Dropshipping is Dead
The problem is not you, it's the dropshipping market.
Struggling with dropshipping?
Don't worry you are not alone, the problem is not you, it's the dropshipping market.
The dropshipping market has become saturated over the years. Everyone and their mother started a dropshipping store and this is not a coincidence. From the outside it looks like a great opportunity, simple to start, you don't need to ship anything, and "gurus" claim you can make 20K / month while you sit on a beach in Bali.
It looked like a good opportunity so you jumped on the bandwagon only to later realize it's not as easy as they claim. You are not alone, the "gurus" sold you a dream but now you have to face reality.
It's saturated
Everybody is running a dropshipping store with mostly the same type of products. The "gurus" will tell you to find a niche product, this is good advice but everybody is receiving the same advice so everybody is searching for the same niche.
Low Margins
"Gurus" will tell you they made 100K a year with dropshipping. Even if you believe this number, a dropshipping store on average operates around a 20-25% margin. This means if you make 100K a year you actually take home 25K/year, which is nice but most probably you still have to pay income tax.
Ad Spend
Your main way to drive customers to your stores will be advertising. Since everybody will try to sell the same product cost-per-click will be likely high on top of this you will need to create really engaging ads to stand out from the crowd.
No recurring revenue from existing customers
Most of the dropshipping stores will try to focus on one single product or niche. This is a good idea to some extent but creates another issue, once you acquire a customer (with paid ads) it will be hard to sell more products to existing customers. Since most of the transactions are one-off, once they buy from you there is no reason to buy again.
The Rise of Temu
The popularity of Temu just made everything worse for dropshippers. Now customers can buy the same product of the same quality but cheaper with free and fast shipping. Let's see this as an example, the same product is a lot cheaper on Temu with free shipping included.
What if there was a better and easier to way make money online?
An opportunity where margins are high (80%), competition is low, and you can receive monthly recurring revenue from existing customers. Sounds Good? Then enter your contact details below and we will reach out to you with more information.
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