Today I’m going to show you if dropshipping is still worth trying in 2022 or not.
In this comprehensive guide I’ll cover:
- IS DROPSHIPPING A SUSTAINABLE BUSINESS IN 2021 ?
- CAN WE LIVE COMFORTABLY? SHOULD WE CONSTANTLY RENEW ?
- IS DROPSHIPPING DEAD? OR ON THE DECLINE ?
- HAVE ALL THE BEST NICHES EVER BEEN OPERATED ?
- ARE WE DEPENDENT ON ADVERTISING TO ACQUIRE TRAFFIC ?
Let’s dive right in.
IS DROPSHIPPING A SUSTAINABLE BUSINESS IN 2021?
It’s not as easy to achieve great results as it was a few years ago, as the competition has intensified and ad spend has increased.
However, dropshipping remains a sustainable activity, as long as you select the right niches, the right products and create a successful store.
CAN WE LIVE COMFORTABLY? SHOULD WE CONSTANTLY RENEW?
Yes, it is quite possible to live comfortably, this is the case for thousands of people who have specialized in this business.
One of the ingredients that made them break through is persistence and focus. There is no secret: to succeed in dropshipping: you have to invest 100%, test, test and retest.
We have to go through failures to finally find winning products and derive maximum profit from them.
One thing is true in dropshipping: you can’t rest on your laurels. Even when you have one or more shops that are doing well, you should not wait for the tide to turn.
You have to constantly take the lead and try to be one step ahead of your competition.
The key to financial independence is diversification and delegation. If you want to be really at ease with your dropshipping business, you have to gradually delegate extra tasks, in order to free yourself up time and focus on tasks with high added value.
But when you start, it is imperative to get involved with all aspects of dropshipping, to fully understand the ins and outs of a dropshipping project.
IS DROPSHIPPING DEAD? OR ON THE DECLINE?
You understood it, dropshipping is very far from being dead, besides it never will be. Dropshipping is an integral part of commerce, and this long before the arrival of the Internet. The physical stores that can be found in its city center play as much the role of intermediary, between the manufacturer and the consumer, as a dropshipper. The only difference is that it’s happening online.
Can we say that dropshipping is on the decline? Far from there. It has never been easier to get started in online business. What we can say, on the other hand, is that it is more difficult to derive profits from it than before, because dropshipping has been popularized to the greatest number.
HAVE ALL THE BEST NICHES EVER BEEN OPERATED?
It comes to the question whether all the best niches and all the products have already been tapped or not. Fortunately no, and it never will be.
On the other hand, it is true that a good number of very profitable niches have been overexploited, and they should be avoided in order to focus on other much more accessible niches. This will save you time and money.
I want to reassure you anyway. Like the affiliation, there are hundreds of niche ideas still little or very little exploited, which deserve to be invested.
ARE WE DEPENDENT ON ADVERTISING TO ACQUIRE TRAFFIC?
The vast majority of dropshipping trainers recommend focusing only on paid traffic (especially Facebook Ads and Google Ads). But, in the next paragraphs I will show you other levers that are much more profitable, sustainable and under-exploited.
The advantage of paid traffic is that you get immediate feedback. You can do a multitude of tests, find winning formulas quickly and then scale.
A simple example: you sell a product 25 $, it costs you 5 $ and you spend on average 3 $ to obtain a conversion. You are profitable and you can scale without problem on this product by drastically increasing your advertising budget.
To be profitable in dropshipping, it is essential to plan for large margins. Indeed, you must take into account many expense items: product, delivery, advertising, VAT (depending on your status), taxes, all expenses related to your site (hosting, CMS, theme and premium plugins …), and well sure your time.
The mistake to be avoided is to ignore these numerous expenses. On the other hand, you must also take into account the fact that you will have losses on many products that are not profitable. Therefore, your winning products must make up for the losses of your numerous tests.
Let’s go back to our sources of traffic… we have seen that paid traffic is a very practical solution for getting immediate feedback and doing numerous tests. However, this remains the most expensive source of traffic.
The most profitable being natural referencing. SEO, is the most interesting source of traffic to work on in the long term. To have good results in SEO, that is to say, to position yourself well on Google, you have to optimize your site to perfection and work on your netlinking (create quality links).
Finally, we have social traffic which can be a vector of enormous traffic. By implementing a smart strategy on the social network (s) that matter, we can acquire targeted and consequent traffic. This can be on Facebook, Instagram, YouTube, Pinterest, SnapChat or even Twitter. You just need to be present where your prospects are and target them effectively.
I really hope you enjoyed this article. And now I’d like to hear from you.
Do you think that dropshipping is a sustainable business or not ?
Either way, let me know by leaving a quick comment below.