With the rapid growth of e-commerce, dropshipping has become an increasingly popular business model. But, is Dropshipping worth it in 2024?
Many entrepreneurs are drawn to the idea of starting their own dropshipping business, but they may not be fully aware of the challenges and realities that come with it. I know, we all want cute roses, but instead, we get guns & roses when we rush into things.
Just like any other business, dropshipping requires effort and time for success.
In this article, I will explore the harsh truth about dropshipping in 2024. While it may seem like a lucrative opportunity, there are several factors to consider before diving in.
I will discuss the challenges you may face and help you determine if dropshipping is worth it in the current market. Let’s begin.
- Why Is Dropshipping Popular In 2024?
- The Main Reasons Why People Start Dropshipping
- The Dropshipping Downsides In 2024
- Things To Consider Before Starting A Dropshipping Business ( My Opinion)
- 🔸 Is Dropshipping Business Profitable?
- 1. Dropshipping is here to stay
- 2. Higher number of internet users and online buyers
- 3. The evolution of mobile commerce worldwide
- 🔸 How To Find Your Winning Dropshipping Products?
- 🔸 How To Find Trustworthy Dropshipping Suppliers?
- 🔸 The Importance of Delivering Great Customer Support
- 🔸 How To Protect Your Dropshipping Business Legally?
- 🔸 How Long Does It Take To Succeed?
- 4 Actionable Tips On How To Succeed In The Dropshipping Industry
- The Harsh Truth: Is Dropshipping Worth It?
- Is dropshipping worth it? FAQs
- 1. Is dropshipping worth it in 2024?
- 2. How profitable is dropshipping?
- 3. Is dropshipping good for beginners?
- Can I dropship with $0?
- 4. Is it hard to be successful in dropshipping?
- 5. How does dropshipping work?
- 6. Is dropshipping legal?
- 7. What is the minimum budget you need to start dropshipping?
- 8. How much can you make dropshipping?
- Final thoughts – Is Dropshipping Worth It?
Why Is Dropshipping Popular In 2024?
Dropshipping has become increasingly popular in 2024 due to several key factors. Firstly, the global pandemic has significantly impacted the way people shop, resulting in a surge in online shopping. This shift in consumer behavior has propelled the growth of the dropshipping industry as it offers a convenient and hassle-free way to start an online business.
Furthermore, the dropshipping model eliminates the need for inventory costs and reduces the risk typically associated with traditional retail models. This makes it an attractive business model for entrepreneurs seeking a low-risk and profitable venture.
Plus, it also allows for a wide variety of products to be sold, catering to different niches and target markets.
The continuous growth of the dropshipping market has attracted a larger number of dropshipping suppliers, resulting in a wider range of quality products available to dropshippers.
However, still, I didn’t catch the phrase – Is dropshipping worth it in 2024? So, let’s find out!
The Main Reasons Why People Start Dropshipping
There are different reasons why people decide to start dropshipping. Here are some of the most common ones that speak about is dropshipping worth it:
1. It is easy to get started
When all the pros and cons of dropshipping are taken into consideration, it is safe to say that the greatest advantage of this business model is the low barrier to entry.
One of the main reasons why people decide to enter the dropshipping market is that is easy to get started. Yeah, anyone with a laptop and Wi-Fi connection can potentially become a dropshipper.
Namely, getting a dropshipping business up and running is an easy process.
There are also many dropshipping automation tools out there that help you save time and streamline your business processes.
For instance, tools like Sell The Trend provide them with a list of “best-selling products” so they can sell what has proven to be popular. 👇
2. It is a low-risk business model
Another reason why people make a decision to start dropshipping is that it is a low-risk business model. And, one more reason talking about is dropshipping worth it.
Brick-and-mortar stores need a huge start-up capital before opening their doors. They need to buy inventory, rent or buy a space where they are going to do business, etc.
Nevertheless, dropshipping store owners do not have to invest thousands of dollars in inventory in advance.
For instance, I use Inventory Source to help me deal with finding dropshipping suppliers and managing inventory. 👇
Hence, it is an all-in-one platform that allows you to find dropshipping suppliers and automate your workflows.
Also, you could literally set up an online business without investing a huge amount of money and still be a success. And dropshipping store owners will never get stuck with an unsold surplus. This is very attractive to dropshippers.
