If you’re thinking that dropshipping is not a good business model at the moment, then you wouldn’t be alone. This search is made every day on Google across the world. However, is dropshipping dead, or has the model just moved into a new phase?

Why do People Think Dropshipping is Dead?

There are many reasons why people think dropshipping might be dead. One of those reasons is that there are lots of brands that now use dropshipping as a way to build their business. This means that there is a saturated market for some niches.

However saturated markets don’t mean that new businesses can’t make it. There are many times when new brands have come into the markets and taken over from established brands. All it takes is dedication and skill. Some of the apps that are available for Shopify can also help.

In addition, while some niches are saturated, others are not. This means that those who are careful enough can often find that they have a lot of potential revenue with no competition. It also allows brands to improve prices for their own benefit.

The Perils of Over Saturated Business Areas

The biggest problem with an over-saturated business niche is that you can be tempted to lower the prices to such a point where they are lower than your competitors. The problem with this is that this is targeting only one customer group, the bargain hunter. While some people might want to target this group, this type of customer is very fickle. Research has shown that only 8-20% will use the brand again and it is the returning customers that make the money for any brand.

In addition, with any other costs that are added to a sale, you could end up losing money on some orders.

Ideally, you want to be charging a price that provides a profit margin of between 40 to 70% of your merchant’s price. So if you’re being charged $10 for a product, you will be charging your customers between $14 and $17 for the product.

In addition, over-saturated business areas can be hard to get recognition and be seen as unique. So you have to be excellent at building a brand that can stand out from the crowd. Therefore, you should look for better options.

Dropshipping Statistics

About 23% of all global sales are done through a dropshipping website. By 2025, the value of the dropshipping marketing is expected to be $557.9 billion, this will be worth 28.8% of all online sales.

Therefore, dropshipping is certainly not dead. It might be challenging to make your millions from dropshipping, but it isn’t that challenging to make a living from the process. All you need to do is create a system that allows you to reach customers and sell to them. This needs to be easy for you to follow and one where you offer the products that customers want at a price they are willing to pay. And the more they trust you, the more likely they will convert and pay for the products.

Final Word: Is Dropshipping Dead?

Is dropshipping dead? No, it certainly is not. It was created in the 1950s and technology is making it just as relevant today as it has been. Learn how to build your website on Shopify and start your journey now.

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