Is Dropshipping Dead in 2020? Is It Still Profitable?
Create Date: 2020-02-28 08:47:52
Dropshipping is one of the popular e-commerce business models that made people millions by just sitting in their homes and arbitraging products. The entry barriers of dropshipping are much lower than other business models, many people have the idea of starting dropshipping.
One way to determine if it’s dead or not is by searching its trend on Google.
Search the term “dropshipping” on google trends, the result shows that over the past 5 years, the searching trend of dropshipping went through an upward spiral, shows how popular it has become in the last few years alone.
If check the Google Trends for the US, which is the biggest market for dropshipping, we will notice that more people within the US are searching for dropshipping terms. While it did get a dip in the past two months( It was probably because of the impact of Christmas season and CNY), it is still going strong, that is to say, it is now on an upward trend, therefore, this is the right time to start a dropshipping business.
And there are hundreds of new users registered on CJ App every day. Over the past year, we have a stable growth of per day new registers.
Dropshipping is not dying, in fact, it is thriving.
Here are some reasons to explain the trends:
Dropshipping is still profitable in 2020 because of the number of e-commerce activities taking place around the world. It is not only profitable but thriving! E-commerce and dropshipping profits have reached over $4 billion, which is a 7 percent year on year increase for the last 10 years.
Moreover, small retailers are seeing an almost 30% increase in conversion rates through smartphones, which is a clear trend for the coming future.
As e-commerce enjoys popularity than ever, and online payments work universal, more and more customers prefer to do online shopping, the potential demand is beyond imagination.
The upfront cost is almost 0 because a dropshipper does not need to buy inventory before starting the business, so he doesn’t have to pay money to maintain warehouse and labor costs. Moreover, the cost of running a store is very cheap, the average monthly fee is only about $30. Then the left fees are only product cost and advertising fee. Compare with traditional business models, the input-output ratio is tremendous.
Dropshipping is profitable and thriving in 2020, but there are some problems you should try to avoid or figure solutions to minimize the impact if you want to start with and succeed in dropshopping.
So, what are the solutions to these dropshipping problems?
Dropshipping is not dead. It is still a lucrative business model and anyone with the right insights can reap huge profits by using it wisely. Dropshipping is a model of e-commercial business, it usually doesn’t die but changes the way it works. Regret for the past makes no sense, now is the best time for you to do the business.