Dropshipping is still profitable in 2024. If you pick the right niche, sell a winning product, and market it effectively online, it’s definitely possible to make money from this low-cost business model. The average dropshipper has a profit margin of 15% to 30% and earns $1,000 to $3,000 per month in revenue. Meanwhile, top earners make as much as $100,000 to millions per year.
Andreas Koenig and Alexander Pecka are successful dropshippers selling pet accessories online. The entrepreneurs from Vienna, Austria established Doggykingdom in 2018 and the site has since “gained the trust of over 500,000 customers worldwide.” Today, their business earns $10 million per year and they've been recognized as among the riches dropshippers in the world.
Of course, it should be noted that not all dropshippers can earn huge profits. In fact, 80% to 90% of drop shipping businesses fail in the first few months. Success ultimately depends on the chosen niche, the marketing approach, and managing competition, among other factors.
In some cases, people fail with the dropshipping business model because they don't know how to research hot products. Others forget to focus on the customer experience and don't take the time to build trust with their target market. Moreover, it usually takes time to land a winning dropshipping product. The business requires constant testing and failing before you can get it right.
An alternative online business model you may want to consider is local lead generation. Compared with dropshipping, this option gives you greater control over every part of your business. Plus, it’s less competitive and easier to scale since you are not relying on the services of a third-party dropshipping supplier.
3 Types of Dropshipping and How Much You Can Potentially Earn
1. One-Product Store
A one-product store offers dropshippers a focused approach to the business model. It allows dropshipping business owners to establish themselves as authorities in their niche. By concentrating on a single product, entrepreneurs can streamline their website and marketing efforts. This strategy enables businesses to cater to a specific audience's needs and preferences. As a result, they are likely to attract traffic, increase conversion rates, and meet customer satisfaction.
31-year-old Samuel is a one-product store dropshipper from Nebraska. In an interview with AliDropship, the automotive technician reveals that losing jobs during the pandemic led him to discovering dropshipping. He started selling car vacuum cleaners online using a free Sellvia store. While he only made 5 sales in his first week, he managed to hit 34 orders and made $2,379.66 in a month. According to Sam, it was a huge achievement for him, especially since he began his dropshipping business with zero budget.
Meanwhile, Redditor KeyCharming says a one-product store is ideal for selling a trending product and earning “quick cash.”
Samuel’s one-product store earnings: $2,000 per month on average
2. Niche Store
Niche store dropshipping specializes in offering products for specific audiences or market. By focusing on a particular niche, dropshippers can build credibility and attract loyal customers. This type of dropshipping comes with several advantages, including easier search engine ranking, higher conversion rates, and the potential to build a strong social media following. Today, some of the most profitable dropshipping niches are baby products, gadgets, health & fitness, clothing, and home improvement.
Elliott Prendy, an ecommerce expert from the UK, launched his niche Shopify dropshipping store and made $20,000 in a month, growing it to over $43,000 after several months. According to him, his process involves searching for products using image recognition tools like CJ Drop Shipping and analyzing successful Facebook ads in related niches. In addition to running a dropshipping store, Elliott also shares his industry knowledge and expertise on his YouTube channel where he currently has 82.6K subscribers.
Elliott Prendy’s niche store earnings: $20,000 per month being the highest
3. General Store
General stores offer greater flexibility for dropshippers since they do not belong to a specific category. Sellers can feature a wide range of products and even easily include trending products from multiple niches. A general store owner can potentially reach a wider market but face heavy competition and have a harder time achieving good SEO. Providing excellent customer service can also be a challenge, since they’re often dealing with multiple orders at the same time.
One general store that made waves online is Inspire Uplift, which sold everything from jewelry and collectibles, to clothing and electronics. Co-founder Aaron Wallace writes in his LinkedIn bio that Inspire Uplift is “on a mission to curate a diverse and unique selection of over 2,000,000 products, sourced from our ever-growing network of 20,000 sellers.” The Inspire Uplift site attracts 1.1 million visitors per month.
Inspire Uplift’s general store earnings: Information about Inspire Uplift's average earnings is not available online. However, the company has an estimated net worth of $1.23 million, according to NetWorthSpot.
