Dropshipping Success Rate: How To Be Succesful In Dropshipping

Curious about the average dropshipping success rate? Ever wondered what sets successful dropshippers apart in an industry projected to hit $476 billion by 2026?

In this article, I’ll delve into the real numbers behind dropshipping success rates and reveal the crucial steps to elevate your dropshipping game.

Ready to uncover the secrets to thriving in this booming industry? Read on to find out how you can turn your dropshipping venture into a success story.

What Is The Average Dropshipping Success Rate?

Leading dropshippers estimate the dropshipping success rate around 10% to 20%. In other words, 10-20% of dropshipping businesses succeed. However, this doesn’t mean you won’t be successful.

But these numbers are just the beginning. If you want to know how successful is dropshipping, according to the latest dropshipping statistics, the global dropshipping industry is projected to hit $301.11 billion in 2024 and $372.47 billion in 2025. Moreover, analysts predict that the market could reach up to $476.1 billion by 2026.

It’s clear that building a profitable dropshipping business isn’t too difficult, especially if you’re skilled in marketing and branding. However, the challenge arises when so-called gurus claim you can start with just $100 to $1,000.

I must say, yes, you can start dropshipping even with no money, believe me! But, as I said, “start”. If you want success, and if you want to grow, eventually you will have to invest more money in market research, marketing, automation tools, and more.

So, the next step, if you want to reach the dropshipping success rate is to learn how!

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How To Become Succesful In Dropshipping? Top 6 Tactics To Boost Your Dropshipping Success Rate

Here I will share with you the best approaches to becoming a successful dropshipper and reaching the dropshipping success rate.

1. Do A Market Research

Market research is super important! It’s all about understanding if people want your dropshipping product, seeing what other companies are doing, and figuring out who you’re trying to sell to.

 These steps are crucial for making dropshipping sales.

➡  Product Research

First, you need to research your product if you want a good dropshipping success rate. There are many tools available today to help you find the perfect product for dropshipping or check if a product you’re interested in is selling well.

For example, you can use Google Trends by typing in keywords related to your product. This will show you what people are searching for and how popular the product is. This insight is really helpful in understanding what people want to buy.

For example, let’s say you want to dropship resistance band. Thus, I will type the keyword into Google Trends and check the results. So, based on Google Trends, the demand for these products is always high.

There are also excellent product research tools like Minea. This tool helps you with product research and discovering winning products, ensuring you’re on the right track with your choices.

Thus, with this tool, you can regularly check on price fluctuations, sales, product demand, revenue, and more.

➡  Customer Analysis

Next, identify your customer segments. It’s important to group your customers based on factors like location, behavior, and needs.

For instance, if you’re selling skincare products, you might group customers by age or skin type. This way, you can target specific groups with products that best fit their needs.

Moreover, gather data about each customer segment using surveys, interviews, and other methods. Collect both numerical data (like age, income, and location) and non-numerical data (like customer feedback and problems they have).

Once you have the data, create detailed profiles of your ideal customers, including demographics, behavior, problems, and goals. This helps you understand your customers’ perspectives and what would make them want to buy your products.

➡  Competitor Analysis

Finally, look at how your competitors are running their dropshipping businesses. Examine their store design, product prices, marketing strategies, suppliers, and the tools and apps they use.

Tools like Ad spy tools can help you gather this information quickly. Additionally, tools like Dropispy allow you to see the last sale your competitors made, providing valuable insights to improve your dropshipping business.

Also, I personally use the Facebook Ads library to spy on my competitors. You can view all the ads they have run over the past seven years. Each ad is shown as a card, which you can click on to get more details.

You can also use filters to get even more information about your competitors’ ads.

With these filters, you can see a competitor’s entire creative strategy, including text, images, and videos. You can also look at the ads they ran in previous years, especially during specific holidays or promotional periods.

For example, if I am dropshipping sunglasses, I can search for “Warby Parker” and view their ads for eyewear and other products.

This not only gives me insight into their marketing strategies but also helps me identify trends and tactics to use in my own campaigns.

