Wondering if dropshipping is still a profitable business model in 2023? Don’t worry, you’re not alone. Let’s dive in and see if this business model still has legs.
Good news: dropshipping is still profitable in 2023. Every year, people question its viability, but the fact is, as long as you approach it with the right mindset (treat it like a real business, not just a quick money scheme), you’ll be ahead of the game.
Ready to find out more? Let’s go!
Is Dropshipping Still Alive: Google Trends For Dropshipping
Dropshipping is definitely on the rise, as reflected by the growing interest in the search term “dropshipping” over the last 5 years. Although there have been some ups and downs, the trend is still steadily increasing.
People often wonder if AliExpress dropshipping is still a viable option, and the answer is yes. In fact, searches for “aliexpress dropshipping” have seen a significant increase over the last 5 years. This is due to AliExpress serving as a popular platform for dropshippers, with a high availability of products and affordable prices.
On the other hand, the trend for “alibaba dropshipping” isn’t as impressive. This could be due to Alibaba being more B2B-oriented and focused on bulk orders, while AliExpress also serves direct consumers with individual product sales. Additionally, Alibaba has fewer payment options, which could also contribute to less interest in their dropshipping services.
As for Amazon dropshipping, it’s a common question of whether it’s profitable or not. Although Amazon is a great platform, the search term “amazon dropshipping” has a lower growth trend compared to AliExpress. Dropshipping on Amazon is more technical and comes with FBA fees and storage fees, which only increase if the product is in their warehouse for more than 6 months.
Is Dropshipping Worth It?
If you’re considering starting a low-cost business, dropshipping might still be a good option. The interest in dropshipping has skyrocketed in recent years. But, to be successful, you’ll need to choose the right products, keep your profit margins in check, and partner with the right suppliers.
Sure, social media influencers make it look easy to earn big bucks with just one dropshipping store, but it’s not always that straightforward. While starting a dropshipping business is simple in theory (create an eCommerce site, find a supplier, pick your products), it does require a big investment of time and attention.
If you’re not familiar with dropshipping, here’s a guide to help you learn more:
Is Dropshipping Dead in 2023?
Contrary to popular belief, dropshipping is far from dead. In fact, the industry is expected to reach a market valuation of $557.9 billion by 2025. Currently, 27% of online retailers use dropshipping and it can even earn 50% more profit compared to keeping a stock inventory.
Every year there are rumors of dropshipping dying, but in reality, dropshippers just change the way they work. Gone are the days when AliExpress ruled the dropshipping world, now dropshippers directly engage with wholesalers for their products.
If you’re thinking of starting a dropshipping business, now is the perfect time. The world has fully embraced eCommerce, with more people shopping online than ever before. Additionally, merchants understand dropshipping and are willing to work with them, making it easier to send online payments and even help with online marketing campaigns. The best part? The upfront cost is almost zero.
In conclusion, dropshipping is alive and well, with huge potential for growth in the future. Don’t let outdated rumors hold you back from starting your own dropshipping business today.
Is Dropshipping Still Profitable?
The answer is a resounding yes! Dropshipping has only gotten more popular as people move away from platforms like AliExpress. With eCommerce and dropshipping profits reaching over $196 billion, it’s safe to say the industry is thriving.
Small retailers are even seeing a boost, with almost a 30% increase in conversion rates through smartphones. The best part? Starting a dropshipping business requires $0 upfront, making it an attractive option for entrepreneurs looking to get into eCommerce.
But here’s the catch: with so many people jumping on the dropshipping bandwagon, it’s becoming increasingly competitive. Niches like clothing, home and garden, and jewelry and watches are particularly crowded, with over half a million dropshippers competing for a piece of the pie.
AliExpress Dropshipping: Estimated Earnings
So, you’re wondering how much dough you can make with AliExpress dropshipping, right? Here’s an example to give you an idea. Let’s say you grab a product for $15 on AliExpress, and after factoring in shipping and ad costs, you sell it for $30 and make a profit of $10 per product.
So, if you’re aiming for a $100,000 annual income from dropshipping, you’ll need to sell 1000 products a month. That breaks down like this:
$10 profit x 1000 orders = $10,000 per month
$10,000 per month x 12 = $120,000 per year
Keep in mind, these are just estimates and your profits will depend on your investment and other expenses. But the bottom line is, if you play your cards right, AliExpress dropshipping can be a very profitable biz.
Dropshipping vs Affiliate Marketing: Which One Is More Profitable?
Let’s talk about the profitability of dropshipping versus affiliate marketing. Both can be quite profitable but in different ways.