How to Be Profitable with Dropshipping
To be profitable with dropshipping, you need to simplify your dropshipping operations, sell high-quality trending products, and shorten shipping times. Attracting shoppers and therefore, increasing your earnings is possible if you observe these factors. The global dropshipping market size continues to grow each year and experts anticipate it will hit $1,253.79 billion by 2030, according to Grand View Research.
Streamlining Your Dropshipping Process
Dropshipping can be tricky to learn for industry beginners but fortunately, there are ways to simplify it. For example, you can sign up for a dropshipping course to understand the business model better. Using automation tools like AutoDS, DSers, Dropified, and Inventory Source can also help. For marketing, you can use tools like Canva (graphic design) Lightworks (video editing), Words To Use (copywriting), and AdSpy (competitor research). Once your business starts to grow, consider hiring virtual assistants to handle routine tasks on your behalf.
Sourcing Trending High-Quality Products
Offering trending products will help you gain traffic for your dropshipping store. However, make sure that you source products from trusted suppliers, so you can assure buyers the best quality for their money. Too many dropshipping companies fail because of selling cheap low-quality items, which ends up hurting their reputation. Customers will trust you better as you sell excellent products.
Use tools like Google Trends, Keywords Everywhere, and AliExpress when doing research on trending products and niches. Dropship Rabbit or Ecom Dash simplifies product research to find winning items across multiple platforms. On TikTok, you can check out the hashtag #TikTokMadeMeBuyIt to find winning products.
Shorten The Shipping Time
Having access to reliable suppliers is another key to ensuring dropshipping profitability. According to Insider Intelligence, 62% of online US customers say “fast delivery is the most important aspect of a positive customer experience.” So before choosing a supplier, you want to read reviews and even do a test order to determine the performance of their fulfillment centers.
In addition to fast shipping, Redditor Rose Rose adds that a “seamless and positive customer experience” also includes “responsive customer support, and clear communication.”
A few other ways to increase profitability include:
- Know what the competition is doing & be better.
- Stay relevant
- Be unique
- Offer on-point pricing
- Display customer reviews and product ratings on your site
How to Build a Brand For Your Dropshipping Store
Building a brand for your dropshipping store can help you establish your identity as an ecommerce business. Doing so makes allows you to set yourself apart from competitors and it will gain the trust of your target market.
Why Are Some Dropshipping Stores So Successful?
Some dropshipping stores are successful because they have faced their challenges with determination. While as much as 80% to 90% of dropshipping businesses eventually fail, those who stay persistent and consistent eventually end up doing better. Dropshipping success stories show us the inspiring accounts of entrepreneurs who believed in their products, did their best to reach their market effectively, and took time to build their brand.
81% of consumers say they need to trust the brand to buy from them. So, if you want to increase profit margins and broaden your reach, you'll need to establish a positive reputation in the industry.
Customer acquisition and retention are crucial ingredients to being profitable with drop shipping. You want brand-loyal customer, especially since repeat customers are easier to sell to, with a 60%-70% chance of converting.
How To Broaden Your Customer Reach
Is TikTok The Most Popular Social Media App for Dropshipping?
TikTok is the most popular social media app for dropshipping in 2024. With over 1.9 billion active users in 154 countries worldwide, the platform has become a favorite for both buyers and dropshippers. According to CNN, TikTok has surpassed the $10 billion user spending milestone in December 2023. Forbes also reports that TikTok has become “the only non-gaming app” to reach the achievement.
Currently, the hashtag #TikTokMadeMeBuyIt has over 7.4 million posts online. This trend just further establishes TikTok dropshipping as a legit way to earn profits using the dropshipping business model.
On Reddit, user Kshcbsbcnnd claims TikTok dropshipping helped them earn $2,000 in sales in a single day.
Is Dropshipping Saturated In 2024?
Dropshipping is not saturated in 2024 since it is only an order fulfillment method. The market value continues to grow, the business model continues to be popular, and top ecommerce entrepreneurs make millions from it.
However, it's also true that much has changed with dropshipping over the years. The low barrier to entry has attracted numerous dropshippers in the industry. Many companies are entering the same niches and are selling the same products. This can make it challenging for both new and long-time dropshippers to make profit.
