Dropshipping Review: Best Platforms PLUS Major Business Model Challenges

My review of dropshipping is that it’s a retail business model with mixed success rates. It mostly attracts new entrepreneurs due to its low initial investment and location-independent nature. It can be done using platforms like TikTok, Facebook Marketplace, Instagram, and Amazon.

While dropshipping offers potential for high returns, the model faces significant challenges. Intense competition, supplier dependency, quality control issues, and shipping delays are some common issues. More importantly, AppScenic reports up to 90% failure rate within the first few months of most dropshippers. Successful operators who overcome these obstacles eventually build profitable businesses.

For example, Jordan Welch discovered dropshipping after failing at five businesses. He found an inspiring video on YouTube and decided to jump in and invest $2,000 from his student loan. Through hard work and persistence, he made $700,000 in his first year. He eventually founded Viral Vault to help other dropshippers succeed in the industry.

On Reddit, Civil-Purpose-2364 shares about his unexpected dropshipping success. After launching a dropshipping business in January, their store “did around $11k in November and is projected at around $13k in December.” “Net profit margins are 55% and I spend 0 on advertising,” the post also reads. “Everything is SEO and organic.”

Meanwhile, Redditor ebam123 wrote about losing their shop despite having “loads of sales.” According to the post, they had over 18,000 listed dropshipping products. They sold “via eBay with “£700,000 selling limit and anchor store.” “This is a bit of a blow for one of my dropshipping accounts,” says the dropshipper. “But it stresses the need to be diversified across income sources for dropshipping.”

As a former dropshipper myself, I understand the ups and downs of the business. At one point, I made over $48,000 in 30 days selling shark onesies in my Shopify store.

We give you a review of top dropshipping platforms. We share insights from real dropshippers and discuss the major challenges they face. Plus we answer the big question: Is dropshipping really worth it?

TikTok Dropshipping Review

TikTok dropshipping has become one of the top platforms for dropshippers today. Creating catchy TikTok videos can help you reach more potential customers. Influencer collaborations and paid ads also brings advantages but they can get costly.

Yaron Been from Quora says TikTok dropshipping requires running a successful campaign. As a dropshipper, you need to create content “that resonates with your target audience.” You’ll also have to “monitor your campaigns and see what works and what doesn’t.” That way, you can “adjust accordingly.”

Creating videos do not have to be expensive. On Reddit, gaming brand dropshipper CoupleFull5141 says they edit their own TikTok videos. Instead of hiring a video editor, they learned to use Capcut.

Meanwhile, VSXU argues that TikTok is just a tool to advertise your dropshipping shop. “Although TikTok is profitable, you shouldn’t limit your advertising sources.” For example, you can also try Pinterest Ads, Snapchat Ads, and Facebook Ads.

5HITCOMBO suggests that TikTok has negatively affected dropshipping. It exposed consumers to cheaper options on AliExpress. According to their post, this undermines the perceived value of dropshipping products. It likewise reduces scalability and success rates for dropshipping ventures on TikTok.

Facebook Dropshipping Review

Facebook Marketplace dropshipping can be profitable in targeting local buyers. Plus the charges are affordable. Mark Mason shares about earning $382 profit from a sale of $863 in one day. In an episode of the Late Night Internet Marketing podcast, he shared their strategy was to source seasonal products from eBay. They then marked up by 30 to 40%, reusing eBay images and descriptions for their Facebook listings. According to Mark, Facebook Marketplace only takes “5% off the sale price if you sell something.”

That said, scaling a Facebook Marketplace dropshipping store can be a challenge. Conversion is not easy, plus the platform may restrict or suspend your account. You’ll need to study Facebook’s Commerce Policies and Terms of Service to avoid this risk.

Redditor Usual-Locksmith4657 complains about getting “almost 900 clicks but no sales.” This is despite using unique product images and using a US-based dropshipping supplier. “Shipping times are fast and I have provided free shipping as well,” writes the dropshipper. “I don’t understand what draws people away from buying this product.”

