Setting Up Your First Shopify Dropshipping Store

If you're looking into starting a dropshipping business, Shopify is a platform you've likely come across. It's a popular way to launch an ecommerce side hustle without needing to know how to code or configure a website from scratch. But that convenience isn't free, so let's break down what it actually costs to get started.

Shopify’s pricing depends on the plan you choose and whether you'll be processing credit card payments. Most people running a dropshipping side hustle operate purely online, but it’s good to know that using Shopify in a physical store can also affect your monthly bill. The costs are pretty transparent, so you can figure out which plan fits your budget.

Understanding Shopify's Pricing Plans

When you're setting up a side hustle, every dollar counts. Here’s a look at the different account tiers Shopify offers.

: For $29 per month, this is the entry-level option. Online credit card transactions will cost you 2.9% of the total sale plus a 30-cent fee. If you use an external payment gateway like PayPal, Shopify takes an additional 2.0% fee.
: At $79 per month, this middle-tier plan offers slightly better rates. Your credit card processing fee drops to 2.6% plus 30 cents, and the fee for using external payment methods is cut in half to just 1%.
: For a much larger investment of around $300 per month, this plan gives you the best transaction rates. Credit card payments are processed at 2.4% plus 30 cents, and external gateway fees are only 0.5%.

The old saying "you have to spend money to make money" definitely applies here. The fees from your Shopify plan will directly impact your bottom line, so you have to factor them into your product pricing. You could pass the transaction costs to the customer by raising your prices, but if you go too high, they might just find the product somewhere else for cheaper.

Steps to Launch Your Shopify Business

Once you have a handle on the costs, you can start building your online business side hustle. Here’s how to get your store off the ground.

Step 1: Choose Your Plan and Define Your Business

First, you'll need to decide which plan makes the most sense for your new side hustle business. It’s usually a good idea to start with the $29 Basic plan. This way, if you find the platform isn’t for you, you’re not out a significant amount of money. It's one of the more popular low cost side hustles for a reason.

During setup, Shopify will ask you some questions about your business, including tax information, which will vary based on your state. You'll also be asked to estimate your potential earnings. To make an educated guess, you’ll need to determine your product pricing first. Think about the plan you chose and its associated fees. After you set a price, you can calculate your potential profit margin.

For instance, imagine Emily wants to sell high-end, gold-plated party hats. Her deal with the manufacturer costs her $80 per hat. After factoring in her $29 monthly Shopify fee and credit card costs, she decides to sell each hat for $130. To find her profit margin, she can use a simple formula:

($80 Cost / $130 Price) = approximately 61.5%

This means she’s on track to make nearly a 62% profit, or $50, on every hat sold. From there, she’d need to project how many hats she expects to sell, which depends on product popularity and her marketing efforts. It’s always a smart move to create a simple business plan to document these projections and research.

Step 2: Create Your Account

With your plan in mind, it's time to sign up. This process is just like creating an account on any other website. Head over to Shopify’s site, find the sign-up link, and enter the email address you want associated with your shopify side hustle. It's a good practice to create a professional email address first (Gmail is free) that reflects your business name to keep everything organized.

Step 3: Add Your Products

Next, you’ll upload the items you plan to sell. Shopify gives you a simple interface to add product photos, write descriptions, and set prices. In today's market, high-quality images are non-negotiable—people are far less likely to buy something they can't see clearly. Since this is a dropshipping side hustle, you won't have the products on hand. To avoid copyright issues, make sure any photos you use are free for commercial use, or ask your manufacturer for stock photos they can provide.

Step 4: Customize Your Store's Theme

You want your online store to look professional and appealing. Shopify makes this easy with its site customizer. You can browse different themes, follow simple prompts to change the look and feel of your site, and preview your changes in real-time before making them live.

Step 5: Set Up Your Payment Processor

Shopify has its own payment processor, but you can also use a third-party service if you prefer. Just remember that if you go with an external option, you'll have to pay that extra transaction fee depending on your plan.

Step 6: Choose a Domain Name

Finally, you'll need a domain name, which is the web address for your store. Shopify offers the option to buy one directly from them for about $9. While convenient, purchasing your domain through Shopify means they technically own the site. This is an important consideration as you transition your side hustle to small business operations.