Dropshipping in 2024: Is It Still Worth It? (An Honest Look)

It's 2024, and the dropshipping world looks dramatically different from what we remember a few years ago.

Artificial Intelligence has made waves, same-day delivery has become the norm, and Amazon is taking over retail space across America faster than ever.

But how does dropshipping fit into all of this? Is it still a viable way to generate income, or are there better solutions?

Let's dive in and take an honest look at dropshipping in 2024 - the good news and the bad news.

You'll be surprised by what you find!

Is dropshipping worth it in 2024?

Yes, dropshipping is still worth it in 2024. Even though more people know about it, dropshipping is still a good way to start an online business.

You can find plenty of suppliers offering products at low prices, which you can then sell for a profit.

One of the biggest benefits of dropshipping is the low barrier to entry; you can start with very little money and still be successful.

As shown in our article here, Amer shared his experience of starting a dropshipping store with €300. You will need to buy a domain, a few sample products, and some money set aside for marketing (although, technically, you can also do that for free).

But, it’s important to consider a few things:

• Profit margins. Calculate your profit per sale and compare it to your marketing costs. As long as your profit is higher, you’re in good shape.
• Competition. The dropshipping market is competitive. The wide availability of knowledge and the low barrier to entry mean others are also entering the market. Users on Shopify, which is one of the main platforms used by dropshippers, have gone through the roof over the last years:

Tip: Have you already created your Shopify account? If not, sign up by clicking this link here to get a free 3-day trial + 1 month for $1!

• Supplier reliability. Choose reliable suppliers to ensure good product quality and shipping times.
• Misinformation. There are many sources of information about dropshipping, but also a lot of misinformation. Over the years, the business model was commonly used by gurus to sell courses that promise six-figure returns but offer little value, as most info can be found online for free. So, if you're ever tempted to buy a paid dropshipping course, be warned!

Ready to level up? Our ultimate dropshipping guide for 2024 is full of our best insights, ideas, and steps to follow.

Why is dropshipping so popular despite the competition?

Did you know that the global dropshipping market is expected to grow at 23.4% per year from 2023 to 2030?

You'd think that high competition would deter people from choosing dropshipping as their business model to start selling online. But the opposite is true!

Here's why:

• Low startup costs. You don’t need a lot of money to start. You only pay for the products after you’ve sold them.
• Location independence. You can run your dropshipping business from anywhere with an internet connection.
• Wide product range. You can offer a variety of products without worrying about inventory.
• No inventory. You won't find yourself stuck holding inventory that's hard to sell.
• Flexibility. You can run your business from anywhere with an internet connection.
• Scalability. You only order products based on demand, which makes scaling easier.
• It's easy to learn. There are endless resources to learn dropshipping before starting.
• Global market access. Dropshipping allows you to sell to customers worldwide. You’re not confined to a local market, which can significantly increase your potential customer base.
• Automated tools. Many tools and apps help automate much of the dropshipping process. These tools can handle order processing, inventory management, and even marketing tasks, making it easier to manage your business.

As you can see, despite the competition, these factors make dropshipping an attractive business model.

Things you should know before you start dropshipping

We talk a lot about the positive aspects of dropshipping, but there are also disadvantages.

Most people advertising dropshipping call it "an easy way to get rich" and don't mention these downsides.

But we'll be honest and describe the cons, along with tips on how to turn each disadvantage into an advantage!

• Low control over product quality. Since you never see the product, you can't control the quality before it goes to the customer.
• Difficulty in combining orders. If a customer orders multiple products and you have multiple dropshipping suppliers for these different products, then you can’t combine these products into one package.
• Shipping complications. If a customer orders multiple items from different suppliers, coordinating shipping can be complex.
• High competition. Because of low barriers to entry, the dropshipping space is very competitive.
• Low profit margins. Dropshipping often has lower profit margins than traditional retail methods due to operating costs.
• Dependency on third-party suppliers. If your supplier runs out of stock or fails to deliver, it could negatively impact your business.
• Potential quality control issues. You will never see the product. That means there could be issues with the product quality, and you will never know it until it’s too late.
• Refunds can be complicated. If you're dropshipping from China, then the shipping time might take 2-3 weeks before the product(s) arrive at your customer’s destination.