3. It offers flexibility (9-5 office hours are a thing of the past)
Some people speak fondly of the 9-to-5 shift. But others want some kind of flexibility when it comes to their work schedules. And, this is one reason why dropshipping is worth it.
And some of them love the flexibility the dropshipping business model offers. They think it is simply something they “should” be doing.
But, oftentimes, they lose steam when they do not see immediate results. They think dropshipping is an easy way to make money quickly. Well, that is a harsh lie. And, it is one of the most common dropshipping mistakes a dropshipper could make. But more about that later.
But, how dropshipping offers flexibility?
In addition, the dropshipping business model offers flexibility by minimizing financial risks, allowing for location independence, providing a wide product selection, etc.
That’s right! That is one harsh truth. Hence, with the various dropshipping apps available, you do not need to handle inventory management, order fulfillment, or shipping logistics.
For example, I love using Shippo. It helps me save a ton of time. Hence, most of my shipping process is automated and I can even handle all your shipping requirements in one place.
Plus, Shippo offers various shipping carriers to choose from.
4. Wide range of products
And, the best part, you have a lot to offer! First and foremost, there are various profitable dropshipping niches to choose from.
Next, you have the ability to access an extensive catalog of products from multiple dropshipping suppliers. And, all this, without the hassle of sourcing and stocking inventory. So, whether it’s electronics, fashion, beauty, home decor, or any other category, dropshipping platforms provide access to an extensive selection of products. Moreover, you can even dropship plants.
Another advantage of the wide range of products available in dropshipping is the ability to cater to different customer preferences. For example, offering a range of sizes, colors, or variations of a product allows you to appeal to a broader audience and increase customer satisfaction.
The Dropshipping Downsides In 2024
Dropshipping, as a business model, has gained popularity due to its low entry barriers and minimal upfront investment. However, it’s important to acknowledge that dropshipping has downsides and limitations that are important to consider when evaluating its potential in 2024.
1. The impact on profit margins
One of the major downsides of dropshipping is the impact on profit margins. As more people enter the dropshipping industry, competition increases, leading to price wars and reduced profit margins.
Additionally, dropshippers often face challenges related to product quality. Since you rely on third-party suppliers, it can be difficult to ensure consistent quality control, leading to customer dissatisfaction and returns.
2. Extended shipping times
Another drawback of dropshipping is the potential for extended shipping times. For example, using Chinese dropshipping suppliers, who often offer competitive prices, can result in longer delivery times due to trade disputes and other global challenges.
Alternatively, sourcing products from US dropshipping suppliers may offer quicker shipping times, but often at higher costs.
3. Limited control over customer experience
Furthermore, you can also have limited control over the overall customer experience. Fulfillment and customer service are typically handled by the dropshipping supplier, which can lead to challenges in delivering excellent customer service and resolving issues in a timely manner.
4. High competition
Finally, competition in dropshipping is intense due to the low barriers to entry and the availability of similar products from various suppliers.
But, don’t worry. There are numerous ad spy tools out there that can help you spy on your competitors’ performance. And, believe me, we all do that in this crazy dropshipping world.
I personally use AliHunter. So, upon visiting my competitor’s website, I quickly gain access to valuable insights regarding their performance, top-selling items, and more. 👇
Hence, to succeed in this industry, you must find unique products, differentiate yourself through exceptional customer service and branding, and implement effective marketing strategies. By continuously adapting and staying ahead of the competition, dropshippers can thrive in this competitive market.
💡 Tip: Read about Branded Dropshipping: Best Practices for Building a Successful Brand.
So, is dropshipping worth it? What do you think based on these facts?
Things To Consider Before Starting A Dropshipping Business ( My Opinion)
Yes, Dropshipping is popular, we can all see this. But, before diving into this type of online business, it is important to consider several factors.
Hence, by considering these factors, I was able to make informed decisions and set myself up for success in the dropshipping business.
So, I am more than happy to share it with you. Let’s see! 👇
🔸 Is Dropshipping Business Profitable?
In order to answer this bold question, we need some proof, right? So, let’s get to the dropshipping stats!
By 2026, dropshipping sales are forecasted to grow to US$476 billion worldwide. Now, let’s compare the size of the global dropshipping market to the size of the global e-commerce market as a whole.