With affiliate marketing, you make commissions (let’s say 5%) on products sold. To make $100,000 a year (like with dropshipping), you’d need to sell products worth $340 a day, or $10,000 a month. That means your customers would have to buy products worth $7,000 a day.
Dropshipping, on the other hand, often has a 20% profit margin. So you’d only need to sell products worth $1,700 a day to make the same amount.
Now, this is just a quick look at the numbers. Dropshipping may be more profitable, but it also requires more set-up and comes with higher risks. Meanwhile, affiliate marketing is easier to get into, but doesn’t bring in as much cash. It’s up to you to weigh the pros and cons and decide what’s best for you!
Is Alibaba Dropshipping Worth It?
If you’re new to the dropshipping game, you might be wondering why some folks prefer selling through AliExpress or Amazon over Alibaba.
Well, the thing is, dropshipping works on a retail model, so selling in bulk quantities (which Alibaba specializes in) can be a bit pricier for us dropshippers. That’s why AliExpress and Amazon are easier to sell from and often result in higher profits compared to Alibaba dropshipping.
Is eBay and Amazon Dropshipping Allowed?
If you’re just starting out with dropshipping, you might have heard that it’s tough to do on eBay and Amazon. But, that’s not exactly true. While these platforms have some restrictions that make it harder, it’s still possible to dropship on both of them.
For instance, eBay doesn’t allow products from China and you need to be based in the US. Amazon, on the other hand, requires that deliveries arrive within a week. These are the main reasons why many dropshippers avoid these platforms. But, if you can find a way around these restrictions, you’re good to go with dropshipping on both eBay and Amazon.
If you’re interested in Amazon dropshipping, here’s a guide to help you get started:
What Are the Biggest Problems That Dropshippers Face in 2023?
Because dropshipping is highly intangible, dropshippers might encounter these issues:
- Shipping Delays: If your products are taking too long to arrive, customers might not be too happy and could end up shopping elsewhere.
- Quality Control: Unfortunately, some merchants don’t always follow proper protocols when it comes to the quality of their products.
- Mis-shipped Orders: It’s a bummer when customers receive products they didn’t even order.
- Refund Struggles: Handling returns and refunds can be a headache and could even harm your reputation with payment gateways.
To make drop shipping work, you have to put in the time and effort. And the biggest reason people fail? Their mentality.
Don’t worry, it’s not all doom and gloom. Instead of focusing on why you might fail, zero in on the fundamentals that will set you up for success:
- Choosing the right niche (check out our list of 130+ dropshipping products)
- Finding a winning product
- Marketing like a pro
- Giving customers an amazing experience
Find products that people want, that solve a problem, save time, or fill a gap. It’s all about testing and tweaking until you find the winning combination. So, don’t give up too soon. Invest in your education and stay persistent.
How To Be Profitable With Dropshipping?
According to experts, 10% to 20% of dropshipping businesses succeed. You can stand out from dropshipping competition by doing things like:
1. Choose a Unique Niche
Choosing the right niche is crucial to the success of your dropshipping business. Dave Hermansen, CEO of Store Coach, suggests evaluating a new niche based on the number of daily searches, level of competition, availability in local stores, and retail price. By finding a niche that is not overcrowded, you increase your chances of success.
2. Find Reliable Suppliers
Alibaba and DSers are two popular websites that have thousands of suppliers ready for dropshipping store owners. It’s important to build a relationship with suppliers and only work with those who are reliable and provide quality products. You should also prioritize customer service and be able to handle any mistakes made by your suppliers. To help you get started, we’ve compiled a list of the best dropshipping suppliers.
3. Focus on Customer Service
Many dropshippers focus only on marketing and forget about their existing customers. Existing customers are more likely to make another purchase, so don’t neglect them. Prioritize customer service to retain customers and increase the chances of repeat purchases.
4. Build a Strong Brand
Branding your dropshipping store is key to standing out from the competition. A strong brand will gain the trust of your target market and make it difficult for others to copy your online business.
5. Make your store mobile-friendly
More than 51% of online shoppers prefer mobile over other marketing channels. A mobile-friendly store will increase your profit margins and provide a better shopping experience for customers. Don’t worry if you’re not tech-savvy. You can check out our guide “13 Best Ways To Make A Website Mobile Friendly”.
If someone asks, ‘Is dropshipping dead? You can assure them that it most certainly is not. With the world now so reliant on online shopping and eCommerce, there is almost no chance that the dropshipping industry will stop.
So if you’re interested in dropshipping, do your research, choose some trending products, and start selling. We’ve put together a guide “How to Start a Dropshipping Business: 9 Proven Steps” to help you get started.