A few years ago I was heavily involved in a couple of Dropshipping operations but then started on Affiliate Marketing as the side line to my software development business (Warick Hartman) which is where I make most of my income. However when the pandemic hit this year, I found myself with a lot of time on my hands and I wanted to get more focused on creating more passive incomes so that I could spend more time with my new young Latina wife (yes I’m bragging) and go on holidays knowing my machine is working for itself. Hence this website came to fruition.
I then started wondering, could I still do drop shipping in 2020? Immediately I found overwhelmingly that everyone on the inter webs seems to be saying Drop Shipping is dead! This made me even more interested because one of the key rules of success, that I truly believe, is that when everyone is agreeing on one thing, you should go the other way.
I also opened YouTube and took in about 100 hours of videos on Dropshipping in 2020. I am now convinced that it will work this year even better than it did before and I’m going to give a couple of reasons for this in just a moment.
First I have a question for you, one of the things I’m considering doing is to create the new effort step by step and video/blog the entire thing so I can give you all tips and tricks, but more importantly what I learn a long the way. Could you let me know in the comments if this is something you would read/follow?
Old Dropshipping Methods are now Less Effective
Unfortunately for people trying to make a quick buck, but fortunately for the majority of people, online shoppers are getting smarter and now due to the pandemic it has made it even more difficult when trying to sell small items from China into the USA.
The other thing that is no longer an option is the wait, when you’re selling cheap products from Chinese sites like Aliexpress, the wait can be a serious issue. So this means that you’re more likely to end up giving refunds to customers who don’t want to wait 3-6 weeks for their products.
Finally, with the sheer amount of dropshipping, a lot of customers have become aware that they can just buy directly from Aliexpress or when they Google this new hot product that you’re trying to sell they will find it cheaper elsewhere.
Basically what I’m saying is, it has gotten about 100% more difficult to make money with Dropshipping but that is a good thing, it means less people on the bandwagon and more space for the rest of us. We just need to change tactics.
So this is one of the main reasons that people are shouting that Dropshipping is dead, it’s that everyone and their dogs are doing it. Now the market is saturated and there is no more space. Anyone who tells you that any market is too saturated is either lazy or lacks creativity, there are 7 billion people on the planet and if you don’t think that you can market to a small segment of them and sell them something, then you’re not cut out to be an entrepreneur sorry.
Did you know that only 16% of retail in the USA is Ecommerce, that means there is still 84% of retail customer sales to be converted to buying online and that 16% who is currently buying accounts for billions in sales a year. Like everything, you just need to pick a niche that you know, make a product that you are confident in and keep going until your marketing works.
The market for eCommerce is no where near over saturated, so surely I can still get my cut right?
It can’t be dead, because people are still buying online
Following on from my last two points, I hear everyone saying that dropshipping is over, but what they seem to mean by this is that the initial method that everyone was using to get rich quick is dead.
People are still buying teeth whiteners etc online, therefor the market hasn’t gone away, the way they find products and purchased has just changed.
So what is the new way of dropshipping. Well dropshipping is simply having a wholesaler who will ship to individual customers, so we’ve just got to do this more effectively.
My 3 month plan
In terms of my plans to see if my assumption is right and that dropshipping still works perfectly is to find a product niche, check that there is a product I can find in the States that I can sell for a reasonable profit.
Next I will create a Shopify store exactly as was done with dropshipping before. That part hasn’t changed, I’ll do a full tutorial on that as I build my site.
Finally I need to check the marketing methods of old dropshipping still work or whether I need to change them.
One thing I am keen to do, which I think is the key to success in this new dropshipping era, is to create a brand, so the key to my product search is to find someone who will brand the products one by one without needed to buy stock in advance. This will be the hardest part but I think it will increase the sales massively.
I’ll check back in with a post once a week with progress and to get feedback from our audience!