2. Choose Your Dropshipping Suppliers Wisely

Think of your suppliers as your business partners because they can really dictate your dropshipping success rate.

Building a strong relationship with them can lead to better deals. Don’t be afraid to negotiate prices, especially when buying in bulk.

A small discount on each item can add up to significant savings over time—it’s like getting a little extra lemonade in every cup you sell!

For example, I am personally looking for reliable dropshipping suppliers from the Dropshipping.com supplier directory.

Here, I can narrow down my search based on product category, shipping costs, location, and more.

Additionally, I get valuable information about the suppliers even before contacting them. I have access to their product cost range, MOQ requirements, location, average order processing time, and more.

This helps me make informed decisions and choose the best suppliers for my business.

👉 Learn How To Find The Best Dropshipping Suppliers For Your Store.

3. Create A Visually-Appealing Dropshipping Store

Think of your dropshipping store as a dense forest. Without clear signs or a map, visitors are bound to get lost. Therefore, intuitive navigation is crucial for helping visitors find what they need easily.

Take Gymshark, for example. They excel at this by using a Z-pattern design that makes navigation simple. This design seamlessly leads users from the logo to the menu and important buttons.

As you scan their homepage, you’ll see call-to-action buttons, clear headlines, a well-organized navigational menu, a grid layout, a login button, and a search bar.

So, what can you do? Using clear headings, logical organization, and a user-friendly interface will enhance the user experience and keep visitors on your site longer.

To build your store, I suggest using website builders. It’s the cheapest, easiest, and fastest way.

Shopify is a top choice due to its user-friendly interface, a wide range of visually appealing themes (both paid and free), and customizable features.

The drag-and-drop editor simplifies store creation and modification. Shopify also integrates seamlessly with dropshipping apps, enabling automated supply chain processes.

4. Use Different Marketing Channels

Even if you have a dropshipping store, it might not drive as much traffic as you want in the beginning. To boost your sales and attract more customers, expand your presence across different marketing channels.

First, don’t forget about social media. Facebook, Instagram, TikTok, and Pinterest have huge user bases. Create profiles on these platforms, add some content, and promote your products.

It’s also important to research where your customers are. For instance, if your target audience is aged 18-24, TikTok and Instagram might be more effective for advertising. However, if your customers are older, Facebook might be the better choice. Always tailor your social media marketing strategy to your audience.

Moreover, many people use search engines like Google to find what they need. Be the first to offer them help by utilizing digital marketing techniques to drive traffic to your store. Implement search engine optimization (SEO) tactics, email marketing, and paid advertising to increase visibility.

Additionally, you can boost sales with strategies like cross–selling, up-selling, and providing discount codes.

Video marketing is another powerful tool to showcase your dropshipping products effectively. By leveraging these methods, you can significantly enhance your store’s traffic and sales.

Check out my Guide To User Generated Video Content For Ecommerce Stores.

5. Personalize Your Customers’ Shopping Experience

Personalization in dropshipping is more than just a nice touch. It’s a game-changer and it defines your dropshipping success rate. It involves using detailed data on how customers interact with your site to create a tailored experience.

Though it can be challenging, the benefits in terms of conversions and revenue are significant.

So, understand how your customers search for products. What are they looking for, and how do they search? By learning these habits, you can customize their search experience.

For instance, Google customizes search results based on past searches. If someone searches for “running shoes” and then types “run,” Google suggests “running shoes” again. You can do something similar.

If your customers often search for “vegan” products, tweak your search algorithms to prioritize vegan items for any related search.

Moreover, analyze what customers add to their cart and buy to gain clearer insights. Use this data to adjust your personalization strategies.

For example, if a customer frequently buys fitness gear, make sure those items are more visible to them.

For instance, Zara has a feature called “Selection For You,” which shows items based on past purchases. This ensures I see products that match my preferences.

Also, if many users buy makeup brushes after adding powder or highlighter to their cart, you can suggest makeup brushes whenever someone adds powder.

