Is It A Good Idea To Start A Dropshipping Business In 2021?
Are there any valid reasons to start a dropshipping business in 2021? Let’s find it out!
Some say that having successful dropshipping stores is impossible without secret knowledge or skills. Others are 100 percent sure that the market is saturated and it’s useless to compete with the big fish.
Finally, they all come to the conclusion that it’s hard enough to start a dropshipping business in 2021 (and at any other point of time) and it’s better to give up this idea.
Are these people right? Has the ship really sailed?
Let’s look into the matter together!
6 reasons why starting a dropshipping business in 2021 is a pretty good idea
1. Huge dropshipping knowledge base
People who started their dropshipping businesses some years ago didn’t have so much useful information as you have. They were pathfinders and had to learn what is what the hard way. Nobody sent them emails with the lists of the most promising dropshipping products or gave them any tips on how to manage their stores. They had to begin from scratch.
These days everyone who wants to start a dropshipping business can just google the word “dropshipping” and get tons of articles, guides, educational videos and even special forums where people share their experience in dropshipping. It’s an easy way to learn how to find products, make efficient Facebook ads or properly edit product pages.
As a rule, most of these materials are free, so everything you need to do is just to put a bit of effort into studying the content. That’s it!
2. Lots of special technical tools for dropshipping
Let’s suppose that there is no fridge in your apartment. In this case, you will regularly have lots of problems with keeping your food fresh.
Or imagine that humanity didn’t invent a car and we all need to use horses or other animals to move from one place to another. It would really take lots of your time and effort.
Historically, when people first set up their dropshipping businesses, they didn’t have all these tools that are making your dropshipping journey easier now.
Seriously, you have much more opportunities than ecommerce entrepreneurs had, let’s say, 5 years ago.
You don’t need to import your products manually or spend long hours looking for the ePacket delivery option. You just need to install a plugin on your website and enjoy the process of running your own business.
Besides that, nowadays, there are tons of add-ons and services designed specifically for dropshipping. With their help, you can safely forget about many technical things and dedicate your time to your business promotion.
3. Constantly growing ecommerce market
I guess that now you’re thinking: “OK, nowadays, there are many tools and lots of valuable information that can help me out with a dropshipping business. But what about niches? All the profitable ones were occupied many years ago, so starting a dropshipping business in 2021 is useless.”
This is not entirely true.
Of course, the more people know about something, the higher the competition in this field is. And it is true for any business, not only ecommerce.
How many cafés and restaurants are there in the place you live? How many brick and mortar stores do you have on your street? I have counted more than 5 regular clothing shops near me. Actually, they don’t sell anything highly specific, but still, they exist and bring money, otherwise they would be closed.
In the ecommerce business, the situation is the same. Yes, there are many online stores selling clothing, for example, but they all are different! Some stores have a wider range of products, others offer their clients higher discounts, and some other stores spend lots of money on advertising to pop up in your social media feed or in search engines all the time… They compete with each other and you can compete with them, too. Nobody limits you!
The ecommerce market is huge and there is always a place there for you, too! Particularly, the dropshipping market was valued at $162.44 billion in 2019 and is expected to grow by 18.3% every year by 2027. Remember, the ball is in your court!
4. There’s a shift from traditional shopping to ecommerce
Another reason to start a dropshipping business in 2021 is to capitalize on the changes that analytics expect in the nearest future. The Covid-19 pandemic caused a shift in demand from traditional shopping to ecommerce.
On the one hand, the virus outbreak seriously hurt the global economy. For example, global retail sales are expected to fall by 5.7% in 2020. Of course, the virus was one of the main reasons for this (although not the only one).
Because of the pandemic, consumers are now spending less and saving more – even those who haven’t lost their jobs. On the other hand, there’s also a shift in what they buy and where.
The number of sales via mail orders or the internet in the European Union countries increased by 30% in April 2020 compared to April 2019. You can see a similar situation in the US. The share of ecommerce in total retail spiked to 16.1% between the 1st and 2nd quarters of 2020.
In other words, people now prefer ordering stuff from an ecommerce store rather than going to a brick-and-mortar shop. And analytics think this is going to be long-lasting trend. If this prognosis comes true, we are going to see more businesses selling online rather than via traditional channels.
So, is it too late to start a business in ecommerce? The competition in this sphere is definitely going to rise, but so is the demand for online shopping. That’s why it’s a good idea to start a dropshipping business now.
5. Improved terms of delivery
Some years ago, the delivery time was a soft spot of dropshipping business.
Most customers were forced to wait up to 2-3 months for their orders because the products purchased from China were shipped by sea. Of course, it was inconvenient and caused lots of problems for both the customers and the sellers.
Everything changed when ePacket delivery became available for Chinese sellers. With this shipping option, they were able to deliver products much faster than earlier, which helped them quickly earn people’s love.
These days, lots of AliExpress sellers offer ePacket delivery to their buyers, and deliver products in 10-20 days. Most customers are comfortable with that and buy cheap products from China with great pleasure.
Besides that, nowadays many Chinese suppliers have their own warehouses in the USA where they store their goods. It allows them to ship products to American buyers as quickly as possible, and therefore, get positive reviews even from the pickiest audience!
So, from the point of view of delivery, starting a dropshipping business in 2021 has a better chance of success.
6. Lots of opportunities for marketing
Do you remember how Facebook looked like ten years ago and how many options it had?
In fact, it was a platform which people used to make friends and slowly exchange messages with them. At that time, no one thought that in several years the terms ‘Facebook’ and ‘online advertising’ would be connected so closely.
In 2021, there are lots of marketing opportunities that weren’t available to the first eCommerce entrepreneurs:
- Social media (Facebook, Instagram, Twitter, Pinterest, etc.)
- Google ads
- Email marketing
- Guest blogging
- YouTube marketing
- Q&A websites
As you can see, you have a wide range of opportunities to make a name for yourself and for your store as well. Just use them and you’ll make your dropshipping business flourish!
Dropshipping business in 2021: the bottom line
Does dropshipping still work in 2021? Is dropshipping still profitable? Yes and yes! And it won’t be late at any moment in your life if you’re ready to give it a shot.
Remember, there are no magic pills that will help you get ahead in the ecommerce business. There are just modern technical and marketing solutions which you can use to your advantage, and your strong desire to change your life!
Starting a dropshipping business in 2021 is a great way to get financial freedom and open up new opportunities for you! Don’t let your fears stand in the way of your dreams and hold you back! Everything is in your hands!