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Is dropshipping worth it in 2025? What are the odds of finding success with dropshipping in 2025, and is dropshipping worth it beyond just short-term gains?

These are some of the questions we often get asked by wannabe drop shippers looking to launch their eCommerce business in 2025. In fact, many entrepreneurs specifically ask if this dropshipping business model will stand the test of time and if is dropshipping worth it when considering long-term investment.

The long and short answer to that question is a definitive yes. For those still wondering, is dropshipping worth it, the answer remains affirmative.

Dropshipping is still viable and profitable even in 2025. A lot of entrepreneurs have leveraged this profitable business model to build wealth for themselves. If they can, so can you too.

But, becoming a successful dropshipper is no mean feat. If it were, everybody would be into it right now.

You need to understand how dropshipping works and all the nitty-gritty details that go into it to improve your chances of finding success. Mastering inventory management, choosing reliable suppliers, and refining your business model are all essential. Fortunately, Sell The Trend is here to help. With our expertise and guidance, dropshipping will feel easy.

Let’s learn about dropshipping and what it is. You will get to see for yourself the reasons why this dropshipping business model can still generate profit. We will also discuss the pros and cons of running a dropshipping store under this business model. Let’s get into it!

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What is Dropshipping?

One of the biggest challenges to running a store – whether an online store or brick-and-mortar – is inventory management. You have to procure stocks, store, and ship them whenever a customer makes an order, and without the help of dropshipping suppliers, this can become overwhelming.

Not only is this tiring and cumbersome, but also expensive. The worst part is that you might end up stocking products you will never sell.

However, with dropshipping, it’s an entirely different ball game. You don’t have to worry about keeping inventory – it’s exclusively your dropshipping supplier’s responsibility. The best part is that you also don’t have to give yourself stress about shipping—that job also falls on your supplier. How cool is that?

Here’s the best part: Sell The Trend offers a number of tools that will guarantee success in the dropshipping market. The All-in-One dropshipping platform will help you uncover winning products, connect with reliable suppliers, and automate repetitive tasks so you can focus on growing a profitable business.

How does dropshipping work? 

Let’s assume Alex, a fictional character, comes to your online store to purchase, say, a leather bag. Immediately after confirming her order, what you will do is to contact one of your dropshipping suppliers that sells the bag Alex wants to buy.

You provide them with Alex’s order details. You also supply them with Alex’s home address. If Alex paid you $50 for the bag, you might pay the supplier $35. The markup is your profit.

Once the dropshipping supplier confirms your payment, they will ship the bag to Alex. He gets her bag, she’s happy, and you made a nice profit. No stress, no fuss, no inventory whatsoever, yet you made a nice profit of $15.

Here’s a graphical representation of the entire process.

As you have seen, this dropshipping business model is simple and easy to set up and run.

You can even set one up without owning a website. There are a lot of successful dropshippers who don’t own a website.

Is dropshipping actually profitable? Can you make money from it and achieve financial freedom, especially if you don’t have much ecommerce experience under your belt?

Let’s find out!

Is Starting a Dropshipping Business Worth it?

The simple answer is yes. Dropshipping was profitable in the 1990s when it took off. It is still profitable today despite what the naysayers are saying. 

You don’t have to take our word for it. Here are some interesting stats that can help answer your question:

• The dropshipping industry was estimated to be worth over $351.8 billion in 2024. That’s a +23.6% increase from 2023. That figure is expected to grow to over $537.8 billion by 2026. 
• 27% of online stores use dropshipping for order fulfillment. Not that many stores would be dropshipping if it isn’t profitable. 
• Many sellers on Amazon use dropshipping for order fulfillment as well. The figure is between 22 to 33% of sellers. You can bet that these sellers are making a lot of money. 
• Manufacturers that have adopted dropshipping are 18% more likely to make more profits than their counterparts who have shunned it. You see, manufacturers, too, are minting cash from dropshipping. 

An industry that has a 23.6% annual increase surely makes dropshipping profitable. But how much are other dropshippers making? We discovered that elite dropshippers make as much as $100,000 in profits annually.

Of course, some make way more than that. In fact, we’ve seen drop shippers make incredibly insane amounts. A good example is Irwin, a drop shipper who made over $1,000,000 in profits in just 8 months.

You don’t have to be an elite dropshipper to make some serious cash from it. If you can find the right product and market, get your marketing right, and grind it out, your dropshipping profit can hit $1,000 monthly.

What Are the Pros of Dropshipping?

Is dropshipping worth it for entrepreneurs in 2025? Definitely! Read on!

Here are the pros of dropshipping:

Easy to start

One of the things you need to sort out before launching an online store is setting up a website. And setting up an eCommerce website is not easy. You’d have to worry about a domain name, hosting, and all the technicalities about websites.

This might be a serious challenge if you are not a techie.

But with dropshipping, you don’t have to worry yourself about setting up a website. You can run your dropshipping store on Facebook, Instagram, or even on WhatsApp. We know quite several store owners who are doing this successfully.

