Is Dropshipping Dead in 2024? (Unveiling the Real Truth)

Dropshipping has taken off in recent years.

It's now a go-to option for small entrepreneurs and business owners looking to start a business without hefty loans or significant upfront costs —a great way to get started in entrepreneurship.

But lately, there's been a growing debate: is dropshipping here to stay?

Some claim dropshipping is dead, while others believe it's simply evolving. But what does that really mean for you?

Quick Answer: Is dropshipping dead?

No, dropshipping is not dead. However, due to a surge in interest in this business model, the market has become increasingly competitive.

According to statistics, the dropshipping market size is expected to reach $287.36 billion and grow at a CAGR of 23.4% from 2023 to 2030. This shows that despite the competition, there is still significant potential for growth in the industry.

The key is to offer something unique that sets you apart and to stay attuned to customer demands.

In this article, we will take a deep dive to explain our opinion about this age-old discussion: Is dropshipping dead? Or is it still a viable business model in 2024?

Is dropshipping dead in 2024?

Let’s see if dropshipping is dead in 2024 by checking Google Trends. This way, we can check if people are still Googling the term 'dropshipping.'

Here are the results for the United States and the past five years:

Furthermore, here are the worldwide results for the last five years:

As you can see, the results bounce up and down a bit during the years, but an uptrend can definitely be seen here.

In other words, there is generally a higher interest in dropshipping now compared to a few years ago!

In fact, the global dropshipping market is expected to soar to $1,825 billion by 2032, with a compound annual growth rate (CAGR) of about 24% from 2024 to 2032.

With the increasing use of smartphones, more people are shopping online. Plus, over 51% of people have continued to shop online even after the pandemic.

Here's another mind-blowing fact: More than 27% of retailers use dropshipping for their order fulfillment!

That's a lot of online stores that handle their inventory a lot differently than 'regular' retailers.

So, is dropshipping dead in 2024?

Not at all! According to Google Trends and multiple reports, there are currently more people interested in dropshipping than ever, so it's definitely not dead.

Remember, dropshipping isn't a product or service; it's just a fulfillment method that allows entrepreneurs to sell products without holding inventory.

Why do people say dropshipping is dead?

There are three main reasons why people say dropshipping is dead: scams, slow deliveries, and saturation.

First, dropshipping has earned a somewhat negative reputation due to scams and low-quality businesses that have given the model a bad name.

This skepticism can make it harder to gain customer trust and build a reputable brand.

This can frustrate customers who expect faster delivery. To counter this, we recommend using suppliers from platforms like Spocket or Syncee, which have suppliers located in the US and Europe.

Finally, some say dropshipping is dead due to market saturation.

While it's true that more people are getting into dropshipping, new products, markets, and customers are always emerging.

The key is to offer something unique that distinguishes you from competitors and to remain responsive to customer needs.

For example, many successful dropshipping businesses thrive by identifying niche markets.

Also, it's not just about profits; remember to consider product quality, so you have fewer chances of issues later on with your customers.

One way to do this is to order product samples from the supplier before you start dropshipping the products to your customers.

Below, we'll share our thoughts on whether dropshipping is truly saturated.

Is dropshipping saturated in 2024?

With so many people currently interested in dropshipping, you might start to worry about something else.

Saturation.

Are you still able to start a successful dropshipping store in 2024? Or is dropshipping so saturated that you will have no chance to stand out amidst your competition?

Well, the question 'Is dropshipping saturated?' implies that it is dropshipping itself that is saturated. But here is the thing:

Dropshipping is not a product or service; it's just a fulfillment method!

If dropshipping were saturated, it would mean that all dropshipping products you could possibly sell would be saturated as well.

And in our opinion, saturated dropshipping products are a myth.

Yes, it is true that some products are popular among dropshipping stores, but the demand for these products is often so large that it does not matter how many people are selling them.

Often, people think a product is saturated because all dropshippers use the same image, video, and ad copy to sell it!