YouTuber tropic legacy considers Facebook Marketplace as a good alternative dropshipping platform. However, account restrictions and a high cancellation rate can be common issues. The dropshipper had to use a friend’s account after having his own suspended. They posted 35 listings and saw initial success. The experiment yielded only $12.10 in profit from 2 sales. Ultimately, low margins and platform penalties made scaling a challenge.

Instagram Dropshipping Review

Instagram dropshipping leverages visual content to attract the target audience. Redirecting your followers to external links drives more conversions. Influencer marketing on Instagram for dropshipping, however, can be tricky. It requires careful selection and verification.

Promoting your products on Instagram for a dropshipping store is straightforward. Sellers can reach their target dropshipping market using quality videos and photos.

BSM Fredo says 90% of the money he made from his entire drop shipping career is from Instagram. The YouTuber claims Instagram has the largest organic dropshipping opportunity today. Besides, IG has steady algorithm and fares better than TikTok’s frequent, view-limiting updates. He also says that dropshippers who do not leverage IG are “genuinely missing out on a lot of money,” he says.

Reddit user kthshawon emphasizes that gaining organic IG traffic “takes time.” According to the post, you will need “at least 2-3 months” to get positive results on the platform. In addition, you may likewise consider using paid ads to attract more traffic.

Meanwhile, dropshipper Jimmy Bowman has a negative experience dealing with Instagram influencers. He shares on Reddit that he spent $45 to an influencer with 100,000 followers to improve results. He did not see any sales from it. Eventually, he engaged with another influencer with 35,000 followers. He was charged $50 for three posts. Although the first post received 75 likes, the influencer later deleted their account. Bowman can no longer find the said influencer despite several efforts. “No matter how many times influencers tell you they are a honest business, do you research first,” he says. “And only spend what you are willing to lose.”

Shopify Dropshipping Review

Shopify dropshipping offers ecommerce sellers with user-friendly interface. Mario Martinez of AutoDS says it’s ideal for beginners. This is mostly because of its hosted setup and optimized features. However, users should weigh its benefits against higher costs and potential support limitations.

Tim Sharp labels Shopify as “the best platform to use for dropshipping.” He emphasizes Shopify’s edge in ecommerce, despite its higher price compared to competitors. He notes users can create appealing dropshipping stores even without advanced technical skills.

Meanwhile, experienced Shopify user GimboSli complains about the platform’s changes. Some concerns include bad customer support and expensive features. “Once you start with Shopify you go completely all in,” the Reddit user says. “And that may be a huge disadvantage… I love them, but they are not as beautiful as they were before.”

Amazon Dropshipping Review

Amazon dropshipping offers potential but demands strategy and compliance of existing rules. For example, Amazon’s Drop Shipping Policy prohibits shipping orders “with packing slips, invoices, external packaging, or other information indicating a seller name or contact information other than your own.”

Amy Hunt is a pioneer dropshipper. She initially resold products via eBay reselling and discovered Amazon years later. She scaled her business using AMZ Scout for automation and product research. According to Amy, her business provides both financial freedom and personal fulfillment. Today, she teaches students to help them create their own successful dropshipping business.

On Reddit, VisualInevitable4439 warns that dropshipping on Amazon has become “very difficult.” This is because of frequent intellectual property (IP) complaints. Any brand, supplier, or competitor can complain about unauthorized sales of their products. Without precautions, Amazon may ban you for IP violations.

Meanwhile, Redditor shad_shakib says the business model “doesn’t work anymore, especially on Amazon.” Besides, the ecommerce platform only gives dropshippers a slim ROI of 1-2% per month.

Walmart Dropshipping Review

Walmart dropshipping offers potential rewards with its vast customer base. However, it also demands significant effort and expertise to navigate current challenges. New sellers may find Walmart’s requirements and setup daunting.

