With new methods for making money online, many are asking, “Is dropshipping dead?” As one of the biggest e-commerce business models, dropshipping has the potential to earn millions for people worldwide, so it’s not going away anytime soon.
Dropshipping is definitely not dead. Despite what some may claim, it requires careful planning and skill. You can still make money through dropshipping in 2024. Here’s how.
Digital entrepreneurs often worry about profitability, and rightly so. The fast-changing tech industry encourages innovation but also pressures businesses to stay relevant to survive.
Technology is a double-edged sword: it offers new growth opportunities but quickly eliminates outdated methods. Companies that can’t keep up risk falling behind and may struggle to survive.
Is Dropshipping Still Alive: Google Trends For Dropshipping
Google Trends provides a clear view of how interest in the term “dropshipping” has evolved over time. As shown, searches for “dropshipping” have significantly increased over the past five years. Despite some fluctuations, the overall trend remains positive.
People often wonder if AliExpress dropshipping is dead, and the answer is no. Searches for “AliExpress dropshipping” have also grown considerably in the last five years. This is largely due to AliExpress being a popular platform for dropshippers, offering a wide range of affordable products.
In contrast, the trend for “Alibaba dropshipping” is less impressive. This can be attributed to Alibaba’s focus on B2B transactions and bulk orders, while AliExpress caters to individual consumers. Additionally, Alibaba offers fewer payment options, which may deter potential users.
Many also ask if Amazon dropshipping is profitable. While Amazon is a strong platform for dropshipping, the term “Amazon dropshipping” shows lower growth compared to AliExpress. Dropshipping on Amazon is more technical and comes with FBA fees and storage fees that increase if products remain in their warehouse for over six months.
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Is Dropshipping Worth it?
If you’re looking to earn a decent income from a side business, dropshipping can be a good option. However, if you want to make a lot of money quickly, it might not be the right choice. Success in dropshipping requires time, money, and effort.
Here are some factors slowing down the growth of dropshipping businesses:
- Long shipping times
- High product costs
- Poor customer support
- Slow refunds
- Low product quality
- Unprofessional sellers
A successful e-commerce business needs to prioritize customer satisfaction. Unfortunately, many dropshippers neglect this for profit. Many use Shopify stores to sell products through social media ads without maintaining high standards, often resulting in one-time sales and poor customer experiences. This can lead to a lack of trust in the dropshipping model.
So, what’s the solution?
The answer is simple: treat customers with respect. Many successful dropshipping stores, like Bluecrate.com and Wish.com, sell items at high margins while still thriving by focusing on customer satisfaction.
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Is Dropshipping Dead in 2024?
In one word, no. While some statistics suggest the dropshipping industry is saturated, it still holds significant potential and is far from dying. By 2025, the market valuation of dropshipping is expected to reach $557.9 billion.
Here are some key points:
- Approximately 27% of online retailers use dropshipping.
- Dropshipping can yield about 50% more profit compared to maintaining your own inventory.
Every year, there are discussions about dropshipping being dead, but that’s not true. Instead, dropshippers adapt their strategies. A few years ago, AliExpress dominated the market, but now many dropshippers are engaging directly with wholesalers.
Clearly, dropshipping is still thriving! In fact, now is a great time to start your dropshipping business because:
- The world has embraced e-commerce.
- More people are shopping online than ever before.
- Merchants understand dropshipping and are eager to collaborate.
- Sending online payments is simple.
- It can support online paid marketing campaigns.
- The upfront cost is nearly zero.
Why Are Some Dropshipping Stores Thriving?
The success of some dropshipping stores compared to others comes down to customer focus. Thriving dropshipping businesses prioritize their buyers and work to meet their needs. While they may sell products with smaller margins, they offset this by offering faster refunds and providing assistance with any questions customers have.
To remain sustainable, dropshipping businesses must prioritize their customers.
Is Dropshipping Still Profitable?
In 2024, the answer is a definite yes. As more people move away from platforms like AliExpress, dropshipping has gained popularity as an excellent entry point into the e-commerce space.
It’s not just profitable; it’s thriving! E-commerce and dropshipping profits have surpassed $301 billion. Additionally, small retailers are experiencing nearly a 30% increase in conversion rates through smartphones.
If you’re wondering how to start a dropshipping store with the goal of earning $100,000 per year, the number of products you need to sell will depend on your profit margins. For example, if you sell each product for a profit of $50, you would need to sell 2,000 products in a year to reach that goal. If your profit per product is lower, you would need to sell more items to achieve the same annual income.
AliExpress Dropshipping: Approximate Earnings
You might be wondering how much money you can make from dropshipping. Here’s an example: Let’s say you source a product for $15 from AliExpress and sell it for $30 after accounting for shipping and advertising costs, resulting in a profit of $10 per item.
To earn $100,000 per year through AliExpress dropshipping, you would need to sell 1,000 products per month. Here’s the breakdown:
- $10 profit × 1,000 orders = $10,000 per month
- $10,000 per month × 12 months = $120,000 per year
This calculation is based on estimated amounts, and your actual profits and expenses may vary depending on your investment. Overall, this shows that AliExpress dropshipping can be a highly profitable business if done correctly.
Dropshipping vs Affiliate Marketing: Which One Is More Profitable?
In this section, we’ll compare dropshipping and affiliate marketing, as both business models are profitable and effective.
With affiliate marketing, which operates on commissions, let’s assume a commission rate of 5% and a goal of making $100,000. Based on this, you would need to earn $1,000 per month or $340 per day. At a $5 commission for every $100 sale, customers would need to purchase products worth $7,000 per day for you to earn that daily amount.
These calculations indicate that dropshipping can be more profitable than affiliate marketing. However, the debate over their profitability continues. One significant difference is that dropshipping requires much more setup and preparation compared to affiliate marketing. It’s also important to note that higher earnings in dropshipping come with higher risks.
Final Words!
So, if someone asks, “Is dropshipping dead?” you can confidently say it’s definitely not. With the increasing global reliance on online shopping and the growth of the e-commerce industry, the likelihood of the dropshipping industry shutting down is extremely low.
If you’re considering starting a dropshipping business, do thorough research, choose some trending products, and start selling. Unsure about which platform to use for your dropshipping store? Check out our post on the Best E-commerce Platforms for Dropshipping and get started today!
