Online business continues to grow and flourish as we move through 2019. The popularity of online shopping is increasingly becoming more appealing to customers than the brick and mortar store, who find it easier to access products and compare pricing. But, for the dropshipping industry, can the same be said?
Dropshipping burst onto the scene and quickly made many entrepreneurs a great deal of money. It great so fast that now it’s believed by many that the entire market has become saturated and is no longer a viable option for making a good profit. Others believe that the industry itself is totally dead and not worth even trying to enter at all.
The Drawbacks of Dropshipping
Many of the reasons people cite for the decline and rumored demise of the dropshipping industry stem from the pain points that customers have voiced. Namely, long wait times for shipping, low quality or perceived low quality of the products and hassles with returns and refunds.
“Because dropshippers use third party sources to fulfill their orders, they have little control over the timelines for shipping and refund process. They may end up with unhappy customers because of circumstances beyond their control,” outlines business writer Wanda Tardiff of DraftBeyond and ResearchPapersUK.
Customers may not even be aware from the start that they are dealing with a dropshipper and not the company providing the product first hand, leading to confusion and dissatisfaction. Staying ahead of this problem by stating up front that you are a dropshipper or making shipping times totally clear may help alleviate some of these unhappy responses.
But, there are positives that can also be said about the dropshipping industry, that still allow the argument to be made that it remains a good source of profit this year.
Increased Competitiveness in the Industry
Dropshipping has become a booming industry, with a large number of people entering the market within a short period of time. With low barriers to entry, such as low start-up costs, no need for holding inventory and no hiring or paying employees, it’s no wonder why this quickly became a popular business choice.
This increase happened to the point where, now, dropshipping is a tough business to sustain and stay competitive on a small scale. But, this doesn’t mean that it’s not still a profitable industry. It just means that it’s that much more competitive than previously.
Dropship Customers Know What They’re in For
One argument that many make for the continued viability of dropshipping is that customers making purchases understand that they’ll be waiting a longer than normal time to receive their products, and they’re totally fine with that. The most successful dropshippers are those offering products that people don’t necessarily need, but instead the things they want.
If someone needs something, they will expect to receive it quickly. This doesn’t make for a good dropshipping product. But, the things that customers are willing to wait for in order to get a good deal are great options for dropshippers to offer.
“It’s not just about the business model, it’s about the products or services that are being offered within that model. If you’re offering flea remedies for dogs, but the customers will have to wait over a month to receive it, chances are they’ll find someone who can ship it faster, even if it costs more,” explains Andrew Coffey, Marketing Expert at LastMinuteWriting and Writinity.
It Takes Hard Work if You Want to be Profitable
Because of the increased competition in the industry, you’re going to have to work that much harder. If you’re just entering the business, you’ll need to establish yourself and develop your customer base; And, if you’re already in business, you’ll need to work hard to keep yourself relevant and always keep your available products evolving.
The costs to enter the industry are fairly low, in comparison to other types of businesses, but the time investment will be just as great, if not greater.
Is Dropshipping Still a Good Business to Enter in 2019?
The answer to this is both yes and no. If you’re willing to put in the time and effort it’s going to take in 2019 to build and maintain a viable dropshipping business, then yes, it’s a great option to create a good source of income.
As the competition increases, only the most relevant dropshippers will remain. So, if you’re looking to just get into this business, be aware of the work that it will take, but also remember that it’s not just about the business model. Much of the success of the most popular dropshippers rests solely on their choice of products.
Any business is going to take work, but dropshipping especially takes continued vigilance, attention and evolving in order to stay relevant in the industry and grow your customer base.
Working as a content editor at LuckyAssignments.com and GumEssays.com, Harry Conley is responsible for developing effective training and managing workflow, providing writers with supplemental instruction and support.