Reddit user wolvesforex says Walmart can be highly profitable as a “dropshipping platform.” It doesnt’t require extensive advertising, although getting approval can be difficult. That said, the Redditor “managed to get two accounts approved” within 3 weeks. They also “made sales close to $18,000.”

Induetimeweshallgo replies that Walmart is “probably the worst place for a new seller.” The Redditor points out that the requirements and setup can make starting out hard. This means a deeper knowledge and expertise is needed to dropship on the platform.

Similarly, YouTuber Ecom Tom’s one-month Walmart dropshipping experience was riddled with significant issues. Software integration problems, item publishing inconsistencies, and a non-intuitive interface posed challenges. Overall, Tom received 89 orders and generated $226 in profits from $1,100 in sales. However, he highlighted the inconsistency in Walmart’s fee policy during the 30 days.

eBay Dropshipping Review

eBay dropshipping offers significant profit potential for beginners. Success stories demonstrate achievable high profits through strategic marketing and product selection. Profit margins are below 10%, but can be higher in areas like Australia or the UK. Targeting the right dropshipping market is a must for maximizing eBay profits.

7-figure online business expert Samuel Abiodun runs multiple eBay stores. According to him having an existing eBay account can be an advantage. “It’s going to be a lot better if you’ve already got one,” he says in a YouTube video. “eBay don’t necessarily like it when you sign up on day one and you try and start drop shipping straight away.” Furthermore, he shares about the importance of using research tools like ZIK Analytics. Additionally, AutoDS can be useful in automating order fulfillment for quicker product listings.

Sammy-Ecom says sellers shouldn’t “compete on price” when dropshipping on eBay. “It’s quicker to list 20 items with optimized titles than to wage a price war on a single item,” he writes on Reddit. “With enough unique listings, sales will come. Remember, eBay’s algorithm favors uniqueness.”

On the other hand, SufficientSir6697 says eBay dropshipping “isn’t worth it.” The Redditor warns that “margins are slim” and “the market’s oversaturated.” “You deal with customer service and returns,” they also add. “Will probably take you 1 year to start seeing $500 profit a month.”

AliExpress Dropshipping Review

AliExpress dropshipping benefits those avoiding significant investments in their online store. The site provides low prices, reliable seller ratings, detailed reviews, and worldwide shipping. Struggles for AliExpress dropshippers include refund issues, product syncing problems, and technical glitches. These issues affect inventory and order processes.

Thomas_Sleeth says “AliExpress still works.” In fact, “heaps of people still make money from it.” However, he’s quick to point out that the service is best for product validation. He also warns that when you find winning products, competitors quickly notice. They may immediately copy your model. This makes it difficult to maintain a competitive advantage. This underscores the risk of using such a public marketplace for product sourcing.

For JustRelaxingWithMe, AliExpress “can be a bit of a mixed bag.” In particular, the site’s slow shipping time is a main concern. “Be transparent with your customers about delivery times,” adds the Reddit user. “Keep exploring other suppliers as backups.”

YouTuber Amann warns that AliExpress sourcing generally takes 1 week to 2 months. As such, meeting customer satisfaction can be a problem. You will encounter many refund requests and get negative customer reviews. He also says product quality can be low. Plus communicating with the China-based supplier can be difficult. “It’s just better to have a supplier that you can actually communicate fast,” he sums up. “That way, your customers are happy.”

CJ Dropshipping Review

CJ Dropshipping offers CJpacket shipping (7-16 days) and platform integrations (Shopify, WooCommerce, eBay). While dropshippers praise their customer support and competitive pricing, they note some limitations. Products often lack reviews and search functionality needs improvement. On top of that, product photos are often limited.

In a YouTube video, the How to Digital channel shares about having a mixed experienced with CJ. For example, the seller encountered product quality, poor supplier communication, and incorrect shipments. “Always order a couple of samples for yourself before you start selling,” the video says. “That can be a better way to know whether or not your supplier is reliable enough for you.”