Despite these challenges, you can solve most of these problems.

For example, one way to solve low profitability that comes with dropshipping is to sell more products.

Selling 10 products for $10 profit each equals $100 profit, but selling 100 products at the same price results in $1000 profit.

The downside is that you will have more work and a higher chance that an order doesn’t go as expected. That’s why some people go for high-ticket dropshipping products instead of lower-priced items.

Similarly, regarding quality control issues, you could order a sample from your dropshipping supplier to verify the product quality and use it to create your own product images and videos.

This way, you can see the product quality for your self, and you can even use the test product to create your own product images and product videos!

Tip: Want to know how you can turn these dropshipping cons into pros? Check out our article 8 Disadvantages of Dropshipping & How to Beat Them in 2024!

How much capital do you need to start dropshipping in 2024?

Okay, you're ready to start dropshipping, but how much cash do you actually need?

Of course, the answer is always, 'It depends.'

Do you want to hire a team of marketing experts and web designers, or do you want to do everything yourself using only free tools?

In general, we recommend having at least $500 to start dropshipping in 2024. This will help you set up a dropshipping store, purchase some product samples, and launch your first ads.

To help you determine roughly how much capital you need to start dropshipping, let's break down all the costs:

1. Domain

First, you need a domain.

It generally costs around $15 per year and can go up dramatically depending on how good the domain is. It is advised to shop around as the same domain can be priced differently depending on where you buy it from.

Namecheap is generally the cheapest platform to buy from, so it’s always worth it to take a look there first. They also provide free privacy protection for the Whois Registry.

If you’re not sure yet about your store name, then you can check out this article with tons of tips for picking the right name.

2. Platform

Next, you will need an ecommerce platform to build and manage your dropshipping store.

Shopify is one of the most popular ones and doesn't require any technical knowledge to get your store up and running:

After the initial free trial, it will cost you $39 per month on the basic plan. 

Another option to consider is WooCommerce, which gives you a great deal more flexibility with your stores’ look, apps used, and monthly costs. However, it is not as powerful as Shopify straight out of the box.

You can learn more about the best ecommerce platforms for dropshipping here.

3. Advertisement

Advertising is generally the second-largest cost for a dropshipping business after the cost of goods sold.

To begin with, you can put as little as $10 per day into marketing just to test audiences and general interest in your store:

When you have figured out what is working and what isn’t, you can then look at scaling, which could cost as little or as much as you want.

If you're interested in learning more about all the marketing options for dropshipping stores, then you can take a look at this article here.

4. Sample products

Product samples are a very overlooked part of setting up a dropshipping business.

As you will not be holding the product, it is crucial to know the quality of the product you are selling as well as its delivery time.

Starting a dropshipping store without physically seeing your product first is a recipe for disaster.

For one-product stores, you have virtually no excuse not to buy a product yourself first. However, for general stores, you should, at the very least, look at buying a few of your predicted best-selling products. 

As this is going to be your only means of quality control, you must get this bit right.

If you plan to have a sustainable business, you have to make sure that your products are both of good quality and arrive within a reasonable time frame.

You can also use these initial purchases to build the required dialogue with your suppliers and get to know them better.

In a previous article, Amer spoke of a very embarrassing situation in which he was put in a very awkward position with regard to packaging.

This is also another reason to always sample your products; you aren’t only sampling the product itself, but the customer experience, which will reflect onto your business.

5. Dropshipping supplier

It is worth mentioning that AliExpress is not the only place to dropship from.

Yes, many of the tutorials and articles you may have looked at may focus on them, but it isn’t the only platform out there.

There are lots of 'premium' dropshipping suppliers that are located in regions like the US and Europe that can offer fast delivery times to your customers. On average, they charge about $29 per month.

Spocket, Syncee, and AppScenic are great options, to name a few.

