Current State of Dropshipping and eCommerce in 2024

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Questions about current trends

Dropshipping in eCommerce

What’s the current state of eCommerce and dropshipping? Is dropshipping worth considering? In this article, we’ll answer these and more questions.

Is Dropshipping Dead?

There are many ways to market and sell things online. Dropshipping is one of the biggest global eCommerce business models and has the power to generate millions for home-based and in-house companies.

So is dropshipping dead? Far from it—dropshipping is thriving better than ever.

Countless fresh individuals are honing their skills to match the requirements dropshipping needs, especially in 2022.

Whether physical or digital, the possibility of profits is a continuous struggle for entrepreneurs. Moreover, the ever-growing technical industry encourages startups and digital entrepreneurs to grow their businesses and bring forth successful innovations while pressuring them into sustainability and relevance for survival.

Digitalization Is the Survival of the Fittest

In this age of digitalization, technological advancement determines the future of your eCommerce business. How your technology influences your capabilities and ideas impacts your company’s popularity among consumers.

Keeping up with current trends is crucial to your business’s survival. This means you can’t just revise conventional methods if you hope to stay ahead of the competition; you need to develop every aspect of your platform. This goes from your website interface with current best UX/UI standards to your platform’s functions, integrations, and findability.

The best example comes from the CPC (Cost Per Click) approach. Advertisements and content discovery platforms have replaced advertising companies like Chitika and taken over responsibilities from Google AdSense.

Hence keeping up is a skill in itself that companies need to master. In simpler words, if you want to turn your company's future success, now is the time to adopt the essentials.

Now coming back to the topic, to determine the current scenario of dropshipping, it is vital to analyze variable data, trends, and other factors that aid in the overall success.

Is Dropshipping Alive and Well?

According to Google, the search term "dropshipping" has seen a significant increase in its searches over the last five years.

This is helped by the rise in online marketplaces like AliExpress, which is expressed in the notable increase in the search term “AliExpress dropshipping.”

AliExpress in particular is a great platform for dropshippers because of its affordability and availability of the latest products.

On the other hand, Alibaba doesn’t have as much of an impressive increase in its search trend. Among other factors, a prominent reason is that Alibaba focuses more on B2B and deals in bulk buying orders.

Meanwhile, AliExpress focuses on B2B and B2C, thereby giving it a larger network of audiences. AliExpress also has a wide range of payment methods compared to Alibaba.

Is Amazon Dropshipping Profitable?

As a business owner, keeping an eye out for all possible platforms is necessary in today's world. Amazon is a great platform overall; however, when it comes to dropshipping, it still has a lower trending rate compared to AliExpress.

Amazon requires a lot of hard work and full attention due to its complex business nature. For starters, Amazon charges FBA fees, and in case your products are sitting in the warehouse for more than six months, you also have to pay storage fees.

Therefore, Amazon is an entirely different business model compared to dropshipping.

Is Dropshipping Worth it?

The worth of dropshipping depends on the nature and goals of your business. For people looking to make a decent amount of money in a considerable time, dropshipping is a worthwhile investment. However, if companies are looking to expand their grounds, then dropshipping may be a hard no.

You can turn your dropshipping business into a success by investing the appropriate amount of time, money, and effort.

Factors that Slowed the Dropshipping Business Worldwide:

  • Lack of customer support
  • Long refund time
  • Long shipping duration
  • The increased cost of goods
  • Low product quality
  • Unprofessional attitudes of sellers

A legit eCommerce business works based on good customer service. Therefore, dropship companies and startups need to engage their customers and make sure they keep coming back.

We see many dropshipping suppliers use Shopify for their initial online store without building a high standard website that brings in potential clients. They solely rely on social media campaigns and advertisements to secure sales.

Neglecting your customers will only lead to a flop business model as word of mouth plays an important role in the online world. Therefore, the best solution is to think about what your customers want and act accordingly.

Is Dropshipping Dead in 2022?

To keep it simple, no. Many statistics are available on the net that vouches for how saturated the industry is right now. Dropshipping has potential and we guarantee it will not die anytime soon.

  • By 2025, the estimated market value of the drop shipping industry could reach up to $557.9 billion.
  • 27% of approximate retailers are using dropshipping.
  • Dropshipping can earn up to 50% more than keeping your stock inventory.

With each passing year, the debate about online business becomes a hot topic for online media. Dropshipping seems to be the latest victim. However, rather than dying out, the dropshipping industry adapted to the new normal.

A few years ago, AliExpress, Etsy, eBay, etc., were the sole kings of dropshipping. Hence, now suppliers directly contact wholesalers and manufacturers to purchase their products in bulk.

Hopes for dropshipping are high in 2022. Now is the best time to start an online dropshipping business. Here are a few reasons why:

  • Due to Covid-19, eCommerce is thriving.
  • More people buy things online rather than physical purchasing.
  • Merchants understand the concept of dropshipping.
  • Online payments are preferred by many consumers.
  • It aids in online paid campaigns and marketing.
  • The initial cost for this business is almost zero.

Manage Dropshipping with the Right Software

To optimally manage your dropshipping and eCommerce operations, you need the right eCommerce platform and integration technology. That’s exactly what we’re here for. Click an option below to talk to one of our experts or learn more about our eCommerce platform.

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Autumn Spriggle is a Content Writer at Clarity Ventures who stays up to date on the latest trends in eCommerce, software development, and related topics to provide readers with the latest and greatest. She strives to help people like you realize the full potential for their eCommerce business.