Is Dropshipping Still Worth It In 2024? (2024)

Are you wondering if dropshipping is still worth it? Or what’s the success rate and how profitable is dropshipping? If you only want a short answer, well, yes, dropshipping is definitely still worth it in 2024, as it was in 2023 too. And no dropshipping is not dead, to answer another question. Looking at the last couple of years, we can almost guarantee that dropshipping will be worth it in 2024 and many years from now on.

But this only applies to dropshipping done in the right way. What’s that exactly? We’re talking about dropshipping and selling high-quality products that come only from reliable suppliers that can also ship fast to your customers.

Now, if you’re thinking of starting a dropshipping store with products from China, that have 3 weeks shipping times, and don’t have any customer support, then yes, this type dropshipping is dead and has been for a long time!

Watch the video above or read on if you want to know why dropshipping is such a strong and profitable business model.

Table of Contents

Why do we think that dropshipping is still profitable and worth it in 2024?

What better way to prove our statement about dropshipping still being a successful business model today, in 2024 and beyond than by giving you some facts from credible sources that can back all this up? No need to take our word for it, here are some hard facts for you.

According to a report done by Grand View Research, the global dropshipping market reached $225.99 billion in 2022 and is expected to grow at a rate of 23.4% from 2023 to 2030. Here’s the report if you want to know more

How amazing is that?!?

Another market study done by Research and Markets states that the global dropshipping market will reach $591.77 billion by 2027. Here’s the report

And did you know that 22-33% of online retailers have adopted the dropshipping model as their primary method of order fulfillment? Read here more

What’s the search interest in dropshipping these days?

Now, let’s go through some other tools, like Google Trends, to show you how successful and profitable dropshipping can be.

As probably most of you know, Google Trends is a highly valuable tool used mostly to identify “trendy” (aka profitable) niches, products, or brands. So, let’s see how dropshipping is trending.

Google sets the search interest on a scale between 0 and 100. So, the numbers on the right represent the relative number of searches for a given term in a given period. As you can see we have 25 in 2019 and 100 in 2022, and that means that this word has been searched many more times in 2022.

Google Trends data about dropshipping for the past 5 years.

Now, this graph shows that the search interest for “dropshipping” has grown since 2019. And, even though there have been some ups and downs, as it always happens, the conclusion is obvious, dropshipping search interest is now 4 times greater than 5 years ago.

Just for the fun of it, here is another graph.

Google Trends data for Amazon dropshipping versus Shopify dropshipping in the last 5 years.

Now, we searched for “Amazon dropshipping” versus “Shopify dropshipping”, and both of these terms have shown steady and strong growth in the last 5 years. What’s even more interesting is that “Shopify dropshipping” is consistently gaining more interest and searches than “Amazon dropshipping”.

Is dropshipping profitable?

You probably know the answer if you got here, but here it is nevertheless: Yes! It can be quite profitable to dropship products. Of course, as for how profitable it can be, that depends on many factors, such as:

1. The type of products you decide to dropship, if it’s the right niche, what’s the competition, how much you spend researching and analyzing your target audience, etc.

2. How much effort you can put into marketing can lead to an increase in your sales and therefore your profits.

3. The right ecommerce website and platform are also very important when it comes to having a profitable business; a user-friendly website should also be easy to navigate as this is the main channel that can convert users into customers.

4. Try using a platform like AppScenic that gives you access to top and fast suppliers and a catalog of unique, premium products, this way you won’t have to rely on only one supplier and their range of products. You can add new products monthly and test new niches till you find the right one.

5. Treat your customers with respect and have great customer service that always is there for them.

Now, let’s talk numbers. While we can’t actually tell you how much money you will make, we can share some inspiring stories (check these successful Shopify dropshipping stores) and we can give you some numbers. As a newbie, you can make somewhere around $500-$3000 per month on average in the first year of business.

Many dropshipping beginners have achieved five, six, and even seven-figure incomes. But remember, these results are not typical and require hard work, continuous learning, and adaptability. And, we can stress this enough, all of this depends on many factors, such as how unique your products are.

And to make things even clearer, below we’ll go through a simple example of what kind of profit a dropshipping beginner can achieve with a specific product.

A high-profit example for dropshipping beginners

When starting your dropshipping journey, we always recommend beginners consider high-ticket niches or items. Let’s take a practical example to illustrate the potential. Imagine you decide to sell electric fireplaces in your online store. A quick search on Google Shopping reveals that the average price range for a decent electric fireplace is between $500 and $1000.

Let’s assume you set a price of $700 for your electric fireplace and source it from a supplier for $400. This means you would make around $300 in profit per sale. However, it’s important to consider your marketing expenses as well.

So, let’s say you decide to promote your electric fireplaces on Google Shopping, and you have a cost per click of $1. Assuming a 1% conversion rate, which is relatively low for Google Ads, you would need 100 clicks to generate one order. With 100 clicks at $1 per click, you would spend $100 on Google Ads to generate a $700 order.

Let’s do the final math:$700 (order value) – $400 (cost of goods) – $100 (ad spend) = $200 (net profit).

To generate a monthly profit of $3000, you would only need 15 orders, which translates to an order every two days. This is something even a beginner can achieve with the right niche, the right product, the right price range, and effective advertising.

Now, imagine selling outdoor saunas with an average price of $5000 on Google Shopping or jacuzzi hot tubs ranging from $3000 to $5000. The possibilities for profit grow exponentially. By adjusting your profit margin and exploring high-ticket items, you can generate significant profits at the end of the month even with a 10% profit margin.

So, can a dropshipping beginner like you be successful and profitable by selling high-ticket items? Absolutely! The key lies in putting all the pieces together – finding the right supplier, selecting the right product, running effective ads, and so on.

What is the dropshipping success rate?

Now, to finish off this article, we wanted to talk about the dropshipping success rate a bit. Spoiler alert, the number is quite low.

Experts estimated that about 10% of dropshipping businesses have a high success rate during the first year. Of course, we can’t actually verify this data, and probably one of the reasons it is so low is that many dropshippers rush into this business without doing any research or even educating themselves on the best way to start a dropshipping business.

Yes, dropshipping may mean a low-risk business model, because you are not actually keeping a product stock or having to ship the items yourself, but that doesn’t mean you won’t need to plan and do your fair research. Every business model will fail, no matter how simple or complicated it is, if you don’t do your part.

So, for dropshipping to work and be worth it, you will have to invest time, money, and effort. As long as you’re selling unique and premium products and are always there for your customers, your online store can be successful and profitable.

Feeling lost trying to start a dropshipping business? Well, we’ve got just the right dropshipping course for you.Our course is perfect for newbies who need help setting up shop or experienced sellers who are struggling to make sales. Join now!