Business

Is the UK Dropshipping Required a Big Investment?

How much does it cost to start a dropshipping business in the UK? This burning question might hit you at the very first moment when you were thinking of starting a dropshipping business.

Let’s be honest!  There is no accurate answer.

It’s up to you what you are aiming for.

If you want to take dropshipping as your carrier, make sure you have a big budget.

If you want to make some extra bucks a month, then you can go easier on your budget.

Every beginner dropshipper comes with a different target. And every target has a different budget.

You are here to make profits through dropshipping business. You might don’t want to break your bank at your first shot, do you? That’s why we recommend you a much more modest plan. Wherewith a minimal budget you can get started with dropshipping.

So, what is the minimal budget?

Let’s find the answer step by step.

No doubt, online stores have minimized a lot of obstacles to starting a UK dropshipping business. Still, we need to set up some important configurations. Which are…

  • Domain
  • Hosting
  • And obviously, an eCommerce platform to set up your store.

Shopify, Getshop Today, Oberlo, Woocommerce, Brust are some of the most popular eCommerce platforms around you. You can research a little bit to find the right one. All of them come with unique deals and functionalities. I will say It’s your job to understand your needs before taking any step.

Oberlo: Oberlo has an interesting plan for first-time drop shippers. The plan gives the first time drop shipper to use all functionalities for free including their first-class customer service.

I said interesting because you only can use this ability till you have finished your 50 sales per month. That means you have to pay after your 50th sale.

That means you have to pay  £29.00 to Shopify

Including the Oberlo service charge!

Don’t forget about your domain. Which will add another £14.

so the total cost would be around £43+Oberlo charge.

Now, you may have a question about Shopify.

What Shopify is? What does it do?

Shopify: with Shopify, you can build the website for your store and take payment from your customers around the world. They are offering a free trial of 14 days.

But, in the real world, you are not gonna be able to make a fortune in just two weeks. The real cost will be charged after the free trial which is £29.99 per month. 

Get shop Today: now Get shop today comes in. Get shop Today is a UK based eCommerce platform. They provide dropshipping service using automatic API.

You can create your online store by getting shop Today, sell your products or dropship from the UK via GT wholesale. You can set your price and sell them on eBay to make money!

When a customer buys your product the supplier directly ships the product to the customer.

You never have to worry about carrying an inventory. Getshop today made this minimal-risk model especially for beginner entrepreneurs.

And The good news is you can start your dropshipping business at just £6.99 with Getshop Today.

If you’re serious about dropshipping supplier UK and want to make sales. you need to earn customers trust,

To do that, you need to be like other trustworthy online businesses. All they have one thing in common is their domain name.

You must need to buy a Domain. You can easily buy a new Domain through Godaddy, Bluehost, 101 domain. All of them have the same range of domains available.

With those domain provider companies, you can buy the domain as well as hosting. It’ll be an annual payment of £0.99 to £14.40 for 1 to 2 years for the domain and £10 to £25 for hosting.

The domain name of your own and hosting from the same company strengthen your brand and are conventional in your customer’s eyes.

As you know Getshop Today is a hosted Dropshipping platform that means you don’t have to worry about hosting costs. It’s free of cost!!

So, now

you have started your online store for 6.99 £/ month

The cost of importing products from GT and selling on eBay is £0.00

Where you will find 4  packages. starter, standard, pro and enterprise. Those plans are specially fixed after analysing the customer’s needs and the market. So that customers can be clear with their planning to achieve their goal!

Now you have a clear equation to calculate.

and you will find your ultimate bare minimum budget for drop shipping. Not bad, right!!

Now, Where do we spend our money next?

You might be Thinking, what about custom logos, images, and design? Well,

Getshop Today offers a special deal to get a custom design at  £99.00 /pa| £269.00 /pa. The best deals are there, just choose the one which fits your needs!

Getshop today also takes care of custom Images and logos with their built-in functions and gives you the driving seat.

Make your professional-looking web store today by yourself !!! 

Everything we’ve looked at so far has had a specific price tag attached to it. Marketing doesn’t.

It’s impossible to say how much money you need to spend on marketing. There are, however, some assumptions that we can use to get an estimate.

The average global conversion rate in eCommerce is somewhere between 2 and 3 per cent. That’ll vary by niche and country, but let’s just play this out and say that the conversion rate is 2.5 percent. That means if you get 200 people to your store, you can expect five of them to purchase something. Alright, and how do we get 200 people to our store?

Marketing.

At the moment, the biggest marketing channel for dropshippers is Facebook, so let’s look at driving 200 visitors to your store from Facebook. WordStream pegs the average click-through rate (CTR) for Facebook ads at 0.9%. Let’s assume your ads are good, and you have a 1.0% CTR.

Alright, so to get 200 people to your store, you’ll need your ad to reach 20,000 people. The price for 20,000 impressions will vary depending on who you’re targeting: Reaching American Facebook users will cost more than reaching Singaporean Facebook users.

According to marketing software provider AdStage, the average cost per thousand impressions (CPM) was $12.45 in Q4 2017. Let’s call that a clean $12.50. Now we have an equation to work with:

(20,000 / 1,000) * 12.50 = $250

Looking at these averages, we land at $250 in Facebook advertising costs to generate five Facebook sales.

There are of course levers that you can pull to manipulate these numbers and increase your profit. First and foremost, make awesome ads. The better your ads, the more often people will click on them, the lower your cost per click (CPC). If you want to do some homework on creating high-impact ads, we got you covered. You can also target countries with lower CPM rates. Oberlo users have had success in lots of countries other than the obvious ones; don’t feel like you have to target the US, UK, Canada, and Australia.

Finally, there are steps you can take to increase the conversion rate and increase the average order value at your store. Designing easy-to-navigate products pages, for example, is one way to get people to convert once you lure them to your store. This would drive up that 2.5 percent conversion rate that we used earlier.

You can also use cross-selling and upselling apps to increase average order value. Those will cost you a bit of money, but with a few goods upsells per month – hardly an overly ambitious goal – they will pay for themselves.

conclusion

We invest in the business because we expect a return. That expectation will get fulfilled only if we invest wisely. No matter where you invest or what you choose.

You should always be clear about your goal. Then you know what functions you need to reach the goal.

Trust me, if you stick with e-commerce with the right tools, you’ll never stop digging money into your store!

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