And if you decide you still want a website, you can easily set one up using Sell The Trend’s SellShop.

Cheap to run

No inventory, no shipping, no warehousing. You can start a dropshipping store with nothing, making it one of the best low-cost business models to enter.

This is why a lot of people are becoming store owners.

Even when you’ve successfully built up your business, you won’t spend any money on storing and keeping inventory. What you will mostly spend money on is marketing and ads.

What about shipping?

Your supplier takes care of that. How cool is that?

Lower risk

There will come a time when you want to try out a new product to see if your customers will like it. But what if they don’t buy and you tie your business capital down?

With dropshipping, you don’t have to worry about that. To test a new product, all you need to do is to add it to your product listing and wait for customers to place an order. When they order, all you need to do is purchase the product from your supplier and ship it to them. 

You don’t have anything to lose anyway. 

You can run your store from anywhere in the world

Running your dropshipping store under this business model comes with a lot of freedom. You can run your store from anywhere in the world – all you need is a computer and an internet connection.

This might not be possible if you were to run a regular eCommerce store, no thanks to inventory management.

Better cash flow

Nothing can be as frustrating as putting a lot of money into stock and waiting for months for customers to buy them off. 

Dropshipping saves you this nightmare because you won’t have to stock inventory for long. You only buy when a customer makes an order. 

What Are the Cons of Dropshipping?

If is dropshipping worth it and so easy to start, why do some entrepreneurs prefer the traditional retail business? The simple reason is that dropshipping has some cons.

Here are some of them.

Fierce competition

Low entry barrier to dropshipping can only mean one thing: fierce competition!

Thousands of wannabe entrepreneurs are getting into dropshipping by the day. The problem is that there are not that many customers to go round. 

So, there is a good chance you will get frustrated out of business by dropshipping market competition. 

Handling returns can be a frustrating experience 

It’s much easier to handle product returns if you keep an inventory.

But since you are buying from a supplier and shipping to a customer, handling returns is a bit harder and complicated. 

Often, you’d have to keep customers waiting for a long time to get a refund because it takes a while to send back products to suppliers and process a refund. 

Building your brand name can be difficult

In dropshipping, you don’t have much control over the quality your customers receive. The best you can do is to work with reliable suppliers in the hope they will consistently deliver top-notch product quality.

Even at that, you can still get disappointed.

Your reputation as a dropshipper can be ruined if your supplier fails to deliver quality products to your customers or doesn’t deliver on time, resulting in shipping delays that hurt customer satisfaction.

How to Guarantee Success for Your Dropshipping Store?

Implementing a clear strategy can make dropshipping worth the effort. That being said, here are things you can do to make dropshipping worth considering.

Invest in marketing 

The “build it and they will come” concept doesn’t work for dropshipping. You have to invest a lot of money into marketing to connect with your customers and generate sales. 

Facebook and Google ads, influencer marketing, affiliate marketing, etc., are all good options to try. 

Make your return process hassle-free

Processing dropshipping returns can be excruciatingly frustrating. Not only will you lose sales, but your reputation is also at stake. 

However, going out of your way to make it easy for your customers to return products they don’t want can boost your business, actually. 

The reason is that when customers know they can return a product they don’t like without hassles, they will want to buy from your store with careless abandon. 

Only work with reputable dropshipping suppliers

The reputation of your dropshipping store and entire business model is largely dependent on the supplier you work with. So, do your best to ensure you only work with a reliable dropshipping supplier who values product quality.

Offer free shipping

Online shoppers love free shipping. In fact, most will not buy from you if you don’t offer free shipping. And as studies have shown, 9 out of 10 shoppers expect free shipping from retailers. 

So, by all means, offer your customers free shipping. 

Automate

Running successful dropshipping businesses takes a lot of time and effort. As such, attempting to do everything manually can tire you out. For this reason, it’s best to automate your business process as much as possible.

Thankfully, there are lots of e-commerce automation tools you can leverage to streamline your business. For example, if your store runs on the dropshipping platform Shopify, you can leverage apps like Shopify Flow to automate your dropshipping process.

Commit to continuous learning

The world of dropshipping is very dynamic. The strategy that worked yesterday might not work tomorrow. For this reason, it’s best to commit yourself to continuous learning. You have to make out time to study market trends and your competition. You also need to commit to understanding your customers’ needs.

Common Misconceptions About the Dropshipping

Dropshipping is the most talked-about legitimate ecommerce business model, but it’s also surrounded by a lot of myths and misconceptions. These can often discourage potential entrepreneurs or set them up with unrealistic expectations. Let’s debunk some of the most common misconceptions about dropshipping:

Dropshipping is a Get-Rich-Quick Scheme

Many people believe that dropshipping guarantees overnight success with minimal effort. The truth is, while dropshipping has a low barrier to entry, achieving success requires hard work, consistency, and strategic thinking. From product research to marketing and customer service, dropshipping demands time and dedication to make it truly dropshipping worth your investment.

