Shopify dropshipping is worth it but the real challenge is to find and sell winning products to a high number of buyers. Also, dropshippers have to deal with constant competition. It's really gotten easy for other dropshippers to copy their competitors' best strategies.
7-figure ecommerce expert Austin Rabin has been dropshipping for 5 years. So far, he has sold almost 200,000 orders. In a YouTube video, he shows a plaque sent by Shopify after one of his online stores sold 100,000 orders.
“Don't expect your Lambo next week,” Austin warns aspiring Shopify dropshippers. According to him, building a good online business “takes a lot of time.” He also adds, “Don't get discouraged if you're not successful in the first week. It actually took me over 3 and a half months of breaking even on my very first store to see any profitability at all.”
Dropshipping is a low cost and low risk way to enter the ecommerce industry. It allows you to sell products online without owning inventory. Instead, you receive customer orders and then forward them to trusted third-party suppliers. Your providers then handle shipping and order fulfillment requirements on your behalf. Shopify makes a great platform for ecommerce because of its massive reach. Yaguara reports that Shopify currently has an average of 2.1 million daily active users. The website also says that 4.8 million online stores use Shopify2024 globally today.
Of course, it is also worth noting that Shopify dropshipping only has a success rate of 10% to 20%. Around 80% to 90% of drop shipping brands fail within 120 days to 2 years of starting. A common concern is the low entry barrier, which makes the market highly competitive.
In this feature, we discuss ways Shopify dropshipping can still make you money. We also share about its pros, cons, profitability, and average income. Plus, we tell you why sourcing from China can be problematic in 2024. Finally, we introduce you to an alternative business idea that’s more profitable in the long run. Even better, this one can help you generate passive income.
3 Ways Shopify Dropshipping Can Still Make You Money In 2024
1. The number of online shoppers continues to grow each year.
As the number of online shoppers continues to grow each year, dropship sellers get to tap a wide market. In an Oberlo report, experts say digital buyers will reach 2.77 billion in 2025. This is a 2.21% increase compared with the previous year. Meanwhile, Statista also says experts predict the global drop shipping market will reach $476.1 billion by 2026.
Shopify dropshipping still works as ecommerce continues to make record-breaking numbers. More buyers are demonstrating a preference for online shopping today than in previous years. Plus, the number of active buyers and sellers using Shopify are also increasing.
To succeed as a Shopify dropshipper, you need to find a winning product and choose a reliable supplier. Likewise, developing an effective digital marketing strategy can level up your dropshipping game. By driving online traffic to your store, you can attract attention and generate sales.
2. Dropshipping rules have changed and now offer many ways to attract buyers online.
Dropshipping no longer works the way it did compared with, say, 10 years ago. But it still works. The market has just become more saturated because so many people are now doing it. Serious dropshippers need to implement the best strategies to avoid losing money. In 2024, it's all about knowing how to play with different set of rules, including:
- Selling products that meet actual demand. When choosing products to sell, go with those that fill gaps or solve problems for your potential customers.
- Creating a user-friendly website. Make sure mobile and desktop users can both browse products and make purchases with ease.
- Focusing on customer service. Respond to inquiries promptly. Overall, your goal is to provide a better shopping experience than your competitors.
- Selling quality products with fast shipping times. Buyers today prefer to receive their orders between 1 to 3 days. Gone are the days when they'd be willing to wait for weeks for their orders to arrive.
- Displaying social proof. Showcasing reviews and testimonials online can help boost potential sales.
- Creating a unique marketing angle and designing creatives that catch attention. Your videos and social media posts should have the style and tone that attract your potential buyers.
- Getting niche-specific and choosing products that have limited availability. By focusing on a specific niche, you can cut much of your potential competition.
- Selling on more than one online marketplace. Most dropshippers today tap multiple platforms to increase their sales.
Use scarcity and FOMO (fear of missing out) techniques (like using timers or limited-time offers ) to help increase the perceived value of your products. Research suggests that urgency, bonus offers, and scarcity can boost conversion rates. So take the time to learn and understand the business model. Ideally, you should have a big enough budget to test different products in the market. While dropshipping lets you test products with little risk or capital, you’ll still need money to run ads online. Plus, you also need to have the skills to create videos with virality potential. By observing these practices, you can get your products in front of your target audience.
Other low-cost tactics you can implement to make Shopify dropshipping profitable include:
- Starting a niche YouTube channel and uploading useful content
- Using influencer marketing to expand your reach
- Hosting live streams
- Posting TikTok videos on a regular basis
- Getting active on platforms like Reddit & Quora
The more value you share, the more potential customers you can connect with. You can then make a better profit margin as a dropshipping store owner. You may also consider investing in a Shopify dropshipping course if you want to learn from industry experts. Through these courses, you can know about common mistakes to avoid and how to leverage the best approaches for your business.
3. New dropshipping trends present extra advantages.
Dropshipping is all about the customer experience in 2024. Dropshippers need to be the best in every stage of the buying journey to be successful. Forrester Research suggests 63% of customers leave a brand after one bad experience. Salesforce data also says 84% of consumers believe that the experience given by a company is as important as the product or service.
To get in front of the right people, adopt tactics like:
- Visual search using AR/VR
- Create virtual tours & use technology to improve the ecommerce journey
- Offer digital wallet payment methods
- Have a BNPL (buy now, pay later) option like AfterPay
- Provide an ease-of-use website with increased security
- Offer extra benefits for shopping (such as referral codes, customer rewards, and discounts)
- Use chatbots or live support to answer basic questions from customers
Provide options around communication, shipping, and dial-in on your marketing efforts. According to SuperOffice, people are willing to spend extra for a positive customer experience.