Exclusive Syncee Offer for Shopify and Wix users: Use DoDropshipping10 during checkout to enjoy a 10% off on the Pro, Business, Plus Marketplace plans. This offer is valid with your first subscription plan and for a limited time. Don't miss out!

For more, check out our list of the best dropshipping suppliers!

And if you do want to start with AliExpress dropshipping, a few options to check out are DSers, AutoDS, and AliDropship.

6. Logo & social media pack

Branding is a very important element of your business that truly impacts how your customers will initially perceive your business, and it could potentially determine whether that visit results in a conversion or not.

Not only will you need a logo to go onto your store, but also social media activity for your social proof.

You can use tools like Shopify's Hatchful logo generator, which generally gets the job done for free:

If you are looking for a more professional outcome, you can outsource this on a platform such as Fiverr or Upwork. This can usually cost between $5 to $100; just remember that you get what you pay for.

7. Apps

To start dropshipping, you usually need a few apps that make your life a lot easier.

Think about an order tracking and mailing list app, which are often considered essential.

The good news is most of these apps either have a free trial period or access to limited features within their app for free. 

Paid versions of these apps generally cost between $10 to $30 per month.

There are also others to consider, such as image compression, currency/language switchers, and SEO optimization apps.

If you’re going to use Shopify for your dropshipping store, then you can check out this article here which contains both free and paid options for every app that you need!

8. Store themes

Whilst Shopify and WooCommerce both offer free themes, the premium themes make your store stand out from the others and also have some cool built-in features that the free ones don’t provide.

The price of premium themes can vary from $50 to $500.

If you have the budget to buy a premium theme, then we would strongly recommend one; however, if you have a low budget, the free themes work just fine.

If you're wondering now what the best themes are, then check out the articles below:

• 10 Best Shopify Dropshipping Themes in 2024
• 12 Best Free Shopify Themes for Your Online Store in 2024

Is it possible to offer fast delivery times now?

So, you've probably heard a common complaint about dropshipping: slow delivery times.

A few years back, this was a real struggle. The time taken for a product to reach the customer was one of the biggest deterrents for many would-be dropshippers, leading to plenty of customer complaints and difficult-to-manage expectations.

But guess what? Things have changed, and they've changed for the better.

Fast forward to 2024, and the dropshipping market looks vastly different. Now, with the emergence of local suppliers like Spocket, Syncee, and AppScenic, sluggish delivery times are becoming a thing of the past.

Take AppScenic, for example. It's a platform that connects dropshippers to thousands of suppliers, most of which are located in the US and Europe.

This geographical proximity to the target market means your customers can receive their orders in as little as two to five days. Amazing, right?

So, is it possible to offer fast delivery times in dropshipping today? Absolutely!

Can you start a profitable dropshipping store in 2024?

If you're thinking about launching your dropshipping store this year, you're probably wondering, 'Is it even possible to start a profitable dropshipping business in 2024?'

Well, let us reassure you right away一it's a resounding YES.

But there are a few things you need to keep in mind.

First and foremost, adjust your mindset. Success in dropshipping - or in any business, for that matter一doesn't happen overnight. Dropshipping requires patience, dedication, and a willingness to learn.

You're likely to encounter bumps along the road, but that's okay. Every misstep is an opportunity to learn and improve. Cultivate a growth mindset and treat every challenge as a chance to become better.

Next, strive to be unique. With so many dropshipping businesses popping up, it's crucial that your store stands out from the crowd.

Don't just sell products; sell a unique experience, sell a solution, sell a lifestyle. This could be in the form of offering unique products, customizing your offerings, or even excelling in customer service.

Find a niche that aligns with your passion and knowledge, and go all in!

While dropshipping is an accessible business model with relatively low startup costs, don't overlook the small costs that can add up.

This includes transaction fees from payment processors, taxes, costs related to returns and refunds, and any additional costs like website maintenance.

These might seem insignificant, but when unaccounted for, they can slowly eat into your profit margins!

So, roll up your sleeves, immerse yourself in the dropshipping world, and start creating your success story today!

And if you want a detailed overview of the total costs involved when starting a dropshipping business, take a look at this article: How Much Does It Cost to Start Dropshipping in 2024?

