshipper you need to understand the following calculation:

1- Processing budget

2- Marketing budget

3- Reserve budget

4- Purchases budget

Each business needs to organize and arrange the calculation to achieve success. Without adjusting the accounts, your business will quickly collapse. We will explain the four points and then tell you the right budget to start.

1- Processing budget:

We mean by that subscribing to Fathershops services and equipping your store and designing it by independent designers with simple amounts that will help you improve your store, open, and equip accounts on social media, and finally buy your domain and emails for your store.

In this first action, you will consume the subscription fee whether it is monthly or annual, if you are going to choose the monthly plan, we advise you to have a budget of at least 6 months, to test your business correctly you need time 1 month is not enough, because you will be engaged in a business that must be tested correctly.

 So, the first part will cost you from 1,000 riyals to 1500 riyals.

2- Marketing budget:

It is one of the most important expenses you have to put in place to ensure the continuity of your business and your profit

But when it came to the e-store marketing budget, we cannot give the number accurately because you can market from 50 riyals to 10 thousand riyals so let us tell you what is helpful in this aspect (if your marketing budget is low, you will get slow growth and lower sales and if the marketing budget is high, you will have higher chance to reach good sales and fast growth, you must invest in your business).

3- Reserve budget

For each work, an emergency reserve budget can be used and benefit from.

We always recommend an approximate budget from 500 SAR to 3,000 SAR, that you can use in critical cases, additional expenses, or help in paying for advertising campaigns or developing an aspect of the store.

4- Purchases budget:

A merchandise purchases budget is a financial plan that reports the total estimates costs or units of merchandise inventory that are expected to be purchased by a retailer in an accounting period. In other words, this is the budget that managers use to plan inventory purchases for the upcoming periods. It’

You should certainly make a budget for purchasing products after selling them and not relying on customers’ funds because this may cause delayed shipping. it is a clever idea to keep your store’s wallet charged so you can pay for orders and save time. We recommend that you process an initial number of purchases from 1,000 SAR to 1500 SAR.

The budget summary you can start with is:

1000 + 500 + Marketing Amount + 1000

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