Dropshipping has been going on for a long time. It’s a low-risk way to run an online business because you don’t have to keep any stock and orders are filled directly by the supplier.

But by no means is it easy to start a successful dropshipping store.

Every day, there’s more and more competition, so it’s natural to wonder if dropshipping is still worth it. or is the market too full to make a difference?

In our Ultimate Guide, we’ll help you figure out whether or not dropshipping is worth your time and money.

Let’s begin!

Is Dropshipping Worth It?

Dropshipping is worth it if you want a decent monthly income by starting a business on a low budget. But it won’t make you a lot of money quickly.

Also, you need patience, hard work, and perseverance to start a successful dropshipping business. Contrary to what most people believe, it isn’t an easy “money-making scheme”.

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What Makes Dropshipping Worth It?

About 33% of online stores use a model of fulfillment called “dropshipping.” Here are a few reasons why:

Low Investment to Start

Compared to other ways to do business online, dropshipping requires the least amount of money. Because a dropshipping store doesn’t keep any products in stock. The supplier takes care of every part of filling an order.

Most of your money will go toward building and promoting your website. But platforms like Shopify also have a lot of custom themes, so if you’re on a tight budget, this is another option to look into.

Easy to Manage

Dropshipping stores are easy to run because they don’t have a physical storefront and the supplier does most of the work.

If you automate your dropshipping business, you can even fill orders while you’re sleeping.

Create Passive Income

Order fulfillment is one of the parts of an eCommerce store that takes the most time. But with dropshipping, you don’t have to worry about this.

That’s why a lot of people want to start a dropshipping store as a side business. If you do it right, you can make a steady income from it.

Improved Cash Flow

You have more control over your money when you use dropshipping. Traditional online stores always have to spend some of their profits on buying new stock.

But with a dropshipping store, you only pay for one unit at a time and don’t have to worry about making large investments.

Minimal Risk

Most of the money that goes into an eCommerce business goes toward buying products. If you’re shipping from outside the country, it’s best to keep 3 months’ worth of units on hand.

With so much stock, if your store is shut down or the product loses popularity for some reason, all of your money will be wasted. But you don’t have to worry about that with dropshipping.

What are the Drawbacks of Dropshipping?

Dropshipping has flaws and risks just like any other business. So let’s go over some of the worst things about it:

High Competition

One of the biggest problems with dropshipping is competition, which is made worse by the fact that it can be started with a small amount of money.

Unless you’re doing private label dropshipping, it’s likely that someone will copy your listings, product descriptions, and images to start their own store.

Also, only 10% of dropshipping stores make it through their first year.

Quality Issues

When you run a dropshipping business, quality problems are common, especially if you don’t choose your supplier carefully. In the end, you have no idea what is being sent to your customers.

This is why product testing is seen as an important part of opening a dropshipping store. Some stores let you try things out for free, while others charge a fee.

But it should always be your top priority, whether it’s free or not.

Supplier Reliability 

Your dropshipping business will succeed or fail based on the supplier you choose. Even the smallest bit of carelessness can cause refunds and bad reviews.

Since you’re depending on what your supplier has in stock, you don’t get a chance to check the product twice. So if there’s a delay or a problem with the quality from the supplier’s side, you’ll have to pay for it.

Less Profit

The dropshipping business model works by keeping a certain amount of each sale’s profit. This percentage can be anywhere from 10% to 40%, depending on how popular the product is.

This is why, unless you’re dropshipping expensive products, you won’t make much money on each sale unless you’re selling “high ticket” items.

Even if you keep a 20% profit, a $20 low-ticket item will only make you a $4 profit, even if you keep a 20% profit. But high-ticket items start at $200, so you’ll make at least $40 on each sale, which isn’t bad.

Poor Customer Support 

In dropshipping, as we’ve already said, your supplier takes care of every part of order fulfillment. So, if something goes wrong, it would be hard for you to help customers in a good way.

First, you’d have to talk to the supplier and wait for them to reply. Then you can suggest a good solution. And by then, usually the damage is done.

What Does Google Trends Say About Dropshipping?

A lot of people think that dropshipping is going out of business, but that’s not true at all.

In fact, numbers don’t lie, and the graph below shows that dropshipping has only recently reached its peak in terms of search queries, and it’s still going strong:

Google Trends and dropshipping
This is what people from all over the world have searched for. If you’re not sure if it’s worth it to open a dropshipping store in the country you want to sell to, you can use Google Trends to find out.

Here’s another example of how many people search for the term after the United States is taken out of the picture:

Google Trends and dropshipping
If you were worried that dropshipping was going out of business, you don’t need to worry. In reality, it’s the other way around.

It’s not surprising that dropshipping has become a very competitive business model because the number of searches is going up.

Is Shopify Dropshipping Worth It?

Shopify dropshipping is not only worth it, but it is also one of the best platforms for dropshippers right now. It comes with a lot of plugins and apps that can help you run your store.

Shopify also gives you a number of free ways to change the look of your theme. You can’t go wrong with Shopify dropshipping, even if you’re just starting out with a small budget.