You Don’t Need Any Skills to Succeed

It’s easy to assume that you can succeed in dropshipping without learning any new skills. However, to thrive in this business model, you need to develop key skills such as digital marketing, product sourcing, customer service, and analytics. Without these, you’re unlikely to stand out in a competitive market.

Dropshipping is Dead

Despite the rise in competition, dropshipping is far from dead. The eCommerce industry continues to grow, and dropshipping remains a viable model for entrepreneurs who understand their market and know how to differentiate themselves. By focusing on niche products and excellent customer service, you can still build a thriving dropshipping store.

It’s All About Low Prices

Many assume that dropshipping is only successful if you offer the cheapest prices. While competitive pricing is important, it’s not the only factor that drives sales. Value-added services, product quality, customer support, and unique branding can set your store apart even if your prices aren’t the lowest.

How to Choose the Right Niche for Dropshipping?

Selecting the right niche is one of the most critical steps in building a successful dropshipping business. Your niche determines your target audience, product selection, and overall strategy. Here are some practical tips to help you find a niche that will guarantee a profitable dropshipping business:

Identify Your Interests and Passions

Starting with a niche you’re passionate about can make the process more enjoyable and sustainable. If you’re genuinely interested in your niche, you’re more likely to understand your audience’s needs and stay motivated even during challenging times.

Research Market Trends

Look for products and niches that are trending or have steady demand. Tools like Google Trends, Amazon Best Sellers, and social media platforms can help you identify what’s currently popular. Avoid overly saturated markets where it’s hard to stand out.

Solve a Problem

Products that address a specific pain point or problem are more likely to sell well. Think about common challenges your audience faces and how your product can provide a solution. Problem-solving products often have higher perceived value.

Evaluate Profit Margins

Ensure that your niche has products with healthy profit margins. Avoid niches where the cost of goods and shipping leaves little room for profit. Ideally, you want to focus on products that have a 30-50% markup.

Consider Your Target Audience

Think about the demographics and psychographics of your potential customers. Who are they? What are their interests and online shopping habits? Understanding your audience will help you tailor your marketing strategies and product offerings effectively.

Check Competition Levels

While some competition is a good sign of demand, too much can make it hard to break into the market. Use tools like SEMrush or SpyFu to analyze your competitors and see how they’re positioning themselves. Aim to find a niche where you can add unique value.

FAQs

Can you make money from dropshipping?

Yes, you can make money from dropshipping. However, your earnings depend on factors like your niche, marketing strategy, and supplier reliability. Consistent effort, research, and good customer service are essential for success.

Is $100 enough for dropshipping?

While $100 can be enough to start a dropshipping business, it might be tight for marketing expenses. To increase your chances of success, consider allocating more for advertising and automation tools.

Can I make $10,000 per month dropshipping?

Earning $10,000 per month is achievable, but it requires a strong marketing strategy, high-demand products, and consistent efforts. Successful dropshippers often reinvest profits into scaling their business to reach such income levels.

Is dropshipping good for beginners?

Like every other venture in life, starting a dropshipping business can be scary and intimidating. It’s so intimidating that you might wonder if it is good for beginners.

Well, the truth is that dropshipping is good for everybody, including beginners.

Just that it can be darn hard when starting; you will surely make many mistakes.

But if you stick it through, you will certainly enjoy the sweetness of dropshipping.

What are the best products to dropship?

There are many products you can dropship to make a lot of profits. This can make picking the right product a bit of a challenge.

But as a rule of thumb, go for products that:

• Has a wow factor
• Solves a problem
• Has a good profit margin
• Offers some perceived value
• Has limited availability. No need dropshipping products people can easily walk into a convenience store to buy
• Has a broad audience

Is Aliexpress good for dropshipping?

Aliexpress makes it easy to find dropship-worthy products online. The cool part is that you can easily import products from Aliexpress straight into your store with just a tap of a button.

What’s more, Aliexpress lets you connect with sellers by contacting them via direct messaging.

You will find hundreds of product categories on Aliexpress.

Can I get sued while dropshipping?

The long and short answer is yes. You can get yourself into some messy legal issues by dropshipping copyrighted products.

As such, it’s best to stay away from copyrighted products as much as you can.

Ready to Get Started?

Is dropshipping worth it in 2025? It’s a definite yes for us. 

You can still make a lot of profits from it regardless of the competition. 

It is important to use the right tool to make the most out of your dropshipping business. 

This is why you need to use Sell The Trend. 

Sell The Trend is an all-in-one dropshipping platform that allows you to automate your dropshipping product research and other repetitive tasks, connect with suppliers within and outside the US, and more. 

Also, Sell The Trend allows you to automate order fulfillment with ease. 

Ready to try out Sell The Trend to see how it will help your business? 

Sign up for a free trial right away.