Dropshipping is a low-barrier entry business model. You don't need much capital to start and there are no inventory requirements. But the downside is that there's a ton of competition. People think dropshipping is an easy way to make money. But if the business model is such a simple concept. Then why do most people give up? What does it take to be successful with dropshipping?
The golden opportunity is to find winning products. But you also need to be a better marketer than your competition. Take your skillset and improve where someone else is lacking. Dropshipping success rate according to most polls is 10%. When asked what was the most important skill that made the difference, it was their marketing skills. Perception is reality. With great marketing, you control the perceived value of your product which is how you win with dropshipping.
Is Dropshipping Still Profitable?
Dropshipping isn't dead, and it gets more saturated each year. The dropshipping model is still profitable and headed for a global valuation of $196.78 billion in 2022. That's a 23.7% YoY from 2021. So there's an opportunity to make money with dropshipping. But if you want to be successful and land in the top 10%, you need to be prepared to do the work. Dropshipping is not a quick money business model.
It's about providing value. Focusing on the customer experience and becoming an expert marketer. Build a store that's on-point. Find products that people want to use. Invest time honing your marketing skills. That includes learning how to copyright and create video ads.
To achieve a high success rate, you need to concentrate on picking trending products and making that product look as high-end as possible with great advertisement. These are the most critical things in dropshipping. If these areas are optimized, you'll be winning more than you lose.
Is dropshipping profitable? yes but it requires more skills than it did 4 years ago.
Why Do People Fail With Dropshipping?
Most people that fail with dropshipping have unrealistic expectations. They lack the right mindset and quit before they see success. But you need to put effort into establishing a profitable dropshipping store and treat it like a proper business.
Additional Reasons People Fail With Dropshipping
Focus on finding a winning product. (Use tools like Sell The Trend and Dropship Spy). Concentrate on learning the business model and creating an effective marketing strategy. These suggestions will improve your chances and help you be successful with dropshipping.
How To Increase Your Dropshipping Success Rate:
Don't reinvent the wheel. Instead, look for products that are selling well. Then find an example of an ad or store dominating the market. (Use tools like Niche Scaper or ShopInspect to find high-performing competitor ads). Take those creatives or store templates and do your best to replicate them. Make them your own, but better than the competitions.
- Study what's working.
- Where are their ads lacking?
- How can you improve them to drive more sales to your store?
1. Become An Expert Marketer
If you want to increase your dropshipping success, you need to be the better marketer. Learn how to go into a noisy marketplace and grab the attention of your target audience. The goal is to stop people's mindless scrolling. Provide value and influence your target market.
To harness this power, you need to become an expert copywriter. From the scripts in your visuals and videos. To the written words in emails, landing pages, and sales letters. You need to understand what your market wants. Study and note things like:
- What are they doing online?
- What are they reading?
- Are there specific shows that they're watching?
"61% of consumers are influenced by custom content." Dragon360
Once you know your audience's culture and pulse. You can influence their buying decisions. Now you're armed with the knowledge you need to create ads with virality potential. The goal of your ads is to share the product's benefits right out to the gate. Use videos or images that dive deep into a person's pain point. And invoke emotion to trigger impulse buys.
Write down positive key points of the product to get your marketing angle. A drop shipper can change their verbiage by using the science behind the product. Or implementing strategic language to shift the focus of your angle. Use what you're selling as the vehicle to get your customer the life they want.
When you know how to influence people. You can move to any platform with your ads and dominate the market. Use tools like Think With Google or BuzzSumo. Conduct research and focus on the product's results. That's how you need to market your product to increase the perceived value.
People don't care about your product. They care about how it can help them. Solve a problem, save time, or make their life better.
People either make buying decisions to move away from pain or move towards pleasure.
So you might as well high-light both: pain and pleasure.
To learn more, check out our article on top ways to advertise your dropshipping store.
2. Sell Trending Products
The goal is to sell the right product. Focus on hot ticket items that aren't easy to find. It should feel unique enough where if they click off the store or the ad they may never find it again. You also want to sell dropshipping products that solve a problem, fill a gap or have that WOW factor. Passionate and logical products that serve mass differentiation (example-massage tool).
Inventory with scarcity triggers impulse buys and has a high demand. Pick items with a profit margin on the product at least 20% higher than the supplier price. Understand customer psychology. What makes people purchase products? People are influenced by four primary categories, which include:
When choosing your merchandise look for things like:
What Makes A Drophipping Product Profitable?
If you're forced to sell for low margins. You'll impede your ability to advertise effectively. So be sure you've researched before you start testing products. Aim for items you can sell at 350% of the product cost. (Items that will secure a 20% or higher profit margin). Avoid low ticket items (aim for products between $50-$100). Your products don't have to meet every criterion. But if you find a product that fits at least one. It might be worth testing.
Tips On Find Winning Products
3. Design A Professional Looking Store
A low-quality store is the fastest way to fail with dropshipping. Even if you have a winning product. If your website doesn't look professional or like a legitimate business, you won't get sales.
But you can build your own successful Shopify store. Use templates like Impulse Theme (paid) or a free option like DebutifyTheme. Or consider hiring a professional for your logo and web design. (find professionals on sites like Fiverr or Upwork).
The end goal is a legitimate-looking dropshipping business. One that looks like a professional ecommerce store and not a dropshipping website. Because if your customer gets a weird vibe, they're not going to buy from you.
You want a clean branded looking drop shipping business with high-quality images and a good logo. Your store also has to have the trustworthy and legitimate feel of a trusted brand. So choose a clean domain name with a tool like LeanDomainSearch. (Plug in words and phrases you like to create a .com domain).