Plus, I suggest you show fewer irrelevant products by placing items a customer rarely buys lower in their search results. This makes their shopping experience smoother and more enjoyable.

6. Offer Good Customer Service

When customers feel valued, they are happy. As the ones who buy your products, their satisfaction is crucial. So, if you want to be successful in dropshipping and reach the dropshipping success rate, you MUST deliver good customer service.

To ensure this, provide help whenever they need it, 24/7. This can be achieved by offering Live Chat, FAQs, an email address, phone number, and detailed product descriptions. Additionally, consider creating a forum where customers can interact with each other.

Gathering customer feedback is also essential. You can call them to ask about their experience or use email and social media to gather their opinions.

Plus, you can encourage them to leave their feedback on your homepage or product pages. Customer testimonials can further help you build better relationships and expand your customer base.

Being responsive to customers is vital. If you don’t provide effective communication channels, they might stop using your service.

I personally use Tidio to connect all my messaging from various platforms. Plus, their chatbot and AI tools help me give instant responses to my customers and not leave them to wait.

Top Dropshipping Success Stories To Inspire

Since I researched and found inspiration about how to be successful in dropshipping, here I will share with you the ones that inspired me the most.

Jordan Welch – $1 Million in 8 Months on Shopify

Jordan Welch’s story is a fantastic source of inspiration for anyone wanting to start a business but has no ideas and reach the dropshipping success rate.

He began his entrepreneurial journey at 13, dabbling in ventures like reselling shoes and creating a clothing line during his school years. Although he didn’t profit by graduation, these early experiences set the stage for later success.

He first tasted significant success with dropshipping on Shopify, where his e-commerce store quickly surpassed $1 million in sales within eight months. This initial success prompted Jordan to transition from dropshipping to creating his own brand, selling custom products online.

In 2018, he launched Viral Vault, a comprehensive e-commerce toolkit designed to help beginners start their own online stores. Although it didn’t generate profit in its first year, Jordan’s determination soon turned it into a profitable venture.

Parallel to his business career, Jordan started a YouTube channel in 2017, sharing his strategies for online business. Thanks to his consistent and quality content, Jordan grew his channel to over 1.45 million subscribers.

His impressive earnings come from multiple sources: his Shopify store, YouTube ads, brand deals, affiliate promotions, and investments in index funds and cryptocurrencies. Also, these diverse income streams have contributed to an estimated net worth of $4 million.

As of April 2024, Jordan’s YouTube channel boasts 249 videos, ranging from tutorials to interviews with billionaires, attracting viewership numbers from 200K to 3.6 million views per video.

Besides YouTube, Jordan has an active Instagram presence with 267K followers and a growing TikTok network where he shares shorts about Shopify, dropshipping, and business tips.

Andreas & Alexander – $10 Million in Sales in Pet Dropshipping Niche

Andreas & Alexander stand out in the dropshipping world. Within the pet niche, these two entrepreneurs managed to generate an impressive $10 million in sales.

Their success stems from several key strategies. They selected a specific pet niche, targeting passionate pet owners by understanding their needs and preferences.

They curated a selection of high-quality products that appealed to their audience. Andreas & Alexander used innovative marketing approaches, like leveraging social media marketing and advertising campaigns, to effectively reach their customer base.

They advise other dropshippers to focus heavily on marketing and branding, recommending the use of Facebook ads without narrowing down the target audience, leaving it at about 2.5 million people.

They also emphasize selling lesser-known products and testing the market using tools like Facebook audience insights and Google Trends. Moreover, they advocate using video marketing to showcase product features.

AC Hampton – $1.7 Million in 2020 from a One-Product Store

AC Hampton, from Kansas City, Missouri, started his dropshipping journey during college. After graduating, he briefly worked a traditional job but soon ventured into entrepreneurship.

He invested in a dropshipping course, and in December 2018, he discovered a winning product that generated $165K in sales in just two months.

Initially fulfilling orders through AliExpress, AC switched to Oberlo and partnered with a supplier as order volume increased.

