Are you wondering if dropshipping is worth it in 2024? Or what’s the success rate, and how profitable is dropshipping nowadays? If you only want a short answer, well, yes, dropshipping is worth it in 2024, as it was for at least the last 10 years.
And no, dropshipping is not dead, to answer another question. Looking at the last couple of years, we can almost guarantee that dropshipping will be worth it in 2024 and many years from now on.
But this only applies to dropshipping done in the right way. What’s that exactly? We’re talking about selling high-quality products that come only from reliable domestic suppliers and can also ship fast to your customers.
Now, if you’re thinking of starting a dropshipping store with products from China that have three weeks shipping times and don’t have any customer support, then yes, this type of dropshipping is dead and has been for a long time!
Watch the video above or read on to know why dropshipping is such a strong and profitable business model.
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The dropshipping market in 2024
What better way to prove that dropshipping is still a successful business model in 2024 and beyond than by providing facts from credible sources that can back this up? You don’t need to take our word for it; here are some hard facts for you.
According to a report by Grand View Research, the global dropshipping market reached $225.99 billion in 2022 and is expected to grow at 23.4% from 2023 to 2030. Here’s the report if you want to know more – How amazing is that?!?
What’s the size of the global dropshipping industry?
Another market study done by Research and Markets states that the global dropshipping market will reach $591.77 billion by 2027. Here’s the report
Did you know that 22-33% of online retailers have adopted the dropshipping model as their primary order fulfilment method? Read here more
Here are also some important statistics, such as the fact that 56 percent of online sales on Amazon were sold by third-party sellers through dropshipping.
Last but not least, Shopify’s revenue (one of the most popular dropshipping platforms used by online retailers) for the twelve months ending September 30, 2023, was $6.651B, a 26.8% increase year over year. This is impressive and clearly shows the force of dropshipping. If you want to dive more into this kind of numbers check out these 30 dropshipping and e-commerce key statistics.
What is the trend of dropshipping on Google and social media?
Now, let’s go through some other tools, like Google Trends, to show you how successful and profitable dropshipping can be.
As most of you probably know, Google Trends is a highly valuable tool that is mainly used to identify “trendy” (aka profitable) niches, products, or brands. So, let’s see how dropshipping is trending.
Google sets the search interest on a scale between 0 and 100. So, the numbers on the right represent the relative number of searches for a given term in a given period. As you can see, we have 25 in 2019 and 100 in 2022, which means that this word was searched many more times in 2022.
Google Trends data about dropshipping for the past 5 years.
Now, this graph shows that the search interest for “dropshipping” has grown since 2019. And, even though there have been some ups and downs, as it always happens, the conclusion is obvious, dropshipping search interest is now 4 times greater than 5 years ago.
Just for the fun of it, here is another graph.
Google Trends data for Amazon dropshipping versus Shopify dropshipping in the last 5 years.
Now, we searched for “Amazon dropshipping” versus “Shopify dropshipping”, and both of these terms have shown steady and strong growth in the last 5 years. What’s even more interesting is that “Shopify dropshipping” is consistently gaining more interest and searches than “Amazon dropshipping”.
But is dropshipping worth it in 2024? What conclusion should we draw now? If interest in dropshipping is that high, doesn’t that mean competition is also high?
Well, yes, it can, but it also depends on what products you are planning to sell. Later in this article, we will discuss more about niche selection and what products to sell, so keep reading.
Now, let’s go through the advantages and disadvantages of dropshipping.
Advantages of the dropshipping business model
Low startup costs
One of the biggest advantages of dropshipping is that it requires minimal investment to get started. Since you don’t have to buy inventory upfront, you can save on storage costs and other overhead expenses.
Flexible location
Dropshipping allows you to run your business from anywhere in the world as long as you have an internet connection. This flexibility makes it a popular choice for digital nomads and those looking to work remotely.