By 2025, the global e-commerce market is predicted to grow to US$3,315.3 billion. Evidently, the size of the global dropshipping market is much smaller in comparison with the size of the global e-commerce market as a whole.
Also, based on the latest data on dropshipping, it is projected that the worldwide dropshipping sector will achieve a value of $301.11 billion by 2024.
So, the answer is YES. Dropshipping business is profitable! And, there are even more truths behind this. Want to see them?
1. Dropshipping is here to stay
Not only is dropshipping profitable, but it is also thriving. As mentioned above, it is forecasted to grow to US$476 billion by 2026.
These figures suggest that dropshipping is here to stay. Now, you may think that a few e-commerce giants are the companies with the largest market share. Yes, this is true.
But you can become a dropshipper with a huge chance of success. All you need is a little guidance.
So, in this article, I will also explain how you can compete with some big dropship owners, with simple, actionable tips. Just read on!
2. Higher number of internet users and online buyers
It is no secret that many people around the world use the internet. It has become the key enabler in building connectivity that drives economic growth.
Or more specifically, in 2024, there were 5.24 billion active internet users globally – or nearly 60% of the global population.
But all internet users are not interested in online shopping. So, let’s see how many internet users worldwide buy products online. In 2024, more than 2.64 billion people across the globe are expected to make online purchases.
Furthermore, the number of internet users will likely increase over the coming years. The more people use the internet, the more online buyers. And this is great for dropshipping store owners.
3. The evolution of mobile commerce worldwide
In a nutshell, the evolution of mobile commerce on a global scale also opens up new opportunities for you as a new dropshipper.
🔸 How To Find Your Winning Dropshipping Products?
When starting a dropshipping business, finding winning products is crucial for success. So, what I personally do is start by identifying my niche and conducting market research.
Hence, I use tools like Google Trends to identify popular trends within your chosen niche. This gives me insights into what types of products are in demand and have the potential to sell well.
Let’s say I want to sell stickers online. So, I open Google Trends, and I type in the product keyword – in my case, that is “stickers”. And, ta-daa I get my results. 👇
Thus, I can see the interest in stickers over a certain period of time, and even by region.
Moreover, it’s essential to ensure that the products you choose to sell are of high quality. So, what I do is check customer reviews and ratings to get an idea of the product’s quality and reliability.
💡 Tip: Learn about Testimonial Advertising: 11 Proven Examples To Sell More.
Next, I evaluate the profitability of the products I choose. Hence, I try to calculate the potential profit margin and determine if the product is worth investing in.
For example, if I want to sell stickers, the cost for suppliers typically falls within the range of $1 to $30, while market prices generally range from $2 to $76. As a result, the profit margins for dropshipping stickers are approximately 50 to 60%.
Also, consider factors like product costs, shipping costs, and marketing costs.
By following these steps and conducting thorough research, you can find winning dropshipping products that have high demand, low competition, and offer good profit margins.
🔸 How To Find Trustworthy Dropshipping Suppliers?
When I describe whether is dropshipping worth it, there’s no way to escape this one.
When choosing dropshipping suppliers, product quality control is of utmost importance. Make sure to thoroughly research the supplier’s track record, read reviews and ratings from other companies, and even request product samples if possible. This will allow you to assess the supplier’s product quality and determine if it meets your standards.
Another crucial aspect is shipping fees and practices. Check if the supplier offers competitive shipping rates and if they have a variety of shipping options available. This is important for both your profitability and your customers’ satisfaction.
In addition, customer support is vital. A trustworthy dropshipping supplier should have a responsive and reliable customer support team.
How do I search for trustworthy dropshipping suppliers? Well, I don’t hesitate to ask for help. There are various supplier directories like Dropshipping.com. In fact, they have 2000+ reliable suppliers to choose from.
So, I can search the directory based on filters like dropshipping niche, shipping times, location, etc. Also, if you are not confident to contact the supplier, Dropshipping.com can help you do that.
🔸 The Importance of Delivering Great Customer Support
In a dropshipping business, delivering great customer support is essential for success. This aspect holds significant importance because it directly impacts the overall customer experience. In today’s competitive market, a positive customer experience can make or break a business. Plus, you must be aware that you don’t have a lot of control over overall customer support. So, this is when people question whether dropshipping is worth it.