Despite challenges like product saturation, a Facebook ad account shut down, and a PayPal account hold, he revamped his strategy. Focusing on a niche, one-product store with a new theme, AC’s sales exceeded $1.7 million from March to December 2020.

AC has made millions from various online stores and now shares his expertise through his online course, Supreme Ecom Blueprint.

 His journey illustrates how a shift in strategy and persistence can lead to remarkable success in e-commerce.

Justin Woll – Self-Made Millionaire by Age 23

Justin Woll, a 23-year-old from Wayne, New Jersey, has rapidly ascended to prominence in the e-commerce world, becoming a self-made millionaire.

His journey began in a middle-class family facing financial difficulties, sparking his early interest in marketing and sales.

By age 15, Justin had already started his own gaming company, launched two subscription box businesses, and created two Shopify stores.

Recognized for his entrepreneurial spirit with the Rutgers Entrepreneurship Award in 2016, Justin founded Beyond Six Figures the following year, focusing on e-commerce and dropshipping.

Justin is known for his adept use of Facebook to boost sales and grow his ventures.

He has also become a respected educator in digital marketing, leading a major personal e-commerce mentorship agency and earning three ‘Two Comma Club’ awards. His journey is followed by over 210k people on Instagram, where he shares insights and motivates others to succeed in their e-commerce endeavors.

Irwin Dominguez – $1 Million in Only 8 Months

Irwin Dominguez is one of the richest dropshippers, achieving a staggering $1 million in sales within just 8 months.

He simply opened a Shopify account, created his store, added a few dropshipped products, and learned by doing. His success was due to identifying profitable niches and leveraging Facebook Ads to reach his target audience.

Irwin’s previous experience as a marketing consultant helped him grasp Facebook advertisements quickly, expanding his dropshipping business to generate $10,000 per day. He created captivating content, engaged with followers, and built a loyal customer base, making his story a remarkable success.

Sebastian Ghiorghiu – Millionaire by Age 24

Sebastian Ghiorghiu quickly identified a profitable niche in dropshipping, generating $35,000 in revenue from his first store. He focused on Facebook ads, effectively targeting his audience across Facebook and Instagram. His YouTube videos explaining his success went viral, boosting his earnings through ad revenue and affiliate deals.

Sebastian leveraged organic traffic through SEO, attracting potential customers and launching a dropshipping course, with sales soaring from $70,000 to $80,000 per month.

 At just 24, he runs a Google Ads agency, multiple dropshipping stores, and a successful YouTube channel.

His achievements have enabled him to reach millionaire status, purchase his dream house, and buy a dream car, showcasing the transformative potential of dropshipping.

Most Common Dropshipping Mistakes To Avoid

All the glitters aren’t gold. So, you need to be careful and consider the most common dropshipping mistakes that can really cost your dropshipping success rate.

1. Choosing the Wrong Niche

Many dropshipping entrepreneurs fail because they choose the wrong niche.

To prevent this, consider a few key points when selecting a niche for your dropshipping business.

➡ Avoid Niches That Are Too Broad

Many new dropshipping entrepreneurs believe that targeting a broad niche will capture a larger market. However, the more specific the niche, the better.

By narrowing down your niche, you can identify your target audience and focus on meeting their specific needs.

For example, instead of choosing the broad niche of “clothing,” you could focus on “eco-friendly activewear for women.”

➡ Ensure There Is a Market for Your Niche

Being passionate about a niche is not enough. You need to ensure there is a demand for it. Otherwise, your effort will remain a hobby and won’t grow into a profitable business.

Therefore, I suggest you use tools like Google AdWords Keyword Planner and Google Trends to research market demand.

For instance, if you’re interested in a “custom t shirt,” check if there is significant search volume and growing interest in this niche.

2. Setting Prices Without Proper Research

One of the biggest mistakes in eCommerce is setting prices without doing proper research. If you price your products too high, you risk turning away potential customers. Conversely, pricing too low can eat into your profits.