No inventory management
With dropshipping, you don’t have to worry about storing, packaging, or shipping products. This frees up your time to focus on other aspects of your business, such as marketing and customer service.
Wide product selection
Since you don’t have to pre-purchase inventory, you can easily offer a wide variety of products to your customers without the risk of getting stuck with unsold stock. This can help you cater to a larger audience and increase your sales potential.
Potential disadvantages of dropshipping
Lack of product quality control
Cons of dropshipping include potential issues with quality control. Since the products are not directly handled by the seller, there can be discrepancies in the quality of the items received by customers. This can lead to negative reviews and a damaged reputation for the online store.
Lack of control over inventory management
Another downside of dropshipping is the lack of control over inventory management. With dropshipping, the seller relies on the supplier to update stock levels, which can result in orders being placed for products that are out of stock.
Slow shipping times
Additionally, shipping times can be longer with dropshipping compared to traditional logistics methods, which can lead to customer dissatisfaction and increased return rates.
High return rate for your dropship orders
Having a high return rate for your dropship orders can be a major headache for e-commerce businesses. When customers frequently return items, it can lead to increased operational costs, potential damage to your reputation, and lost sales. It is important to address the root causes of high return rates, whether it be due to inaccurate product descriptions, poor quality control, or slow shipping times.
Lower profit margins
Lastly, profit margins may be lower with dropshipping due to the added costs of third-party suppliers and shipping fees.
Now, let’s move on to how profitable it can be.
Is dropshipping still profitable in 2024?
You probably know the answer if you got here, but here it is nevertheless: Yes! It can be quite profitable to dropship products. Of course, as for how profitable it can be, that depends on many factors and we will discuss the most important ones below.
What makes a dropship business profitable?
The type of products you decide to dropship, if it’s the right niche, what’s the competition, how much you spend researching and analyzing your target audience, etc. Only sell products that you know people are already looking to buy, and there are various ways to analyze that. As a beginner, when you start dropshipping, you don’t have time, money or resources to waste on months of testing and guessing which products will sell or not.
How much effort you can put into marketing can lead to an increase in your sales and therefore your profits. As a valuable dropshipping tip, the marketing channel where you will promote your products is very important. Keep in mind that some items work great only with specific advertising platforms. For example, while a product might perform amazingly on Google Ads, it doesn’t mean it will do the same on Facebook or TikTok ads. As a beginner, if you spread your limited budget on all kinds of advertising channels, it’s only going to waste your resources faster, and you won’t have enough time and budget left to optimize your campaigns properly.
The right ecommerce website and platform are also very important for having a successful dropshipping business; a user-friendly website should also be easy to navigate as this is the main channel that can convert users into customers.
The dropshipping supplier you use is more important than you think. Try using a dropshipping platform like AppScenic, which gives you access to the top, fast suppliers and a catalogue of unique, premium products. This way, you won’t have to rely on only one dropship supplier and their range of products. You can add new products monthly and test new niches until you find the right one. Trust us, working with a reliable supplier, that has great customer support and a low return rate is going to improve your business trajectory forever.
Treat your customers with respect and have great customer service that always is there for them.
How much can you make dropshipping as a beginner?
Now, let’s talk numbers. While we can’t tell you how much money you will make, we can share some inspiring stories and give you some numbers. As a newbie, you can make an average of $500 to $5000 per month (as a profit) in the first year of business.
But what is the range so large? From $500 to $5000 per month is basically a 10X different. That’s correct, but remember that these numbers depend a lot on the niche, the price range, and the profit margin of your products.
Let’s consider a practical example: If you dropship outdoor saunas priced at $5000 each, even with a modest 10% profit margin, selling just 10 units a month would net you a $5000 profit. On the other hand, if you opt to sell lower-priced items at $30 each with a profit of $10 per item, you’d need to sell 500 items to make the same amount of profit. In our experience, it’s challenging for a beginner to achieve over 500 sales in a month, which is why there’s such a significant difference in the average monthly profit range ($500 to $5000). Profitability depends heavily on the type of products you choose and your target niche.
