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Is Dropshipping Dead? How to Make Money from Dropshipping

I remember when I first started dropshipping. It was a total wild west and there were very few resources available to help me get started. Back then, it felt like everyone and their mother was trying to start a dropshipping business. But fast forward a few years later and the landscape has changed dramatically. Nowadays, people are much more skeptical of dropshipping as an e-commerce business model. Some people are wondering is dropshipping dead? But in my opinion, this couldn’t be further from the truth! Dropshipping is still very much alive and kicking…and here’s why:

Let’s dive into the basics of starting your e-commerce business.

5 Reasons Why Dropshippers Fail

Is dropshipping dead? Here are some of the major reasons why a dropshipper might fail.

1. Lack of Knowledge

Many people enter the world of dropshipping without taking the time to learn everything there is to know about the business. A common misconception is that dropshipping is a quick and easy way to make money with no effort required. This could not be further from the truth! Dropshipping takes skill and dedication to succeed.

Dropshipping is a lucrative business model, but there’s a lot that goes into being successful at it. You need to have a solid understanding of the various areas that contribute to your success, including having a unique method of finding products, targeting the right audience, and getting your orders out on time.

Basic knowledge of social media marketing, customer service, and e-commerce are all required skills for building a highly successful dropshipping company.

2. Choosing a Bad Product

Many new entrepreneurs make the mistake of going for products that are already saturated with competitors.

A few months back, I was approached by a dropshipping company that was looking to sell a mini projector. At the time, I didn’t know much about them.

At first, we thought the problem was with how we were selecting our target audience on Facebook.

If you try to sell a hyped product that no one else is buying, you’ll probably make some money at first. But eventually, you’ll be spending a lot of money on ads without any real returns, and you’ll decide that drop shipping is dead.

3. Start with General Product

A trending and unique product is a winning combination for successful dropshippers. Dropshippers need to choose products that are in demand, but with unique elements so that their shipments are not delayed.

If you’re looking for a unique product that’s not easy to find, you might have to wait 10-15 days for it to arrive.

Let’s say you’re in the coffee and mug business.

If you are trying to sell these coffee mugs in your shop, will your impatient customers be willing to wait for 10 days before receiving their order?

When customers can buy your product from anyone, then you may be in trouble. Amazon gives people the chance to buy from them, and they may get it for a cheaper price.

4. Wrong Target

The most difficult part of the drop shipping business is driving traffic to your online store. With the right social media marketing strategy, however, you can generate sales and reach your audience.

Social media advertising is one of the most important ways to drive traffic in a dropshipping business. It’s crucial to make sure you’re targeting the right audience with your ads.

If you’re running a business that relies on social media for marketing, then you probably already know that Facebook Ads are one of the best sources for generating sales. Unfortunately, most business owners don’t have experience creating successful ads, and they end up losing money on their campaigns.

5. Wrong Supplier

The supplier works as part of a team in a dropshipping business.

If you’re not careful about choosing the right supplier for your dropshipping business, it could all come crashing down. A lot of the work in a dropshipping business falls on the supplier, so if you don’t vet them properly or keep a close eye on their performance, it could reflect poorly on your business.

Sometimes, the vendors deliver poor-quality products and take too long to deliver them, which hurts the business’s credibility.

Is Dropshipping Dead Because of Alibaba?

The online retailer, AliExpress, is owned by the Alibaba group.

AliExpress has become one of the best dropshipping product research tools for many beginner dropshippers because it offers a wide variety of goods at a very low price with worldwide shipping.

So, why are people buying from dropshippers and not from the actual manufacturer? There are a couple of reasons for this.

AliExpress is not as well-known as some of the other e-commerce platforms out there. If we weren’t interested in dropshipping, we probably would have never heard of it.

Some people know about AliExpress, but they don’t feel comfortable buying products from the site because they are worried about the quality of the products or about being scammed.

Many customers are already familiar with Alibaba but prefer to purchase from stores that can offer better customer service, as well as convenience. If you can provide a better shopping experience, you may win their business over that of sites like Amazon and eBay.

Is The Dropshipping Market Saturated?

No, the dropshipping market is not saturated. There are still many opportunities for new businesses to enter the market and find their niche. The key is to find an unserved or underserved niche and focus on serving that market.

Here are some ways to find an unsaturated market:

Find Demand

Customers are always looking for new products that will make their lives easier. By keeping an eye on social media and doing some eCommerce keyword research, you can quickly identify areas where there is a surge in demand. This will help you focus your efforts on creating products that your customers will love.

Using trends is a great way to find a niche and make money. Dropping and reversing the process are two ways to keep up with the demand.

