The global dropshipping market is expected to grow to an impressive $537.8 billion by 2026, actively competing with traditional retail business methods for making money online.
With its rising competitive market, is dropshipping worth it?
We’ll cover all the benefits, downsides, and fulfillment strategies you need to start a dropshipping business.
Key takeaways
- Dropshipping is great for those seeking a low-risk business model with minimal upfront costs.
- Strong supplier relationships are critical to maintaining product quality and avoiding common dropshipping challenges.
- Choosing the right niche and finding high-demand products through market research helps make dropshipping more profitable.
- Though profit margins can be lower, dropshipping can still be a profitable opportunity when costs are managed carefully, and marketing strategies are applied effectively.
- Success in dropshipping depends on how well you manage customer service and adapt to market changes.
What is dropshipping?
So, how does dropshipping work? It’s a low-risk business model where a store sells products without handling inventory or managing shipping. Instead, the store partners with third-party suppliers who ship the items directly to the customer, letting the store owner focus on sales and marketing.
This model eliminates the need for storage space or upfront investment in stock, making it a popular option for entrepreneurs. You set your own profit margins and profit by keeping the difference between the supplier’s price and the retail price.
Here’s how the process goes:
- Choose your products and suppliers. Select items from your preferred dropshipping supplier that your target customers will like.
- List products in your online store. Add product descriptions, images, and pricing to your online store.
- A customer places an order. When someone buys a product from your dropshipping store, you forward the order details to your third-party supplier.
- Your supplier fulfills the order. The supplier packages and ships the product directly to your customer.
- You keep the profit margin. You earn the difference between the supplier’s wholesale price and the retail price you charged.
If you’re wondering, “Does dropshipping really work?” or “Is dropshipping a good idea?” you know it was never a get-rich-quick scheme – it requires time and effort.
The dropshipping business model requires careful inventory management and choosing reliable suppliers to avoid issues like shipping delays. Still, overall, it offers a low-risk business model with minimal upfront investment.
Is dropshipping worth it?
With the rise of eCommerce platforms, dropshipping has become a huge part of the online retail market and is expected to increase its global impact, especially for the fashion industry.
How profitable is dropshipping? One-third of all eCommerce stores use the dropshipping model to support their online inventory, lowering overheads and offering more value to customers.
From a fledgling product sourcing method to a legitimate eCommerce business model, dropshipping suppliers have since integrated with most online sales channels and streamlined the process with fulfillment services like Printify’s print-on-demand dropshipping, which automate product sourcing, ensure supplier reliability, and manage inventory.
But is dropshipping worth it for you?
It’s a good option if:
- You want to run a low-risk business without managing inventory.
- You’re looking for minimal upfront investment to sell products online.
- You prefer flexibility and want to scale your business quickly.
- You’re comfortable managing third-party suppliers and shipping logistics.
- You’re okay with smaller profit margins in exchange for lower start-up costs.
Dropshipping may not be right for you if:
- You expect full control over product quality and the fulfillment process.
- You need fast shipping and can’t afford any shipping delays.
- You’re aiming for higher profit margins and more direct control over pricing.
- You’re uncomfortable with managing multiple suppliers or handling customer satisfaction and service issues related to product quality.
- You want a more hands-on approach, like managing a traditional retail business with warehousing and inventory.
Global eCommerce sales are projected to grow 39% by 2027, surpassing $8 trillion. Now is the time to get in on these profits as online retail skyrockets in popularity, and dropshipping just might be your golden ticket.
Benefits of dropshipping
The dropshipping business model has some significant benefits over traditional brick-and-mortar stores or other online business models.
Low investment
Dropshipping has one of the lowest barriers to entry in eCommerce.
Dropshipping businesses mostly operate online, drastically reducing rent, utilities, and staff costs. There’s no need for a physical store or storage space, and you purchase products only after your customers have paid for them. You only need to spend money on listing and advertising costs, depending on your chosen sales channel and business goals.
Adequate supply chain
Traditional retail models require many hats to run a successful business.
With dropshipping, you outsource expensive tasks like warehousing, managing inventory, and packaging to professionals while focusing on designing, marketing, and exploring new market avenues.
Wide range of products
Without having to keep inventory, you’re free to offer and sell a broad selection of merchandise. If your initial choice doesn’t sell well, easily switch to another product or target market without financial setbacks.
There are hundreds of suppliers to choose from, so you’re guaranteed to find the right one for your dropshipping business.
Flexible location
Exceptionally low start-up costs mean you have the freedom of the open road.
Dropshipping is a viable business model that can be done from anywhere as long as you have an internet connection.