So, is dropshipping still worth it in 2024? Many dropshipping beginners have achieved five, six, and even seven-figure incomes. But remember, these results are not typical and require hard work, continuous learning, and adaptability. And we cannot stress this enough, all of this depends on many factors, such as your unique products.
Read more: How Long Does It Take to Make Money Dropshipping
To make things even clearer, below, we’ll provide a simple example of the profit a dropshipping beginner can achieve with a specific product.
Is dropshipping worth it for beginners? And how profitable is it?
Dropshipping can be a profitable business model for beginners. Still, success can vary based on factors such as the niche you choose, the quality of your products, your marketing efforts, and your ability to provide good customer service. To increase your chances of success, it is important to do thorough research and planning before starting a dropshipping business. With dedication and hard work, many beginners have found success in the dropshipping industry.
A high-profit example for dropshipping beginners
When starting your dropshipping journey, we always recommend beginners consider high-ticket niches or items. Let’s take a practical example to illustrate the potential. Imagine you decide to sell electric fireplaces in your online store. A quick search on Google Shopping reveals that the average price range for a decent electric fireplace is between $500 and $1000.
Let’s assume you set a price of $700 for your electric fireplace and source it from a supplier for $400. This means you would make around $300 in profit per sale. However, it’s important to consider your marketing expenses as well.
So, let’s say you decide to promote your electric fireplaces on Google Shopping, and you have a cost per click of $1. Assuming a 1% conversion rate, which is relatively low for Google Ads, you would need 100 clicks to generate one order. With 100 clicks at $1 per click, you would spend $100 on Google Ads to generate a $700 order.
Let’s do the final math: $700 (order value) – $400 (cost of goods) – $100 (ad spend) = $200 (net profit).
To generate a monthly profit of $3000, you would only need 15 orders, which translates to an order every two days. This is something even a beginner can achieve with the right niche, the right product, the right price range, and effective advertising.
Now, imagine selling outdoor saunas with an average price of $5000 on Google Shopping or jacuzzi hot tubs ranging from $3000 to $5000. The possibilities for profit grow exponentially. By adjusting your profit margin and exploring high-ticket items, you can generate significant profits at the end of the month even with a 10% profit margin.
So, can a dropshipping beginner like you be successful and profitable by selling high-ticket items? Absolutely! The key lies in putting all the pieces together – finding the right supplier, selecting the right product, running effective ads, and so on.
Is dropshipping oversaturated?
Dropshipping has become increasingly popular in recent years, leading to a lot of new businesses entering the market. As a result, some niches within dropshipping may be considered oversaturated, with many competitors offering similar products.
However, there are still opportunities for success in dropshipping for those willing to differentiate their store, offer unique products or services, and provide exceptional customer service. To stay competitive, it is important to carefully research and select a niche with a demand and target audience and constantly adapt to changes in the market.
Overall, while some areas of dropshipping may be oversaturated, there are still opportunities for those who are willing to work hard and stand out from the competition.
Have all the good niches been snagged already?
This question looms over many aspiring entrepreneurs and content creators as they try to carve out their own space in the crowded online world.
With the rise of social media influencers and e-commerce giants, it can feel like every possible niche has already been claimed. However, the truth is that there are still plenty of untapped opportunities waiting to be discovered.
The key is to think outside the box and find a unique angle or perspective that sets you apart from the competition. By doing thorough research and staying ahead of trends, you can unearth profitable niches that others may have overlooked. It may take some trial and error, but with perseverance and creativity, there is still room for innovative ideas to thrive in the digital landscape.
To stay updated, utilize various resources such as Trend Watching, Trend Hunter, and Google Trends. Additionally, set up Google Alerts for certain keywords related to your niche, such as brand names or product names, to remain informed about any relevant news.
What are the most profitable dropshipping products for beginners?
