Is dropshipping dead? Is dropshipping still worth it in 2021——FindNiche
Recently, I saw some people discussing dropshipping on some forums, and many of them sang the praises of Dropshipping, thinking that it was no longer working, with low profits and no scale. But in fact, Dropshipping is a business model that still has a stable volume, and I think there will be a long period of prosperity in the future. Especially in 2021.
Why do you say so? Let me tell you a story first.
Because of Covid 19, people had to stay at home for 2 months. People can not go out, but certainly have the need to cut hair, hair removal, then epilator will be a very necessary commodity for people. A senior dropshipper made a huge profit by selling epilators during this period.
Can you still say that dropshipping is dead in 2021? Just because you failed doesn't mean the dropshipping business model has failed and many people are still making huge profits with their dropshipping business.
Is it worth it to become a Dopshipper?
It's worth it.
While there are many challenges to being in the Dropshipping business in 2021, there are still tremendous advantages.
Low entry barrier: low start-up capital and low operating costs
Traditional retail business requires a large investment in physical store rent, storage and warehousing fees and employee salaries. Store rent alone can often cost you a large portion of your start-up capital. This is not an easy task for many people. Dropshipping, however, is different. You need very little start-up capital to begin a dropshipping business. In other words, with a computer and the Internet, you can start your dropshipping business.
Low risk: no risk of inventory backlog
For many traditional retailers, inventory buildup can cost them dearly when merchandise doesn't sell well. Especially during Covid 19, many retailers went out of business. On top of that, retailers had to bear every loss in the delivery process.
But dropshippers don't have this concern, because in the dropshipping business process, after the customer places an order, the goods are delivered directly from the supplier to the customer. dropshippers don't have the risk of warehouse backlogs.
Flexibility to change sales categories
If you are a dropshiper, expanding or changing your product categories will be very easy for you. You can just try to sell an item in a completely different category, and if it sells well and is profitable, you can incorporate the category into your product.
A large number of automated tools and learning resources to help you improve efficiency
Nowadays, it has become easier and easier to engage in the dropshipping business, and you can find aids and learning materials for every aspect of the dropshipping business. For example, the best Dropshipping niche analysis tool -
FindNiche. FindNiche can provide you with professional analysis of products from Aliexpress
and shopify. FindNiche allows you to get a head start on your niche.
Relatively fast capital flow
For traditional retailers, you need to buy a batch of goods out of your own pocket first, and your capital will only be returned when the goods are all sold. But in the dropshiping transaction process, when you place an order with a supplier, you often already have the customer's payment.
Difficulties you may encounter in 2021 when the dropshipping market is saturated
If you are a newbie looking to get into the dropshipping business, then I must tell you about the possible risks and difficulties of entering the dropshipping industry.
Profits are not high.
Dropshipping is essentially a competition between traffic and profitability, and the one with the lowest price and lowest cost of goods is always the last winner. Compared to private label goods, dropshipper's profit is generally only 1/3 to 1/2 of the former. That is, if you want to have the same profit, you have to increase your traffic efforts and control your costs!
So how to control costs? First you need to understand the components of cost.
- Store costs
- Sourcing costs
- Traffic costs
If you want to reduce the cost of setting up an independent site, you can seek the help of tools that can save you a lot of money and time. If you want to reduce purchasing costs and increase profits at the same time, it is essential to look for niche products. You can find niche markets with the help of FIndNiche, a professional product research tool. There is no shortcut to reduce traffic costs, you can only focus on marketing to increase store conversion as much as possible to reduce traffic costs.
Market saturation, fierce competition
As I mentioned earlier, the barrier to entry for dropshipping is getting lower and lower. Many people just like you see the opportunity in the dropshipping market and more and more people want to become a dropshipper. this means that the competition is getting tougher and you need to have more money ready, learn more about operations and marketing, etc. to be able to beat the competition.
Unable to control product quality
You can't grasp the real quality of the product, and the user experience. You can't experience the whole process from the time the goods are shipped out to the time the customer signs for them. You also don't know how satisfied your customers are in this process. After customers receive the product, if there is a problem, they will find you directly, not the supplier, so you lose control of the product, and easy to lose the customer's sense of trust.
To ensure the quality of your products, you can get samples from your suppliers before selling them to see if they match the description. In addition, you must actively seek reliable and trustworthy suppliers and reach long-term cooperation.
Unable to control inventory
You don't have to take the risk of warehouse backlog, then accordingly, you need to take the risk of uncontrolled inventory. Because the initiative of inventory is in the hands of the supplier. In order to avoid the situation that the supplier is unable to deliver the goods after the customer has placed an order, you need to maintain timely communication with the supplier and update the information of the goods inventory in time.
No control over shipping quality/speed
You have no control over the quality/speed of shipping. Essentially, for direct shipping operations, the shipping portion is out of your control.
As a dropshipper , are you making the following mistakes
If you are already a dropshipper, but have encountered so many difficulties in the dropshipping industry that you have lost confidence in the business of dropshipping, then you can see if you are making the following mistakes.
Eager to make money
Desperate to make money from this thing. If you have 2 months left to renew your rent, there is no way to live without earning money. Do not try dropshopping at this time, because you need to learn all aspects of dropshopping involved knowledge points, if you do not have enough time and cash flow to support this thing, must not get. If you do not have enough time and cash flow to support this thing, you will not be able to get it.
There is Not enough budge
If you think dropshipping is to spend $100 on the success of things, then you are very wrong. In fact, in my opinion, if you want to do this well, you need to prepare at least 1000 knife, may not be enough. facebook advertising is very costly, you start to vote advertising, nothing, tuition is to pay. Both the theory and the practical work will require a lot of time and money to be invested in order for you to feel the doorway. If you don't have enough budget, you may not be able to keep up with the money before you open.
Then again, with an inadequate budget, you may want to save money by cutting corners in various areas, and all this is the beginning of what leads to eventual failure. For example: to test the audience groups, would have to test at least 5 to do, due to the limited budget, only test 2, thus perfectly miss the possible explosive products.
There is not enough time
This reason, and is the most common reason. There is no time to learn how to market online, no time to quietly analyze the product and study the audience. Just, on Facebook ad placement to learn how to test the placement, how to scale placement. But ignore other more important things. For example: you have to learn how to write the copy for the product, the copy for the ad, and how to make a good ad video. If these points, you are spending time to learn it, out of the effect must be different, and thus earn money through dropshopping
Did not find a good product
This is the most important reason, until you find a niche product, you will not make money, at best, you will break even. It may be that you have been doing this for six months and still haven't found a niche commodity, this doesn't mean that the dropshopping model has failed; it's just that you haven't found a good product. Not the right product, finding the right product, is the focus at this point. If you are having trouble finding niche products, then you should seek help as early as possible.
In fact, you may have come across the so-called pop-ups, but, bent on technical tuning on Facebook ads to try to reduce the cost of a single conversion.
When it comes to pop-ups, what you have to do is how to increase the average unit price, such as: upsells, various add-on strategies, discount strategies, improve product descriptions to promote conversion, etc., in addition to things outside of Facebook ads.
Everything, all hands-on, you need to form your team, virtual team can also, fiverr on outsourcing, etc.. Create your own process system, such as: testing, product research, store management, video production, copywriting, customer service, etc. To focus your energy on what is important.
Is dropshipping dead? NO.
Is dropshipping still worth it in 2021？Yes, it's worth it.
Will you succeed? Not necessarily.
You need to be more patient and better prepared than others, while you need to learn as much as you can about the subject and don't let go of any niche commodity. Now, you can start by using FindNiche.