What is the True Cost of Starting a Dropshipping Business?

Introduction

"How much money do I really need to start a dropshipping business?"This is one of the most common questions asked by aspiring entrepreneurs venturing into eCommerce.

While it’s true that dropshipping lowers the barrier to entry, and you can technically start with little to no investment, that doesn’t always mean you should. Like any business, dropshipping requires some level of investment especially if you want to see results faster and build a sustainable income stream.

Platforms like DeoDap.in make this easier by offering a zero-subscription, ready-to-sell product ecosystem for new dropshippers in India.

In this guide, we’ll break down the true cost of starting a dropshipping business in India, including both obvious and hidden expenses that every new seller should be aware of.

What is Dropshipping?

Dropshipping is a type of online business where:

• You don’t keep stock.

• You don’t need a warehouse.

• You only order the product after the customer places the order.

• The supplier (like Deodap) packs and ships the product directly to your customer.

Why do people like dropshipping?

• No need to buy stock in advance

• Can start from home

• Less risky than traditional businesses

• Can sell multiple products online

But remember: Low-cost doesn't mean no-cost.

Basic Costs to Start Dropshipping in India

Here are the main things you’ll spend money on when starting a dropshipping business:

1. Domain Name – ₹700 to ₹1,200/year

Your domain is your brand’s online identity. A professional domain builds trust and credibility.

Tip: Use platforms like GoDaddy or Namecheap to get your .com or .in domain.

2. Website Hosting & Platform – ₹2,500 to ₹10,000/year

You need a website to sell products. Some popular options include:

• Shopify – Starts at ₹1,994/month

• WordPress + WooCommerce – Hosting from ₹2,500/year

• Wix/Ecwid – From ₹1,200/month

Alternatively, Deodap Dropshipping offers a dedicated reseller portal at no extra website cost – ideal for new sellers.

3. Logo & Branding – ₹0 to ₹5,000

You can design a logo yourself using free tools like Canva or hire a freelancer for professional branding. Strong branding builds trust and helps you stand out.

4. Product Sourcing – Free with Deodap

Most suppliers charge a membership or integration fee. Deodap doesn’t charge any subscription fee you only pay for what you sell, at wholesale rates.

💡 Bonus: Deodap also provides ready-to-sell product data, including descriptions, prices, and images, saving time and effort.

Hidden Costs Most New Dropshippers Ignore

While starting out might seem cheap, there are some hidden costs that catch many beginners off guard.

5. Marketing & Advertising – ₹5,000 to ₹25,000/month

Without traffic, there are no sales. Most dropshippers spend on:

• Meta (Facebook & Instagram) Ads

• Google Shopping & Search Ads

• Influencer marketing on Instagram/YouTube

Beginner Tip: Start with ₹500–₹1,000 daily on Facebook/Instagram ads to test product demand.

Start small, test what works, and scale.

6. Product Samples – ₹500 to ₹2,000

Ordering a few samples from your supplier allows you to:

• Check product quality

• Create original product photos

• Make better ad creatives

Deodap lets you buy any product at dropshipper prices, even if it’s just for your own testing.

7. Payment Gateway Charges – 2% to 3% per transaction

Using Razorpay, Instamojo, or PayPal? They take a small percentage per order as a processing fee.

Over time, this becomes a notable cost especially if your margins are low.

8. Shipping & Delivery Costs – Usually included (with Deodap)

Many suppliers charge extra for delivery. Deodap includes shipping in the product cost, simplifying your pricing strategy and ensuring transparency.

9. GST & Taxes – Variable

If your revenue crosses ₹20 lakh/year (₹10 lakh in NE states), you’ll need to register for GST. Even below that threshold, many payment gateways require GSTIN.

Deodap helps you understand tax compliance without overcomplicating the process.

10. Return & Refund Handling – Cost of Doing Business

Occasional returns are inevitable. You may bear the return shipping or refund a customer if the product is damaged.

Deodap has a clear policy on returns and offers replacements when the issue is genuine reducing your liability.

Optional but Recommended Costs for Growth

If you're serious about growing your dropshipping brand, consider budgeting for:

11. Premium Themes or Apps – ₹2,000 to ₹5,000

Many eCommerce platforms offer basic themes for free. But a premium theme can:

• Improve speed and design

• Add better product filtering

• Offer trust badges & urgency tools

Apps for upselling, reviews, and automation also help increase revenue.

12. Product Photography – ₹2,000 to ₹10,000

Stock images work but original photos build credibility.

Hire a local photographer or create a small home studio to click real images with lifestyle backgrounds.

13. Freelancers or VA (Virtual Assistant) – ₹5,000 to ₹15,000/month

As orders increase, managing everything alone becomes hard. A VA can help with:

• Order processing

• Customer support

• Social media posts

• Product uploads

You can find VAs on platforms like Fiverr, Upwork, or even local listings.

Total Estimated Cost Breakdown

Cost Category	Minimum (₹)	Maximum (₹)
Domain Name	700	1,200
Hosting / Website Builder	2,500	10,000
Logo & Branding	0	5,000
Product Samples	500	2,000
Ads & Marketing	5,000	25,000
Payment Gateway Fees	2–3% of sales	—
Premium Tools & Apps	2,000	5,000
Photography (Optional)	2,000	10,000
Virtual Assistant (Optional)	5,000	15,000
Miscellaneous / Returns	Variable	Variable

Starting Budget Tip: You can realistically start with ₹8,000 to ₹15,000 if you go lean and leverage platforms like Deodap.in that eliminate supplier and inventory costs.

How Deodap Makes Dropshipping Affordable in India

Many new sellers lose money upfront by paying supplier subscription fees or high shipping rates. Deodap removes those barriers.

Here’s what you get with Deodap Dropshipping:

• Free account setup
  
• Access to hundreds of trending products in India
  
• Wholesale pricing with shipping included
  
• No minimum order quantity
  
• Product details, images, and pricing provided
  
• Dedicated reseller panel with easy order placement
  
•  Regular free webinars to learn and grow

👉 Explore the Deodap Dropshipping platform here: https://dropshipping.deodap.com

Final Thoughts: Is Dropshipping Worth It?

The truth is, dropshipping isn’t free, but it’s far cheaper than traditional retail or launching a full-fledged eCommerce brand. You don’t need to invest lakhs in inventory. Instead, you invest smartly in tools, marketing, and branding to build a real business over time.

If you plan well, learn from your early mistakes, and use platforms like Deodap to streamline your supply chain, dropshipping can be both profitable and scalable.