When you are standing at the entrance of how to start a dropshipping business, some confusion like is dropshipping dead, is dropshipping worth it, or is drag and dropship legit may stop you. This is most likely; you don’t know much about this business.
So you go online and start searching on what is dropshipping, how does dropshipping business works, or even if is dropshipping profitable. And, you’ll see something encouraging like Alidropship, how to start TikTok dropshipping to earn money, etc., and voila!
At the same time, you will also see some scary things like does dropshipping works, whether is dropshipping legal, whether is dropshipping scam, or whether is dropshipping replaced by drop surfing, etc.
Lol! Of course, the replies to these queries are clear, for some positive reasons, dropshipping is still alive and will continue as a great business globally. In this blog post, I’ll show you brief statistics on dropshipping business;
Is Dropshipping Dead in 2024? & Is Drag and Dropship Legit?
Dropshipping is a great model for growing a business. When go-getting people like you properly run a dropshipping business, vendors increase their storage faster. And better prices with quality and faster shipping can boost sales as well as create loyal customers.
What Is Drop Shipping?
In a drop shipping business model, as a drop shipper, you never need to maintain inventory. No product is kept in the warehouse. Even, you are not responsible for shipping the product to the customer. Instead, a third party, often a wholesale or manufacturing, or supplier will ship the product to the customer’s doorstep.
Is Dropshipping Dead?
No, dropshipping is not dead. Rather, the world has more involved in eCommerce and more people are shopping online than ever before. It means drop shippers have likely to stay making high-profit margins. Particularly with the small venture needed to start, dropshipping is still a highly lucrative business model.
AliExpress is one of the striking examples here. Unlike Amazon, they don’t have physical warehouses. Their product is from Chinese drop shippers who collect it from Chinese vendors those customers cannot reach.
When the customer buys it on AliExpress, the Chinese drop shipper then buys the product from their vendor and then ships it directly to the customer’s doorstep. Dropshippers can increase their market reach and, thus, increase their sales with more suppliers and quality products.
However, all the above only applies if the dropshipping business is done in the right way. For instance, I’m talking about dropshipping and selling only high-quality products only from reliable vendors that can also ship fast to the buyers.
But, if you’re thinking of starting a dropshipping business with products from China, that take at least 3 weeks of shipping time, and don’t offer any customer support, then yes, this type of dropshipping is dead and has been for a long time.
Is Dropshipping Profitable (Is Dropshipping Worth It?)
You may be like many people wondering if is dropshipping profitable, or if is dropshipping worth it today. And, what is the success rate of drop shipping, and how profitable business models it is? In short, yes, dropshipping is certainly profitable and worth it today. Have a look at the below statistics;
As demonstrated by Grand View Research published in 2019, the dropshipping market worldwide is estimated to rise at a rate of 29.2% from 2019 to 2025. Another report by Research and Markets shows that the dropshipping market will reach $593.97 billion by 2027 globally.
Furthermore, 23-34% of online sellers have accepted the dropshipping business model as their key way of order fulfillment. As well, around 57% of online sales on Amazon were sold by third-party retailers via drop shipping.
Eventually, Shopify- one of the most popular dropshipping platforms, earned $3.85 billion in a 12-month (2021) period which is 84.32% higher compared to the last year. This is simply notable and it shows the power of drop shipping.
Since dropshipping is still profitable, but it depends on some important factors including;
- The type of products you decide to dropship.
- The niche you selected.
- The competition of your niche.
- The effort you are giving to it.
- Your research on the market, competition as well as products.
- Advertising effort on your business.
- The dropshipping platform that you are using.
- The supplier you have chosen.
- After-sales service or customer support.
- Your dropshipping website.
- And more.
All the above matters are time-consuming. So, if you want to make money fast while not investing 100% effort, then dropshipping business probably is not for you.
Likewise, if you are dedicated to building a dropshipping business with ample time and effort, then drop shipping can be profitable for you in the long run.
Is Dropshipping A Scam?
Awkwardly, the drop ship business model can get a lot of criticism. As this model has involved its fair share of online scammers eager to grab new and rising resale business owners to pay excessive fees, or even not ship the product.
Among the plenty of drop shipping scams, finding a reliable supplier can be a hard job and research-heavy task. Yet, it doesn’t mean dropshipping is a scam. Instead, it is a legal business model globally which is far from being a scam.
Is Drag and Dropship Legit?
Yes, fortunately, drag and dropship is legit as well as most dropshipping sites are also legit. However, there is always some evil that you must look out for. When in doubt, check the reviews of the retailer online to confirm their legitimacy.
What Types of Products Are Successful in Drop Shipping?
In my research, items that can be effectively drop-shipped share a few units;
- Niche items with fairly low demand.
- Heftier items, particularly those needing truckload shipping.
- High-priced products.
Maybe the reason these products tend to be a success is that they are precisely the products that Amazon hasn’t seriously entered. Amazon is still mostly a small and light marketplace. For instance, pool tables and hot tubs aren’t huge retailers on Amazon, although they expected will be in the future.
What Are The Drawbacks of Drop Shipping?
- Stock outages.
- Pricing changes.
- Supplier learning from you and denting your price.
- Returns.
- Sales Tax.
Is Drop Shipping Dead for Amazon and Shopify?
No not at all. Rather, dropshipping is all around us. So chances are, if you buy online, it is from drop shippers first. And the global size of the dropshipping market is rising year by year endlessly.
Is Dropshipping Dead? | Finale Thought
So the above is all about why the answer to the “Is dropshipping dead” question is “no’. Of course, there’s nothing comical about people’s doubts and worries. Instead, it’s normal to be nervous about the things you don’t completely know yet.