It may sound surprising, but dropshipping was a profitable business model even before the internet. Mail-order catalog companies like CompuCard partner with larger retailers like JCPenney and Sears to upsell their products, so brands like Sears will store, pack and ship items to CompuCard customers, but only when the purchase is complete (like dropshipping upon request) .
So when we look at the question, " Is dropshipping worth it in 2022? " it's clear that it's been worth it for quite some time, and it continues to provide valuable cash flow options to a wide range of retailers. The bigger question is how to actually make dropshipping worthwhile considering changing trends, an oversaturated market, and the fact that email list most of the product comes from places like China.
In this article, we take a deep dive into dropshipping in today's world, while also exploring the pros and cons of dropshipping, giving you an idea of whether it's a viable fulfillment model for your online store.
Also, we'll explain the type of business that actually makes money dropshipping. In conclusion, you can't think of dropshipping as a get-rich-quick scheme, or even a scheme you'll set up in your bedroom (or anywhere you have an internet connection) and every so often Just checked once. Successful affiliates work hard, build promising relationships, and spend a lot of money on advertising and product research. We've also found that thriving dropshipping businesses stand out among customers by offering fast shipping, hassle-free returns, or unique value propositions such as sustainable, eco-friendly products.
Still, read on to check out our full guide on the status of dropshipping, and answer the question, "Is dropshipping worth it?"
Is Dropshipping worth it in 2022?
In addition to our CompuCard examples with companies like Sears and JCPenney, dropshipping was popular in the early days of the internet and the dot-com bubble. Only recently have we begun to see the actual name for this type of fulfillment: dropshipping. In the 1990s, these mail-order companies turned their attention to the Internet, becoming the first ever online business. Throughout the 1990s and 2000s, dropshippers partnered with larger retailers and suppliers to provide middleman services to sell products at a markup and then let the larger brands package and ship the items. Ultimately, marketplaces like Amazon and eBay make it easier for dropshippers to market their products at a reasonable cost. So, is dropshipping worthwhile from this perspective? really.
However, dropshipping was more difficult back then because you had to spend thousands of dollars on the website, shop around for a supplier who offered a quote for dropshipping, and create and manage your own system to send orders to your dropshipping partners, by phone or email.
Today, dropshippers have conveniences like cheap e-commerce platforms (like Shopify ), marketplaces that work with dropshippers (like Spocket ), and automation of the process of sending orders to suppliers for fulfillment (via apps on e-commerce platforms and extension).
is dropshipping worthwhile
You can start selling Shopify's web dropshipping app.
So, is dropshipping worth it?
From the 1960s until the 2000s. Now we have more technology to improve efficiency. So, is it a profitable way to fulfill in 2022? Of course you can, as long as you can stand out.
Online commerce is not saturated, but barriers to entry have fallen like dominoes since the rise of e-commerce. This is especially true of dropshipping. College students who only have brains and dorms have the resources to start making money and become market players, all of this dropshipping.
That's great, but it also means more competition. Dropshipping is still worth it, but you're getting more corporate attention than a 1960s mail-order catalog or early e-commerce store.
There are many other reasons why we are seeing slowing economic growth in the dropshipping space:
The cost of goods is getting more and more expensive.
Providing quality customer support is often difficult.
Many lack customer support for dropshipping providers.
Finding quality products is tricky.
Refunds take too much time.
Sometimes, your customers are unable to return items to suppliers.
Shipping times are unbearable unless you do something about it.
Shipping costs are often too high.
But this is where you can shine. Essentially, the dropshipping world is plagued by merchants willing to ignore customers in exchange for quick profits. They create a simple Shopify store and start selling products right away, regardless of shipping times, item quality, and the possibility of return issues. Then online customers have to wait 2-4 weeks (sometimes longer) to receive the item, it's a strange package with Chinese letters all over it, the product quality may not match what is specified on the website. Also, these customers can't get in touch with anyone for customer support and they may end up hearing calls like "we don't accept returns" or "we can send a replacement instead of offering a refund" which is essentially A shipper that tries to avoid returns and chargeback fees at all costs. If you go that route, "Is dropshipping worth it?" No. If you see it as a quick cash grab, don't drop shipping.
go to top
Illustration of a cat climbing a ladder
the gist of the story
Dropshipping is not far from dead. Dropshipping is worth it; just seeing waves of new players muddy the waters, frankly, given that dropshipping is a bad name.
However, legitimate dropshippers (those by avoiding most of the downsides of dropshipping) have been around for decades, and they continue to make money from fulfillment technology because it's much cheaper to have someone else store and ship your products than to do it yourself.
In response to "Is dropshipping worth it?":
23% of online sales worldwide are through the dropshipping model. That totals about $8.5 billion annually.
About us 27% of online retailers have transitioned to some form of dropshipping as their primary fulfillment technology.
34% of sales made on Amazon are made by dropshippers.
Sideline affiliates on eBay make an average of $1,000 a month in profit.
The top 10% of sellers on eBay make an average of $7,731 a month in profit.
Suppliers love dropshipping because they make an average of 18.33% more profit selling to dropshippers than selling the same product on their own online store.
Compared to someone who owns their own inventory, research shows that dropshippers are 50% more profitable by eliminating costs such as storage, packaging, warehouse labor, and more.
there you have it. Dropshipping is worth it. If anything, our online commerce world is gradually shifting towards more dropshipping than less. The biggest hurdle is avoiding any get-rich-quick scheme-related nonsense or creating passive income without any effort. Away from the online "experts", they sound like some kind of instant thing that you can configure and turn into your own personal ATM. This will only irritate customers, discredit all dropshippers, and potentially get you a hefty kickback bill.
Instead, realize that dropshipping is worth it as long as you're willing to put in some effort, take the time to work with great suppliers, and offer fast shipping, hassle-free returns, and a great customer experience, and it's thriving.
go to top
Illustration of a cat climbing a ladder
Pros and Cons of Dropshipping
Asking "Is dropshipping worth it?" This allows you to gain a deeper understanding of fulfillment methods and minimize questions from the start. For example, one disadvantage of dropshipping (which we'll outline below) is slower shipping times. Many products ship from suppliers in China, Vietnam or India, so customers in places like Canada, the US or Europe may have to wait nearly a month to receive their products. Armed with this knowledge, wise shippers veer away from suppliers that don't offer some kind of expedited shipping in the form of local storage warehouses or fast shipping FedEx boxes. Many dropshippers still buy from places like China, but there are ways to get around it, as long as you take that into consideration.