Redditor ilovefacebookads comments that CJ “is only good for the testing stage pre-scale.” It is recommended that you sell elsewhere once your business grows. “If you find a winner that is consistently profitable, that’s when you would switch to a private supplier to get better margins.

Former CJ user Barb3-0 shares delivery times were “so horrendous I had to shut the site down.” According to their Reddit post, it’s better to use a costlier supplier for better delivery.

Top Reviews on the Highest Performing Dropshipping Niches

• Eco-friendly niche. Eco-friendly products are an alternative to everyday objects. These items are among the best niches for dropshipping. Experts expect the global value to reach $3.03 trillion by 2025. Diane of Sellvia sees eco-friendly products as a lucrative business opportunity. She highlights the economic benefits of catering to consumer demand for sustainable products. Moreover, she emphasizes that businesses aligned with eco-friendly values can experience higher sales.

• Pet niche. Dropshipper Donjayeman warns about tough competition in the pet niche. Content curators heavily promoted it between 2014 and 2016, leading to market saturation. This makes it hard for new drop shippers with limited budgets to go against big competitors.

• **Home and garden niche.**Home and garden products can be potentially profitable for dropshippers online. Civil-Purpose-2364 recommends focusing on a small, specific niche to establish authority.

• Health niche. Dropshipping in the health niche taps the rising demand for personalized health solutions. Reddit user Gibbinthegremlin advises avoiding skin care or healthcare products from China. This is because of possible safety and legal issues. They warn against selling products with unknown ingredients. They also suggest partnering with reputable companies. Besides, these companies follow strict health codes and offer detailed ingredient information.

Top Reviews on the Best Dropshipping Suppliers

**Spocket.**On Capterra, Bimal C gives Spocket 4 stars. The dropshipper praises the platform for fast shipping, easy interface, and 14-day trial. With US and EU-based suppliers, you can offer faster shipping times to your customers. He also points out that the platform’s limited product selection can be a drawback.

Christiana H, however, labels Spocket as the worst dropshipping app. She also complains that the service is expensive and items are often out of stock. “The best part of this is that this company will continue to charge you even after you cancel,” she warns. She believes some of the positive feedback for Spocket are fake reviews.

Modalyst. A 5-star Modalyst review by The Glam Shop Online praises it for unique and high quality products. According to the post, the platform also offers swift response to vendor or order issues. “I am looking forward to working with Modalyst as I continue to expand my business,” they also write.

SwagWaggin, however, only gave Modalyst 2 stars. “Customer Service is spotty,” they point out. They’ll be “working with you and literally disappear without resolving the issue.” The frustrated customer rants that they’ve been online since 7am. “It is now 3pm, and I am still NOT logged in.”

**SaleHoo.**A SaleHoo review by Talha A on G2 praises the platform’s Research Lab. The post mentions the platform has the ability to show products with low competition. This feature marks it as an invaluable resource for business owners. Talha also suggests there is room for improvement within the supplier directory.

On the Shopify App Store, CheekSqueeze of Canada says they had a bad experience with Salehoo. Apparently, Shopify charged them for a Salehoo subscription. However, Salehoo did not see the payment. As a result, they also lost all their Salehoo product listings. Making matters worse, Rhea at Salehoo provided slow and unhelpful customer support. The review warns dropshippers to pick platforms with reliable support. CheekSqueeze left a 1-star rating for Salehoo.

Doba. A Doba review by George J says the product research and trend review tools help their business. This enables them to add popular products to their stores and keep up with current trends.

On Shopify App Store, Sweat Runny Treadmills slams Doba for not working with Google Ads. Doba doesn’t need sellers to list UPC or GTIN numbers. Doing so risks account suspension for a Misinterpretation Violation. Users may need to restart, find new suppliers, and reload all products, erasing a month’s work.

