How Much Capital Is Required To Start Dropshipping In 2021

Starting a business requires capital, The same can be said when starting an online business or online dropshipping business. Just because it is online does not mean that it is free to start or that you do not need any capital. Granted, dropshipping is one of the easiest ways to start an online business nowadays but it also requires capital to start. The capital however will not be the same as when starting a physical business. Hence, in this post, we will discuss how much capital you will need to start a dropshipping business.

The myth that anyone can start dropshipping is not entirely true. Yes, you and I can start dropshipping but we both need money or some capital – that is the other truth no one cares to mention when marketing their offer. Today, you will learn all it takes and the estimated cost to start your own dropshipping business in the Philippines. Let us outline what might cost you money when starting your dropshipping business.

DroX dropshipping starting capital

Dropshipping – You can be your own boss and work from home!

  1. Warehouse (₱0.00): The main reason drop shipping exists is to remove all the or almost all the overhead costs needed to run a business. As an online seller, You will need a warehouse to store or house your goods and ship them from there once you have ordered. If you have a space at home this might be covered for you already. Either way, dropshipping removes this stress for you. Therefore the cost of securing a warehouse is NOT NEEDED.
  2. Inventory / Stocks (₱0.00): You cannot run a business out of thin air! Imagine trying to start your own business and you have to find suppliers and buy stocks from them. That is an upfront investment and without any assurance that your products or the stock you are purchasing might sell. DropX dropshipping removes this stress entirely out of existence. The fact is that you don’t need any stock physically to start a dropshipping business. Hence, the cost for this is NOT NEEDED.
  3. Physical Store (₱0.00): If you are thinking of starting an online business and getting a physical store, there is no need for that. COVID 19 is one reason and the 2nd reason is that you do not need it. Since dropshipping allows you to sell products without seeing them or touching them. By all means, You do NOT NEED a physical store to run a dropshipping business. All your customers are shopping online now. That is where you should be.
  4. Online Store / Website(₱1,500.): Everything is online including your store. To drop ship, you will need a website to sell your goods. A website to build your store which will be accessed via the internet by your customers. Nowadays, there are many many website builders out there but the best one is Shopify. Using Shopify, you can create an amazing website and host your online shop. The best part is that Shopify is fully automatically integrated with DropX. All you need to do is to install our DropX app and automatically start your dropshipping business. Shopify however, is not free. It has cost $29 or approx PHP1,500 per month and it is totally worth it when compared to others. Shopify comes with a 2-week trial. This means that you can try it and see if it works for you but we highly recommend it. To try Shopify for FREE visit this FREE TRIAL LINK
  5. Domain (₱900): A domain is your website identity. It is your store address on the internet. A domain is connected to your website so that customers can locate your website and start shopping. Domains are cheap and also expensive depending on the name you are choosing. A good place to find a domain is at www.godaddy.com. The best and cheap domain names are domains with .com TLD.
  6. Marketing Budget (₱30,000 – 50,000): Yes, Marketing is the most important part of the business. While everything regarding capital seemed to take care of itself, You will need to prepare a budget for your marketing. The pure truth is that there is no FREE marketing. Many people fall into the trap believing that once they set up their store orders will start flowing in. That is not the case. You need to be ready to spend on marketing to bring in orders to your store. Some of the avenues where you can spend your marketing budget are Facebook ads, Instagram ads. Google Ads, TikTok Ads.
  7. MISC Materials (₱0.00): MISC materials are other materials that you need to run your business. Some of them are bubble wraps, purchasing pouches, tapes, boxes, and fulfillment materials. You might be wondering – this is dropshipping, why do I need those? Well, you need them to pack your orders but the good news here is that you do not need to buy them!. Dropshipping with DropX provides you with all these for free. This means that as your orders are coming in, we are packing them properly in bubble wraps, tape them and ship them to your customers. All fulfillment materials are provided FOR FREE with DropX!
  8. Personal Computer (Depends On Availability): You see, dropshipping is not something you can run from your phone. To run and manage a dropshipping store, You need to have a pc or a desktop computer.
  9. Subscription Access: Since you will be using a dropshipping system, You need to subscribe to gain access to the system of DropX. The subscription is around $60. That is PHP3,000 per month.  


The bottom line is that running a dropshipping store is easy to start. We will all need capital to manage and run a successful dropshipping store. The truth is that most of the expenses have been done for you and all you need to do is to focus on the marketing side of it and learn how to generate sales. Our recommendation for anyone asking about dropshipping startup budget is ₱50,000 – ₱55,000. This is a safe amount that will cover your expenses and marketing while you generate orders.,

Keep in mind that this is not a one-time payment. Depending on how you run your ads, You might not need to spend all the amount in a day. Your marketing budget could last you a month if managed properly. This is why it is important to learn how to run ads on different platforms and learn the basics of marketing before building your dropshipping store.

We hope this provides enough information! All the best on your dropshipping journey with DropX