How to Start Dropshipping Business Online for Free?

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Dropshipping is something you might consider. Dropshipping is a great idea. It’s an affordable, simple, low-risk retail business model that many online entrepreneurs consider easy to make good money.

Depending on what you have heard, you may be wondering: Is it possible to start dropshipping without any money?

The simple answer is No.. The good news is that dropshipping can be done with very little money.

The claim that you can start your business with little money is simply too good to be true. Dropshipping is a low-cost way to start and operate. Dropshipping is a low-cost option for both startup and operational costs.

Think about the old saying To make money, you have to spend money. Dropshipping could change this to

Let’s cover everything you need to know to save tons of money when dropshipping your first order. These links will allow you to skip to the next section of the article.

What is Dropshipping?

Dropshipping is a unique option for online retail. Dropshipping is easier than any other retail model and it is also more cost-effective. What is the secret to dropshipping’s success? Dropshipping is so unique and so affordable, what makes it so attractive?

The inventory is what matters most. Who handles it and who doesn’t? An inventory-holding model allows the seller to order products in bulk, and store them until the customer purchases something. The seller must also pull, pack and ship the product if it is an online store.

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You might be able to imagine how expensive it can be to order, store, and ship inventory. You need to be careful about inventory management. However, you run the risk to overestimate demand, order too much inventory and end up with an unsold surplus.

Dropshipping is a different type of shipping. Dropshipping is different. The seller doesn’t manage the inventory. Instead, your dropshipping provider will store, pack, and ship all products to you. This makes it less risky and more cost-effective. Customers only order products from your supplier.

Dropshipping shines in this area. Dropshipping is not possible with money. You will need to pay startup costs. These costs are much lower than other retail models. It is attractive to independent entrepreneurs, whether they are looking for a full-time job or side hustle.

This graphic is for visual learners.

It’s super easy and convenient! You don’t need to spend much to start. It is important to choose the right dropshipping supplier and then select products that are most in demand with consumers.

How can dropshipping save you money?

Dropshipping can’t be done with nomoney. However, it is possible with littlemoney to get started. This is one of the main benefits of this model. All you have to do is learn how to use the tools that are available to your advantage. We’ll discuss this in the sections below.

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Dropshipping is a great option, as it doesn’t require any capital investment or startup costs.

  • You can rent, own, or manage a warehouse for stock storage.
  • You will be responsible for packaging and shipping inventory to customers.
  • Keep track of inventory to ensure accuracy.
  • To ensure that your inventory is always up-to-date, you should plan ahead and order new stock.
  • If a customer is not satisfied, handle product returns.

This will help you save a lot of money. Dropshipping is a low-risk business model that will not leave you with an unsold surplus to pay out of pocket.

You can also use an Ecommerce platform such as Shopify or Amazon. These make it easier to create a sleek, professional-looking, and 100% functional store with minimal expenses. In no time, you can be up and running!

Shopify is the best platform out of all. Start with a 14-day trial. However, we will cover how to extend it to three months. This will allow you to build your store slowly.

What is the Dropshipping Market?

Dropshipping is simple and low-risk, and it’s very affordable to start. But the real question is: Does the dropshipping market really exist?

It is indeed! Let’s look at some data.

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Shopify’s dropshipping numbers are particularly impressive, as it is the most used platform. The year 2021 looks extremely profitable: The Q1 revenues were $989 million. This is a more than 110% increase over the previous year!

What does this all mean? What does all this mean for your decision to dropship? These figures show that dropshipping has seen significant growth and is expected to continue to grow.

One simple fact is driving this explosive growth: more consumers want to shop online. This is a worldwide trend that has no signs of slowing down.

Dropshipping is a great option because of its low startup costs and low risk. Dropshipping is so simple to start, it makes sense to just pull the trigger.

How much does it cost to start dropshipping?

It’s impossible to start dropshipping without money, as we have already mentioned. It is possible to dropship with very little money.

This section will cover some basic startup costs to start a dropshipping business. While we cannot make startup costs equal zero dollars we will do our best to keep them as low and manageable as possible.

Although you could build your store entirely from scratch, there will be significant upfront costs. You can also purchase a functional dropshipping store through a store exchange. However, this could be costly, depending on the size and reputation of the store.

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Shopify is the best and most cost-effective way to dropship. We’ll get to that later. Let’s now look at the minimum cost to dropship if you don’t use Shopify.

Create Your Dropshipping Website

Dropshipping is a business that requires you to create an online store. This is an essential part of the process. Online shoppers will not want to shop at your store if it doesn’t look professional or trustworthy.

This process can be quite complicated. We’ll only look at the minimum costs to get you started dropshipping. This means that we will only be talking about the most important steps and not go into detail on every step.

Select a web host

webhostis an internet service that allows you to dropship from your store. This is similar to paying a commercial lease for a brick and mortar retail store. However, it’s just an online version.

This is, as you can imagine, crucial. Your store won’t be online if it doesn’t have a web host. It doesn’t even exist.