So while the dropshipping industry itself may not be saturated, it has become highly competitive. So, you need to implement high-level marketing strategies to stand out from your competitors and ultimately achieve long-term success.
Ultimately, it's best to focus on sharpening your skills as a marketer. There aren't shortcuts to success with this business model. Drop shipping requires more than social media advertising or copying your competitors. Treat your dropshipping business like an actual e-commerce platform. Behave like a business owner. Find the right product. Maintain a high level of customer support and you can be very successful with drop shipping.
Is Dropshipping Worth It In 2024?
Dropshipping is still worth it in 2024 as it remains a viable option for online entrepreneurs. As long as you can find a winning product and implement the best marketing campaigns, you can earn a significant profit from this business model.
Of course, you'll have to learn how to handle the constant increase of competitors. The low entry barrier and quick access to various products often means you'll be competing with new and thriving brands. Despite that, there remain plenty of opportunities for profitability in dropshipping, especially if you're selling essential or high-value products.
The advantages of dropshipping include easy startup, minimal investment requirements, and the ability to sell a wide range of products across various niches and geographic locations. For the most part, success hinges on strategic product selection, attentive data analysis, and a commitment to providing valuable customer support.
3 Reasons Why Dropshipping Will Continue To Be Profitable?
The number of online shoppers multiplies each year. Dropshipping policies and rules continue to evolve. Trending products on dropshipping change often, which means plenty of earning opportunities.
Why Do People Fail With Dropshipping?
Some people fail with dropshipping because they have wrong expectations of the business model. Some mistakenly believe that it is a get-rich quick scheme. Others also lose motivation after testing a few products in the market and losing money.
As a dropshipper, you need to be willing to invest the time and capital to learn the business model. You need to test and risk ad spend $ to find a successful combination of the right ad and product. Stop worrying about the reasons why you might fail. Instead, focus on the fundamentals like:
- Niche Selection
- A Winning Product
- Marketing Strategies
- Customer Experience
Find profitable drop shipping products that people want to use. Selling items that solve a problem - save people's times or fill a gap - can go a long way
On Reddit, user illiquidasshat also points out that some of the common pitfalls in dropshipping are limited to zero control over inventory and suppliers.
Why The Local Lead Generation Business Model Is A Better Way To Make Money Online
In 2024, dropshipping is still profitable. For example, it's common to generate $1000 to $3,000 per month. With the right product and ads, some dropshippers even make big money for 3-6 months. But it takes time and daily effort. The niche you choose and the products you sell are crucial to your success. Unfortunately, most hot sellers and trending products have a short shelf life.
I used to run a one-product dropshipping store that sells adult shark onesies online. While I earned $48,000 in 30 days, I only made a profit of $3,000 in that time period. Eventually, I decided to focus my energies on my existing local lead generation business, which is way less complicated than dropshipping but is also more rewarding and profitable. I don't have to worry about massive dropshipping competition or the order fulfillment process.
With lead gen, I only build and rank generic websites in specific locations that offer a particular service. Like this "towing San Francisco" example seen above. By getting my sites on top of Google search engine results, they eventually become digital real estate properties that I own. I then approach local business owners and offer my sites for rent. For a fixed monthly fee, I bring them organic traffic and leads for their business, which could increase their monthly earnings.
I make a profit margin of 85% to 90% from this and since I now own multiple lead gen sites, I now earn as much as $52,000 per month. Lead gen isn't about the latest trends or staying one step ahead of the curve. Instead, you are providing valuable service and help small business owners grow their companies.
Another great post, Thanks for sharing the insights.
Agree. Dropshipping has not gone anywhere and continues to develop. As a web developer at NFT Development Company Zfort Group, I can say that online earnings schemes such as Ecommerce, NFT games, cryptocurrency and decentralized finance etc. continue to evolve.
Thanks for commenting Steve. Have you tried dropshipping? I think people can still make money with the business model but the key is to always be one step ahead of the competition and come up with creative ways to market your brand. What would you say is the biggest challenge with dropshipping?
Yes, I've dealt with dropshipping. Buyers are pretty capricious people. Therefore, one of the main problems is dealing with returns if your customer does not like the product. Although, I think you have your own answers 🙂