If we look at the graph below, we can see that the term “Shopify dropshipping” is still searched for a lot around the world:

Is Dropshipping Saturated 

Today, more people than ever know about dropshipping, so it would be a lie to say that the market isn’t full.

But saturation doesn’t always mean something bad. With more people using the internet, other eCommerce business models like Amazon FBA have become more popular. However, this doesn’t stop entrepreneurs from starting their own businesses.

Now, the only difference is that if you want to get into the market, you need a great idea and a lot of planning.

Even if you can’t think of a unique niche, you shouldn’t leave any marketing opportunities on the table. Even though there is a lot of competition, most people have no idea what they are doing.

So, if you plan well and put in some work, you can make a lot of money as a dropshipper.

How Much Profit Can You Make from Dropshipping?

How much money you make from dropshipping depends on how well you plan and carry out your business.

Some dropshippers make $100,000 a year, but it takes hard work and dedication to get there.

If you start a dropshipping store as a side job to make money while you sleep, you can still make between $2,000 and $3,000 per month on average.

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Is There a Future for Dropshipping?

Every day, the eCommerce business grows, so it’s safe to say that dropshipping has a bright future. A lot of people like to shop online these days instead of going to stores.

And the number of suppliers and platforms that support dropshipping is growing. So, in short, dropshipping will stay around unless big platforms like Amazon and Shopify ban it, which is very unlikely.

Can Dropshipping be a Long-Term Business?

Dropshipping can be a long-term business, but like any other business, it has its ups and downs. Here are some things that could make it hard for your dropshipping business to succeed:

Outdated Products

If you want your dropshipping business to do well, you should always look for what’s popular.

We don’t want you to change your brand, but it’s important to know what people are looking for these days.

The owners of most dropshipping stores close down because they get too comfortable. They forget that fashions change and that people’s tastes and choices also change over time.

So you don’t have to sell a lot of different things in your shop. Just make sure that the one item you list can be sold for more money.

Inefficient Customer Service 

We’ve also said that we don’t think dropshipping is a good way to make money. Don’t just think about making a profit on each sale; also think about how happy the customer is.

If customers are always complaining, try to figure out why.

Is it the product itself or the fact that it arrived late? No matter what the reason is, you need to fix the problems, even if that means switching suppliers.

Inconsistency by Supplier

You could just call this bad luck, but as a dropshipper, your business is completely dependent on a third party.

If for some reason your supplier goes out of business or runs out of stock, that can stop your business from running at all. The only way to stop this from happening is to always have a backup supplier to help you out.

Why Do Most Dropshipping Stores Fail?

We said earlier that 90% of dropshipping stores fail in their first year, and here are the reasons why:

Inadequate Planning

Going into any business without being ready is a bad idea, and dropshipping is no different. In the past, a copy-and-paste dropshipping store might have worked because there wasn’t much competition. However, this is no longer the case today.

If you open a dropshipping store without knowing how it works or how to market it, you’re doomed to fail.

Random Products

Finding products to sell has always been the most important step in opening an online store. And with so much competition, the last thing you want to do as a dropshipper is to choose products at random.

Just because a product works well for a competitor doesn’t mean it will work well for you as well.

They likely had a good plan and knew how to put it into action. So, you’d have to figure out how to use the product on your own.

Lack of Investment

Dropshipping is a business model that requires “low investment,” not “no investment.” Most people, though, think of it as the second option and try to save every penny they can.

Buying an inventory doesn’t have to cost you money. But it’s still important to make a website that looks good. In fact, that’s the least you could do.

The Recipe to Make Dropshipping Worth It 

Dropshipping is likely to be worth your time and money if you do the following:

Analyze and Plan Ahead

Sales at dropshipping stores often go up quickly and then go down quickly. What’s the point of that? They don’t plan, though.

When you run a business, you always need to keep an eye on the competition and think ahead. Before your business is successful and after it is successful, you need a good plan.

So keep an eye out for your competitors. Check out how much they’re charging for their products and what’s popular at the moment so you can stay ahead.

Find a Dependable Supplier

When looking for a dropshipping supplier, cheap isn’t always better. People often forget that your supplier is the only one who can keep your dropshipping business going.

Check the quality of their products, how long it usually takes them to ship, and how good their customer service is before you choose a supplier.

If they have all of the above, it’s not a bad deal to pay a little bit more.

Focus on Building a Brand

As a drop shipper, your main goal should be to build your own brand. This method is also called “private label dropshipping.” When you promote yourself as a brand, you increase your market credibility, which in turn increases your sales.

Aside from that, no one can steal your product photos if they have your brand name on them. So this makes your store stand out from the rest in a unique way.

Final Thoughts

Based on how fast the eCommerce industry is growing, it’s safe to say that dropshipping is here to stay and well worth it.

But if you start dropshipping with the idea that it will be easy to make money, you’re likely to be disappointed.

But if you have a good plan, you can turn it into a full-time or even a part-time job. Just try to find a product that doesn’t have too much competition.