This can vary depending on which company you are working for. It could cost as little as a few dollars to hundreds of dollars each month. The shared hosting plans are the most affordable. This means that your website will be stored on the same server with other clients.

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However, shared hosting has its downsides. There are often slower speeds when shared hosting is used, especially during peak traffic times. This is also less secure than paying for your server space through a web hosting company.

If your web host is compatible with WordPress this will make it even easier to set up dropshipping stores. WordPress, aside from Shopify is the best way to dropship with minimal investment.

Let’s look at some affordable web hosts that you have the option to choose from.

  • Bluehost is WordPress-friendly. It also includes a WooCommerce plugin. Hosting starts at $2.95 per month.
  • GoDaddy is one of the most well-known web hosting providers. Also, shared hosting starts at $2.95 per month.
  • SiteGround allows you to integrate WooCommerce, Magento or PrestaShop. Prices start at $6.99 per month
  • A2 Hosting This budget web host is focused on security and performance, with a free SSL Certificate. Starting at $10.99/month

These are all very affordable solutions for your hosting needs. But, often bargain web hostsdon’t offer unlimited bandwidth. These rates will increase if you have a lot of traffic.

Install a shopping cart

Online shoppers must have the ability to purchase products. Installing a shopping Cart is the best way to do this.

They work exactly like IRL shopping bags that you can find in brick-and-mortar stores. The consumer simply chooses the item they like and then adds it to their cart. After they click checkout,they will need to enter their payment information and complete the final purchase.

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There are many shopping cart options available. Some of them offer a wide range of features and options. The more advanced the tool or software, the more costly it is.

There are many open-source shopping carts available that offer free versions.

  • Agora Cart is an open-source, customizable cart that supports more than 10 payment gateways.
  • Commerce.CGI Cart First released in 1998, it is the first Perl shopping cart that has been free to download.
  • Loaded Commerce Based on the CRE Loaded program the Community Edition (CE), offers basic features at no cost.
  • PrestaShop is a free and open-source shopping cart that’s mobile-friendly with SSL encryption.
  • OpenCart is the industry standard in open-source, free shopping carts. It comes with SSL encryption and tons of features.

You can also choose to upgrade to a more feature-rich model by purchasing one of these options.

After you’ve settled on a free shopping basket, ensure it follows design best practices. This includes putting it at the top left and giving the call to action (CTA) buttons bright colors. Also, making it “sticky”, so that online shoppers can easily see it as they shop your store.

The Ultimate Guide to Shopify Store Design will help you learn more about design best practice. All the design principles mentioned in this blog post are applicable to any dropshipping store, even though Shopify is the topic.

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Register to receive an SSL Certificate

Security is essential as you will be handling sensitive data such as payment details and customer information. A SSL Certificate ensures that your dropshipping shop is safe and trustworthy.

Let’s be technical for a second. SSL is a security protocol that creates a secure link between a browser and a server. It’s a digital security certificate that authenticates your website and creates an encrypted link between a server and a browser.

This will protect your customers’ data and make them feel more comfortable when they finalize their purchase.

SSL Certificates come in many different types, some more complex and secure than others. They can cost anywhere from free to hundreds of dollar, depending on the level of security required.

Let’s look at three types of SSLs.

  • Domain Validated Certificates (DV) – These certificates are for websites like blogs and small business websites, which don’t share any customer information.
  • Organization Validated Certificates (OV) – These certificates are for websites that offer lead capture and forms, but not sensitive customer information.
  • Extended Validated Certificates (EV) – These certificates are the most secure and can be used on websites that deal with financial transactions.

You’ll need the third type: EV certificates. They are typically around $4.00. You can either choose Cheap SSL Security, or SSLs. Both have 30-day free trials.

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If you look at the above section, you will see that SSL Certificates are often included in the cost of web hosting services. Shopify members get an ultra-secure SSL certificate as part of their membership.

Register for a credit card processor

You will need to provide your customers with a means to purchase the product. You will need to sign up for a credit processor (also known as a payment portal).

There are many options for payment gateways. They usually charge between 2 and 3 percent per transaction, so there are no monthly fees. You will usually need to discuss a rate proposal and your processor.

This is just like the SSL Certificate and the shopping cart, it’s also crucial for customer security. Customers will not feel secure making final purchases if you don’t offer them legitimate, widely accepted payment options.

Select a theme for your website

The final step is to create your website. This can be tedious and costly if you don’t have any experience with web design and coding.

A free website template is a great way to start dropshipping. This template is a pre-made template that will allow you to build a dropshipping store quickly and efficiently.

Most cases allow you to customize parts such as color schemes and framing. It’s also easy to add or remove design elements using a drag-and-drop interface.

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You can use one of these free themes to create a dropshipping shop using WordPress:

Shopify offers many free themes to help you create a dropshipping store.

