What Is Dropshipping?
Dropshipping is a retail fulfillment-style business model that doesn't require you to invest significant capital or own any inventory. Instead, you act as the middleman between the customer and supplier who handles order fulfillment. Dropshipping is a thriving industry worth an estimated $196.78 billion in 2022 and is one of the most popular online business models available. But old methods aren't good enough, and you need to be the best in every area of your business. Become an expert in areas like:
- How to choose the best dropshipping niches
- What criteria make a winning product
- How to design scroll-stopping creatives and attention-grabbing ad copy
- Where to find a reliable supplier with fast shipping times
You also need to understand customer psychology. Learn how to tap into buyers' pain points. What factors affect impulse buying behaviors? How can your product solve a problem?
Dropshipping relies heavily on paid advertising for quick wins. Especially on social media platforms like Facebook, YouTube, and TikTok. But Meta reports a 24% YoY increase in ad costs from 2020 to 2021, and YouTube paid ads rose 14% in Q1 2022.
So to get the best ROAS for minimal spend, you need to learn how to retarget and launch high-converting campaigns. But there will always be unique products to sell if you can find a winning product in an untapped market. Still not sure? Are you thinking about investing in a dropshipping course? Review my article on Shopify Dropshipping Courses for more information on our top picks in 2023.
Step 1: Learning the Basics
Dropshipping Success Rate
Is Dropshipping Still Profitable?
How Much Do Dropshippers Make On Average?
Risks & Disadvantages of Dropshipping
Dropshipping Pros & Cons
Dropshipping is thriving, and it's not too late to start dropshipping. But there's no winning formula for success. So you need to understand the pros and cons of the business model before you start. The biggest downside to dropshipping is your lack of control. But dropshipping is the best way to test multiple products for minimal costs and scale when you have a proven concept, so you mitigate a ton of risk or financial outlay. You can read our Shopify Pros & Cons article for a more comprehensive dropshipping review. It outlines everything you need to know to succeed with a dropshipping business in 2023.
Common Dropshipping Mistakes
99% of people fail with dropshipping. Either because they've chosen the wrong niche, picked a product void of that WOW factor, or one that doesn't solve a problem for people. But when you know what common dropshipping mistakes to avoid, you're better prepared to navigate the fundamentals of the business model. Learn how you can gain an edge over the competition using one of the best dropshipping product tools and why you can scale faster by outsourcing your creatives to a dropshipping video ad service.
Step 2: Choose Your Niche
Dropshipping Niches To Avoid
Best Dropshipping Niches
The best dropshipping niches have a large-scale selection of products that invoke impulse buys or solve a person's life problem. You want to choose a niche that appeals to a specific community or percentage of the population with a medium to high sales volume in an evergreen market. Pick a niche with products that have a high perceived value and aren't easily accessible. Not sure where to begin? Check out our article covering the best dropshipping niches and hottest picks for 2023.
Step 3: Choose Your Supplier
Top US Dropshipping Suppliers
Step 3: Advertise Your Dropshipping Store
11 Strategies to Advertise Your Store
Secrets To Creating A Dropshipping Video Ad
Video ads are one of the best ways to evoke an emotional response from your audience and connect with your ideal customer. When you take advantage of the secrets to create a dropshipping ad, you broaden your reach and your sales. That's how you get to the top percent of how much dropshippers make in 2023. But you need an effective advertising strategy and understand the importance of video marketing to stay one step ahead of the competition.
18 Best Dropshipping Product Research Tools
11 Best Dropshipping Video Ad Services
If you want to succeed with dropshipping in 2023, you need to be using video ads. Not only are they the most persuasive form of content marketing, but they can increase consumer purchase intent by 97%. But if you lack the skills or time, you need to outsource your creatives to the pros. Check out one of these dropshipping video ad service options, and get your dropshipping store in front of your ideal target market. Build a community around your brand and increase conversions by up to 80% with video ads.
Invest in a Dropshipping Course
One of the best benefit of investing in a course is the community. Being able to ask questions and get feedback from other students that's also doing the same business model as you is priceless. It can save you lots of time because it can prevent you from making costly mistakes. We have reviewed a lot of dropshipping courses on this site and we've come up with a strict criteria on what makes it on our top list.
- The coach is available inside the program to answer questions & provide support
- The coach has proven track record of being successful with dropshipping for at least 3+ years
- The training videos are well produced and covers every facet of the business model in-depth
- The community is active and engaging
Check out our Best Dropshipping Course page to have a look at what programs made the cut
Is It Too Late To Start Dropshipping?
Dropshipping is headed for a market valuation of $196.78 billion by 2022 and thriving, so it's not too late to start dropshipping. But if you want to succeed with the business model, you need to jump on trends fast. Be better at selling the right product with a more effective marketing strategy than the competition. And take advantage of spy software to always stay one step ahead of the curve. Want more information? We cover specific details in our article is it too late to start dropshipping.
Is Dropshipping Saturated?
Dropshipping is more saturated than five years ago. But the business model itself is far from saturated. There will always be new and exciting products to sell online. Add the massive growth of social media, and if you can find the right angle and a winning product, you can be profitable. But product saturation is real. It's so easy for other dropshippers to come in and copy what's working. They offer a lower price tag and sell you out of the market. So you need to jump on trends before they become viral. And have a better offer than the competition. But is dropshipping saturated? Not even close.