Key takeaways
- Dropshipping is cheap to start, but marketing and margin determine your success.
- Include advertising costs, returns and payment costs realistically.
- Low start-up costs do not automatically mean profit.
- Test small and scale only what proves profitable.
“Dropshipping is free to start” — you see that promise everywhere. And it's half right: you don't have to buy stock. But free is different from no cost. Your money is not in boxes, but in your platform, your domain and especially your marketing. And your margin per sale is narrower than with your own stock.
This guide gives the honest picture: what costs you really have, how much of a starting budget is realistic, and whether you will save anything at the end of the day. Written for those who are considering starting and do not want to be faced with any surprises.
What costs do you really have?
| Cost item | Indication | Explanation |
|---|---|---|
| Webshop platform | €25–40/month | your fixed monthly payment |
| Domain name | €10–15/year | once a year |
| Purchasing per product | per sale | you only pay after the order |
| Shipping costs | per sale | often already included in the purchase price |
| Payment costs | per transaction | provider + sometimes a platform fee |
| Marketing/advertising | variable | usually the largest item by far |
The first four items are predictable and relatively low. The real question lies in the latter: marketing.
The biggest expense: marketing
This is where most starters stumble. Because with dropshipping you do not have a unique product or own stock, you often sell something that is also for sale elsewhere. So you don't win on exclusivity, but on how well you draw attention to the product. And that costs money: advertisements on social media, creating content, testing what works.
Expect to spend money on advertising in the beginning before you know which product and message work. That testing budget isn't wasted — it's the price of learning that sells. But don't underestimate it: it is often more than your platform and domain costs combined.
Calculation example: what are you left with?
| Item | Amount |
|---|---|
| Sales price (incl. VAT) | € 30,00 |
| Minus: VAT (21%) | − € 5,20 |
| Ex: purchasing + shipping | − € 15,00 |
| Less payment fees | − € 0,30 |
| Margin before marketing | € 9,50 |
| Minus: advertising costs (average per order) | − € 5,00 |
| Profit per order | € 4,50 |
If you sell 100 per month, that is a profit of €450 — plus your fixed costs (platform, domain). It immediately shows why your margin and your advertising costs are crucial: if your margin drops or your advertising costs rise, your profit will quickly evaporate. The broader cost side of a webshop is stated in what a webshop costs.
The hidden costs
In addition to the visible items, there are costs that starters often forget:
- Returns — if something goes wrong with your supplier, you often pay for the return and a dissatisfied customer.
- Long delivery time — imports from distant countries lead to questions, cancellations and sometimes refunds, which costs time and margin.
- Platform transaction fees — some platforms charge their own percentage per sale on top of your payment provider; see the hidden costs of webshop platforms.
- Failed product tests — not every product you advertise sells. That's part of it, but it costs advertising budget.
How much starting budget do you need?
An honest guideline for a serious start:
- Platform + domain: ± € 30 per month.
- A test budget for advertising: count on a few hundred euros to find out what works.
- A buffer for the first purchases and any returns.
You can technically start with less, but without a marketing budget your webshop will remain invisible. In practice, “starting for free” means: few fixed costs, but a budget to find customers.
Is dropshipping profitable?
It is possible, but the margins are narrow and success depends on your marketing and your product choice. Treat it like a real business: calculate your margin per product, keep a close eye on your advertising costs and only scale on what has proven to sell. Don't expect quick money without commitment — anyone who promises that is usually selling you a course, not reality. Dropshipping is a serious model for those who love marketing and have patience.
Frequently asked questions
How much money do I need to start dropshipping?
Not much for inventory, but count on platform and domain costs and especially a test budget for advertisements of a few hundred euros. Without marketing it won't sell.
What is the biggest cost of dropshipping?
Marketing. Because you don't have a unique product, you have to pay to stand out and test what sells.
Do I have enough margin left?
The margin is narrow per piece. Take purchase, shipping, payment costs, VAT and advertising costs into account before setting a price. Aim for enough margin to pay for your ads.
Do I pay transaction costs on top of my payment provider?
On some platforms yes. Choose a fixed-price platform with no transaction fees if you want to avoid that.
Is dropshipping really free?
No. You don't buy inventory, but you do have platform, domain and marketing costs. “Free start” refers to the low starting risk, not zero costs.
What if a product doesn't sell?
Then you stop the advertisements and test the next product. That's part of the model; include a testing budget for it.
Get started
Make a simple calculation per product: sales price minus VAT, purchasing, shipping, payment costs and your estimated advertising costs. If there is any profit left, then it is worth it. Set aside a realistic testing budget and start small. You can read how to set up the entire model in start dropshipping; If you want the broader picture of selling without stock, see start a webshop without stock.
