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Is Shopify Dropshipping dead?

July 14 2021 03:28
Winnie
Is Shopify Dropshipping dead?

If you are an owner of an e-commerce store or sell your products or services on an e-commerce platform, you might be aware of the term dropshipping. Dropshipping is one of the famous and convenient e-commerce business models. It has helped many business owners to earn a higher revenue without spending a dime on the products they sold. 

However, in recent times, where there are numerous business models, people wonder when dropshipping is still profitable in 2021 or not. Today, we will discuss all is Shopify dropshipping dead or is dropshipping worth it in 2021. 

What is Shopify dropshipping model?

The Shopify dropshipping model consists of three main entities. It includes your online Shopify store, suppliers, and your customers (whom you want to sell the products). In dropshipping model, the products that you sell aren’t your own.

When one of your customers orders a product from your Shopify-based online store, you contact the supplier/manufacturer of the product. And tell them to send the product to the customer that ordered it. It is one of the most profitable eCommerce business models. 

Now, we will discuss major points which will depict is Shopify dropshipping dead or is dropshipping worth it.

Is Shopify dropshipping dead in 2021?

The answer to this overwhelming question - Is Shopify dropshipping dead? - Is no. No, Shopify dropshipping model is not dead in 2021. It would not be dead in the upcoming years as well. The dropshipping market is to reach approximately $557.9 billion by 2025. It means that the industry would grow about 29% per year. So, if dropshipping is dead, how can you even imagine the market reaching such an astounding estimate like this. 

In addition to this, many retailers have integrated the Shopify dropshipping model to earn higher revenue, without spending too much. Current statistics show that almost 27% of retailers have embedded Shopify dropshipping model in their business. 

Nevertheless, numerous stats depict that there were almost 2.05 billion online buyers in 2020, which has increased up to 2.14 billion in 2021. These ever-growing stats show how much potential does the Shopify dropshipping model consists. 

Moreover, the Shopify dropshipping model is the third most used dropshipping model in 2021, with a whopping percentage of 11.8. This percentage of the online retailers on Shopify is expected to grow more in the upcoming years. 

recent study proved that dropshipping helps online retailers earn 18.3% more revenue, as compared to traditional online retailers selling their products on their e-commerce store. Now because of the pandemic, online stores are in trend more than ever. And due to this, the drop shipping industry has taken the world by storm. In our opinion, if you are an online retailer, you should choose the dropshipping model of Shopify.

One of the statistics shows that almost all drop-shippers attract around 66% more online consumers. 

Moreover, as transactions are done conveniently via dropshipping, more online retailers are approaching the Shopify dropshipping model. It is a great marketing strategy and ideal for novice retailers that do not have much cash in their hands. 

Is Shopify dropshipping still worth it?

Is dropshipping worth it is a popular question asked by many online retailers. The answer to the question is dropshipping worth it is yes. Yes, Shopify dropshipping is worth it in 2021. Although many online retailers and online business owners claim that the model is not worth pursuing, it is not true. Although the market tends to be saturated, there are some ways by which you can still earn higher revenue through Shopify dropshipping. Some of those ways are specified below. 

Try to work with the latest brands and suppliers

You can always contact new suppliers and manufacturers to sell their products and earn revenue from Shopify dropshipping model.

One of the primary reasons online retailers claim that the model is not worth trailing is that they stick to old products. And do not try to add diversity to their products. Every day or a week, there are tens and hundreds of new products, each having the potential to be better than the other. 

So, despite promoting, and working with the brands having no diversity in their products, or that do not upgrade or release new product lines, try to approach new brands. Try to work with reputable brands that are constantly upgrading and making their products innovative. 

Work with Doba.com to get excellent results:

If you want to get good learning and output you should get in touch with Doba.com. We will help you with basic to advance drop shipping experience. If you want to get some hot and trending products you will be given full access to it. We make sure we support you in finding excellent resources and partners to work with you.

So, if you want to get any help related to Dropshipping, Doba.com should be your choice.

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Learn to deal with the increasing ad costs

As Shopify is an online e-commerce platform, its dropshipping model heavily relies on advertising. Without a solid advertising strategy, you can’t earn higher revenue from Shopify dropshipping. 

