As we all know, Dropshipping is an e-commerce business model that does not require a business to keep products in stock. Instead, the store sells the product, and passes on the sales order to a third-party supplier, who then ships the order to the customer.
However, Dropshipping isn’t as easy as it looks. Recently, many gurus or so called marketers have been selling digital products teaching dropshipping and basically making more money from teaching it, rather than doing the business itself!
So the question is, does dropshipping work in 2020 or it’s a dead business model, thanks to some gurus of this industry? Here’s my opinion…
Here are some hard truths about the dropshipping business:
– The profits are lower than you think
– It’s a risky business model
– it’s highly competitive, so it won’t be an easy endeavor
– You have no control over supply-chain
– impossible to build a brand
With these facts being said, here’s my own experience in dropshipping and what I think about the business in general:
Dropshipping isn’t dead, but it’s not a good business model anymore. This business is in process of dying and with it, killing dreams and businesses, so it’s best if you don’t get into it, if you aren’t in it already.
Last year, I had 7 dropshipping stores, optimized and doing OK but by the end of the year, 6 of them were dead and were basically costing me money to maintain (i would be ok keeping them even if they were breaking even, but they weren’t)
and my last store is also struggling…
You can say I’m not doing it well, or I don’t know much about it, but in reality, this business is becoming harder and harder to profit from.
If you want to get into it, you need to invest a minimum of $5,000 to build a serious store and business.
That’s my opinion based on my experience in the dropshipping business.
Let me know what you think about this business or share your experience if you got any!
IMO if you want to do ecom, you need to have a brand and your own product. Dropshipping is basically dead unless you’re selling something very special and unique that no one or not many people are selling out there.
I think a small dropshipping store focused on a very small niche would be effective. For example, start an online store an only sell bathroom related items