Is Dropshipping Dead?
2018 already holds the promise of being a great year, full of success in business! Of course, if you want to talk business you can’t forget about how important Dropshipping using Shopify and Shopify Plus can be. It’s helped make millions in profit for businesses all across the globe.
Unfortunately, with how great the Dropshipping business has been, there are a few questions that companies are beginning to ask themselves.
A major one is whether or not dropshipping is dead?
Secondly, presuming dropshipping is still a worthwhile service can it be a profitable one?
Many are of the opinion that the market is completely saturated at this point. With so many different businesses like Shopify, Oberlo, Viddyoze etc offering the service, how can anyone make a profit? In order to deal with these questions, let’s dig into the subtext of those questions.
It’s More Competitive, Not Dead
Dropshipping platforms like Shopify and tools like Oberlo have become prevalent over the past few years, that much is true. Thanks to the internet and advances in transportation technology, it’s easier than ever to connect with others all over the world.
If you have an interest in a business, chances are you can start one of your own without much trouble. Since dropshipping has been on the rise for several years and different tools like Viddyoze and Oberlo were developed, a huge number of people have jumped into the fray. This does have the downside of making small-scale dropshipping far too competitive to sustain.
This fact causes people to claim dropshipping, as a business model, is dead. If small-scale dropshipping is unsustainable, that means it’s an unsustainable business model. Fairly straightforward, at least according to the critics.
The simple fact is that dropshipping is still alive and well, you just have a smaller margin of error.
If you’re going to try dealing with the drop shipping market, here’s something you should remember:
- No one orders from companies that have long delivery times (like AliExpress) because they need something. They order because they want something.
- If people are buying what they want, then it’s an immediate validation of the business model. The trick is to help them realize they need the things they want and carry what they want so they buy it when they need it!
As an example, consider “consumer electronics” – a common category for dropshipping orders. Someone ordering a smartwatch likely doesn’t need it as soon as they can get it. They want the smartwatch, and they want it in a reasonable time frame, but do they need it? No. Will they be more likely to buy it if you can convince them they need it and it’s easy to get? Yes.
Work Hard, Make Money, Follow The Business Model Dream
It would be a lie to claim dropshipping hasn’t gotten more difficult. Of course it has, because it’s become more competitive.
So how can it be profitable if it’s so competitive?
If you do it right, it can be a low-cost high-return business. Setting up a dropshipping shop takes very little start-up investment. It doesn’t require keeping an inventory, nor does it require actual delivery on your part, nor does it even require much or any staff. That said, you will need to pick a niche. Without a niche, your store looks the same as all the other stores. Generic dropshipping stores don’t tend to draw in customers.
Don’t forget that picking a niche is a marketing strategy. That means you’ll need to figure out your market, and more importantly, you’ll need to figure out how to get your message across to that market. If you can properly set up your marketing strategy, you’ll find yourself selling far, far more than another store that tries to sell a little of everything.
It may also help to keep a small amount of inventory on-hand. That will allow you to offer a premium “immediate shipping” service that can cut the time down significantly. If you have a way to get people what they want, and you offer them a way to get it more quickly, many people will jump at the chance.
What Tools and Platforms Are Recomendable To Use for Dropshipping in 2018?
Shopify is the market leader and probably the most advanced platform when it comes to eCommerce and drop shipping. There are several different options offered by the inventors – from your own website creation to advertising, email lits building, shipping etc. Shopify has recently updated their basic options to Shopify Plus which is the so called big business extensions. You can find more information and the pricing for the plus version here: https://ecomsuccessacademy.net/shopify-plus-pricing
Oberlo in the next tool to use when talking about drop shipping and especialy about product research. Oberlo is a tool which was created to make the process of finding and sourcing the desired product faster and easier. Oberlo comes in many different options and extensions. You can find a detailed review about oberlo and personal thoughts here: https://ecomsuccessacademy.net/oberlo-review