With a global market size that grew from 122.3 to about $150 billion between 2019 and 2020, you couldn’t be blamed for thinking the dropshipping market is getting saturated.

But, the reality is quite different. The industry is projected to expand with a compound annual growth rate of 28.8% up to 2025, reaching 557.9 billion dollars; if you were worried that it is dying out, don’t be.

Growing consumer purchasing power

The credit Suisse research institute estimates that compound retail sales in growing markets like Mexico, India, Russia, and South Africa account for 3.5 trillion dollars every year. This vast market has benefited drop shippers, as they don’t need to rely on highly competitive regions such as the United States and European Union countries.

Although the logistical a regulatory requirements that come with overseas shipping can be challenging. Drop shippers willing to establish themselves as dominant brands and pioneers in those markets-

Limited barriers to entry

Conventional product distribution channels require retailers to make significant investments to manage inventory. However, the growing popularity of eCommerce platforms aided by the COVID-19 pandemic has led to a preference for dropshipping agents to reduce the capital requirements for inventory acquisition and management.

Interestingly, reduced capital investments in logistics and inventory have heightened demand for dropshipping amongst retailers. Fewer overhead costs, combined with a wide product portfolio, will continue to drive market growth for the foreseeable future.

Growing eCommerce market

If you’ve ever considered dropshipping before reading this article, you’ve likely assumed that all the profitable niches were occupied early on and that starting a dropshipping business is a waste of time. This is not entirely accurate.

Obviously, the more people hear about a profitable industry, the more likely they will try it out.  This is true for any business, not just eCommerce. Think of all the coffee shops, clothing stores, and food stalls you have in your neighborhood. They don’t really sell anything specific but continue to exist.

Ecommerce is no different. Yes, there are probably millions of stores selling clothing, for instance, but they’re all unique.

Some stores have a broader product range. Others give their clients irresistible discounts. Then, there are the stores that spend millions to appear at the top of your social media feed or in your search engines.

They compete with each other, but you can compete with them too. There’s nothing to keep you from winning.

The universal trend towards eCommerce

One other reason drop shipping will continue to be profitable is consumer trends. The pandemic has added a sense of urgency to the shift towards e-commerce transactions.  On the one hand, the virus nearly broke some sectors of the world’s economy. On the other, it has been a massive opportunity for others because consumers have changed what they buy and where they buy it.

Simply put, more people would instead buy products from an eCommerce store than an e-commerce shop. Analysis believes it’s going to be a long-term trend. If this prediction proves accurate, selling online, whether through a dropshipping store or a traditional eCommerce platform, will be more profitable.

Mobile-first technology

Technology shapes culture, so it’s no surprise that the advent of mobile digital experiences has reshaped eCommerce. However, it is interesting that this change has dramatically benefited dropshipping.

Mobile responsive dropshipping websites stand to benefit from customer preference for seamless digital experiences. The customers don’t really mind that these sites don’t hold inventory, provided that they receive good service.


Technological advancements in various aspects of the dropshipping business have eliminated many of the problems it once had. Day-to-day tasks like product imports, search, prices, promotions, and order-tracking can now be automated. Many dropshipping services like wholesale2boffer free accounts where you can practice and improve your craft. This shows there

Improved delivery times

Delivery times were once a serious problem for drop shippers. Customers had to wait for 2-3 months for their packages because items purchased overseas were shipped by sea. Obviously, this was very inconvenient, and it caused problems for both sellers and customers. This changed with the introduction of solutions like Epacket.

With this shipping option, drop shippers can deliver products more efficiently, which means customers are less likely to resent them. Dropshipping suppliers can deliver products in 10-20 days, which is acceptable for most consumers. Besides, right now, Chinese suppliers have fulfillment centers in Europe and the United States to ship products to customers in those areas reasonably fast.

Emerging product niches

A niche product targets a specific section of a larger market or industry. Conventional eCommerce stores don’t carry them but, since 2017, there has been a steady increase in the number of people looking for such items. That’s where dropshipping comes in.

Potential drawbacks

Like all business opportunities, dropshipping has some disadvantages. Namely, you will have narrower margins, and there’s lots of competition. Though this doesn’t mean you can’t still succeed, you won’t have much freedom with pricing.

Inventory handling can also be a complicated affair. You likely won’t have hands-on management if you’re just starting out, so expect out-of-stock items and other inventory problems from time to time.

Fortunately, there are solutions to this sort of problem. Working with several companies that have overlapping product lines can spare you lots of inventory problems.  Chances are that you won’t get the opportunity to test every product you sell, so you need to be passionate about your business. Your genuine interest will help you learn essential product details you could use to win customers.

How to start dropshipping

As you’ve likely concluded by now, dropshipping is a highly profitable venture – as long as it is done the right way. If you have eCommerce experience, the process is similar to launching a new product.

You’ll need to;

  1. Find and research products that align with your market, strategy, and customer base
  2. Study your competitors to understand how they sell the product and price it
  3. Find the suitable suppliers
  4. Develop an order fulfillment system that suits your business strategy and incorporate it into your operations.
  5. List and advertise your product. Remember to mention any special conditions, like shipping times and delivery routes.


Dropshipping is profitable, and it will continue to be for the foreseeable future. Starting a successful dropshipping store is not as easy as most people claim, but it’s not impossible. With the right strategy, you’ll definitely get results.

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