How Much Does It Cost to Start Dropshipping?

You’re staring at the screen, the cursor blinking patiently next to an empty search bar. 

Your stomach feels upset, that low-level thrum – a mix of excitement and genuine fear. 

It’s been weeks, you have been reading success stories off Reddit threads. You have watched every YouTube video promising financial freedom and a life lived on your terms. 

And you finally found one, dropshipping. 

It gives you the liberty to sell products without ever having to worry about managing inventory, shipping or storage. It’s the closest thing to a “magic bullet” in e-commerce.

But you suddenly felt that dread: “How much is this really going to cost me?”

It’s where most people freeze. 

They envision startup loans, and the anxiety of going “all-in,” often sends terror of losing thousands. The vision of passive income suddenly clouds over with the dark shadow of debt. 

Take a deep breath, don’t worry! We are going to peel back the curtain for you, not with dry spreadsheets, but with a clear & realistic outlook at the minimal investment it actually takes. 

At the end of this article, let’s make sure that crippling fear is replaced with a concrete action plan. 

How Much Does It Cost to Start Dropshipping? 

The average cost of dropshipping depends on the license you wish to purchase. 

The license for dropshipping in UAE can vary from AED 8,500 to AED 28,000. It’s a mandatory e-Commerce trade license which you need to purchase in order to overcome your fear & consistently perform e-Commerce business. 

Initial Setup Cost (in AED)

Starting with your dropshipping business in the UAE doesn’t require a big upfront investment. 

However, you need to plan things smartly. 

The major setup costs include purchasing a domain, e-Commerce platform and a hosting service. You will also need to invest in logo, branding and store design. 

Here’s what each element typically costs when converted from USD to AED. 

Domain Cost

If you want to purchase a domain name, you can find the cheapest options from NameCheap or GoDaddy. Buying a .com domain from such registrars will cost roughly around $10-$20 per year which converts to $36 to $74 AED annually. There are other platforms which offer better discounts on first-year pricing, but renewals are often slightly higher. You may also consider adding WHOIS privacy for added protection which will ultimately hide your personal information from public. Some registrars include it for free, others charge a very nominal extra charge. 

Platform Cost

Do you prefer an all-in one solution such as Shopify? It’s the most beginner-friendly option for setting up your dropshipping store. It offers hosting, security (SSL), payment integration & store management, all under a single dashboard. The pricing for Shopify starts at $29 (107 AED) for the Basic plan and goes up to $79 (290 AED) for its high-tier plans. Shopify bills in USD and often features discounts. Once your trial ends, you should expect to pay a regular monthly fee. Keep in mind that apps & payment processing fees are billed separately, so keep a small buffer. 

If you want to go for a custom option, Branex ecommerce development company can design the perfect dropshipping experience. It’s a store presence to establish you as an authority. 

Hosting Cost (If WooCommerce/WordPress) 

If you choose to build your store on WordPress using WooCommerce, then you would additionally want to purchase hosting. Unlike Shopify, WooCommerce itself is absolutely free. So, you don’t have to pay for the platform. The only price you will have to pay is for a reliable hosting provider. There are many hosting platforms like Bluehost, SiteGround, or Hostinger who charge around  $8–$22 per month, which equates to 29–81 AED monthly. Many hosting plans further include a free SSL certificate and automatic backups. However, managed WordPress hosting also takes care of maintenance and runs updates for you, which can cost you a bit more but saves your time. 

Logo & Branding Cost

Your logo is the face of your brand. 

A good logo builds your recognition. You can either hire a freelance logo designer to design a logo for you which can cost you as low as $5 (18 AED) and as much as up to $999 (3669 AED) depending on your pocket. Fiverr is a place where you can find 100s of creative professionals who can handle not just logo design but a lot more. 

If you’re creative and would like to do it all by yourself, you can also create a free logo using Canva. It comes with a variety of templates & interesting fonts which you can use for e-Commerce. However, if you’re looking for something unique or professional, you can hire a freelancer or onboard a logo design agency in UAE. 

Theme Cost 

No store is complete unless it has a complimenting, trustworthy and high-quality theme. 

A good theme gives your brand the feels. Shopify comes with both, free and premium themes on themes.shopify.com. Although the free themes are marvelous for startups and come with responsive layouts and customization options, they still don’t equate to premium themes which easily cost up to $400 around 1,500 AED. You pay the amount as a single time payment & ultimately receive design flexibility, advanced features, and better performance. 

Are you just starting out? A free theme is more than enough. 

You can always upgrade once your store starts generating sales. 

Altogether, your initial setup cost will range from anywhere as little as 150-250 AED (if you go fully DIY with Shopify’s free tools) to about 2,500-2,700 AED, if you invest in premium ones. Higher-tier plans can cost more depending on branding & scalability options. 

Initial Budget Models (First-Month Focus): 

To help you understand how much you will actually need to get started, I have put together three realistic setup tiers, each one trying to give you the first-month outlay feels as accurately as possible. There’s no sugar-coating here, so you have a complete picture. 