Dropshipping can be a lucrative business venture for beginners, but choosing the right products to sell is crucial for success. When it comes to selecting profitable dropshipping products, it’s important to consider factors such as demand, competition, and profit margins.
For a beginner, we always recommend starting selling high-ticket items with a higher search volume as we consider this to be the most efficient strategy if you have no prior experience with e-commerce.
Some of the most profitable dropshipping niches of high-ticket items
1. Home fitness equipment: With the rise of home workouts, items like dumbbells, resistance bands, and yoga mats are in high demand.
2. Smart home devices: Products like smart plugs, light bulbs, and security cameras are popular choices for dropshippers due to the increasing interest in home automation.
3. Tech gadgets: Items like wireless earbuds, portable chargers, and smartphone accessories are always in demand among tech-savvy consumers.
4. Outdoor gear: Camping and hiking gear, such as tents, sleeping bags, and backpacks, are popular choices for dropshippers targeting outdoor enthusiasts.
5. Beauty and skincare products: High-quality skincare and beauty products, such as serums, masks, and makeup tools, can be profitable options for dropshippers targeting beauty-conscious consumers.
6. Home decor: Items like wall art, candles, and decorative pillows are popular choices for dropshippers looking to target customers interested in interior design.
7. Pet supplies: Products like pet grooming tools, toys, and accessories are always in demand among pet owners, making them profitable options for dropshippers.
Read more: Top Niches to Dropship in 2024
Ultimately, the best dropshipping products for beginners will depend on factors such as market trends, competition, and profit margins. It’s essential to research your target market and competitors to find the most profitable products to sell in your niche.
What is the dropshipping success rate?
Now, to finish off this article, we wanted to talk about the dropshipping success rate a bit. Spoiler alert, the number is quite low.
Experts estimated that about 10% of dropshipping businesses have a high success rate during the first year. Of course, we can’t actually verify this data, and probably one of the reasons it is so low is that many dropshippers rush into this business without doing any research or even educating themselves on the best way to start a dropshipping business.
Yes, dropshipping may mean a low-risk business model, because you are not actually keeping a product stock or having to ship the items yourself, but that doesn’t mean you won’t need to plan and do your fair research. Every business model will fail, no matter how simple or complicated it is, if you don’t do your part.
So, for dropshipping to work and be worth it, you will have to invest time, money, and effort. As long as you’re selling unique and premium products and are always there for your customers, your online store can be successful and profitable.
Feeling lost trying to start a dropshipping business? Well, we’ve got just the right dropshipping course for you. Our course is perfect for newbies who need help setting up shop or experienced sellers who are struggling to make sales. Join now!
Frequently Asked Questions About Dropshipping
Is dropshipping a worthwhile business model?
Dropshipping can be a potential opportunity for aspiring entrepreneurs looking for a low-risk way to start an online business. However, its success depends on various factors like niches, suppliers, marketing strategies, and customer service.
What are the advantages of dropshipping?
Dropshipping offers benefits such as low initial investment, no need to manage inventory, flexibility in product selection, and the ability to run a business from anywhere.
How does dropshipping work?
Dropshipping involves a retailer partnering with suppliers to fulfill customer orders. When a customer places an order, the retailer sends the order details to the supplier, who then ships the product directly to the customer.
What are the risks associated with dropshipping?
While dropshipping has its advantages, there are also risks to consider. These include potential supplier issues, inventory problems, shipping delays, and profit margins being affected by competition.
Is dropshipping saturated?
The dropshipping market is indeed competitive, but this doesn’t necessarily mean it’s saturated. There are still opportunities to succeed in dropshipping by finding a niche market, offering unique products, or providing excellent customer service. It’s important to do thorough research and create a strategic business plan to stand out from the competition and succeed in the dropshipping industry.
Is $100 enough for dropshipping?
No, $100 is not sufficient to effectively start and sustain a dropshipping business. You should ideally have between $1000 to $3000 to cover the initial costs and sustain your business for the first 3 to 5 months.
