Dropshipping is one of the most searched business models on the internet. It’s lucrative, it’s fun, requires fewer funds and manpower, and can be operated from your dorm. You’d find hundreds of success stories, words of caution, and people claiming it fake throughout the internet.
You’d also find thousands of videos and articles written by bloggers, business gurus, marketing experts, and dropshipping companies claiming to make you rich by using their dropshipping business courses.
Starting a dropshipping store might sound a no-brainer to some. But make no mistake. A business is a business. It takes research, planning, finances, and on top of everything skills. For aspiring entrepreneurs questioning the viability of dropshipping in 2021, it’s crucial to begin with a strong foundation. Delving into the best llc services 2024 can provide a head start in legally structuring your business, ensuring you’re well-prepared to tackle the dynamic world of online retail.
A business model that made millions of dollars for the people sitting in their homes is definitely worth a try. one question that bugs the new age drop shippers the most is,
is dropshipping worth it in 2021? is dropshipping dead?
Let’s find out.
What is dropshipping?
Dropshipping is a technology-based low-risk business model that allows you to sell your products to customers over the internet without incurring enormous operating costs like a wholesaler. The lower the costs, the easier it is to become profitable.
Dropshipping is a method of fulfillment in which the seller does not keep the products he sells in stock. With a Drop Shipped Arrangement, you can list your products on your website without having to keep physical inventory. when an order is received, the trader transmits the order and shipping information of the customer to the manufacturer, wholesaler, or retailer who then delivers the product to that customer.
The start-up costs are much lower than the start-up of a traditional e-commerce company. Since retailers with large and small online stores can offer a wide range of goods without having to invest in stock or warehouses, dropshipping has been used by retailers as a means to capitalize on consumer trends and make money quickly.
Oberlo allows sellers to import drop ship products directly from their Shopify, Amazon, or Amazon store to AliExpress. AliExpress suppliers then send the product directly to the customer, wherever in the world that may be.
Dropshipping is a great business, because it is accessible, a great option for budding entrepreneurs to start their own online retail or e-commerce business.
The low barrier to entry and low overhead make dropshipping a great option for small business owners and entrepreneurs of all sizes. Different business ideas can be tested in different ways, with limited downsides, which will teach you how to choose the products you need and how to fit into your business model. Probably the biggest advantage of dropshipping is that you can start an eCommerce store without having to invest thousands of dollars in inventory. There are many different options available to you regarding prices, delivery and shipping costs.
Is dropshipping dead?
The e-commerce industry is worth 2 trillion worldwide today. Shopify has recorded a 110% growth year-over-year growth rate since the internet boom.
For many years, dropshipping has been touted as a great option for online entrepreneurs looking to start a lucrative but lean business for themselves.
Dropshipping allows you to find products with huge profit potential and start a business to sell them. With dropshipping, you can make money, as many successful traders have done and continue to do. The business opportunities are endless, you just have to take the first steps. If you are motivated to sell your products, you can invest more time in promotion and marketing, which will result in more profit for your business.
Now that you understand how dropshipping works, let’s take a look at some of the pros and cons of this business model. There are advantages to using dropshipping for your e-commerce store, but there are also some disadvantages.
You never have accurate information on the available inventory, zero control on the delivery timeline and you’d be the one facing the wrath of the customer if something goes south. An e-commerce retailer who started as a drop shipper says, “We should have had our warehouses from day one. Not having control over the inventory and delivery time was a bad idea.”
Customer service is not the only issue you could run into. Dropshipping is like any other full-time business. If you are someone looking for a part-time gig in 2021, stay away from dropshipping. Dropshipping is no longer a get-rich-overnight scheme.
But if you are looking for a serious business, dropshipping can still make you a millionaire.
Here are a few drawbacks of starting a dropshipping business.
- Uncertain delivery timelines
- Cost of the products
- Poor customer support
- Uncertain refunds
- Poor quality control
- Unavailable Inventory
You’ll have to figure out the success recipe by yourself. Test, test and test until you succeed. One thing I can tell you for sure is that dropshipping is far from dead.
One of the great attractions of dropshipping is that you don’t have to invest much to get started, as you don’t have to buy inventory. A few years ago, Aliexpress used to be the primary source for dropshipping products. Dropshippers now directly source products from the wholesalers. The low-risk aspect of Amazon’s drop-shipping makes it an attractive business model because anyone can do it. When evaluating different business models in e-commerce, Amazon’s drop-shipping can be a cheap way to start selling online, and you don’t even have to offset that, the low-risk aspects make it a great option for those who are tech-savvy.
Dropshipping will remain a viable business for a minimum of 5-10 years. US Ecommerce reached $196.66 billion in Q1, up 39.0% year over year from $141.52 billion in the same quarter of 2020. Nearly $1 in every $5 spent on retail purchases came from digital orders, suggesting the pandemic-related boost to online shopping hasn’t tapered off yet. (Source)
Over 73% of online sales come from a mobile device. With improved mobile experience, the trend will continue to grow further. Considering these numbers and opportunities, one can safely say that drop shipping is not going anywhere soon. is dropshipping worth it? definitely.