Dropshipping is dead.
You've probably heard this phrase being thrown around a LOT.
Dropshipping has had a negative reputation since it became known as the go-to method for making quick money with zero effort.
Most people see it as a scam and others see it as a shortcut to getting rich easily.
So, is dropshipping really dead in 2024?
The short answer is yes, but only for those stuck in 2020.
Dropshipping In 2024
Today’s dropshipping market demands:
- Deep research.
- A solid understanding of your niche.
- Exceptional customer service.
- Quality product selection.
- Engaging ad campaigns.
And much more.
If you follow these principles genuinely, you’ll eventually start seeing success.
Hear it from Kamil Sattar, known on the internet as "The Ecom King":
"People look at it as a crazy, get-rich-quick, young-person, Lamborghini kind of business. And it just isn’t that simple; there are a lot of variables that go into this."
In this article, you’ll learn what dropshipping actually is, whether it’s relevant in 2024, and how you can get started with it for free now.
If you’re here for the long game, this article is for you!
What Is Dropshipping, Anyways?
Dropshipping is basically running an online store without keeping any products in stock.
Here’s how it works:
You create an online store, most commonly with Shopify, and list products you want to sell from a supplier.
The supplier takes care of the manufacturing and delivering products to the customer.
Remember, at this point, you are just listing the products and not buying anything.
The products listed on your online store are charged higher than the original product price. This is how you make a profit.
When a customer buys a product from your store, you don’t ship it yourself. First, you buy the same product from your supplier. Then, you send the customer and order details to the supplier itself, who ships the product directly to the customer.
Let's understand this with an example:
Imagine you find a business selling premium jeans. After some research, you discover a huge market for them in your area, but no one is tapping into it.
You quickly create a Shopify store and list these jeans in your store.
After running some ads on Facebook and Instagram for these premium jeans, a few customers decide to buy them from your store.
Now, you purchase the jeans from the original supplier and send him the order and customer details.
The supplier then directly delivers the jeans to the customers who bought them from your store.
There you have it.
Now, you can sell products from remotely around the world, without the cost of storing, managing, and shipping products.
Is Dropshipping Legal?
Dropshipping is completely legal everywhere. In fact, some countries officially tax dropshipping businesses.
You don’t need anyone’s permission to dropship, but you do need to work with suppliers who are okay with it.
You cannot get banned for dropshipping.
But if you don’t follow the rules of the platform you’re using (like Shopify or eBay), or if you provide bad customer service, you can most definitely be restricted.
How Much Money Can I Earn From Dropshipping?
There’s no surefire way to answer this question. It depends on various factors, like your:
- Niche.
- Marketing efforts.
- Product selection & customer service.
- Overall experience.
For example, a beginner dropshipper might make anywhere from $20 to $100 in daily profit.
On the other hand, successful dropshippers make $2000 to $5000 or more every day.
These are typically well-established dropshipping businesses with multiple employees and optimized processes.
Ultimately, it all comes down to your profit margin.
If you’re consistently making a 5-10% profit margin on each product as a beginner, that’s considered healthy in the long run.
Remember, these figures can vary widely as success in dropshipping requires time, effort, and continuous learning!
6 Common Dropshipping Challenges And Their Solutions
Dropshipping has changed significantly over the years.
If you want to start dropshipping for free in 2024, here are some common challenges, their solutions, and some tools that’ll help you make a profit:
Choosy Customers
Customers today don’t just buy directly from your store.
They are smart enough to check the same product in other stores. They compare product prices, quality, reviews, and other factors that affect their buying decision.
And if you’re selling a high-demand product, there’s a good chance other dropshippers are also listing it on their store.
Providing Bad Customer Service
As your sales volume increases, you’re bound to get a lot of customer queries.
Providing good customer support can be tricky for dropshippers.
Mainly because you’re not selling your own products and factors such as – delivery time and product quality aren’t in your hands.
And if you’re not addressing these issues, customers might leave negative reviews on your store, which can harm your reputation.
List as much information as possible on your store and product pages to solve such issues.
Whenever you get a repeated customer complaint, be sure to include it in your product description or FAQs section.
Investing In Low-Effort Marketing
There’s a common misconception among dropshippers that running paid ads on Facebook, Instagram, or TikTok is enough for your store.
The problem with this method is that just running ads and expecting customers to buy your product is like cooking a meal and expecting guests to show up.