3 tips on how to succeed in the dropshipping industry

Now that you're ready to start dropshipping and know it can be profitable, take a look at these three small but crucial tips we've personally found to help you succeed in the dropshipping industry.

1. Find winning dropshipping products

The success of your dropshipping business heavily depends on the products you choose to sell. Here’s how to find winning products:

• Market research. Use free tools like Google Trends, social media platforms, and keyword research tools to identify trending products. Look for products with growing interest and demand.
• Competitor analysis. Check what successful competitors are selling. Look at their bestsellers and read customer reviews to understand what’s working.
• Solve problems. Products that solve a specific problem or fulfill a unique need often perform well. Focus on finding products that offer clear benefits to customers.

Here are some amazing articles to help you find winning products in your niche:

• The 17 Best Winning Dropshipping Product Research Tools
• 18 Winning Dropshipping Product Examples | 2024 Inspiration
• How to Find Winning Dropshipping Products (14 Research Methods)

2. Find trustworthy dropshipping suppliers

Your suppliers play a crucial role in your business’s success. Here’s how to find them:

• Research. Use platforms like Syncee, Spocket, or SaleHoo to find suppliers with good reviews and a proven track record.
• Test orders. Before committing to a supplier, place a few test orders to evaluate their product quality, shipping speed, and customer service.
• Build relationships. Establish strong communication with your suppliers. Reliable suppliers can help you navigate stock issues and provide better service.

We have written in-depth reviews on different suppliers. Check out the reviews below to find great companies that will help you:

• Spocket Review: Does It Have the Best Suppliers in 2024?
• AliDropship Review: Is It Worth Buying This Plugin?
• CJdropshipping Dropshipping: How To Start (+ Review)
• DSers Review: Is It the Best App for AliExpress?
• Gelato Review: Is it the Best Print on Demand Supplier?
• Modalyst Review: Should You Use It After Wix Acquired It?
• Sellvia Review: Does It Have the Best US Suppliers?
• Syncee Review: Does It Have the Best Global Suppliers?

3. Provide amazing customer service

Outstanding customer service can set you apart from competitors and build a loyal customer base. Here’s how to ensure excellent service:

• Clear communication. Keep customers informed about their order status, shipping times, and any potential delays. Respond promptly to inquiries and provide accurate information.
• Prepare for returns. Create a dropshipping return policy that satisfies your customers and protects your store.
• Handle issues promptly. Address any problems or complaints quickly and professionally

For more details, check out our guide on how dropshipping stores should handle customer service.

By focusing on these three key areas, you'll be well on your way to building a successful dropshipping business!

Summary

Before we go to the final verdict, we've created a quick summary of this article for you, so you can easily remember it:

• Pros of dropshipping include low initial capital, location independence, wide product selection, scalability, and ease of learning.
• Cons include low control over product quality, shipping complications, high competition, low profit margins, and dependence on third-party suppliers.
• Despite high competition, dropshipping's low entry barrier makes it a viable business option.
• A minimum of $500 is recommended to start dropshipping in 2024, covering costs such as domain, ecommerce platform, advertising, and product samples.
• You can achieve fast delivery times in 2024, thanks to local supplier platforms like Spocket, Syncee, and AppScenic.

Final verdict

So, after all this information, you're probably excited to hear our final verdict:

Final Verdict: Yes, dropshipping is worth it in 2024. It's a versatile business model that requires low initial capital, offers location independence, and opens the door to selling a wide selection of products without holding them in stock.

However, success isn't guaranteed.

The days of picking a random product on AliExpress, running some Facebook ads, and making the insane figures they tell you about on YouTube are pretty much over.

You'll need to differentiate yourself with a unique product offering, pay close attention to small costs, and maintain a growth mindset to become profitable.

We wish you a lot of success on this exciting journey!

Want to learn more about dropshipping?

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

• Dropshipping Checklist: Build Your Business Step-By-Step
• 14 Best AI Copywriting Tools for Dropshipping (Free & Paid)
• 23 Most Successful Shopify Dropshipping Store Examples | Inspiration

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