Is dropshipping profitable in 2018? Can I make money on dropshipping business? Does dropshipping work? Is dropshipping dead? Nowadays these questions are very popular. Lots of people want to start a dropshipping business, but doubt, if the game is worth the candle. They are afraid of spending a lot of time on it and getting no money. Besides, people think that in 2018 it’s too late to start this type of business, because of the overwhelming number of competitors. In this article, I’ll try to explain why there is nothing to panic about and why dropshipping is worth it.
Let’s explain this statement. Nowadays there are more than 190 countries in the world and the majority of them (about 150) are developing countries. Some of these countries develop rapidly, others fall behind. However, all these countries have one feature in common – the growing number of internet users and online buyers.
In 2015 the percentage of developing countries’ population using the Internet was 34%, while by 2025 it’s going to reach the 50%. So the number of your potential clients is increasing dramatically. Why do I call developing countries’ population your potential clients? People in these countries are usually plagued by the lack of quality goods and do not have a wide choice of products. When using the Internet, they get much more opportunities to buy the necessary items. If you do research and identify people’s needs in the emerging countries, you will get a new market.
Dropshipping is like fashion which, as we know, changes over time. A few years ago people were interested in buying selfie sticks and these goods were extremely popular. Now their popularity is at low point and people want to buy quadcopters, for example. To be successful, dropshippers should be flexible. If you decided what to sell 3 years ago and didn’t do any changes, there is a great chance that your dropshipping business is already unprofitable this year, especially if you sell seasonal goods. Are you sure that you dropship products that people really want? People are changing as well as their needs and wishes. Study what is popular right now and take a new look at your goods. As a dropshipper you have some advantages over other retailers, because you do not buy products in advance. So you can change the products on offer with ease and try something trendier at no cost.
Yes, it is. More and more people start dropshipping business these days because of its low barriers to entry. However, only a small part of them uses new strategies and rethinks several important aspects in order to improve their business. People usually download some guides, run through them and do nothing more. They forget that dropshipping is a business that requires efforts to be run successfully.
Nowadays dropshippers deal with B2B more and more actively. Some years ago it was practically impossible to dropship products to other business owners. Today it is our reality. This market segment is not fully taken yet. According to statistics, in 2014 the share of B2B businesses in the USA that sell online was only 22%, but it is growing constantly. It’s expected, that by 2020 B2B e-commerce will constitute 12.6% of all the B2B sales in the USA. Besides that, some experts believe, that B2B e-commerce market will outperform traditional B2C e-commerce market soon.
The use of modern mobile technologies opens up new opportunities for dropshippers. In late 2017/early 2018 mobile sales represented up to 35% of the total volume of e-commerce sales. Nowadays people prefer to make purchases with the help of smartphones. It’s very convenient, because one can buy a new T-shirt when stuck in a traffic jam, for example.
If you have a dropshipping website, make it at least mobile-friendly; ideally – mobile first. It’s a must, if you want to get more clients and more sales. Besides that, people in emerging countries usually use mobile technologies to get online, so if you make your dropshipping store mobile-first, you will have a fair chance of success.
Having doubts is ok when you start something new, especially a new business. However, you should remember that there are no ideal business models. No matter what type of business you do, it will be successful if you work on it and invest efforts. Dropshipping is worth starting. In this article we have only taken a look at the main reasons why you can make money on dropshipping, but there are definitely much more of them.
Thanks
Subhash Choudhary