If we assume that dropshipping saturation exists, this would mean that the business model of dropshipping itself is dead.

And as you could see previously, it’s not!

However, if this question still bothers you, we recommend reading our detailed article about saturation in the dropshipping industry.

You will read about the causes of market saturation, four reasons why dropshipping is still profitable, and much more!

Tip: Looking for an all-in-one article about everything you should know about dropshipping? If so, check out our dropshipping guide!

Is it too late for you to start dropshipping?

Absolutely not! While it's true that the dropshipping market is more competitive than ever, there are still plenty of opportunities for new entrepreneurs.

However, you'll need patience, perseverance, and the perfect dropshipping business strategy to conquer the market.

This brings us to the next question: How do you stand out from your competitors when dropshipping?

Let's find out!

How do you differentiate yourself from your competitors when dropshipping?

As you saw before, interest in dropshipping is continuously rising.

This doesn't mean dropshipping is saturated, but with so many people now opting for this type of business model, the competition can be stiff.

To stay competitive in this market, you need to be at the top of your game and set yourself apart from your competitors.

Here are some ways you can do that and prepare yourself for the future of dropshipping.

1. Don't copy everything directly from other dropshipping stores

Yes, this might seem obvious, but you don’t know half how many dropshipping stores are out there that look exactly the same.

People who create these copied stores are too lazy to create a unique dropshipping store.

What you need to do is shift your mindset. Instead of thinking you will get rich quickly, you will need to start treating your dropshipping store like a real business. (More information here)

To beat your competition, you will have to write your own product descriptions and ad copies. And if you can take your own product images and videos, then you will have an even greater chance of succeeding!

2. Make your store unique

One advantage of dropshipping is that you can get started much quicker than, for example, using 3PL.

But that doesn't mean that you have to look like any other dropshipping business out there!

There are so many ways to make your store unique and, therefore, differentiate yourself from your competitors —just put some effort into it.

Besides writing your own product descriptions and ad copies like I just talked about, you can:

• Choose a unique theme
• Create your own video ads
• Pick your own color scheme
• Pick your own fonts

If you are interested in beating your competition by creating a truly unique dropshipping store, then check out this article for 11 amazing tips!

But there's more; this article goes more in-depth about branding your dropshipping store.

For example, did you know that you can get branded packaging?

3. Optimize your pricing strategy

When running a dropshipping store, picking a price based on your feelings often won't be the best choice.

You will have to form a pricing strategy by considering expenses like product costs, marketing costs, shipping costs, taxes, hosting fees, app costs, and psychology.

But once you have taken those things into account, you can take a look at your competitors and see if you can undercut their prices!

For example, selling your product for $19.99 instead of their $21.

While this can be a great strategy for some, keep in mind that undercutting in price is not always the answer.

If you can't undercut your competitors in price due to high expenses, then it is still possible to beat them with the other tips on this list!

For more information about choosing the correct price, check out our complete guide here.

And you can learn everything about profit margins while dropshipping in this article here.

4. Offer faster delivery times

Imagine you are looking to buy a new calculator online.

You find an online store offering it for $19.99 with free 14-day delivery. Another store sells the exact same calculator for $19.99 with free delivery, but it will be delivered to your house in just three days.

In this situation, everyone would choose the store with a faster delivery time, right?

Even if the calculator at the second store were $24.99, a lot of people would still order it here, depending on their need for a new calculator.

Offering faster delivery times (just like Amazon is doing) is a surefire way of beating your competition!

But how do you offer fast delivery times when dropshipping?

Well, a popular way of doing this is using local dropshipping suppliers. These are suppliers with warehouses located in the same country as your customers.

A popular platform for finding these suppliers is called Spocket. Around 80% of their suppliers are from the US and Europe!

Lastly, if you are looking for more information regarding fast delivery times when dropshipping, check out this article of ours!

The main thing to remember is that you don't have to do dropshipping with suppliers in China (for example, from AliExpress). There are more options than that.

