Over the past few years, dropshipping has been the most communal online business module to make a 6-figure income online. So if you are starting an eCommerce business, you ought to have heard about dropshipping and the related gossip, is dropshipping dead?
Dropshipping can’t be dead overnight. So this business module demands time, patience, and careful planning.
In this guide, I’ll tell you if dropshipping is still profitable and how you can start your dropshipping business today.
Is Dropshipping still profitable in 2022?
Dropshipping Google Searches are increasing at an ever-increasing rate. Google trends show dropshipping business will expectedly reach $560B by the end of 2025.
Over the years, the dropshipping business has shown a drastic growth rate. Around 30% of the online stores and 35% of Amazon sales use the drop shipping business module. However, you can still start a profitable dropshipping business with the right tactics and tools.
- There is a 17% increase in growth across all eCommerce platforms.
- Manufacturers have reported 18% more profit in their sales.
Some stores are booming, while others don’t work because of their priorities. Unfortunately, drop shippers often care about profit more than customers’ experience.
Do sell high-margin products but offer faster refunds with 24/7 available customer support to solve customers’ needs.
Reasons You Should Start Dropshipping Business in 2022
Here are the reasons you should start your dropshipping business in 2022.
Online businesses have a common myth: you need to invest in making money. The dropshipping business module breaks stereotypes and lets you make money without investment.
Unlike other online business modules, dropshipping is easy to get started with low startup costs. You don’t have to build a walk-in store and pay overhead to stock products. Instead, you find suppliers, list products, set profit margins, set up your website, make it look appealing, and advertise to grab buyers.
Another best point about dropshipping is you can sell anywhere without geographical restrictions as long as you have an internet connection. You can manage your business virtually and communicate with suppliers and buyers directly.
Plenty of Options:
With drop shipping, you don’t have to face the fear of anyone not purchasing the product since you don’t have to buy it in advance. Instead, you can play around, test different products, and set your marketing campaign per customers’ demand.
Moreover, you can add multiple niche products to your store to reach many potential buyers. For example, suppose you sell pet toys, but your audience is interested in buying pet food and grooming tools. You can sell everything to scale up your business.
No need to Maintain Stock:
Purchasing and maintaining physical Stock requires a significant investment. But, on the other hand, for the dropshipping store, you only need pictures of the products you are selling.
When a customer places an order, you get the amount, pay the supplier, he directly ships the product to the customer, and you earn with margin profit.
How to Start a Profitable Dropshipping Business in 2022 – 6 Steps Process
Here is the nitty-gritty to start your dropshipping business in 2022 and make a 6-figure income since you know dropshipping business is not dying any time soon.
Find Your Niche:
While selecting the niche, follow one rule. Don’t sell something customers need occasionally. Instead, sell something customers are passionate about; home appliances, pet goodies, cooking supplies, athletic goods, or clothing.
You can get help from Google Trends and social media platforms to find what customers are passionate about buying. Besides, do market research to check trending and valuable products.
The next step after finalizing the niche is product analysis. Product analysis helps you understand the demand for a specific product. Visit top eCommerce sites such as Amazon, eBay, and Shopify.
Search the product of your category and set the filter to “Best Sellers.” Now click on any product. The red highlighted writing will show how many articles are sold in the last 24 hours and the orders in line.
Buy a Domain:
A domain is where the customers will interact with you. Therefore, you must be extra careful when deciding on the domain name. Select something easy to pronounce and hold authority.
You can buy a domain from Shopify or website hosting platforms such as Hostinger, GoDaddy, Hostgator, or Bluehost. Ensure that the domain name ends with .com instead of .net or .shop. .com is highly valued since it looks professional and reliable to search engines.
Open an Account on Shopify and Install the Theme:
Since you have decided what you will sell, let us now finalize where to sell. Shopify is the best and most beginner-friendly option to start your online business.
The beginner-friendly setup hardly takes a few hours to create an account and set up your store. The best part about Shopify is you don’t need to set up a WordPress account or learn to code.
Finalizing the theme can be intimidating. Go through the multiple options to find the best one. Shopify has theme options based on product niche. However, the widely used Shopify themes are;
Design a Marketing Plan:
You might consider marketing easy as all you need to do is post on social media platforms. However, this process can exhaust you if you are not using the right strategies.
Use a PPC campaign to advertise your store on TikTok, Instagram, Facebook, and Google Ads for speedy results. It will bring clicks to your store. The more clicks, the more brand awareness will spread.
Optimize Your Approach:
For this process, you don’t need to do anything except wait and watch. During the first three months, observe which product is doing well. Do not expect all products will do great.
Filter the data and optimize the products accordingly. Keep optimizing your store based on what customers prefer and what is in demand.
Is Dropshipping Dead – Conclusion
Whether 2022 or 2025, dropshipping is nowhere to die soon. You can still make a 6-figure income using the right tactics with dropshipping.
The foremost cause most sellers fail is because they prioritize profit margin over customer experience. Of course, the profit margin is the possible way to make money with dropshipping, but still, give priority to your customers.
Sell products that are in demand and can be used in everyday life rather than on occasion.
Lastly, you can check my detailed guide on creating a profitable dropshipping store in 2022 if there is any confusion on how to start.
Thomas Raynott is a 6 Figure entrepreneur who made most of his fortune by trading Forex and Crypto and running several Dropshipping businesses online. You can learn more about him through his Blog.