A good way to sustain your dropshipping business, in the long run, is to invest in high-quality marketing.
For example, most products work well with video ads, as people want to see them in action.
Adding shoppable videos to your online store can also increase customer engagement and conversion rates.
These videos create a dynamic and interactive shopping experience for your customers.
Whatmore AI offers shoppable videos along with features like:
- Instagram-style stories.
- Carousels.
- Grids.
- Video banners.
You must also consistently invest your time in SEO, product descriptions, social media, customer retention techniques, and informative blog posts to draw organic traffic to your store.
Doing this will make you stand out from your competitors and safeguard your business in the long run.
Delayed Delivery Times
This is a very common challenge faced by dropshippers.
Imagine this: a customer buys your product, you then purchase the same product from your supplier and send them the order details.
But the supplier doesn’t have that product available in their stock.
As a result, the customer who ordered the product doesn’t get it delivered within the specified time.
Sometimes the product may not get delivered at all due to mismanagement from the supplier’s side.
A simple solution for this issue would be to be completely transparent with your customer about the delivery time.
Most customers are willing to wait for the product if you’re upfront and communicative about the delivery time taken for a product.
Another solution is to be extra careful while selecting your supplier.
This will not only save you from delayed delivery times but also a lot of other dropshipping-related issues.
How To Find Reliable Suppliers For Dropshipping
More than half of these problems can be solved by a genuine supplier.
Here are some things you can do that’ll increase your chances of finding them:
Research and Read Reviews: Start by searching for suppliers on platforms like AliExpress, Alibaba, and dropshipping-specific platforms like Oberlo and Spocket. Look for reviews from other users to get an idea of the supplier’s reliability.
Order Samples: Before committing to a supplier, order samples of their products. This helps you check the quality firsthand and see how long the shipping takes.
Evaluate Customer Service: Test the supplier’s customer service by asking questions or raising concerns. Note how quickly and effectively they respond.
Understand Their Return Policy: A clear and fair return policy is vital. Ensure the supplier has a good system for handling returns and damaged goods.
Use Dropshipping Platforms: Consider using dropshipping platforms like AppScenic, which offer features like automated order processing, inventory sync, and a wide range of high-quality products from reliable suppliers.
Communities to Join As a Dropshipper
Joining the right communities can provide valuable support, insights, and resources for your dropshipping journey.
Here are some communities you should consider joining as an dropshipper:
Reddit: Subreddits like r/dropshipping and r/Entrepreneur offer a wealth of information, advice, and discussions from experienced dropshippers and entrepreneurs.
Facebook Groups: There are numerous Facebook groups dedicated to dropshipping, such as Dropshipping Titans and Shopify Dropshipping Entrepreneurs.
LinkedIn Groups: Professional groups on LinkedIn, such as Dropshipping and eCommerce Experts, offer a more business-focused perspective and networking opportunities with professionals in the field.
Local Meetups: Check websites like Meetup.com for local groups and events focused on e-commerce and dropshipping.
These can provide in-person networking opportunities and the chance to learn from local experts.
By joining these communities, you can stay updated on industry trends, gain insights from experienced dropshippers, and get support when facing challenges.
FAQs
Here are some commonly asked questions you might’ve about dropshipping:
How much does it cost to start dropshipping?
You can start dropshipping with very little upfront cost.
While there are expenses for things like a domain name and marketing, you don’t need to invest heavily in inventory.
How to start dropshipping with zero money?
You can begin dropshipping with zero cost by using free trials on platforms like Shopify or WooCommerce and leveraging social media for marketing.
Focus on building your store and promoting products without spending money initially.
Is dropshipping a good idea for beginners?
Yes, dropshipping is a good idea for beginners. It allows you to learn about e-commerce, marketing, and customer service without the risk of holding inventory.
Do I need any courses or paid tools for dropshipping?
You don’t need to spend money on expensive courses or paid tools to start dropshipping.
There are plenty of free tools like WhatMore and communities online that can provide you with all the information and support you need.
Conclusion
TL;DR
Dropshipping isn't dead in 2024 — it's just different now.
In fact, the search query “Dropshipping” has seen a massive increase over the last 5 years.
If you're willing to put in the effort, understand your market, and deliver top-notch service, dropshipping in 2024 can still be a profitable venture.
Want to step up your dropshipping game? Check out Whatmore AI—it might just be the tool you need to make your videos better and your business grow.
Give it a go and see the difference for yourself.