Exclusive Spocket offer: Enter the coupon code: SpocketTrial during checkout, and you'll instantly unlock a FREE 30-day trial. Click here to redeem your free trial now!

5. Try out new things

Finally, you can differentiate yourself from competitors by trying out new things!

For example, you can try reaching 'untapped' audiences by using alternative advertising methods like Pinterest or Reddit Ads.

There are a lot of marketing opportunities in the digital world!

Or, you can target a country that few other people are targeting.

Since you are dropshipping, you can let your supplier send your product to almost anywhere!

If you see that your competitor is only selling in a certain country, then a great way to beat them is to sell in other countries as well.

This way, you have a chance of getting more customers than them because you’re targeting way more people!

If you’re wondering now which countries to target and which to avoid, then take a look at our 15 best & worst countries to target as a dropshipper.

Is dropshipping worth it in 2024? Or are there better opportunities?

Considering the increased interest in dropshipping, you may be wondering if it is still worth it to start a dropshipping store now or if there are better opportunities around.

Don't get me wrong; there are many ways of making money online.

You can do freelance work, start a blog, do affiliate marketing, flipping items, and more!

In my opinion, all options are worth a try. Whichever one will be the best for you will depend on your interest, budget, experience, and skills.

However, with the right dedication and mindset, any online venture can become successful, dropshipping included!

So, dropshipping is definitely worth it in 2024, but don't expect to quickly be earning tons of money while working on your laptop on the beach.

This is definitely possible once you automate and scale your store, but for most people, it takes a really long time of hard work and dedication!

Dropshipping success stories for 2024

Let's end the article with some dropshipping success stories for motivation!

I hope these stories will inspire you and show you it is still possible to start a successful dropshipping store in 2024:

• How I built a dropshipping store that made $6,667 in under 8 weeks on Oberlo
• How I made $178,492 in three months by dropshipping US and European products on Spocket
• How Sam went from 0 To $72K+ in sales in 6 months after starting a business with no experience on AliDropship

Note: We are almost certain that these dropshipping success stories are real, but keep in mind there are also many fake gurus out there who post photoshopped screenshots and fake sales. (Source)

Lastly, if you would rather take a look at some of the most successful dropshipping stores instead of reading these stories, then take a look at our article featuring the 23 most successful Shopify dropshipping stores!

Or take a look at these big ecommerce stores that started with (or are still using) dropshipping.

Just think about those stores when you hear someone say 'dropshipping is dying'.

Alternatives to dropshipping

If you're not sure if dropshipping is the right fit for your business or if you're looking for other options, there are several alternatives to consider.

Here are a few examples:

1. Print on demand (POD)
2. Dropshipping with private agents
3. White labeling (or private labeling)
4. In-house fulfillment
5. Drop servicing
6. Affiliate marketing
7. Blogging
8. Online freelancing

For more information, check out this article here, highlighting the best dropshipping alternatives!

Final thoughts

In the last few years, dropshipping has gone through a number of changes.

At the very start, you could almost literally take a random product from AliExpress, create a simple product page for it, and start selling it profitably using a plain Facebook image ad.

Due to the increased interest in dropshipping in recent years, there's now an additional challenge for dropshippers: competition.

But if there is one thing that we can conclude from the increased interest, it is that dropshipping is not dead!

To succeed, you just have to beat your competition and have the right mindset.

So, what are your thoughts on dropshipping in 2024? Do you agree that dropshipping is not dead?

Tell us about your opinion in the comments below, and have a great rest of your day!

Want to learn more about dropshipping?

Ready to move your dropshipping store to the next level? Check out the articles below:

• The 25 Best Dropshipping Niches for Your Store in 2024
• Marketing for Dropshipping: How to Pick the Right Method
• Dropshipping vs. Affiliate Marketing: What’s the Difference?
• 6 Tips to Not Get Sued When Dropshipping in 2024 (Must Read)

Plus, don’t forget to check out our in-depth guide on how to start dropshipping here!