Is dropshipping worth it-low dropshipping success rate

Is dropshipping worth it


is dropshipping worth it


Dropshipping is a business model in which the drop shipper or the seller do not have to stock up goods or maintain inventory for selling. 

Seeing this as no inventory model many people jump into this vocation without knowing that is dropshipping worth it-low dropshipping success rate.


Yes, the dropshipping success rate is getting low because it looks very simple to a new entrant but actually it is quite complicated. People get into it seeing someone's revenue earned from it but don't pay a view to one's hard way.


Do you know why dropshipping fail? Doing a dropshipping business without having adequate information about the working of the business and lack of research would definitely step you in a big trap.

We don't have to maintain stock but still, we have to make some investments, we have to perform marketing and promotions for capturing market attraction for our products.

And it's sad saying that a lot of people failed at doing this for their dropshipping business. Before getting more towards failure, let's check the working of the dropshipping business.

How dropshipping works?


dropshipping success rate


Getting insight into the working of dropshipping would help at delivering an opinion for "is dropshipping worth it".

Dropshipping works on a mechanism of generating orders from the customers and then fulfilling those orders without maintaining any inventory. 

We have to contact certain suppliers that may be wholesalers, distributors, or the e-commerce sellers for delivering the particular product to the customers on our behalf, or we can manage delivery on our own.


These orders are placed online with the assistance of various online platforms that provides dropshipping facilities. Some of the major e-commerce players are Shopify, Opencart, Bigcommerce, Woocommerce, etc.

Using one of these platforms for listing your products would help customers at finding the right product from the long grid listings. 

You can click pictures of the selective products that you want to sell and receive orders from the buyers.
Although it looks easier but a lot of risks are associated with it that is declining the dropshipping success rate.

Why dropshipping fail?

There are hundreds of reasons that can limelight why dropshipping fail considering the declining dropshipping success rate and listing the mistakes that cause a big failure.


But I am going to list some of the golden points that are the root cause of the collapse of the dropshipping business.


If you are a seller at Shopify you can ask your queries from the Shopify community.

why dropshipping fail


  • Drop shippers are following crowd not the trends


There are many sellers, mostly the new entrants who believe in copy and paste business niche or domain. They don't target the trending niche or the needs of the crowd but follow existing drop shippers and sellers niche.


At least one must follow the niche, one is familiar with or be choosy for their interest. 

Example- If you are a beginner then you must find a niche that you think is long-term with help of various online tools and social media trends that simply get you an insight about the trending goods and products that are more in demand.

Also, listing unique products on the dropshipping platforms is a convenient way of getting more buyers and makes your business stand out of the box, while others are selling similar goods with improper knowledge.

Also read
Serve business without fear of competition



  • Fail at choosing a reliable supplier


Choosing the wrong supplier is the main reason why dropshipping fail? After getting engaged with the dropshipping business, one must focus long-term.


And a long-term business never compromises on its cost and quality.
Selecting the right supplier who is selling goods at a fair price without compromising on its quality is an accurate decision. This brings a two-way situation based on quality and price.

Quality- If your products are low on quality, people may buy from your online platform but there are maximum chances that they may return your products with a bad review for poor quality.

Price- If your supplier is not offering you products at the best price as compared to other market suppliers.

And you will have to sell it at a higher rate for covering your profit margins. Seeing a higher rate of your goods listing will lose many customers and divert them to buy from other drop shippers or sellers.



  • Low-profit margins


A major dark side of the dropshipping business is that profit margins are very low, all because there are millions of sellers using this e-commerce platform for selling their goods online.

And a buyer is always motivated to buy from the seller offering goods at a low price and this tends to give a low-profit margin to the drop shippers.


Thus before starting a dropshipping business for the newcomers, they must think wisely that is dropshipping worth it-low dropshipping success rate.

Yes, new entrants are fascinated with this no inventory model but they don't ponder it long-term that their expenses are low but the returns are quite low as well. And after being demotivated, they leave this business with no outcome but wasting their investments in terms of time and money.



  • Lack of marketing and promotions for products



is dropshipping worth it-low dropshipping success rate

Now, I will be very clear with the cause that why the dropshipping success rate is low?

You are listing your products that are already available online, why would a buyer buy from you? One can buy from any of the sellers running dropshipping services. Only marketing your products online can excite buyers to buy your products.


But the fact is that most of the people fail at doing this, they don't know how to reveal their products on various online networks?

There are a number of platforms that can engage thousands of customers and can work well at expanding your revenue and adding no promotions would definitely decrease your online presence.



  • Presence of a big competition



The new sellers opting for dropshipping business fails to analyze the presence of huge competition in this e-commerce industry. They foolishly enter into a competitive environment without any knowledge and support.


Is dropshipping worth it for the ignorant and for those not aware of the market approach. 

The procedure is to do market research, follow experts, and then enter into this market with a unique perspective of capturing large interest groups.

Why dropshipping fails is not only because of the presence of competition as it is present at every field and profession. But, due to the lack of a wise approach of running a dropshipping business.

Take away

Dropshipping works on a no inventory approach that saves our investment and storage space. But seeing it as a simple business model is foolish.



Above we have disclosed that is dropshipping worth it-low dropshipping success rate. 

Yes, the dropshipping success rate is declining all because of new entrants entering with a lack of skills and knowledge about dropshipping.

Also read
Ratan tata vs Mukesh ambani competitive comparison