Is Dropshipping Dead?

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Is dropshipping dead in 2021? I don’t think so! Let me explain. But first, a few facts and figures to support my argument.

dropshipping industry overview

It is one of the fastest-growing industries in the world. The global market size of the dropshipping business in 2018 was valued at USD 102.2 billion and is expected to grow at a CAGR of 28.8%.

The dropshipping business global market size is expected to reach a whopping USD 557.9 billion by 2025.


The size of this market is expected to grow further owing to the rise in e-commerce and online shopping.

Also, the COVID-19 pandemic situation gave a much-needed push to the global e-commerce market.

so, is dropshipping dead?

Dropship business is not a trend or a fad that will fade away after a few years of saturation. Dropshipping is a business model like any other model of business we see around us.

This is the sole reason why the dropshipping business will never fade away. However, the means of conducting a dropshipping business may change as per the trends.

For example, the dropshipping business has changed significantly with the acceptance of e-commerce.

Earlier dropshipping would suffer because of the distance barrier. But now, the internet has diminished that distance barrier.

Considering the case of India, online shopping (ecommerce) in India is at the initial stage and is yet to achieve its full potential. However, online shopping is very much accepted in metro cities and lower tier cities are catching on.

shopify dropshipping india

Because of developments in ecommerce and its acceptance by the consumers, the dropshipping business in India is on the rise.

The Indian dropshipping market is well complementing the growth in global dropshipping market.

Hence, dropshipping is not dead and It will never be.

A trend like big boss, a fad like memes, will eventually die but a business model will stay as long as businesses trade.

Else, the top MBA institutes would not teach their students about this business model in Operations 101 course!

So, Is dropshipping dead? No, Dropshipping is here to stay.

what is dropshipping business model?

The Dropshipping model is best explained by the image shown below.

dropship business model oberlo
Image Source: Oberlo

The Dropshipping business model primarily has 3 elements. The manufacturer, the drop shipper (you), and the consumer. The process of dropshipping is fairly simple to understand.

A consumer places an order with your dropshipping business. You then forward the consumer’s order details to your manufacturer or supplier.

The manufacturer/supplier packs and ships the product directly to the consumer who had placed the order on your dropshipping store.

In a dropshipping business model, one does not need to hold any inventory, which is the biggest benefit of the dropshipping business model.

spocket us dropshipping

The best part is, the consumer would receive the order with the branding of your dropshipping business.

The manufacturer/supplier would not use any branding of its own and use the brand name of your dropshipping business.

Hence, the consumer would only be interacting with your dropshipping store and may not even know about the presence of the third party, that is, the manufacturer/supplier.

This fact is extremely beneficial for dropshipping business owners to build their own brand for their consumers.

How cool is that to build a clothing brand from your laptop and an internet connection!

pros & cons of dropshipping



Well, are you now Interested in dropshipping?

Dropshipping is the most lucrative online business model to build your brand from scratch.

It takes as little as a day to get started by building your online dropshipping store and start selling.

how to start a dropshipping business?

These are the 7 broad steps to build your dropshipping business from scratch.

step 1: Build an online store

Build an ecommerce store where you will store the products and sell to your customers.

shopify online store

step 2: select niche

Select the niche in which you want to operate. This can be fashion, Tech, Home Improvement or anything that you find easy to understand

step 3: select dropshipping suppliers

Select quality suppliers who supply products within your selected niche.

us dropshipping suppliers

step 4: select the products

Select the products you want to upload to your store and start selling.

step 5: finalize your online store

Setup payment gateways to accept payments on your dropshipping store. Finalize the store policies.

Add store policies such as shipping policy, return and exchange policy, refund policy, privacy policy on your store. Create necessary business pages such as About page, Contact us Page, etc.

step 6: promote your dropshipping business

Use social media for promoting your products. For dropshipping, the use of social media is highly beneficial because it helps in driving impulse purchases. Use social media automation software for regular engagement with the social audience.

crowdfire social media automation

step 7: fulfill orders

Fulfil the orders as customers place them. Handle customer queries, update them regularly about order status. In short, take care of customer service.

These are the board steps that are involved in starting your dropshipping business. These steps in themselves are huge stages of building your dropshipping business.

If you are completely new to Dropshipping, you may need to invest some time to learn how to get the best for your dropshipping business.

You can refer to this dropshipping business guide where I have explained all the above stages in great detail.

The step by step explanation presented in this dropshipping business guide will help you to start your dropshipping business from scratch.

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