These themes are all legit and no one will think your store is unappealing or drab. You can think of an online store as a brick-and mortar store. Would you visit a store with stained floors or dirty windows? You probably wouldn’t! Make sure your online store is professional.

A free theme can have the downside of being used by many other retailers, making your store less unique. You also have less control over your brand’s identity.

Register for a Business License or Tax Identification Number

Dropshipping can require you to purchase a tax ID or business license. You will need to decide what paperwork you must file. This will vary from one case to the next.

It all depends on how your company is structured. If your dropshipping business is generating regular income, an LLC or S Corp can provide significant tax benefits.

You’ll need to decide what type of tax paperwork or business license you need. It would make good business sense to spend some time looking into the best setup for you.

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To learn more about tax ID numbers and business licenses, check out our blog post Do you need a business license to sell on Shopify?

It focuses on Shopify shops, but all information is applicable to dropshipping stores that you create.

Select a Dropshipping Supplier or Wholesaler

All of the costs mentioned above are related to setting up an online store. We haven’t yet covered the important aspect of dropshipping: how to pay a supplier. How can you dropship without a dropshipping provider? There won’t be any inventory for you to sell or ship to customers.

It is essential to choose a supplier as they will handle the shipping, storage, and packing of your inventory. They are worth the fee, especially when you consider how much work they do.

The fee may vary from one supplier to another, but most will be the following:

  • Per-order Fee – A surcharge is added to each order, typically between $2 and $10. This fee structure is beneficial if you are a small business with low sales volume. These fees can add up over time and could impact your profit margin if you have a store that is successful.
  • One-time setup fee. This is basically a one-time membership fee. However, most suppliers are not likely to use this system. It can also be very expensive. The cheapest suppliers start at several hundred.
  • This system is increasingly being adopted by more suppliers. Annual membership is more affordable than monthly membership. Most suppliers offer rates starting at $100.
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It is important to note that many suppliers who claim they have no membership fees or are free of charge are using a per-order fee system. If it sounds too good to true, it probably is.

It is important to choose the right supplier. It’s important to consider more than the price; also, their customer service, inventory, and technical tools. These tools will help you track sales and business metrics.

Dropshipping can be very profitable. It’s worth remembering that it is possible to make a lot of money by choosing niches.

Dropshipping is not possible without money, as we have already mentioned. You need to find a wholesaler or supplier to access the inventory you will be selling. Dropshipping is possible if you do your research and make the right choice.

What are the other costs involved in dropshipping?

These are the essential startup costs to get started. There are additional costs that you can incur to build a profitable dropshipping business.

These extra dropshipping costs are:

  • Ad campaigns – Most often, these are done through social media such as Facebook and Google Ads, as well as Insta Ads.
  • Email marketing You can connect your email list to past customers and prospective customers using paid tools such as MailChimp
  • Shopify apps – This is another benefit to Shopify. There are many apps that can help with just about everything, from upselling and design.
  • Software and tools – You can use paid software to do product research or accounting .
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These are not – strictly speaking- 100% required. These tools are more of an addition to your toolbox that will help you build a strong dropshipping business.

These blog posts are related to these topics:

Shopify is the best way to start dropshipping

It is not difficult to oversee all aspects of an online store. These costs can quickly add up, even if your website traffic is high.

We have already mentioned that a fully-hosted shopping platform can be a great way for functionality, convenience, as well as affordability.

Shopify has been our favorite option. This platform will:

  • Manage your shopping cart. This is important because not all shopping cart software works the same.
  • They offer technical support 24 hours a day. It will be extremely easy for you to get started.
  • It is important to keep your servers running. You run the risk that your server will go down if you don’t supervise this process.
  • You must ensure that your computer is secure. Security is important for your customers.
  • You can automatically back up everything. It’s easy to forget to save your data.

Shopify is a great way to get started. It is easy to use for both novices and professionals. The user interface (U/X), and web design will look professional and crisp.

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Can you start dropshipping with no money on Shopify?

It’s not. You might think that dropshipping can be done on Shopify without spending any money. But, it’s not.

Dropshipping is easy and affordable. You can sign up for Shopify’s 14-day free trial. You can’t make sales during the free trial. You can create your store, choose your supplier and pick your products. You’re not selling.

You have technically started dropshipping but have not yet started making money dropshipping.

This is a great way to overcome this problem: If you know the right people to contact and what you should say, you can turn your 14-day trial into a free 90-day trial. You can even make sales during your extended free trial!

You can request the 90-day trial at no cost by sending an email to support@shopify.com. Send this email to:

  • Use your account owner email.
  • Please specify which.myshopify.com account is being referred to.
  • Give a reason for your extension request.
  • Once the 90-day period is over, please indicate which Shopify plan that you would like to sign up.

It doesn’t matter what reason you give, it could be very simple. You could say, for example, that you need more time in order to get your store up and running. Another option is to say you want to spend more time getting your store ready for sales.

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Don’t forget to mention the Shopify plan that you are interested in after the 90-day period ends. Even though you don’t have to yet pay,