Short answer
Start dropshipping in 7 steps: pick a niche, choose 5 to 10 products with at least 50% margin, build the store, set up payments and policies, place a test order, then advertise with $10 to $20 a day. Plan a starting budget of $250 to $500.
7 steps to your first sale
- 1
Set up the business
Register as a sole proprietor or the local equivalent. In many places it's online and cheap. Check sales tax rules for where you sell.
- 2
Pick a niche
An audience you understand and can target with ads, like dog owners or home workouts. Avoid cosmetics, food and medical products at first.
- 3
Choose 5 to 10 products
At least 50% margin on the net price, delivery under 10 days, no sizes at first. A few good products beat 200 random ones.
- 4
Build the store
Name, design, product copy, payments. With a store builder or an AI builder like 5minstore it takes an afternoon.
- 5
Handle the legal basics
Store policies (refunds, privacy, terms), business details and product safety documents for regulated items.
- 6
Place a test order
Order one product yourself. You'll see delivery time, packaging and quality before your customers do.
- 7
Advertise on a small budget
$10 to $20 a day on Instagram, TikTok or Google, 5 to 7 days per product. If it hasn't sold after a week, drop it.
What it costs to start
| Cost | one-time | monthly |
|---|---|---|
| Business registration | $0–100 | – |
| Store platform (e.g. Shopify Basic) | – | $29–39 |
| Domain | $10–20/year | – |
| Test orders | $30–80 | – |
| Test ad budget | $150–300 | – |
Realistically: $250 to $500 until you have usable results.
The 5 most common beginner mistakes
- Too many products: 200 items from 10 niches looks like a junk shop.
- Margins calculated too thin: every margin looks fine before payment fees, returns and ads.
- Hiding long delivery times: that leads to chargebacks and bad reviews.
- Skipping store policies: missing refund and privacy pages get stores flagged by payment providers.
- Quitting too early or scaling too early: collect data first, then decide.
FAQ
How much money do you need to start dropshipping?
Plan $250 to $500 for setup, store, test orders and first ads. Without an ad budget you'll get very few visitors.
Is dropshipping legal?
Yes. But you are the seller and responsible for delivery times, refunds and product safety, even though the supplier ships.
How long until the first sale?
With ads, often within days of launching. Getting a product consistently profitable usually takes a few weeks of testing.
Can I start dropshipping for free?
You can build and preview a store for free, but selling needs at least a store plan and some ad budget. Truly free methods (organic TikTok) work but take longer.
Read more
- Create an online store in 5 minutes
- Dropshipping
- Make money dropshipping
- Make money with an online store
- Vibe coding for online stores
- Shopify pricing
- Shopify alternatives
- Is dropshipping still worth it?
- Product database
Updated: 26 October 2026. General information, not legal or tax advice.