The Future Of Dropshipping: Is It Still Profitable?
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You’re not the only person who has asked about the future of dropshipping. We’ve all been worried about whether it’s worth it and whether we’ll be profitable in the long run.
But you want to know something interesting? 🧐
All of this doubt and all the questions instantly stop once you start seeing results. All it takes is one single sale, and you know – dropshipping works!
That’s how it was with me, that’s how it was with the 1% of dropshipping giants, and that’s how it can easily be with you as well.
Having said all that, let’s dive in deeper and find out what industry leaders and experts are saying about the future of dropshipping and what we can expect for our businesses in the following years.
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Is Dropshipping Worth It in 2024?
The vast majority of highly successful dropshippers (not gurus) are certain that dropshipping is undoubtedly worth it. Not just in 2024, the dropshipping business model is a very rewarding one that can easily turn into a full-time job.
For instance, the dropshipping statistics show that the dropshipping market reached around $243.42 billion in 2023. This marks the first time it has surpassed $200 billion, with a growth of 23.7% from 2022. Plus it is expected to grow up to $301.11 billion in 2024 and $372.47 billion in 2025.
Looking ahead, the dropshipping business is expected to reach $500 billion by 2027. What’s promising is that experts predict a steady increase at a rate of 27.1% from 2022 to 2031.
👉 Check out the Top 11 Richest Dropshipping Store Owners In The World.
In fact, here are more than enough reasons why getting into dropshipping is worth it:
1. The Rise of Suppliers
In the early days of dropshipping, many were using AliExpress as the go-to source for their suppliers.
Today, you have access to free dropshipping supplier directories where you can instantly find a great product with fast shipping times and affordable pricing.
2. The Growth of Dropshipping Platforms
You may have noticed for yourself that countless eCommerce platforms are quickly adapting to dropshipping and optimizing their operations for this business model.
Even though Shopify is one of the most popular dropshipping platforms, you’d be surprised by how many amazing Shopify alternatives there are that are extremely focused on serving dropshippers.
3. 3PLs Adapting to Dropshipping
The 3PL industry is a large one that has been successfully following a way of working for decades. Now, many 3PLs are adapting to help serve dropshipping sellers.
Why would they do that if they thought that dropshipping wasn’t worth it?
Even today, there are many 3PLs that handle mainly dropshipping logistics. That’s a clear sign that there’s lots of money to be made in the future of dropshipping.
4. Low Upfront Costs
Beginners can enjoy one of the most rewarding benefits of dropshipping – low-risk and low-cost investments.
At the start, all you need money for is to pay your first month of Shopify and around $15 more for your website domain. That’s it!
However, if you have something extra saved up you can use that to market with Facebook ads or TikTok ads and start earning faster.
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Get started for freeDoes Dropshipping Have a Future?
As we can see from statistics and years of research, dropshipping has a bright future ahead where there’s enormous potential for making money.
How do I know this?
You don’t have to be a guru or a psychic to tell that dropshipping has a great future.
Let’s look at some hard facts and predictions based on evidence and results from research.
- The number of online shoppers in 2024 is expected that around 2.64 billion people
- The global eCommerce market in 2024 will be around $3,548 Billion.
- The dropshipping market is expected to grow an additional 24% by 2025
Will Dropshipping Be Profitable in the Future?
Based on what we’ve seen so far, including the growth rate of dropshipping, the growth rate of online shoppers, and so on, it’s safe to say that dropshipping definitely has a profitable future.
Despite all the skeptics, we can’t deny that we are well into a digital era where we do most of everything online, including shopping. It’s also safe to assume that even more people will start shopping online.
Let’s do a brief comparison.
In 2020, the percentage of online shoppers was a little under 18%. Two years later, in 2023, this number has risen to 27%. And, what’s even more intimidating is that in 2024, the number of online shoppers is expected that around 2.64 billion people. This indicates that one out of every three people globally will be making purchases on the internet.
In 2023, the revenue in the eCommerce market is around US$3,099.00 billion. Thus, it’s anticipated that the revenue will grow each year at a rate of 10.15% from 2023 to 2028. Therefore, the projected revenue for the eCommerce market in 2024 is approximately $3,548 Billion.
If these facts aren’t enough to tell you that eCommerce and dropshipping are just getting better, more profitable, and more popular then I don’t know what is.
How Dropshipping Is Changing eCommerce for the Better
Dropshipping is currently one of the best and easiest low-risk ways of making money online. It’s a form of eCommerce that has taken away colossal upfront costs, deadly risks, and the burden of inventory.
Before dropshipping, sellers had to invest a lot of money to buy products in bulk, pay huge warehousing fees, package each order themselves, and find a service to ship those orders.
It was a lot of work, a lot of risks, and lots of uncertainties.
Today, the dropshipping business model takes all that away and leaves you only with finding your ideal product, choosing a supplier, and creating a great marketing strategy. All the rest is taken care of for you. 🥳
That’s how exciting and opportunistic the future of dropshipping actually is.
How To Dropship in 2024?
Even though dropshipping has experienced a few changes over the years, the major operations are still the same.
You still have to find a supplier, you still have to create your store, and you still have to advertise your products. Lastly, you still have to fulfill your orders and collect payments from your customers.
Although, dropshipping in 2024 is much easier than it used to be.
Why?
Because there are so many services that can help you now, many of which charge no upfront costs.
