The question, “Is dropshipping too saturated?” comes up regularly at two particular times. First, it’s when someone is interested in starting a dropshipping store and looks up information to find hundreds of thousands of hits; supposedly not being a secret means it’s not successful. Second, it is after setting up a store and not seeing a sale right away, making it very clear that every possible customer is already taken by other dropshippers. Hopefully, you can see the sarcasm and ridiculousness of the ways fear stops merchants from seeing the potential market here.
In 2017, ecommerce was responsible for $2.3 trillion in sales and is expected to hit $4.5 trillion in 2021. Before worrying about the type of ecommerce business, it is important to understand that ecommerce itself is growing drastically. As the ecommerce market grows, so will the dropshipping market; they are expandable. Otherwise, how could you explain Kylie Jenner selling a near billion dollars worth of new make-up in an industry that is definitely saturated and has been for decades?
After reading and watching videos about dropshipping, it is easy to assume there’s only a few products you can sell. If you follow the videos to set up your store and brand, it can be disheartening to see other who have followed the tutorial and have the exact same store selling the exact same sunglasses. If you and the other thousand viewers then try to make the same ad, selling the same sunglasses, to the same people, of course it can feel saturated!
The resources about dropshipping are abundant, but many don’t understand that they need to translate that information for their own unique business. They copy and paste the examples used instead of using that knowledge on a brand and product that is different from the one shown. Here are countless guides to finding winning niches or products. Dropshipping can only be saturated if the products are saturated, but there is thousands of new products being added and sold everyday. The most popular Christmas toy for 2019 may not even exist yet, that is why it’s important to read and stay on top of new products!
If you truly want to see the growth potential of dropshipping, you need to understand that it is just another form of ecommerce. A few weeks ago I order a bike part from Amazon. I was on lunch and so quickly chose the cheapest shipping option and placed the order. About two weeks went by and when I picked up the package I noticed it was ePacket and from a supplier in China. It finally hit me that the most successful company in the world right now is also dropshipping.
Dropshipping is not only the bamboo sunglasses stores you see in Youtube videos. Dropshipping is a form of fulfillment used in ecommerce. Normally, it would only be huge companies like Amazon that would be able to dropship from suppliers. With the Oberlo marketplace, you as an individual business can set up your own business dropshipping. So no, dropshipping, or simply just shopping is not oversaturated and won’t be for a long time to come. Don’t let others steal your sales by convincing you to stay off the market!
What are your thoughts on the current state of dropshipping? Is your opinion altered by your own store? Do you read up on ecommerce statistics and growth? I'd love to hear your opinions!