How much money is enough for dropshipping?
It’s recommended to start with at least $1000 to $3000. This budget will help you cover marketing costs, platform fees, and other operational expenses to run your business for at least 3 to 5 months. Anything budget below that would not make any sense.
What is the average price for dropshipping?
The costs associated with dropshipping can vary widely depending on your product choices. However, focusing on high-ticket items typically requires a higher initial investment but leads to better profit margins. For a store focused on high-ticket items we recommend starting with a budget of at least $2000 and up to $5000.
Is dropshipping a good way to get rich?
Dropshipping can be profitable, but it’s not a guaranteed way to get rich quickly. Success requires strategic planning, a commitment to marketing, and choosing the right products and suppliers.
Do dropshippers actually make money?
Yes, dropshippers can make money, but profits vary widely based on factors such as product niche, marketing strategy, and operational efficiency. The dropshipping business model has been used for decades already with great success, and it will never cease to exist as even the biggest general stores and marketplaces are nowadays using dropshipping as a fulfilment method.
How much does the average dropshipper make?
Earnings can range significantly; some dropshippers might make a few hundred dollars a month, while others generate thousands. It largely depends on the scale of their business and their strategy, and very important is your niche, your product type and the price range of the products you sell.
How do I find reliable suppliers for dropshipping?
Use platforms like AppScenic, which connect you with top domestic suppliers from the USA, UK, EU, and CAN, ensuring quality products and fast 2-5 day shipping times.
How to find your winning dropshipping products?
Focus on high-ticket items with existing demand. There are plenty of tools to discover niches and product types with a high demand on Google. Also, use AI tools on platforms like AppScenic to analyze trends and optimize product listings.
How to start a dropshipping business?
Choose a niche with good demand and secure, reliable suppliers. Set up your dropshipping store on a platform like Shopify, WooCommerce, Wix, or Ecwid. Use AppScenic to find trustworthy suppliers. Invest in effective marketing strategies like Google Shopping ads. If you wish to learn how to start a dropshipping business in less than 30 days with no prior experience, feel free to check out our dropshipping academy.
How to protect your dropshipping business legally?
Ensure compliance with all local business laws, set clear terms and conditions on your website, and consider consulting with a legal expert to cover all bases. If you plan to dropship in the USA, it’s mandatory nowadays to incorporate an LLC to run your business. If you are a non-US citizen, we recommend to incorporate your LLC in Wyoming or Delaware. Learn more about US LCC for dropshipping here.
Is dropshipping legal?
Yes, dropshipping is a legal business model. However, you must adhere to all applicable laws and regulations related to e-commerce and consumer rights.
Is Shopify dropshipping still profitable?
Yes, Shopify remains a popular platform for dropshipping due to its user-friendly interface and extensive integration capabilities, especially when paired with quality suppliers.
Is it hard to be successful in dropshipping?
Success in dropshipping requires dedication, market research, and strategic planning. It can be challenging, especially in competitive niches.
What is the best dropshipping platform?
Platforms like Shopify are great for their ease of use and integration options. For sourcing products, AppScenic is recommended due to its extensive catalog of quality products and fast shipping.
Why is dropshipping so popular?
Dropshipping is popular because it offers a low barrier to entry, flexibility, and the ability to start a business with minimal upfront investment.
What are the best advertising strategies for dropshipping?
Focus on Google Search and Google Shopping ads for high-ticket items to target consumers actively searching for your products, avoiding platforms like TikTok and Facebook where the intent to purchase may be lower.
Is dropshipping haram?
Dropshipping is not inherently haram. Its permissibility largely depends on how the business is conducted, particularly in terms of transparency, honesty, and fairness in transactions.
Is dropshipping halal?
Yes, dropshipping can be halal if it adheres to Islamic ethical principles, such as transparency with customers about sourcing, fair pricing, and ensuring product quality.
