Does Dropshipping Work? Is Dropshipping Still Profitable in 2021?

Does Dropshipping Work? Is Dropshipping Still Profitable in 2021?

Have you explored a lot about passive income and found dropshipping to be your go-to option? But, are you wondering “does dropshipping works” in 2021? Are people still buying from dropshipping stores today?

In this article, we explore exactly this. We will talk about does dropshipping work, is it dead, is dropshipping profitable, and some examples to give you hope and motivation.

So, what are you waiting for? Let’s start exploring if dropshipping works in 2021?

What Is Dropshipping?

What is dropshipping? Does dropshipping work in 2021?

In dropshipping business, you create an ecommerce store where you sell products. These products are not sourced or created or manufactured by you directly, neither are you a retailer. You are sourcing these products from a retailer or distributor, marketing them on your dropshipping store, and selling them.

Here’s how the supply chain works:

  • You find products of relevance on marketplaces like AliExpress.
  • Put these on your dropshipping online store.
  • Market and promote your products through ads and online strategies.
  • When a user places an order, place the same order on AliExpress.
  • The supplier ships the product directly and you enjoy great margins.

· The supplier ships the product directly and you enjoy great margins.

Now, you may be wondering why wouldn’t the customer order from AliExpress himself? Is it more feasible?

It sure is, but you are offering them everything easily. On AliExpress, it is difficult to find the product, compare it, pay shipping insurance, find the right shipping provider, and then get the product from a large range of products.

You are marketing it right and reducing the hassle for one niche. For example, pineapple bookmarks.

Is your mind still racing with questions?

Are you still wondering why should you consider this option?

Here’s why:

  • You can earn revenue with this model. It is often a passive income because a large portion of your efforts is put in initially only.
  • It helps you run your business and become your own boss. You can select products, marketing methods, and management tricks yourself.
  • There’s no location-dependency for this type of store. The world is your canvas, you can sell from and to anywhere.

Does Dropshipping Work in 2021?

Let’s jump to our main question, does dropshipping work in 2021?

Is 2021 the year for dropshipping and online businesses?

Definitely! It is.

If you go to Google Trends right now and search Dropshipping, you will realize it is quite popular worldwide. In every country, dropshipping is the new online thing.

Google Trends

However, this may make you believe that maybe dropshipping is saturated and is not profitable.

That is not true.

While there are many, many business owners venturing into dropshipping, it is still profitable.

If 100 people searched for dropshipping or thought about making an online store for the same, only 30% of these people would act upon it. Of course, the count may vary but a large percentage of users won’t even react to their idea. Hence, that reduces your competition.

From the business owners who actually go ahead with the idea, many find that it is not going to make money overnight. So, they also give up.

Again, less competition.

Lastly, many dropshipping businesses don’t work because of the products being sold, or high prices, or poor marketing.

Reducing all this, your real competition is far smaller.

The Other Way of Looking at It

The other way of knowing “does dropshipping works” in 2021 is looking at it like this:

Everyone is online. Look around you, from children to elders, everyone is on social media and everyone is purchasing products online. That’s a huge market. You have such a large audience to market to. There couldn’t be a better time for an online business.

Although it is going to be difficult when you set up your store because many other may have the same idea, your efforts can make a difference. As you offer quality, you would be able to grow and move up.

Is Dropshipping Dead?

Design by freepik

If you are consistently asking is dropshipping dead, it is not.

Did you know that more than 27 percent of retailers are selling via their dropshipping stores too?

It is also known that dropshipping business can help you earn 50 percent more revenue (profit) when compared to a store where you are managing the inventory.

In the future too, there’s scope for dropshipping. As a business owner, it is natural to assess the future prospects of a business. Therefore, you may also worry about the sustainability of your dropshipping business. You would find yourself asking will dropshipping be dead in few years.

But, that is not going to be the case. We have seen this pattern in the past too but dropshipping model became stronger and stronger, so much so that it is now a part of the supply chain.

The reason behind this is:

  • Less hassle
  • Niche selling
  • Higher revenue
  • Lower setup cots

Is Dropshipping Profitable?

dropshipping model
Design by freepik

Throughout this discussion, we have to explore if dropshipping is profitable. If you choose the right platform like AliExpress and use the right methods, you can earn great revenue quickly.

Below, we explain how does dropshipping work and what makes it profitable for your business.

1.Market Research

First things first: you need to research and find out the niche that will prove beneficial and sustainable in the future.

In dropshipping business, there’s always the risk that your users might not like your product, so they will not buy from you. To overcome the situation, you can do market research, check on Google Trends, and see if the product is popular or searched for.

By knowing the trends around your products, you may be able to market them well and promote them correctly.

2.Don’t Oversell

This means that you need to make calculated decisions during peak demands. For example, during the peak season, you don’t always have to market and promote all of your products. You don’t even need to put up a sale for everything.

Cross-check the products that are available with the seller in abundance and then start selling those. If there’s an unexpected demand for a product that is not on sale, then you can fulfill it at the same price according to the inventory of the AliExpress seller. You need to find a balance at this stage to avoid disappointing your customers.

3.Shipping Optimization

When you are getting products shipped directly to customers, you need to work with the shipping prices of the seller. On AliExpress, you have many options, you just need to optimize your shipping costs.

How this is possible?

Is dropshipping profitable this way?

When you are offering a product to your customers from AliExpress, you are likely to find many similar listings at different pricing. Our instinct is to find the lowest one. Don’t forget to add the shipping filter to it. This way you can get the lowest price at optimized shipping rates, which will make dropshipping more profitable for you.

4.Dropshipping Tool

What we did above is something that can be achieved with a dropshipping tool very easily.

Therefore, when you are asking does dropshipping work in 2021, you need to ask how does it work in 2021. Today, it is a matter of dropshipping tools you use. Fortunately, we have found just the right one.

DSers is the right dropshipping tool for AliExpress business. It helps you manage your orders, optimize your shipping costs, and find the right seller based on intelligent data searches.

DSers dropshipping

Get Started Now to Grow Your Online Business with the Best AliExpress Dropshipping Tool - DSers!


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  • DSers tool is powered by an AI engine that helps you find the right supplier. You don’t need to manually search to find the right deal for every order. DSers intelligent search will optimize this for you.
  • You can place hundreds of orders at once without thinking about any upper limit. There’s no limit on how many orders you can place from the tool.
  • Once you have ordered products for your customers, your orders sync with DSers dashboard, which allows easy tracking.
  • When a customer puts in a query for the order, you can check from the dashboard directly and resolve issues.
  • You can make bundles of the orders when placed from DSers. You won’t face any issues in creating bundle orders.

Some Examples

Some popular examples of dropshipping businesses are earning large revenues every month.

Club Fit Wear offers gym or workout clothes that are printed and amazing.

Oddity Mallsells unique gifts to a range of audiences.

Until Gonehas created a whole community on FOMO. They market their products well… until gone or sold.

Mooshe Socks sell unique socks in an appealing packaging.

Conclusion

Does dropshipping work in 2021?

We hope we were able to answer your question in detail.

Dropshipping businesses are thriving this year because everyone is shopping online. The model was popular even before the pandemic but at that time, the safety concerns were not there. Hence, since the pandemic, we are more inclined towards leisure, at-home shopping.

If you are finding it hard to set up your dropshipping store, check our AliExpress dropshipping tool. Make the best out of your business, earn better margins and automate time-consuming activities.

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