Hence, a solid advertising strategy to promote your dropshipping store needs money. And recently, the ad costs have seriously boosted, which has affected drop shippers. But, since it is true, it does not mean that dropshipping is not worth pursuing. There is always a solution to a problem. 

You can always learn how to cope up with the increasing ad costs to promote your dropshipping store. There are plenty of advertising tools and platforms in the market that let you effectively target your audience and turn them into potential customers. 

If you truly want to rise as a successful drop shipper, then even the rising cost ads might appear subtle to you. 

Try to follow the above-specified strategies, and you will get a clear answer to the question, is dropshipping worth it or not? 

Why are some Shopify dropshipping stores thriving?

Although, you can see that dropshipping is alive, and the statement “is dropshipping on Shopify dead” is not true. Some Shopify dropshipping stores tend to thrive. Some of the reasons by which numerous Shopify dropshipping stores thrive are specified below.

·       Poor customer support

Many drop shippers only focus on earning a higher revenue in a short period, due to which they forget that they must put customer satisfaction first. If you want to keep your dropshipping store alive, and functional, make sure to meet all the requirements of your customers. And solve your customers’ queries and give them excellent customer support. 

·       Be authentic 

Moreover, be authentic, and improve the performance of your online store. As many drop shippers heavily rely on advertising, they do not focus on the user interface of the store. It hurts their reputation in the competitive market. Also, try to sell high-quality products, as you mention in your ads. Authentic dropshippers tend to attract more customers and get more business opportunities.

·       Be professional 

As mentioned earlier, that most dropshippers are continuously taking shortcuts to earn money through their online store. They have lost the sense of professionalism. Dealing with customers in the right way is mandatory. And it is one of the primary things which helps you build a unique business identity. 

Therefore, to effectively keep functioning as a dropshipper, make sure to have a professional attitude by being honest, offering incentives, and handling different situations of your clients respectably. 

What are the biggest problems that Shopify dropshippers face in 2021?

Some of the biggest problems that Shopify dropshippers face in 2021 due to which they fail in their dropshipping business are specified below. 

  • Delays in the shipment 

Late shipment is one of the primary problems that many Shopify dropshippers face in 2021. Late shipment can hurt the reputation of your dropshipping store and hurts your revenue. It also potentially hurts your web traffic on your Shopify store.

  • Insufficiency of resources

Another problem that Shopify dropshippers face in 2021 is that sometimes they do not have the funds for their ad campaigns. As advertising is the backbone of dropshipping, the insufficiency of funds hurt numerous Shopify dropshippers in 2021. 

  • Difficult to make a unique business identity

As mentioned earlier, the products that you sell in your dropshipping store are not yours. It is hard to build a unique and separate business identity. 

  • Not knowing the right platform

As dropshippers thrive on advertising, they need a solid marketing platform. Many Shopify dropshippers run their campaigns on less viable and a single social media platform. As a Shopify dropshipper, you must market the products on numerous social media platforms having a large number of audiences. Like, Facebook. 

How to succeed with Shopify dropshipping?

Is dropshipping on Shopify dead is a worrisome question among many online retailers. Although, the answer to is dropshipping on Shopify dead is literally no. But some practices can make the statement “is dropshipping on Shopify dead” turn into reality. There are numerous ways by which you can succeed with Shopify dropshipping. Some of the most popular ones are specified below. 

Provide the best customer experience

Try to improve the layout of your dropshipping website and try to provide the best customer experience. Earning through dropshipping requires both time and effort. And that is why you must provide customers with the best services to have more customers in the future. 

Explore the market, and find the niche

Another way to succeed with Shopify dropshipping is to explore the market and look for trending products. Selecting the right niche would allow you to target a larger set of audience. It would allow you to earn more profit at once, hence, boosting your Shopify dropshipping’s revenue. 

Build a brand

Put your time, effort, and resources into making your Shopify dropshipping store into a brand. A branded dropshipping store would be more visible to your audience and will allow you to increase your conversion rates. 

Conclusion

The above-specified are some of the ways by which you can know if Shopify dropshipping dead or is dropshipping worth it or not? The answer to is dropshipping on Shopify dead is no, as you can see from the stats. 


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