Is dropshipping dead?

Many dropshipping businesses are thriving as online shopping becomes a sensation. It has become a popular business model in recent years. Everyone can start a dropshipping business to sell products even without prior experience.  

With our sourcing experts, we dealt with many clients that questioned, ”is dropshipping dead?” You’ll discover more opportunities in the dropshipping business. For instance, dropshipping in Alibaba, Aliexpress, Amazon, Shopify, and eBay.

This article will tell if dropshipping is dead and how dropshipping works. You can also learn the reasons for successful and failed dropshipping businesses. Let’s get to it.

Dropshipping Market

The dropshipping market is spreading globally. You can find growing dropshipping businesses in developing countries. For instance, in the US, the UK, Australia, and many more.

Dropshipping business was reported to be more profitable than traditional businesses. The sellers need less upfront capital and low overhead costs for operations. It is also easy to start, and anyone can start a dropshipping business without stocking goods.

With the Covid-19 sweeping the globe, the dropshipping market boomed. Many consumers buy products on online platforms. It has boosted the eCommerce market, including dropshipping, logistics, etc. 

As a result, the dropshipping market will be worth 196.78 billion USD globally in 2022. It is projected that the value will increase to 200 billion in the coming year.

Is Dropshipping dead in 2022?

No! Dropshipping is not dead in 2022. But, the success of dropshippers makes the market competitive. So, there are dropshippers who fail to dropship. Let’s see why. 

1. Lack of Research

Dropshippers assume that it is easy to start dropship. It is simple to start, but they still need to do market research beforehand. They need to know about the products, the dropshipping supplier, and how to market. 

Yet, many dropshippers jump into the business without researching. They failed because they did not understand the market.

2. Choosing the Wrong Products

A dropshipping business owner should choose trending products to make a profit. It is vital to follow the trends so that their products interest buyers. You can survey Google Trends to understand your dropshipping niche better.

But, some dropshippers sell the wrong products that lack interest from users. It is one of the reasons that lead to a dead dropshipping business.

3. Selecting the Wrong Supplier

Suppliers are critical to a successful dropshipping business. They manufacture the products and ship them to the customers. 

Many failed dropshipping businesses fail because they choose a terrible dropshipping supplier. Some bad suppliers give bad product quality or slow shipping. Hence, it leads to failed dropshipping business.

4. Wrong Targeting

Dropshippers only have to focus on marketing strategy. They need to build their online stores to reach more potential customers. 

Yet, some dropshippers do not know how to advertise their online store. As a result, these store owners don’t have any customers to generate revenue.

5. Poor Customer Service

When the customer receives their products, they will voice out their concerns. Some dropshippers fail to respond to the customers. It results in unsatisfied customers who might leave a bad review. 

Other customers will read the review and refuse to buy from this dropshipper. Then, the dropshipping business will fail.

Dropshipping vs. other eCommerce models

There are many eCommerce business models. They include dropshipping, manufacturing, wholesale, subscription, and others. Let’s see the difference between dropshipping and other eCommerce models.

1. Starting Cost

Compared to other eCommerce businesses, dropshipping has the lowest starting cost. ECommerce models like manufacturing need a large sum of capital to start.

2. Risk

The dropshipping business model is a low-risk business model. You do not have to bear the costs of manufacturing to start dropshipping. But, other business models like manufacturing would have to carry a high risk of losses.

3. Operations

Dropshipping business is much more simple in its operations. All you need to do is source your inventory and market them. In contrast, manufacturing and wholesale have to handle more operations.

Alibaba dropshipping: Is it dead?

Alibaba dropshipping is still thriving and is one of the largest eCommerce companies. Many dropshippers source products from this eCommerce platform. 

It offers private labeling for dropshippers that wants exclusive products. Also, Alibaba dropshipping suppliers are flexible with low minimum order quantities. It makes it easier for dropshippers that want a low amount of inventory.

Suggested reading: Alibaba dropshipping

Suggested reading: Alibaba Payment Failed

Aliexpress dropshipping: Is it dead?

No, Aliexpress dropshipping is not dead. It is one of the best eCommerce platforms with many quality dropshipping suppliers. Many people uesd to ask: Is Aliexpress safely?   

