Published On: Tue, Jul 28th, 2020

The future of dropshipping

Dropshipping has been around for some time now, but its concept is unclear sometimes to newcomers. When people hear about something they are unfamiliar with, especially if it has anything to do with running a profitable business with minimal investments, they become rather skeptical. 

Dropshipping is the kind of business with low startup investments that allows you to get a stable source of extra income in case you’re dedicating enough time to it. It is an accessible and easy to understand business model, however, newcomers to dropshipping still have many questions. What is the future of dropshipping? Is dropshipping dead? Is it worth it? Is the market overflown? In this article, we are going to find out the answer to these questions. 

photo/ Mashiro Momo

Is dropshipping worth it? 

There are lots of success stories that you can find related to dropshipping businesses. At first sight, it may seem that the market is oversaturated. However, this is far from the truth. According to Socialnomics, in 2017, only 33% of Internet retailers were using the dropshipping business model to sell products online. Since then the sales in the ecommerce market have almost tripled. This means that there is enough room for newcomers to establish their dropshipping businesses. 

The percentages don’t tell the whole story, as these 33% consist of mostly European countries and entrepreneurs who have been doing business in already developed markets. 

However, that doesn’t mean that you have to focus only on these markets. All around the world ecommerce businesses are becoming more and more popular. Slowly but surely, people get more accustomed to ordering products online. By doing a little research you’ll be able to find and target these untouched markets. Undoubtedly, if you target these markets you can build a successful business, but are there any other indications that confirm that? In fact, there are.

What is the future of dropshipping? 

  • New opportunities to operate on developing markets

The Internet is becoming more accessible in developing countries. In recent years, the percentage of Internet users in developing countries has risen from 35% in 2015 to 49% in 2019. As time goes by, the number will surely increase even more. Thus, the number of potential customers will also rise. 

  • New target segments appear 

Purchasing power in developing countries is increasing. According to various researches, residents of developing countries gradually improve their financial situation. Representatives of the middle class are establishing themselves as a very promising audience, as they are preferring to shop online more and more.

  • Meeting the demand in developing countries is becoming easier

For one reason or another, residents in emerging countries not always can access the desired products. However, dropshipping business owners can easily meet the audience’s demand and deliver people what they want. Of course, only if they target the right audience and regulate their pricing strategy accordingly. 

If that’s not enough proof that the future of dropshipping is looking bright, here are some statistics that will change your mind: 

  • According to Grand View Research, Inc, the B2C eCommerce market will grow every year by around 11.7% and by 2025 will be worth almost $8 billion. 
  • If we look at the stats provided by Statista, there will be over 2 billion online store buyers worldwide by 2021

Simply put, if you set up your online business properly, there won’t be a shortage of customers.

As we can see, from everything that we’ve mentioned, dropshipping is thriving. And now is the time to start your own dropshipping business. Here are a few reasons why: 

  • People have become accustomed to ordering what they need online
  • Merchants now more than ever before are willing to work with dropshippers
  • Easy money transactions
  • Almost no upfront cost whatsoever

What is the future of dropshipping? People will always buy products, you just need to find a way to reach out to these people. Providing them with what they want and following it up with excellent customer service are the keys to a successful dropshipping business. It also heavily relies on the time invested in researching various niches and target audiences. With major retailers supporting dropshippers there are more opportunities than ever to create a business with almost no upfront investment. Remember, that it is going to be challenging but in the end, a successful business will be certainly worth it.

Author: Kirill Zhukov

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