Ability to scale quickly
Dropshippers can scale their businesses quickly because the third-party supplier does all the heavy lifting – inventory, packaging, and shipping.
Without significant operational charges, you have more time to focus on increasing sales and producing compelling marketing.
It’s also much easier to add more products to your site since you don’t need to order and store them yourself.
Downside to dropshipping
Like every business model, dropshipping has its risks, both in products and perceptions. Is dropshipping still profitable even with its flaws?
Little to no quality control
With the dropshipping model, the manufacturer sends products directly to your customers, so you can’t see whether they’re in good condition. Without reliable suppliers, the quality of your products may risk your reputation.
Finding the best dropshipping suppliers can be a long-term process of research and communication, so it’s important to order your product samples before you consider selling.
Lack of transparency
As a dropshipper, you’re not involved in the order fulfillment and shipping process. This is a significant disadvantage if there are any order errors or shipping delays. Trustworthy suppliers will keep you in the loop about these issues, but finding them takes time and effort.
While you can still make money dropshipping without transparency, vet your suppliers very carefully – monitor inconsistencies and respond to delays to ease the buyer’s expectations before it can lead to negative customer feedback.
Low-profit margins
Although you don’t need to pay for stock in advance, product fulfillment costs will add up fast. Tack on advertisement costs, transaction fees, and other small overheads, maintaining decent profit margins becomes difficult.
You must sell more to make the same money as traditional stores or other business models.
6 Tips for running a successful dropshipping business
So, with all those pros and cons taken into account, does dropshipping actually work? Yes, if done right.
Running a successful dropshipping business requires a thoughtful strategy and detailed management. With a smart approach, you’ll navigate challenges, optimize your store, and thrive in a competitive market.
Here are six practical tips to help store owners succeed.
1. Find a niche that fits your market
Your chosen dropshipping niches determine what you sell and who you’re selling to. When selecting products, avoid oversaturated markets and focus on specialized niches that align with current customer demand.
Use thorough market research tools like Google Trends to discover popular products with less competition. A well-selected niche that fits your interests attracts loyal customers and leads to steady sales.
2. Build strong partnerships with reliable suppliers
Working with dependable dropshipping suppliers helps maintain smooth business operations. Focus on finding suppliers who consistently provide high-quality products and meet shipping timelines.
Test product samples to verify quality and monitor delivery times. Building solid relationships with reliable suppliers will help avoid common issues like delays and poor product quality.
3. Choose the right eCommerce platform
Selecting the best eCommerce platform is important for managing your dropshipping store effectively. Platforms such as Shopify and WooCommerce offer valuable tools for handling inventory, processing customer orders, and facilitating payments, while marketplaces like eBay can be easier to set up.
Expanding to multiple sales channels can increase your store’s visibility and attract more potential customers. Check out Printify’s dropshipping integrations for an easy way to sell customizable dropshipping products on your favorite eCommerce sites.
4. Focus on content marketing and customer engagement
You can’t grow your dropshipping store without a well-developed marketing strategy. Content marketing campaigns, including blog posts, videos, and user-generated content, build trust with your audience and increase your traffic potential.
Engaging with online shoppers on social media platforms increases visibility and helps build loyalty. Creating content your audience relates to can improve your store’s reach and attract more customers.
5. Prioritize customer service and communication
Your best PR strategy for building a successful dropshipping store is great customer service. Responding quickly to customer inquiries and resolving issues promptly helps build trust.
Being transparent about shipping delays and communicating with your customers can prevent dissatisfaction with dropshipping businesses. Quick replies and personalized service create a positive shopping experience that encourages repeat business.
6. Use data to refine your strategy
Tracking data from your store is vital for improving performance. Analyze customer orders, inventory, and marketing efforts to identify areas for growth.
Adjust your product offerings based on sales trends and customer feedback. Regularly refining your approach based on these insights will keep your dropshipping business competitive in a changing market.
Open your dream business with Printify
Print-on-demand dropshipping success stories
Many have turned their dreams of running a successful online business into reality. And with the help of Printify and Print on Demand, you can, too.
Afro Unicorn
April Showers created her brand Afro Unicorn to empower and inspire women of color to pursue business opportunities.
As a merchandise and clothing brand, Afro Unicorn has gained popularity and developed a strong community around it. April even landed a partnership with Walmart, the largest retailer in the United States.
Loretta Shadow Art
Loretta Owens – self-proclaimed “tech dinosaur” and an overnight TikTok sensation – began selling her striking artwork on Etsy with astounding success.
With the help of Print on Demand, she’s able to focus solely on her passion – creating artwork that explodes with color and character. With Printify, she designs and sells as many products as she likes without buying them upfront.