And, to minimize negative experiences, proactive communication is key. So, providing clear and accurate information about shipping times, potential delays, and product availability is crucial.
Therefore, offering multiple options such as email, live chat, and phone support can cater to different customer preferences.
For instance, I use Tidio which helps me deliver great customer support.
Hence, it helps me add custom fields and tags, apply conditions in your chatbot flows, integrated live chat, AI & NLP, and all of this for a fair price.
👉 Check out the 39 Must-have Shopify Tools for Your Dropshipping Store In 2024.
🔸 How To Protect Your Dropshipping Business Legally?
Protecting your dropshipping business legally is essential to ensure its long-term success and minimize the risk of legal issues. Here are the steps you need to take:
➡ Establish a Proper Business Structure. Choose a suitable legal structure for your dropshipping business, such as a sole proprietorship, LLC (Limited Liability Company), or C corporation. This step will separate your personal and business liabilities.
💡 Tip: Learn about LLC vs LLP: What’s The Big Difference?
➡ Pay Taxes. Understand and fulfill your tax obligations. This includes paying sales tax on orders depending on your location and the location of your customers, as well as reporting and paying income taxes on your business profits.
➡ Draft Agreements. Work with a lawyer to draft a dropshipping partner agreement that outlines the terms and conditions of your partnership with suppliers. This agreement should cover important aspects such as product quality, fulfillment process, and dispute resolution.
➡ Have Clear Policies. Create and prominently display policies on your dropshipping store regarding returns, refunds, shipping delays, and customer service. Provide clear guidelines to mitigate any potential disagreements with customers and manage their expectations.
🔸 How Long Does It Take To Succeed?
I’ve heard dozens of scammers talking about dropshipping as a get-rich-quick scheme. And, they do increase the need to question whether dropshipping is worth it. Well, this is what I want to point out from all the dropshipping scams!
Do you want success? Work hard fella! When it comes to dropshipping, achieving success takes time and effort.
Before making the first sale, there are several tasks that need to be completed.
- Firstly, you need to start a dropshipping store and choose a suitable platform.
- Then, you’ll need to source products and evaluate suppliers to ensure quality and reliability.
- Once you have your products, marketing is essential to attract potential customers and drive traffic to your store.
To achieve success in dropshipping, it is recommended to dedicate at least 10 to 15 hours per week to your business. This level of commitment can generate up to $2,000 in monthly revenue.
However, it’s important to note that replacing a $50,000 income may take at least 12 months of full-time work.
While dropshipping provides a low-risk business model, it still requires time and effort to see notable results.
4 Actionable Tips On How To Succeed In The Dropshipping Industry
As I have already said, many other dropshippers are likely to sell products that are similar to yours. So, this is one of the biggest factors that determine whether is dropshipping worth it.
However, you should make your online store stand out without only competing on price. You should give your customers a reason to choose you over your competitors.
But how can you accomplish that? Well, you need to establish a unique brand, focus on marketing, offer superior customer service, and more.
Never lose sight of the fact that branding, marketing, and customer service are absolutely critical to the success of your dropshipping business.
Sure, there is a lot more that you can do to succeed in the dropshipping industry. Just read on.
1. Take your business seriously
As I previously mentioned, many dropshipping store owners see this business model as easy money. Some even try to set up their online stores as soon as possible, running five-dollar ads in hopes of making millions of dollars.
But if you want to succeed in the dropshipping industry, you must take your business seriously. After all, it is a business, not a hobby.
So, you must approach it exactly like it is – a business. Here are a few simple tips on how to do so:
- Create a dropshipping business plan. I know that it sounds cliché. But it can help you get in the right mindset and create a clear guide for what you are going to do.
- Choose the best dropshipping niche for your business in 2024 and do product research effectively. What you sell online is very important. Why? Because every product category might be exploding in competition. So, you must make a smart choice. You want to find profitable products that will “fly off the shelves”. Just kidding, you will not keep any inventory. But you will have to find products that sell like crazy.
- Find a reputable dropshipping supplier. Selecting the right supplier for your online business involves much more than comparing a few price lists. You must make a choice, depending on a few key factors, including reliability, quality, value for money, customer service, etc.
- Work hard. No business will succeed without effort. And you will not succeed if you do not work hard! Just because you are going to run a digital storefront doesn’t mean that you should think of it as something less important. So, make sure you put as much time and effort as you would into a physical store.