Services like HyperSKU or Sup Dropshipping can help set up your store, find a supplier, and fulfill orders for you. They don’t charge you anything until you start seeing sales. Having said that, it’s definitely much easier to dropship today than ever before.
You can also take advantage of dropship automation software. They are basically companies that have developed programs that help you with day-to-day boring and time-consuming dropshipping tasks that are still important.
How to Setup a Profitable Dropshipping Business in 2024
Now that we’ve eliminated all the doubt about the potential and the future of dropshipping, let’s explore how to effectively set up your business for success in 2024.
Step 1: Find a Product
The best way to find a winning dropshipping product is to catch trends of products that have started selling like crazy.
To do this, you can spy on winning social media ads using various tools, you can check best-sellers on Amazon, and similar.
If you want to go in-depth and learn more, you can check out our free guide on finding winning dropshipping products. We’ve explained all you need to know to increase your chances of hitting a money-making product.
💡Tip: You can browse thousands of amazing products for free using our own custom-tailored dropshipping product directory.
Step 2: Find a Good Supplier for That Product
To find a decent supplier with good prices and great shipping times, you can use the free dropshipping supplier directory at Dropshipping.com or you can do your own research on Google and contact a few suppliers that have great offers.
Step 3: Start Your Online Store
For this step, you only need Shopify, the free graphic design tool Canva, and a few hours of your time.
The best thing about using Shopify is that you don’t need to know how to code. You don’t even need to worry about custom plugins or so on.
There are tons of amazing Shopify apps for your store that help you easily set up everything from email marketing, order fulfillment, customer services, and more.
Step 4: Get Customers
The main way to get customers to your new store is with paid advertising. It’s fast, easy, and offers amazing scaling opportunities. The only downside is that it costs money.
On the other hand, you can always invest more time instead of money and advertise your dropshipping store for free. This takes more time but at least you won’t be spending any money on ads.
Step 5: Fulfill Orders and Ship the Product
The final step comes after you make a sale. Once a customer purchases from your store, you then have to go over to AliExpress, or to your supplier and buy the product from them.
However, instead of your home address, you write the address of your customer that they’ve left in your store. As a result, the product gets shipped directly to them from your supplier and you end up collecting the profits.
Which Type of Store Will Be More Popular in the Future of Dropshipping?
There are two main types of dropshipping stores, a general store, and a niche store. Both can be extremely profitable. The difference lies in the amount of work and resources it takes to start.
A niche dropshipping store requires expertise in the niche you’re in and extensive product research for winning products within that niche. You also have to learn branded dropshipping which can have incredible benefits in the long run.
A general dropshipping store lets you import any type of product in your store that you can find. It also lets you test all types of products to see if they can go viral. General stores offer more freedom and are better for beginners than anything else.
It won’t really matter which type of store you pick. Go with niched if you’re passionate about something or go with a general store if you don’t mind testing different types of products.
Check out the 23 Best Dropshipping Suppliers In The USA [General + Niche].
What Do Experts Say About Dropshipping In 2024?
Well, listening to the advice of the richest dropshippers out there is actually beneficial. So, here I will share some of the most inspiring stories.
So, here’s what Noah Wickham, the owner of IdleShopper thinks about dropshipping profitability. His dropshipping stores typically make a 40% gross profit and a 20% net profit on average.
“It really depends on the products you are selling and how heavy you are going in on marketing efforts. However, nearly any dropshipping store can be profitable given the right circumstances.”
“At the end of the day, dropshipping is a money intensive type of business. To run a successful dropshipping business, you need to be able to spend money on graphic design, advertising, and a whole slew of other variables. However, it is very lucrative to get money back out.”
Furthermore, Harry Coleman started his dropshipping journey focusing on nail products but later shifted to a more diverse general store model, expanding to two general stores. Today, he stands as one of the most successful dropshippers.
In 2018, he achieved an impressive revenue of around $5 million, gaining valuable insights along the way.
These insights include the significance of finding a profitable product niche, establishing niche stores within a general store setup, crafting compelling advertising copy, and persevering through challenges.
Before entering dropshipping, Harry had experience importing snapback hats from the U.S. to sell on eBay in the UK. Initially, he set aside a modest budget of $500-$800 for advertising.
Facebook ads proved to be a successful marketing strategy for him, and he executed smart advertising campaigns using platforms like Facebook Ads to reach a broader customer base.
Here’s another one.
For me, the story of Andreas & Alexander truly stands out. Operating within the pet niche, these two entrepreneurs achieved an impressive $10 million in sales.
Their success is a result of several smart strategies. They carefully chose a specific pet niche, enabling them to focus on a dedicated group of pet owners who are passionate about their animals.
By understanding the needs and preferences of this audience, they built a collection of high-quality products that resonated with them.
In addition, Andreas & Alexander adopted innovative marketing methods, including using social media marketing and advertising campaigns, to effectively connect with their customer base.
They also offer advice to fellow dropshippers, emphasizing the importance of investing in marketing and branding.
They specifically recommend using Facebook ads. Furthermore, they highlight that they prefer not to narrow down their target audience too much, leaving it open to about 2.5 million people.
So, in conclusion, experts emphasize the importance of strategic spending, stating that profitability depends on the products and marketing efforts.
Conclusion
By the end of reading this post, you should be well aware that the future of dropshipping offers amazing opportunities for everyone. This business isn’t going anywhere. It’s been here a long time and it’s here to stay.
Having said all that, it’s time to start learning new skills, getting some work done, and eventually enjoying the well-earned results that will come.
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