How much does it cost to start dropshipping fashion in Saudi Arabia?

The store is the cheap part and almost nobody budgets for the expensive part. A Shopify plan, a domain and a theme come to very little; the real cost is buying the first thousand visitors and discovering what fraction of them convert.

Where the money actually goes

Budget in three buckets rather than one: the shopfront, the traffic to test it, and the reserve for refunds and chargebacks on orders the supplier will not take back. The third bucket is the one that closes stores, because it is spent after the revenue is booked.

Dropshipping trades margin for not holding stock, and the trade only works while traffic is cheap. For a fashion store in Saudi Arabia, the answer turns on one thing in particular: Fashion carries the highest return rate in retail — sizing is guesswork on a screen — so the margin has to survive a third of the order coming back.

What is different about Saudi Arabia

Saudi Arabia is the largest ecommerce market in the region by some distance, and the most phone-dominated.

Cash on delivery remains common in Saudi Arabia, which changes the economics of every refused delivery.

What is different about a fashion store

The part nobody plans for is returns: if the supplier will not take one back, the store is the returns department.

Where a mobile app comes into it

Repeat rates in fashion are strong once a customer trusts the sizing, which is exactly the behaviour an app is built for.