2. Build a strong, recognizable brand
You need to build a strong, recognizable brand to allow your potential customers to recognize and remember your business. Here is what you need to do:
- Get a memorable name and logo. Do not stress over your business name. Just ensure it is unique & memorable and makes it fairly obvious what you are selling. When it comes to your logo, it is what represents the mission and vision of your dropshipping business. Luckily, you can use a free logo maker to create a stunning logo in no time. Some free options you may want to take into account include Hatchful, Zyro, and Canva.
- Build a user-friendly, professional website. The power of a well-designed, user-friendly website is immense. You can create such a website by using clear and engaging design; incorporating storytelling (to tell your target audience who you are); writing informative product descriptions; including customer testimonials to build trust; creating an easy, secure, and convenient checkout process; etc.
- Showcase your brand identity and product quality through your packaging. Sure, this is great. But how to do it when dropshipping? When choosing a dropshipping supplier, contact them to see what is possible with custom packaging.
Hence, working with them you collaborate closely so they can produce a customized product that incorporates specific characteristics such as materials, ingredients, packaging, and other unique features.
Hence, this collaboration ensures that the manufacturer produces a distinctive product exclusively for your resale, preventing any other party from selling the same product.
3. Focus on marketing
Focusing on your dropshipping marketing strategy is one of the keys to success. Although you can promote your dropshipping store for free, it is best to use a combination of paid and organic (free) dropshipping marketing tactics to reach more customers. Here is the best combination of paid and organic tactics to use:
- Improve your site’s ranking (SEO). Search Engine Optimization (SEO) for dropshipping is all about doing keyword research; publishing relevant content that includes specific keyword phrases and relevant internal and external links; describing your image and video media using alt tags; writing unique, informative, and keyword-rich product descriptions that highlight the key features and benefits of your products, etc.
- Create and publish informative, relevant, & consistent content. Content marketing is a strategic marketing technique to engage with a clearly-defined audience – and, eventually, to motivate that audience to make a purchase. For example, add a blog to your website.
- Invest in Google Ads. Google Ads is a paid online advertising platform. Depending on your goals and budget, you can display PPC ads at the top of Google search results to reach a wider audience.
- Use e-mail marketing within your marketing efforts. E-mails are an old form of digital marketing. Still, they are not outdated. Therefore, do not forget to educate your audience on what you are offering via e-mail.
- Use e-commerce marketing tools for dropshipping. There are many fantastic marketing automation tools available online that can help you add traffic to your dropshipping store.
Plus, it helps my dropshipping business by optimizing my photos, generating SEO tags, fixing broken links, etc.
4. Adopt a customer-centered approach
Unsurprisingly, one of the biggest shortcomings of online shopping is that a customer cannot see a product before making a buying decision.
Sure, with the help of good product images and descriptions, your customer can learn as much as possible about your product before buying it.
But you may want to repay for this flaw in other areas of your business. Long story short, you can do so if you focus on your customers.
This means making decisions based on how those decisions affect your customers instead of simply trying to earn as much money as possible.
Though you might find this a bit confusing, there is no need to be worried. We will make it clear.
- Analyze & assess your content. The content you publish on your site needs to focus on and speak to your customers. Although it needs to describe your business, products, and offerings, it must do so from a customer perspective. Just try to replace any “we” or “our” statements with “you” statements.
- Focus more on product benefits when writing your product descriptions. Make sure your customers know more than just what you offer. Include product benefits in your product descriptions so that your customers are familiar with how your product is going to satisfy their needs and desires.
- Ask your customers to provide you with feedback. If you do so, you will get a clearer image of how your customers behave on your site and what they think of your business in general. Also, you will make them feel important and valued. Gather that valuable information (no matter if it is positive or negative) and work on turning it into a better experience for your customers.
The Harsh Truth: Is Dropshipping Worth It?
Feeling as though you have missed the boat? Perhaps the main reason for this is that you believe that the market is saturated to the point where there is no more money to be made with any product.
Yes, the dropshipping market is saturated. The above-mentioned low barrier to entry makes this business model attractive, thus creating heavy competition.
Many online stores are selling similar products or even the same products sourced from the same dropshipping suppliers. And this is one of the risks of dropshipping.
However, new markets continue to appear. Check our previous article that includes the top 10 places to find products for dropshipping in 2024.