This will help you get a better understanding of your projected sales. This will help you update your business plan accordingly.

Determine Market Size

When entering a new industry, it’s important to look for an industry that isn’t too competitive. It’s often better to start in a smaller to medium-sized business where there is less competition. This will allow you to establish your business and grow your customer base.

If you’re interested in selling baked goods online, one way to set your business apart is to focus on cookies. You could further narrow your focus to only selling gluten-free or vegan cookies. This would allow you to tap into a growing market of health-conscious consumers. By offering a unique product that meets the needs of this target market, you could build a successful online business.

To differentiate your business, you could use only local ingredients. This will help to narrow your market and make your business more sustainable.

Try a Test Run

If you’re looking to test a new market for sales, one of the best ways to do this is by starting with just a few of the bestselling products in that market and using digital marketing to let people know you’re there. This helps you to avoid overextending yourself and find out if there is enough interest in the product to continue selling it.

What are your goals for running an e-commerce store? After you’ve determined what your goals are, you should evaluate the results of your online store. If those results are positive, you should put more time and money into your business.

If you’re not seeing the results you want, keep searching for your niche. You need to be able to find dropshipping suppliers who are reliable and offer a wide range of products.

Perform Competitor Research

There are usually some businesses already operating in a niche, and these businesses tend to be successful. However, their successes are also accompanied by failings.

Look at their growth, customer service for dropshipping activities, and even their eCommerce PPC and dropshipping ads for dropshipping business ideas. You can avoid the pitfalls they made and discover areas where they’re still weak.

This is a perfect way to start gaining more market share. You could even invest in a piece of software that automates the research for you.

Don’t Drop Dead!

The evolving nature of the drop shipping industry means that it’s becoming a more sustainable business model. This is good news for everyone involved!

Don’t worry about whether or not dropshipping is legal–you can grow a successful business by procuring reliable suppliers of high-quality goods. Just make sure you invest in a quality dropshipping website builder to ensure your site is easy-to-use and functional. You can also fill some dropshipping jobs with people who can help your business grow even faster.

Dropshipping Statistics

We’ve put together some statistics on the growing trend of dropshipping.

Here are some interesting statistics on dropshippers:

  • About 30% of online businesses have adopted a drop-shipping model. This is common among all online business types, whether business-to-business or business-to-consumer.
  • The dropshipping market was $100 million strong in 2020. This reflects the 17% yearly growth of the entire e-commerce sector.
  • 33% of consumers will price check products before they buy in-store. Dropshipping is a great way to sell items at lower prices than your competitors, as you don’t have to carry any stock or worry about shipping.
  • More than 35% of sales on Amazon are from third-party sellers. Many of these third-party merchants use marketplaces such as Amazon.com to keep their costs and overhead down. However, there are a few key differences. One is that with a third-party seller, your products are stocked in an Amazon warehouse. With us, your products are hosted on your website.
  • Dropshipping is a profitable way for manufacturers to expand their business. By selling products through a third party, they earn 18% more than those who don’t.
  • Dropshipping can be 50% more lucrative than a traditional retailer. This relies heavily on their mark-up and how competitive their niche is.
  • More than 80% of sellers say that finding a quality wholesale distributor is their biggest obstacle to success. This means that you must put in the work first, so you can focus on sales once you have found a great wholesaler. This is critical in how to dropship.
  • A common mistake among new dropshippers is that they rely on products that are too inexpensive. This is a major turnoff for customers, who have come to expect quality products.

Why Dropshipping is Still Alive in 2022

Setting up a dropshipping business is easy, and that’s one reason why it’s still popular in 2022.

All you need is a website and a wholesale product source.

One of the main reasons that dropshipping businesses will continue to be successful in the future is because they are so scalable. This means that entrepreneurs can easily add new products to their stores without having to worry about inventory or fulfillment. All they need to do is find a supplier who can dropship the products for them and they are good to go.

Finding a supplier who can dropship products for you is all you need to do to get started.

Dropshipping can be a very profitable business model for entrepreneurs who don’t have a lot of capital to invest. With drop shipping, you only pay for the products after they’re sold, which means you can use your money for marketing and advertising instead of product inventory. This makes it an attractive option for many people who want to start their online store.

With drop shipping, you can partner with another company that already has a product ready for sale. This eliminates the need to set up your website, which can be costly.

Dropshipping lets you avoid the initial costs of setting up your online store by working with a supplier that already has products ready to sell.


Is dropshipping dead? Hell no! This e-commerce business model still has a lot of life left in it. Despite the challenges that come with running a dropshipping business, there are plenty of reasons why this type of business will continue to thrive in the coming years.