"Having a 4.2% conversion rate would put you into the top 10%." Littledata
Design an ecommerce store with products that convert. A good home page is essential. But the most important part of a successful dropshipping business is the product page. The product page should be a funnel. It needs to pique visitors' interest and lead them to click the buy button.
Product Page Checklist
Tools like Canva can help you make your logo. (They have numerous templates in their library to choose from), however when you use professional designers from Fiverr, you'll find that the quality goes to another level.
Make sure your add to cart, and checkout buttons stand out (use a different color)
Add more payment options.
4. Modify Your Offer
Don't get into price wars with your competition. Competing on the cost of goods is a slippery slope. And a fast way to fail with the dropshipping model. You're already working with razor-thin profit margins. So you need to be strategic with your pricing. Use methods to modify your offer like:
Use the Checkout Notes plugin on your Shopify store. This is a chance for your customer to leave a message. You not only improve consumer trust, but might increase your conversion rates. Notes are also a great way to combat abandoned carts resulting in more purchases.
There are other ways for a dropshipper to modify their offer and increase sales volume. Like adopting urgency and scarcity techniques by adding header bars such as:
- Limited Time Offer
- Save 10%-Buy Now
- Only X Left In Stock
These methods tap into the power of persuasion. Allowing you to capitalize on people's quest for the best deal and their fear of missing out.
5. Offer Fast Delivery
The days of long wait times for shipping from China are over. In 2022 fast delivery doesn't just exceed customer expectations-it's expected. Customers are only willing to wait 2-5 days max for their online orders.
85% of online shoppers search elsewhere when delivery speeds are too long. So if you want to improve your drop shipping success rate and be in the top 10%. You need to find a way to get faster shipping for your customers with methods like:
Google Search Engine
Find dropshipping services for your product based in the USA. Check out our US Dropshipping Suppliers list.
Profit margins aren't as high as AliExpress, but there's still room for decent ROIs.
Your customer gets faster shipping times.
Ask if they have an extra supply or if you could use their Amazon fulfillment process.
Most dropshippers are too lazy to use this method so there’s less competition.
Another option for dropshippers that have a product already making money. Or that are ready to scale their store is to log in to Alibaba. Reach out to wholesalers listed on the site and ask:
It’s important to ensure that they are a good fit and can meet the demands of your store. But if they’re not a viable option. You can also find US-based and local suppliers on platforms like
Diversify and aim for around 20 suppliers. This will help negate issues like breakdowns in the supply chain or limited inventory.
Conduct Google searches using variations of niche+product or keyword+supplier. Add bulk, warehouse, wholesale, dropship, etc., in your niche or for a specific product.
If your profit margins are higher than 30%. Consider spending more on shipping.
6. Add Value
Value is the difference between price and benefits. How much the item costs versus the customer perception of the product. People don't buy a product. They buy the results it provides. Shift their perception by listing the advantages of your item. Show how it will enhance their life.
This moves the attention from the price tag. To other values they'll receive by purchasing your product. Consumers buy products because of emotional enhancement. Or how it can improve their lifestyle. But customers are also buying you. How you add value to their life. So show empathy and know what they want. Be willing to go that extra mile to ensure they have the best shopping experience possible.
Ways To Add Value With Your Dropshipping Store
7. Build A Following
The goal is to be in the top 10%. But that means your target market needs to see your product so you need to broaden your reach. The fastest way to build a following is through social media. But you need a plan. Define what you want to deliver and focus on your strategy.
- How can you grab people's attention?
- What can you do to get them to stop scrolling?
Establish an online presence by sharing consistent, strategic, and quality content.
- How can you stand out?
- How can you create a following on social media?
"67% of online shoppers have bought a product after seeing it advertised on social media." Lovely Mobile News
Put yourself in the shoes of your buyer.
- What are their interests?
- What platforms do they frequent?
Use keyword research. Answer questions your customer is asking online. Use tools like Facebook Audience Insights or Answer The Public. Your content needs to provide value and fit into one of these buckets:
Potential Dropshipping Content Categories
You can pick one or stack multiple to make your copy more powerful. Whether you're using video ads or content writing. The goal is to reach your ideal consumer. So the more you understand what motivates your customer. The better equipped you are to gain their trust and add value to their lives. You can also use email and SMS marketing to build a following with software like Klavyio and ActiveCampaign. Offer value with limited time or email/messaging-only offers and discounts.
"Text messaging offers 209% more response time than emails and 98% open rates." Mobile Xco
Another way to scale your drop shipping business is by using influencer marketing. Connect with influencers in your niche. People with a lot of engagement (don't focus on the number of followers).
Use tools like Peeksta to check out viral ads on Facebook and other social media platforms. Source influencers through software like IZEA for $149/month. Or Influspy. (You need the premium version for €19/month-$22USD).
Influencer marketing is best for dropshipping products in niches with a ton of virality. (like fitness, fashion, beauty, etc.)
You want to find influencers in countries where the market isn't saturated but still has spending power.
8. Pay Attention To Profit Margins
The average profit margins for drop shippers is between 10%-30%. So if you want to improve your dropshipping success rate, you need to understand profits and be willing to invest money to make money.
You can't just take the money and run. You need to take the cash you've made reinvest it. Test products and be ready to put at least 30% back into your business for things like:
Use a profit tracking app like BeProfit that helps with tax preparation and calculating your ad spends. It can also track the cost of goods and overall profit margins.
Drop shipping isn't dead and is still a profitable business model. But you need to be the best marketer. Have the right product. Find opportunities to engage with your customer and add value. You can improve your dropshipping success rate and be in the top 10% if you're willing to take massive action. Create a legitimate-looking store and have a strategic plan of action.