Cutting the costs for your drop shipping business is integral to the success of your business. There are necessary tips a dropshipping business owner can use to cut costs. They include the following:

  • Do your research for dropship wholesalers

Carry out thorough research for the right dropship wholesalers to use for your drop shipping business. Finding the right wholesalers can reduce the costs greatly and cutting costs is a great way to stay ahead of the competition.

For instance, you could find some serious low priced wholesale items. All you need to do is take the time research your suppliers Salehoo give you access to a verified supplier for your dropshipping business.  So it is important to have alternatives and to compare prices and authenticity of products.



  • Stop paying so much for advertisements

Advertisements are a good way to market your business for the sole purpose of making profits. However, in order to cut costs, you can swap the paid advertisements for free ones.

Advertisements are done in other numerous ways such as the use of social media platforms, YouTube, blog sites and so much more. The platforms can help publicize while generating traffic without spending a lot of money for adverts which may not generate the sales. Learn to advertise your dropshipping business click here 

  • Avoid listing low-quality products

Do not waste time listing low-quality products on your dropshipping store. Getting a variety of products on the dropshipping site is different from getting a lot of low-quality products on your dropshipping site just to make some sales. There would be no sales and without sales, there would be no productivity. Salehoo provides customers review over verified wholesale dropship suppliers and is a must-have for anyone starting a dropshipping business.

  • Buy in bulk

Buying in bulk and shipping in bulk is one way to reduce the logistics cost as this is better than shipping one product at a time. If it is the same cost for shipping (no matter the number of products), then it will cut costs if products are shipped out in bulk. You should always start with dropshipping and once you notice you receive consistent sales of a certain product monthly it time to contact the supplier and purchase in bulk at a discount. You will always get a lower price for buying in bulk.

  • Have your own platform

dropshipping on Shopify, eBay, Amazon, Esty or Bonanza is a great way to get in front of a large traffic source. However, there are some disadvantages to this most knowing the seller fees for each item sold cuts into your profits big time. The most glaring disadvantage is you can be blocked and kicked off of those platform for any reason.

A solution to this is to dropship on your own website. Aliexpress to WordPress dropshipping has gained great popularity for this very reason. When you own your own WordPress dropshipping business, there are no seller fees for each item sold and no one can take your business way for slow shipping times or damage items or just one disgruntled client who decides to report your business.  You can even sell your dropshipping business in the future for 25 times your monthly profits.

  • Focus on your existing customers

Think about ways to retain your existing customers rather than getting new ones. The energy and cost involved in trying to get a new customer is more than what a business owner would need to retain an existing customer.

It is cost-effective as it boosts sales because returning customers are more likely to speak more due to familiarity with the business. Furthermore, repeat customers are more loyal, especially if they were pleased with your first service. Hence, it is more cost-efficient to focus on returning customers rather than getting a new customer.


  • Look at all the operational expenses and then figure out if they are essential to the business or not

If your operational expenses are not essential then it is cost-effective to find other alternatives or to forego them. For instance, employing people for emails and filing is unnecessary. Nonetheless, some operational expenses are essential while others are not essential.

Therefore, decide on which is important and let go of unimportant expenses in order to minimize cost. The use of automation systems is an alternative. Handling things like emails and filing with an automation system is more cost efficient.

  • Credit cards

Another thing with operational systems of a drop shipping business is credit cards, which are an integral part of a payment system. The maintenance of credit cards comes with its own costs and while you cannot forego the use of credit cards entirely, you must ascertain how much of the business transaction occurs by card and if there isn’t an alternative method to this.

  • Returns 

Be careful about offering free returns on products. If a customer is not satisfied with an order and wants to return it there should be policies in place that permits you to cut costs.

If the good delivered is faulty then the supplier should take responsibility for the costs of shipping another. However, if the customer made a mistake or changed their minds then the customer should pay for the reshipping costs.

It will boost sales and cut cost, however, you should create a balance between making the customer happy and losing a lot of profits.


Conclusively, there are a lot of ways a drop shipping business owner can cut costs as long as the owner sits down and reviews all the details carefully. Every cent that is saved is a cent closer to gaining profitability and having a broader profit margin. Cutting costs should be of interest to everyone in the dropshipping business as so many are losing a lot in the business over poor management of funds.