Therefore, take the time to research similar products, competitor pricing, and your target market’s willingness to pay. This will help you strike a balance between profitability and competitiveness.

For example, if you are selling handmade candles, look at what similar brands are charging. If most of your competitors price their candles between $20 and $25, and your target market is willing to pay this range, you can set a competitive price while ensuring a good profit margin.

By doing so, you attract customers without sacrificing your profits.

3. Failing to Define Your Target Audience

Not understanding your target audience can make your marketing efforts ineffective. This is one of the most common eCommerce mistakes.

To avoid this, you need to know who your ideal customers are – their demographics, preferences, pain points, and buying behavior.

Also, tailor your products and marketing messages to resonate with your target audience for better engagement and conversion rates.

One effective method is to create buyer personas, which are detailed profiles representing your perfect customers. These personas should include aspects like age, gender, hobbies, obstacles they face, and how they typically make purchases.

For instance, you can use ready-made templates from Canva and customize them with specifics such as personal details, job roles, interests, and motivations for buying your products.

Additionally, consider factors like income and spending habits. By doing this, you can develop different customer profiles, forming the foundation for your market segmentation strategy.

4. Working With the Wrong Dropshipping Supplier

Your supplier is like a business partner; choosing the wrong one can lead to many problems. So, issues like poor product quality, slow shipping times, or unreliable communication can harm your brand’s reputation and drive customers away.

Therefore, do your due diligence when selecting a supplier. Look for reliability, quality assurance processes, and good communication channels.

For example, check reviews and ratings of potential suppliers, and test their products and shipping times yourself before committing.

This helps ensure that you work with a supplier who can consistently meet your business standards.

5. Not Using Social Proof

Social proof is a powerful tool for building trust and credibility with potential customers. Testimonials, reviews, and user-generated content can reassure shoppers that buying from you is the right choice.

For example, Zara uses social proof effectively. Influencers, satisfied customers, and Zara enthusiasts often create videos of themselves unboxing Zara products and trying them out, which enhances Zara’s credibility and attractiveness.

Therefore, incorporate social proof strategically throughout your website and marketing channels to boost conversions and build a loyal customer base.

6. Choosing the Wrong Dropshipping Platform

Your choice of eCommerce platform can significantly impact your dropshipping business’s success. If you pick a platform that doesn’t fit your needs, it can lead to frustration, inefficiency, and limited growth opportunities.

So, consider factors like ease of use, scalability, customization options, and integrations when selecting an eCommerce platform.

Choose one that can support your current needs and grow with your business. Fortunately, there are many options like Shopify, BigCommerce, WooCommerce, Squarespace, and many more.

Even more exciting is the AI-built Shopify Store Tool from Dropshipping.com. With this new feature, you can create an AI-powered Shopify store in just one minute for only $1.

This means you can instantly launch a fully optimized Shopify store with AI-driven customization, hand-picked winning products tailored to your chosen niche, and pre-made pages ready for selling.

It’s an effortless way to kickstart a profitable dropshipping venture.

7. Using Too Many or Too Few Shopify Apps

Shopify apps can significantly enhance the functionality of your store, offering numerous features to streamline operations and improve customer experience. However, finding the right balance is crucial for your dropshipping success rate.

Too many apps can clutter your site and slow it down, while too few might limit your store’s potential.

Therefore, approach app installation strategically, not haphazardly. Evaluate your store’s specific needs and objectives to identify essential functionalities for business operations and customer satisfaction.

Additionally, consider each app’s compatibility and integration capabilities with your existing Shopify setup.

Also, choose apps that integrate seamlessly with your store’s theme and other installed apps to ensure smooth operation and minimal conflicts.

8. Delivering a Complicated Payment Process

A complicated payment process can make or break your eCommerce business. Even with great marketing efforts driving traffic to your store, a cumbersome checkout process can cause potential customers to abandon their carts.

In fact, studies show that a significant percentage of cart abandonments are due to checkout issues. For example, 22% of American internet shoppers have abandoned a purchase because the checkout process was too long or complex.

