I honestly cannot tell. I used to run 2 dropship stores in the past (like a long time ago) and whilst I was able being profitable, it was to say the least challenging. But I want to fuck around and find out, AS AN EXPERIMENT.
On the flip side, did help me to learn a thing or two about the dynamics, risks attached to it and actual net profitability.
It’s been almost a decade ago I touched that subject and it seems dropshipping is still unstoppable.
After doing some research, I noticed that most of the people make attempts in this field wanting to belong to a group called entrepreneurs.
I am saying wanting, because browsing on YouTube, the content around dropshipping is flooded by fake gurus and people selling blueprints to make a million dollars with zero dollars starting capital.
They are attracting an audience that’s desperate with zero sense of commercial or business acumen and the only ones making money are them.
I can go on about this but that’s not the blog post I wanted to write.
I am thinking:
- Can I dropship in 2024 and become profitable?
- What’s the true cost of following a dropship model?
- Would this be a great ‘Nano bet’ for starting entrepreneurs?
- How does it compare to a decade ago?
- Would the same marketing strategy work as I did before?
- How do you market early-stage a saturated model?
My immediate instinct says NO.
On the flat surface, it seems a LOT HARDER than 10 years ago and competition is more fierce.
Just like affiliate marketing, dropshipping has been taking hits in reputation, primarily by hit and runs (aka those one-pagers selling 1 product and disappear in thin air after sales).
My wife and I run a few e-commerce stores across Asia, but those stores are either:
- Our own retail product and brand
- Our own boxes (we sell subscriptions)
- Inventory stored and bought – aka all goods are physically stored at home and our storage unit
That leads to optimal efficiency, and shipping times.
In dropshipping, I have none of those (yet) and that worries me since I am so adapted to a traditional e-commerce model making it harder for me to go back to the alternative.
My other worry is the cost of doing business as a dropshipper.
I am not only talking about subscriptions or platforms like Modalyst or Spocket. But the time sunk into it.
Bad dropshippers will just import the product into their store with zero modifications. Better ones will:
- Spend days if not weeks sourcing the right suppliers
- Rewrite the entire product description
- Optimize images
- Work on structure
- Build in a content strategy for SEO
- Focus on Pinterest
- Run a few ads on high-ticket items (MAYBE)
The list goes on. The problem with that?
By the time you can turn it into a full-time income you’re at least working on it for 6 months or more.
What I Want
I know the pitfalls and hurdles in this model. And what I want is to build a public case study about:
- The true costs running a dropship store
- How long it took for me to make my first sale (again)
- Channels used
- How I would go from dropship to traditional
- Documenting risks
- How I determine niche or niches
- Build a blueprint tied to e-commerce overall which is I believe more valuable
I want to document it for my NanoBets community because the purpose of the community I am building is not to only highlight success stories but realities for people looking to expand their own portfolio in small bets.
Nonetheless, I will keep some updates in public as part of the 2024 blogging journey.
My prediction is that there far better models today unless you want to rack up experience in e-commerce but let’s find out right?
See you in NanoBets Discord!