What Are The Pros & Cons of Dropshipping on Shopify
Shopify Dropshipping Pros
One main advantage of Shopify dropshipping is that the platform is made for ecommerce. Anyone can build their online store, regardless of their tech experience. Dropshippers can various Shopify themes and tools.
Another advantage of Shopify dropshipping is that the platform offers multiple pricing options. Plans can range from $19 to $299 per month.
A significant advantage of Shopify dropshipping is that store owners can access customer service 24/7. The company’s support team is always available via email, live chat, or phone.
Shopify Dropshipping Cons
A disadvantage of Shopify dropshipping is that additional costs can lower your profit margins. For example, you will need to spend on transaction fees if you’re not using Shopify Payments.
Another disadvantage of Shopify dropshipping is that it has limited SEO features. You may have to work with SEO experts to boost your visibility on search engine results.
A common disadvantage of Shopify dropshipping is that they can suspend user accounts. Dropshippers are not in full control and reactivating a frozen account may take time. To avoid this problem, sellers need to observe Shopify policies all the time.
Is Shopify Dropshipping Still Profitable In 2024?
Shopify dropshipping is still profitable in 2024, with most dropshippers having an average profit margin of 15% to 20%. For the most part, profitability mainly depends on the type of products you’re selling. Your products should be in high–demand among your target market. You’ll also need to source from affordable suppliers to boost your earnings. Compare markups from other sources to get the best deals. Also, look for trending products online as you do product hunting for your store. Check out close competitors and find out what their current bestsellers are.
Mohammed Kamil Sattar (The Ecom King) has made remarkable profits on Shopify. He began his dropshipping journey as a college dropout. Despite losing thousands of dollars in his first year, he pressed on and eventually succeeded in turning his business into a six-figure venture. Known today as The Ecom King, Sattar has made over $1 million in Shopify dropshipping revenue.
How Much Does The Average Shopify Dropshipper Make?
The average Shopify dropshipper can make $1,000 to $2,000 in revenue per month. Some report making anywhere from $100 to $100,000 per month. However, a more realistic average earning for new Shopify dropshippers is around $1300 per month in their first year. This can further increase to $2,000 to $3,000 as you gain more business experience.
Of course, you will need to learn how to find winning products for your dropshipping business. You’ll also have to develop the right strategies to gain online traffic and provide excellent customer support to make more sales.
Is Dropshipping Too Saturated?
Dropshipping is not saturated because it is an ecommerce inventory management method. However, product saturation often happens as numerous stores sell the same products. This can lead to massive competition in the market, which can make it challenging for both new and long-time dropshippers.
Success in dropshipping relies on how you find winning products. You have to do product research to check out what's trending online. Consider offering seasonal and evergreen products. Develop a marketing strategy to drive traffic. Abdalslam says dropshipping stores that are active on at least one social media platform generate 32% higher in revenue.
Does Shipping From China On Shopify Still Work?
Shipping from China on Shopify still works and many dropshippers are using it in their businesses. However, China-based suppliers often take 2 to 6 weeks to complete product delivery. In 2024, consumers place great importance on fast delivery. A Shippo report says 90% of customers expect 2 or 3-day shipping to be “the standard when shopping online.”
If you're using a supplier from China, indicate estimated shipping times. That way, consumers have clear expectations as they purchase from your store.
Is Shopify Dropshipping Dead?
Shopify dropshipping is not dead and continues to be profitable for some business owners. However, the market has become extremely competitive. The game is a lot different than it was a decade ago.
Social media marketing plays a big role in attracting traffic and making sales. You want to reach your target market through the most effective methods (such as viral TikTok videos, Instagram Ads, and others). Show the customer what they want to see and persuade them to click. Test multiple products to see which work best among your customers. Also, make sure to highlight customer reviews to assure people that your store is legit.
Ecommerce expert Tariq Burki says the days of making easy money on Shopify dropshipping are over. On Quora, he writes that the business has gotten “tougher”, although it’s “still doable if you’re strategic about it.”
“Don't follow the herd,” he adds. “Focus on quality and service (but) be ready to work for it.”
Why Do So Many People Fail At Shopify Dropshipping?
So many people fail at Shopify dropshipping because they don't take the time to learn the business model. Others have unrealistic expectations and think they can make a ton of money super fast. Other reasons why dropshippers fail is the lack of capital and poor business choices.
To be successful with Shopify dropshipping, you have to consider if it is the right business model for you. Compare it with other online businesses (such as affiliate marketing, Amazon FBA, etc).. Dropshipping has a learning curve. Don't try to avoid it. In some cases, you may even consider hiring professionals to help you out. For example, you can use virtual assistant services for content creation, website design, and other important aspects of the business. In any case, observe your store's profitability to decide when to scale and take your business to the next level.
Why Local Lead Generation Is A More Sustainable Business Model In 2024
Shopify dropshipping can still be worth it in 2024 if you can find and sell unique products that are in high demand online. You can earn great profits by selling trending products before they reach saturation. As such, you need to be an excellent marketer who can quickly adapt well to current market changes, as needed.
In comparison, local lead generation can be a more sustainable business model. With this, you'll have to build and rank micro websites in one location that offers a specific service. Unlike dropshipping, you're not competing at a national level. Instead, you are focusing on ranking sites in a single location. This means you will only compete for the same spot with a few local business websites. By using local SEO strategies, you can get your sites on top Google results in six months or less.
With lead gen, you're not dealing with several suppliers and countless customers. You're working with a local business owner who wants to benefits from your site's leads. You're not a middleman but a digital real estate owner who offers websites for rent. Passive income is also possible since you can earn anywhere from $500 to $3,000 per month from each lead gen website. Today, I own several of these sites and earn around $52,000 per month.
