Are you asking if one of the greatest online platforms that led many people to earn a fortune by sitting at home is going to die in 2020? Affiliate marketing and Dropshipping are two widely discussed topics in 2020.
Either you are eagerly concerned or your time on the internet is not serving you well enough. We will discuss is dropshipping dead in this article and at the end, you can decide whether dropshipping is going to be profitable in 2020-2021.
WHAT IS DROPSHIPPING?
Before engaging in comprehending the business mood of dropshipping, it is important to understand what dropshipping is and how it works.
Dropshipping is not much of a conundrum. It is easy to understand and earn. There might be stories where you commence a store in the evening and overnight you make some bucks.
Maybe they do exist but to execute such an idea onto business is a bit tough and hard work.
Dropshipping is where you start a store by yourself where you showcase a product for 30$. When a customer closes an order, you forward the purchase details to the merchant or vendor who owns that product with the retail price,20$. ie customer buy from you, you buy from the dealer for a less price and the difference in price fall to your pocket as profit. That simple huh?.
But the reality is that conducting and conveying this business among customers is not that easy.
The greatest advantage of dropshipping is that you don’t need to have an inventory or have the products in stock. You are just a mediator letting the sales flow from one platform to another.
Most of the times, the dealer or the merchant in dropshipping business is AliExpress, Amazon etc. Individual merchants are also great contributors into dropshipping marketing system.
IS DROPSHIPPING DEAD?
The best approach to convincing ourselves about this uncertainty is through analysing the statistics of the dropshipping on google.
Google trends are often utilised to study the behaviour of several businesses. Numbers usually don’t lie
Have a close look. Even though there were some drops in the trends, the demand and growth of dropshipping are going up every year.
This clearly shows the future you can invest in dropshipping. Advancement in technology is effecting every sector since every aspect of the business is getting transformed into an online model.
This is a great advantage and a great competition as well. But the strategies you adopt to implement your business at the right spot and time can cause a huge difference.
Amazon was the first to do dropshipping that ended as a successful business bringing amazon to the current business model.
Several companies invested in dropshipping following amazon and were able to create their own brand and market online. There were many concerns that came on while advancing dropshipping to next levels like supplier hunting, shipping, online store management etc.
It was e-commerce companies like Alibaba, Shopify, AliExpress, Magento etc that solved the issues with online store management.
In general the question”Is dropshipping dead?” is not buying much relevance now.
WHY DROPSHIPPING IS A GROWING PLATFORM?
Let me just make it clear for you why dropshipping is expected to be a growing platform in future with the help of certain statistics ruled out based on economical studies.
Numbers are a great way to evaluate the behaviour of the business.
- Amazon which is a dropshipping platform as well acquired its 34% sale in 2011 from a single drop shipper. It has been growing every year after that.
- Around 27% of online retailers had adopted drop shipping as the way of marketing their products after 2015.
- Around 24% of online sales were established with dropshipping in 2017 which is almost $84 billion.
- Merchants adapting dropshipping is seemed to make 19% more profit compared to the traditional courses or methods adopted for marketing and sale.
One of the major dropshipping marketing platforms is Shopify. Shopify has grown in demand and trade in the past 5 years.
The google trends regarding Shopify shows that people have started to invest and depend on Shopify in a logarithmic manner.
This clearly recognises the expanse of dropshipping in the upcoming future since there are substantial investments and researches going on the dropshipping sector which only make it highly conceivable to advance in future rather than leaping down.
If you are looking for a way to earn profit in a very short time, dropshipping is not recommended. You have to invest your time, effort and money to reap the best outcome.
The mood of people to gradually move on to online shopping is a great advantage regarding dropshipping and affiliate marketing business owners.
If they are utilising this situation properly there are higher chances of continuance.
HOW TO MAKE DROPSHIPPING PROFITABLE?
As we discussed before, some companies are making a fortune out of dropshipping and some companies are not being able to earn from it. So what is the deciding factor that makes some profitable and some not?
Let’s conduct a detailed study!
Consider the price of a product is $10 on Amazon and you are selling it for $25. After excluding the shipping and extra miscellaneous charges, you earn a profit of $10 on each product. Let us assume you want to make a $10,000 per month.
Then you would have to sell at least 1,000 products in a month.
ie, 35 products a day.$10 * 35 =$350 a day$350 * 30 =$10,500
Which means if you intend to earn $10,000 each month from dropshipping, you would have to sell at least 35 products a day and this is not easy for a newcomer.
There are certain things which must be avoided and certain things which must be used as survival tools for the smooth running of the business.
The stages at which most of the drop shippers fail is to keep customer satisfaction consistent. Since the delivery and shipping is carried out by the suppliers, there is nothing much drop shippers can do to enhance the quality and punctuality of shipping.
Some customers get disappointed with recurring delivery issues. It is vital to bring in potential and reliable suppliers for a long term business commitment.
Since you are providing high-quality service as a drop shipper, you must have in pocket suppliers who keep up the same standard as that.
83% of the dropshipping starters find it difficult to gather potential and high-quality service offering suppliers to serve the customers. Once this job is done, half the business is secure!
To be thriving in drop shipping, begin by occupying an eCommerce stage that meets your budget and requirements.
Study how simple it is to start, cost of the platform, best payment methods, and how can it be estimated.
WooCommerce and Shopify are two common options.
The Clickfunnels is a tool used by many affiliates and merchants to create organised and clean sales funnel which help them track the path of every customer ending up in a purchase.
Since not every entrepreneur is a programmer or coder, Clickfunnels placed its relevance in the online platforms.
ClickFunnels gives you access to blend the shipping with third-party applications like Kunaki, Disc delivered and Shipstation etc.
This helps you create attractive and convincing landing pages which invite better customer traffic and reviews.
Dropshipping is a great venture to invest in 2020 due to enhanced positive inclination in online shopping.
Due to the Corona crisis, people are unable to access offline shopping which is forcing them to stick on to online purchase.
This is a great advantage considering online business owners like affiliate marketing, dropshipping etc.
If you are guiding the platform with effective tools and strategies expecting a slow and steady growth, dropshipping will assist you in building a branded establishment in a couple of years.
So there is no need to indulge yourself with the question “Is dropshipping dead?”.