Consider this scenario: 👇

Imagine you’re shopping online, ready to buy items you’ve been eyeing for a while. You add them to your cart and proceed to checkout, expecting a smooth process.

However, you encounter a lengthy form asking for unnecessary details and multiple steps to complete the transaction.

Unexpected high shipping costs further frustrate you. As a result, you abandon your cart and look for alternatives.

So, my advice on this is to keep the checkout process concise and intuitive. Minimize the steps from cart to payment confirmation.

Also, provides various payment methods like credit/debit cards, digital wallets, PayPal, and Apple Pay to give customers flexibility and convenience.

Be upfront about shipping costs, taxes, and additional fees. Moreover, you can think about the option to let customers buy without having an account on your website.

For instance, NCLA Beauty’s Shopify store features a single checkout page with an attractive layout and seamless brand identity.

Customers can make purchases without needing to sign up, significantly boosting sales.

Dropshipping Success Rate FAQs

1. Is dropshipping legal?

Yes, dropshipping is completely legal. It involves conducting business without any illegal activities. However, dropshippers need to follow local laws, get necessary licenses, and comply with regulations.

2. Is dropshipping profitable?

Certainly! Dropshipping can be very profitable when done right. So, if you are wondering how successful is dropshipping, recent stats suggest the global dropshipping industry is expected to reach $301.11 billion in 2024, with projections to hit $500 billion by 2027.

3. Can I get rich with dropshipping?

Yes, dropshipping is a low-risk, highly profitable model that can become a full-time income source. Success requires skills in areas like copywriting and paid advertising.

While getting rich quickly is challenging, it’s possible with patience and the right approach.

👉 Discover the Top 11 Richest Dropshipping Store Owners In The World.

4. Can I start dropshipping with no money?

Yes, it’s possible to start with no money initially, but you may need to invest later.

You can use free trials of website builders like Shopify, find free dropshipping suppliers on platforms like Dropshipping.com or Aliexpress, and advertise for free through SEO strategies.

👉 Discover the Free Dropship Websites: Start Dropshipping With $0.

5. How do I create my dropshipping store?

You have three options to build a dropshipping store: hire a developer, use an open-source system like WordPress, or use a website builder like Shopify.

Follow these steps:

1. Sign up for Shopify
2. Choose a plan
3. Customize your store
4. Add products
5. Set up payment and shipping
6. Launch your store

6. Do I need to register a business entity to dropship?

Yes, it’s generally recommended to register a business entity before starting a dropshipping business.

This involves steps like choosing a business name, deciding on a business structure, registering with authorities, obtaining an EIN, and complying with regulations.

7. Is dropshipping dead?

No, dropshipping is far from dead. It’s thriving and expected to reach $301.11 billion in 2024. Google Trends and global eCommerce market size statistics confirm its continued growth, proving that the dropshipping business model is very much alive.

8. What is the average dropshipping profit margin?

The average dropshipping profit margin ranges from 15% to 20%. However, this may vary depending on the niche.

9. Can I start a dropshipping business as a teen?

Absolutely! Teens can start a dropshipping store. Challenges may arise due to the lack of a personal bank account or ID for verification, but a workaround is to use a parent’s or older sibling’s bank account for transactions. It’s advisable to first learn how dropshipping works.

👉 Read about How Old Do You Have To Be To Dropship? A Guide For Age 15, 16, 17, 18.

Conclusion

Learning how to be successful in dropshipping and reaching the dropshipping success rate may seem daunting at first, but with the right strategies and tools, you can join the ranks of successful dropshippers.

Remember, thorough market research, effective marketing, and choosing reliable suppliers are key to your success.

Start with a clear plan, invest in the right resources, and continually optimize your approach. Hence, dropshipping isn’t an overnight success story; it requires dedication and smart decisions.

Consider the insights shared in this article and be prepared to adapt and grow. With persistence, your dropshipping business can thrive in this rapidly expanding industry.