I include the domain first-year fee fully in month 1 (so your “first-month outlay” is realistic).

Low-cost setup (lean, mostly DIY)

• Domain: 36.73 AED 
• Platform: Shopify Basic $29 → 106.51 AED (or WooCommerce hosting minimal) 
• Hosting (if WooCommerce option instead of Shopify): add 29.20 AED (if using WooCommerce) — choose one path only 
• Logo: DIY (0 AED) 
• Theme: free (0 AED)
  Total (Shopify path): ~172.43 AED (~$46.95).
  Total (WooCommerce path): ~172.43 AED (similar if cheap host + DIY).
  (Computed example low: 46.95 USD ≈ 172.43 AED.)

The above setup is great for you, if you’re a beginner who simply wants to test the waters without committing too much money. If you’re into using free tools, a free theme and doing your own branding, that’s more than enough to launch a functional & professional-looking store. 

The trade-off? You have to put in time and effort, not your money. 

Mid-range setup (some paid help + paid theme)

• Domain: ~55 AED (mid promo) 
• Shopify Basic: 106.51 AED 
• Logo: mid freelance $50 → 183.63 AED 
• Theme: mid premium $100 → 367.26 AED
  Total ~ 712.40 AED (~$194).
  (Example mid USD ~206 ≈ 756.56 AED depending on theme choice.)

If you’ve previously launched a store & are planning to do it again, you may want to save your budget to invest in things that actually matter. For example, you can invest in visuals for branding to create trust and appeal for customers. It’s a smart and balanced setup for people who are serious about selling, but they still aren’t ready to go all-in and put in their hard-earned money in an eCommerce store setup. 

Higher-end initial launch

• Domain: 73.45 AED 
• Shopify Grow $79: 290.14 AED 
• Logo: $200 → 734.52 AED 
• Premium theme $400 → 1,469.04 AED
  Total ~ 2,567.15 AED (~$700+) — this is a proper pro-level front-up investment. 

Lastly, the high-end initial launch is where you go all-in. If you’re someone who has already spent days working around e-Commerce and you’re somewhat familiar with the concept, then you definitely invest in this pro-level implementation. With this setup/scenario, you invest in design, premium user-experience, and higher-end tools to help scale your business faster. 

Hidden & Overlooked Costs 

When setting your dropshipping budget, there are a few things you need to keep in check. These are hidden costs which don’t always show up when you send out your first invoice. 

But if left unattended, they can quietly eat into your profit margins if you don’t plan ahead. Below are the most common hidden costs new dropshippers face & how to manage them smartly. 

What is Dropshipping? 

Dropshipping is a process where you opt-in as a third-party seller. In this type of selling, you don’t own the product, instead, you become the outsourcer and use other people’s inventory on your website to sell products. Dropshipping takes the burden off maintaining inventory. 

When a customer visits your website, they place an order and the store forwards it to the dropshipping supplier. Now, they are responsible to ship the product to the customer while you charge a small fee for fulfilling the transaction. Dropshipping is efficient because this model brings multiple vendors in a single platform giving customers a wide range of choice to purchase. 

Can I start dropshipping with 500 AED?

Yes, it’s possible to start dropshipping as low as 500 AED. 

Although, it can be challenging because you will have to find free resources and depend more on organic marketing. The insufficient budget will not give you enough room on initial testing & utilizing free platforms. The ideal budget range for the UAE market is 3,000-5,000 AED. 

Is dropshipping still profitable in 2025?

Yes, dropshipping is profitable in 2025. 

However, the success of your dropshipping model depends on the market niche you choose, what efforts you make to build a trustworthy brand and whether you wish to invest in data-driven marketing. In the future, the market is expected to grow & become even more profitable. 

Do I need a trade license to dropship in UAE?

Yes, you will need a trade license to dropship in the UAE to operate legally. 

It’s not just dropshipping, a trade license is required for all kinds of businesses whether you’re located in the mainland or the free zone. The trade license can be obtained from the Department of Economic Development (DED), or the relevant free zone authority. 

How much profit can I make with dropshipping?

Profit margins can vary depending on experience level. 

If you’re a beginner, your profitability depends on multiple factors such as product margins which can range from 15%-45% in common but can even grow higher depending on how you control expenses such as advertising and platform fees. 

Final Thoughts – Turn Your Idea into a Store That Sells

Starting a dropshipping business isn’t about luck, it’s about clarity and execution.

Now that you’ve seen the real numbers, you know it doesn’t take a fortune to begin. Whether you’re investing 200 AED or 2,000 AED, what truly matters is how you use it.

Don’t let “what ifs” slow you down. Every successful dropshipper started exactly where you are right now— uncertain, curious, but willing to take the first step.

The difference between those who make it and those who quit too early often comes down to testing, learning, and iterating, not perfection.

So, take that 500 AED. Launch the store. Run your first ad. Watch what happens.

If you aren’t sure what you need to do, or you want to leave this responsibility on someone else while you sit back and make profitable gains on your investment, Branex can help you.

Let us build a thriving dropshipping store for you.