Is Dropshipping Dead in 2021?
The past year has changed so much in our world due to the COVID-19 pandemic. Brick and mortar stores and restaurants have shut down, and some will never reopen. Shopping and commerce have changed drastically as the world came to a complete stop. After such a challenging year, is dropshipping dead in 2021?
Absolutely not! Dropshipping is not even close to going away. As online shopping and sales have increased, so has the overall dropshipping market value. As with any business, business owners and online sellers must have the right motives and goals to be successful. Learn more about why dropshipping is not dead in 2021.
In 2018, the global dropshipping market size was valued at a whopping $102.2 billion, and that was before anyone knew about the coronavirus, which ultimately boosted online shopping and sales. In 2019, the dropshipping market, valued at USD 162.44 billion, found itself projected to reach $591.77 billion by 2027. From 2020 to 2027, the dropshipping market will grow at a CAGR of 18.3%.
While global commerce isn’t entirely back up to full speed, there is no reason to believe dropshipping is dead in 2021. This tried and tested online shopping method is expected to grow substantially in the coming years.
Increased Online Sales
Dropshipping will always be popular because the way that people buy products has changed due to the recent global pandemic. When stores closed due to COVID-19, many of us could only get specific items for our homes through online shopping. All over the world, the coronavirus triggered specific behavior patterns that are probably here to stay.
Digital options like online shopping, ordering food, or even grocery delivery have become convenient ways for people to spend money. The most significant change has been to those countries with emerging economies. As the world becomes more digital, online shopping is expected to continue to grow, which is a good thing for dropshipping investors.
Popular Dropshipping Myths
There are many different myths out there about the dropshipping method. While you may hear of some bad experiences, it is often common to overlook the many positive experiences that investors have had using the dropshipping method. Check out these popular myths that are often not true with those who work with an automation service like NextGen for their dropshipping business.
Get Rich Quick
One of the main pitfalls that many dropshipping sellers run into is the idea that you will start your store and be making thousands of dollars within days. The truth is that an investment in this type of online commerce can take some time. However, when you choose to work with NextGen, you’ll start to see profits in less time than you would be doing it alone.
Dropshipping is not a get-rich-quick scheme but is instead a long-term strategy to earn big profits. Setting attainable goals and understanding the process can help online sellers overall.
While it is true that some sellers don’t have much profit margin on their dropshipping items, it isn’t the case for everyone. Low-profit margins happen to those dropshipping sellers who are doing everything on their own. Either they didn’t find the correct item to sell or aren’t pricing themselves well. When you use an Amazon automation service like NextGen, you’ll get an expert team who knows what sells and can help choose products with better profit margins.
Too Much Competition
The digital world of commerce doesn’t come without competition. However, there is plenty of room for newcomers to find their niche in the dropshipping marketplace. Success all depends on the ability to find the right product from a trustworthy supplier. Not only does NextGen know the dropshipping market, but we have great relationships with different suppliers. If you have a quality product at a competitive price point, you should have success no matter how many other sellers are in the field.
Supply Chain Nightmares
The success of a dropshipping business model depends heavily on the relationship between seller and supplier. You may have heard stories of suppliers scamming sellers out of money, but the risk significantly decreases when you use an Amazon automation service.
While it could take you a lot of time to find the right supplier, NextGen already has trusted relationships with suppliers that are ready to work with you. Excellent communication is a crucial factor with a dropshipping business, and NextGen has excellent communication channels with all of their seasoned and new suppliers.
Dropshipping may seem too good to be true given how easy it is, but it is legal. However, some legal issues could arise by not sticking to standard dropshipping rules. These legal issues include retail arbitrage, copyright issues, and financial requirements like taxes and tariffs. When you choose to work with NextGen, our expert team will take care of all of the legal details for you.
So Dropshipping Dead?
The answer to this question is, absolutely not! Dropshipping is a proven method of online shopping and delivery that many popular stores use today. It allows customers to find less expensive products by utilizing suppliers from all over the world. While it is only natural to ask yourself ‘is dropshipping dead?’, it is important to remember that dropshipping problems often occur to those online sellers who choose to go it alone instead of using an automation service like NextGen.
Investing in a dropshipping online store with NextGen Strategic Investments is a great way to start earning passive income today. Not only is your investment 100% guaranteed, but you’ll see profits much quicker than you would be doing it alone. Disprove the idea that dropshipping is dead by contacting our friendly staff today for a free consultation to see if this is a good fit for you.