Is Dropshipping Dead?

What up! Hustlers,

It’s Mr. Nuggets again with another edition of Business Nuggets. Today we’re gonna try to answer the most debatable question in the e-commerce landscape:

Is Dropshipping Dead?

The dropshipping model took off when the world went into a lockdown in 2020 and many people started to create online stores and make money.

The model offers the advantage of not requiring warehouse maintenance for supply.

But in 2024 people have become skeptical about the model as gurus on social media claim that it is dead.

The truth is dropshipping is far from dead.

Recent stats expect the global dropshipping industry to hit $300B by the end of 2024.

Google Trends data shows that it is still just as relevant in 2024.

Then, Why are Youtubers calling it Dead?

Some content creators are trying to promote other business models such as AI Automation Agencies, SaaS, etc to sell their courses.

On, the other hand some dropshippers are also calling dead due to 2 main reasons:

1. Fierce Competition in the Market

2. Domination by Brands

This is because:

1. It is fairly easy to enter the market

   The market is saturated due to the low entry barrier and the initial investment required.

   This means the number of sellers for a single product is a lot

2.  New dropshippers are focusing on making money

   New dropshippers are entering the market to make some quick money, rather than focusing on building a brand around the product.

   This has further led to less competition for brands as they have authority over others due to the value they have provided.

Is it worth starting a dropshipping store?

Yes, it is totally worth it to start dropshipping in 2024.

But, only if you’re looking to profit long-term.

It’s not for you if you want to make a quick buck and leave. You’re better off starting a service business or an agency.

But, if you want to make a lot of money, you have 2 ways to do so:

1. Build a brand around a niche market

   Pick a product in a niche market such as kitchen accessories, pet accessories, etc & build a reputable brand. This will help you introduce more products and boost profits in the future.

   Pros: You will not face much competition.

   Cons: It takes some time and requires a lot of social media presence.

2. Follow the trend

   Find trending products early create mini-stores for them and advertise it heavily.

   Pros: You can make quick profits

   Cons: You have to look out for trending products

In Conclusion, It is not too late to start a dropshipping business in 2024, but it will take some time to see some profits.

PS: If you’re thinking about starting a dropshipping business this is the best video for you.

It is 18 hrs long but worth it! If you want a breakdown series of this video then give me feedback about it below.

— See ya!