4 Major Dropshipping Challenges

• Fierce Competition and Market Saturation. Dropshipping can be hard because of fierce competition and saturated markets. The most profitable niches are filled with numerous dropshippers selling the same products.
• Supply Chain and Product Quality Issues.Dropshippers depend on external suppliers. They struggle with limited control over product quality and delivery times. This inconsistency harms customer satisfaction, resulting in lower profits and sales.
• **Customer Complaints.**Dropshipping’s detachment from fulfillment amplifies customer complaints on delays and product issues. It can hurt your store’s reputation and does not encourage customer loyalty. As a result, it can affect profits and the business’s long-term viability.
• **Low Profit Potential.**The stiff competition, supply chain issues, and customer complaints shrinks profit margins. Competition on price and shipping, plus return costs stifle earnings. These factors make it hard for dropshippers to grow and be sustainable.

Is Dropshipping Worth It?

Dropshipping is worth it if you approach it with the right strategy and mindset. It has a low-entry barrier to starting a business. You can sell products without holding inventory, which greatly minimizes required upfront costs.

Grand View Research reports that drop shipping will be growing at a rate of 23.4% through 2030. So there’s so much potential in this industry. Still, it demands dedication because it’s not a get-rich-quick scheme. It also needs a knack for digital marketing and the ability to work with reliable suppliers.

Mikey2347 shared their positive experience with dropshipping. They emphasized its value and clarified it’s not a quick path to wealth. They noted the need for startup money and dedication to tasks to succeed.

On the other hand, WillyWonker97 regrets doing dropshipping. “I watched all this YouTube Gurus who tell you that you need not much money to start,” they share. “But starting with just a few 100 bucks is nearly impossible to have success.” Overall, they consider their dropshipping experience as a waste of time.

Of course, success in dropshipping doesn’t happen overnight. It involves navigating competition, slim margins, and evolving market trends. You’ll also have to comply with changing platform policies. As shown by those who got rich doing dropshipping, the business model can be worth it for those who work hard.

Is Dropshipping Still Profitable in 2025?

Dropshipping is still profitable in 2025, with average profit margins of 15-30% and monthly revenues between $1,000-$3,000. Top performers can earn $100,000 to millions annually. A notable success story is Doggykingdom. Founded by Andreas Koenig and Alexander Pecka in Vienna, the pet accessories business generates $10 million yearly. Over the years, they have served over 500,000 customers worldwide.

However, the failure rate is also high in this business model. 80-90% of dropshipping ventures fail in their first few months. Common pitfalls include poor product research, neglecting customer experience, and insufficient market testing. Success depends heavily on niche selection, marketing strategy, and competition management.

Local Lead Generation: Why It’s More Sustainable and Profitable Than Dropshipping

Local lead generation is more sustainable and profitable than dropshipping. This business model relies on the recurring needs of businesses for quality leads. Sure, dropshipping can offer entry into e-commerce with lower upfront costs. However, it also brings intense competition. Plus, it has narrow profit margins and has complex supply management chain issues. Relying on third-party suppliers often leads to bad product quality. It also causes late deliveries and hurts customer satisfaction.

By contrast, local lead generation targets specific niche businesses in a locality. It faces less price-based competition, focusing on value and trust.

With this business model, you are not selling any physical products. Instead, you are building websites as your own digital real estate assets. You then use organic SEO techniques to boost your sites’ rankings. Once they reach top Google results, you can offer them to local entrepreneurs for rent. You send them all the leads while they pay you a fixed amount each month.

By offering lead gen services, you can look forward to earning $500 to $3,000 monthly per site. I’ve been doing this since 2014 and now that I own multiple sites, I easily make up to $52,000 each month. Owning digital assets definitely means full control over your business and revenue.

Local lead generation is a superior choice for anyone who wants to build a sustainable, profitable online business. You’re providing a high-value service by funneling relevant leads directly to local businesses. As such, you can even choose your clients and command higher fees. Best of all, it doesn’t require much work since ranked sites often retain their spots for a long time. With little or no maintenance work required, you get to generate passive income.