OceansAsia
Gary Stokes is the co-founder of OceansAsia, a marine conservation organization that investigates wildlife crimes and brings justice to those responsible for destroying aquatic ecosystems.
In their online store, they offer a variety of branded items. With the help of Printify, OceansAsia creates personalized merchandise that funds its cause, spreads awareness, and makes its brand known.
Create your own print-on-demand success today
How to start a dropshipping business with no money
Printify’s goal is simple: to help you make money with ease. Our platform is beginner-friendly, offering print-on-demand dropshipping services with no upfront investment. With top-quality products, competitive prices, and affordable shipping, there’s no better place to start a small dropshipping business and find success.
Here’s how you can get started.
1. Sign up for a free account
Sign up for a free Printify account, explore our ever-growing Catalog, pick the products you want to sell, and customize them using our free Product Creator.
2. Set up your digital store
Seamlessly integrate Printify with some of the world’s most popular eCommerce platforms and online marketplaces like eBay, Shopify, Etsy, Squarespace, and many others.
3. Run your business
Relax and focus on driving sales – no need to worry about managing an inventory or shipping.
When customers buy from your digital store, our thoroughly vetted Print Providers will print, package, and ship directly to their doorstep.
Why you should partner with Printify
As a tried-and-true way of making money from home, our print-on-demand dropshipping platform and fulfillment service are trusted by more than 10 million merchants worldwide.
An ever-growing Catalog
We offer over 1,000 customizable products for dropshipping, including t-shirts, hoodies, backpacks, yoga mats, phone cases, shoes, posters, and more.
Reliable Print Providers
We’ve partnered with over 80 printing facilities worldwide to ensure your products are delivered quickly to customers wherever they are.
User-friendly design tools
Use our powerful Product Creator to design and create new, unique products at competitive prices.
No risk, no inventory
You don’t need to pay a penny upfront. Printify is easy to use and accessible to everyone, thanks to no minimum order requirements or starting fees.
Frequently asked questions
Dropshipping is a perfectly legal order fulfillment method used by many retailers and entrepreneurs worldwide. It’s a very attractive business model for anyone looking to start an online store without the hassle of logistics and inventory management.
Dropshipping legal requirements may differ from country to country, so diligently evaluate your country’s regulations.
To keep yourself out of hot water, we suggest:
- Carefully vetting your dropshipping suppliers
- Protecting yourself with a Dropshipping Agreement Contract
- Consulting a legal professional who specializes in dropshipping legal requirements
For more information on starting a compliant business, check resources on business structures, taxes, and other legal considerations relevant to your region, and plan carefully before starting a dropshipping business.
The Dropshipping model offers an ideal chance for beginners to start making money because of its low startup costs and minimal risks, making dropshipping profitable with enough effort into product sourcing and eCommerce marketing.
You don’t need to hold inventory or manage shipping logistics, making it an accessible business model for newcomers who want to try eCommerce without large upfront investments.
Yes, $100 can be enough to start a basic dropshipping business. With a low upfront investment required, setting up dropshipping stores, purchasing a domain, and starting with some basic marketing can get you growing.
However, additional funds may be needed for product testing, advertising, or other unexpected expenses.
Yes, dropshippers can make good money with very low startup costs. Start dropshipping by finding a profitable niche, building a strong online presence, effectively managing supplier relations, and providing excellent customer service.
Dropshipping is definitely still viable in 2024. While profit margins can be lower than those of other business models, and it’s lost its popularity as a quick way to make money, careful planning, and a well-prepared marketing strategy will position you for success. Dropshipping still works despite becoming more streamlined.
Dropshipping is profitable if you’ve got the right approach and strategy. Earnings vary widely depending on niche, marketing efforts, and business size.
On average, dropshippers earn between 10-30% profit per sale, with monthly earnings ranging from a few hundred to several thousand dollars, depending on the store’s success and sales volume.
In the initial stages, you also need to account for expenses such as hosting an eCommerce store, marketing strategies, and purchasing samples from suppliers.
Like any other business, working in the dropshipping industry is not effortless. However, it’s a viable, welcoming, and profitable business model with plenty of supplier networks and eCommerce platforms that anyone can use to start.
Closing thoughts
Dropshipping and Print on Demand are an excellent opportunity for anyone wanting to profit from the rising popularity of online shopping.
Is dropshipping worth it in 2025? Yes, and we’re here to keep it growing.
Whether you’re planning to run a side hustle or devote yourself wholeheartedly to entrepreneurship, Printify is here to get you started on the right foot!