The reality is, dropshipping is open to more competition. And you cannot change that. What you can change is your approach to it.
We will talk about this later in this article. Now, let’s give an example. You can develop an effective marketing campaign because it can help you indicate yourself as a good market player.
So, the answer to your questions, “Is dropshipping worth it?” or “Can I make money as a dropshipper?” is YES. Dropshipping business is worth it, and you can definitely make profits from it!
But it depends on you and the way you approach your business.
Is dropshipping worth it? FAQs
Now that you have seen all the essential tips & tricks and best practices, read the answers to some of the most FAQs so that you can decide for yourself whether you should start dropshipping.
In brief, keep reading so that you can have an answer to the question “Is dropshipping worth it?”
1. Is dropshipping worth it in 2024?
Yes, dropshipping can still be worth it in 2024. Based on the latest data on dropshipping, it is projected that the worldwide dropshipping sector will achieve a value of $301.11 billion by 2024.
By selecting the right products and implementing effective marketing strategies, dropshipping can still be a profitable business model in 2024.
2. How profitable is dropshipping?
Dropshipping can be a profitable business model if done right. With low start-up costs and no inventory, it allows you to focus on marketing and customer service. However, success depends on several factors.
Finding reliable suppliers and high-quality products is crucial to building trust with customers. Ensuring competitive shipping costs and reasonable delivery times is also important.
Additionally, optimizing your online store for search engines and using effective marketing campaigns can improve your conversion rate and attract potential customers.
3. Is dropshipping good for beginners?
Yes, dropshipping can be a good option for beginners in the ecommerce industry. It is a business model that allows you to sell products without having to invest in inventory upfront.
Can I dropship with $0?
Yes, you can start dropshipping with a $0 budget. Hence, there are various dropshipping platforms, website builders, and suppliers that offer free plans. Also, you can use marketing strategies that do not require payment.
👉 Check out the Free Dropship Websites: Start Dropshipping With $0.
4. Is it hard to be successful in dropshipping?
No, it is not necessarily hard to be successful in dropshipping. However, like any business, it does require effort, dedication, and strategic planning. To increase your chances of success, it is crucial to choose the right niche and products, find reliable suppliers, and optimize your website for search engines.
5. How does dropshipping work?
Dropshipping is an order fulfillment method. Unlike a physical store, a dropshipping store does not keep the products it sells in stock.
When a customer places an order, the dropshipping store owner orders the product from their dropshipping supplier. Then, the dropshipping supplier sends that product directly to the customer.
The dropshipping store owner does not deal with stocking or shipping. They focus on finding and listing the products they want to sell on their online store, promoting the business, and attracting new customers.
Of course, this does not tell the entire story. We just wanted you to see the bigger picture. To gain a deeper understating of how this business model works, you should consider many other factors.
So, do not hesitate to check out our previous article to learn more about how dropshipping works.
6. Is dropshipping legal?
Yes, it is. It is a legitimate order fulfillment method used by thousands of online sellers across the globe. There are no laws against opening and running a dropshipping store.
Still, there are a few legal elements that you must consider when setting up and operating your dropshipping business. For more information on the topic “Is dropshipping legal?”, check out our previous article.
7. What is the minimum budget you need to start dropshipping?
You can set up a dropshipping store with little to no money. This is possible with the right combination of free trials and starter plans.
On average, the minimum budget to start dropshipping varies from as little as $50 to $100.
8. How much can you make dropshipping?
Well, you want to know the answer to this question so badly. We know that.
But how much you can make dropshipping depends on several factors. It largely depends on your dropshipping niche, products, suppliers, profit margin, and marketing strategy, to name a few.
Thus, it is not easy for us to talk about the average income of newly established dropshipping stores.
What we can tell you is that it does take time to reach a significant amount of revenue.
That’s why it would be wise to set reasonable expectations, be consistent, and adapt to business challenges. And do not give up.
Final thoughts – Is Dropshipping Worth It?
If your answer to the question “Is dropshipping worth it?” is yes, then using the above-mentioned five tips can send you on your way to a successful online business venture.
Success is not given – it is a goal you need to achieve. So, stay committed to your goal!
It is in your hands to build a successful dropshipping business. And we wish nothing but the best for you. We hope that things go well for you and that you achieve business success.