Aliexpress has various products with wholesale prices and cashback for dropshippers. You can also earn a good profit margin from Aliexpress. Hence, the platform is still popular with many dropshippers.  

Suggested reading: Aliexpress dropshipping

Amazon dropshipping: Is it dead?

Dropshipping on Amazon is still profitable for dropshippers. Amazon offers its fulfillment centers to complete the dropshipping process. Dropshippers still source their products through Amazon because of this feature. 

Drosphippers would not have to pick and pack their product on their own. Amazon will take care of the fulfillment process for the dropshippers.

Shopify dropshipping: Is it dead?

Shopify dropshipping is still one of the top picks for any dropshipping business. It lets dropshippers connect to various suppliers at the same time. Plus, it does not have any upfront monthly fees. 

Dropshippers can build their store on Shopify, and Shopify will handle the rest. That is why Shopify is still popular among dropshippers.

eBay dropshipping: Is it dead?

eBay dropshipping is not dead. It has vast commerce, especially when they offer guaranteed shipping times. 

eBay delivers under 30 days which makes customers and dropshippers satisfied. Many of them actively use it on eBay. Minimal startup costs are also another reason why dropshippers dropship on eBay.

Is dropshipping profitable?

The dropshipping business model is one of the most profitable eCommerce models. Let’s see why.

1. Small Capital Startups

Other eCommerce models might take a long to profit due to large initial capital. These online businesses have to bear huge expenses before making profits. 

But, it is easy for dropshippers to profit fast because of the small capital. They do not have to bear too many expenses. So, they can earn profit in a short amount of time.

2. Product Category Scale

Dropshipping business is profitable because of its high product category scale. Unlike other eCommerce models, dropshipping doesn’t have to focus on a single product. 

Dropshippers can choose from a wide selection of products and resell them. They can list as many products they want on the online store. With the wide product category scale, it is easy to profit from the business.

3. Low Inventory Costs 

Dropshippers can get products with extremely low prices from several platforms. For instance, Aliexpress and Alibaba. Then, they can resell the products at higher prices on other platforms. 

Dropshippers can earn huge profit margins from the price difference. So, dropshippers can still profit from the revenue alone, even with other costs. 

4. Low Cost of Fulfillment

Other eCommerce models need more spending on fulfillment. Dropshippers can rely on services that offer order fulfillment at a low cost. 

By paying for fulfillment services, their customer can receive their product fast. Dropshippers do not need to involve much in shipping products. It saves dropshippers much money and earns a profit through it. 

5. Global Exposure

Unlike physical stores, dropshippers resell the products via an eCommerce store. With an online network, it connects consumers all around the world. 

So, dropshippers can earn money internationally through online payments. Moreover, they can profit from a dropshipping business with a currency advantage.

6. Online Payment Processing 

Now that online store is a sensation, online payment processing has become easy. When online payment processing is easy, potential customers will likely shop online more. 

With secure payments, dropshippers can profit a lot. They can also save hassles from fraud payments or scam customers.

7. Automated Management Solutions

As a dropshipping business grows, there will be many consumers. Each of these consumers will have their voice on concerns. 

But with automated solutions like chatbots, customers can have a pleasant shopping experience. It will lead to satisfied customers repurchasing from dropshippers.

How to start your dropshipping business?

Starting a dropshipping business can be easy in a few steps.

Step 1: Choose a dropshipping business plan.

Step 2: Find the right suppliers that cater to the plan for inventory.

Step 3: Import the dropshipping products and list them on eCommerce platforms.

Step 4: Market your online store to entice customers.

Step 5: Process your customers’ orders with your suppliers for shipments.

Step 6: Grow your dropshipping business after analyzing your customer’s reviews.

FAQs about is dropshipping dead?

What’s Next

In summary, dropshipping is still not dead. There are still many platforms that allow dropshipping with many great deals. These deals will let dropshipping companies earn huge profits online. An online retailer can consider starting drop-shipping as it is easy and profitable.

I hope this article is beneficial for you about dropshipping. If you have any further inquiries, feel free to contact our services pages.