Is dropshipping worth doing in 2022? Can merchants still make a profit with this business model? This is an important question, but the answer is yes and no.
If you don’t know what dropshipping is, it’s a business model where you do not need to stock up on inventory. Once you get sales on your e-commerce store, you then pass on the order to your supplier, who then ships the product out for you on your behalf.
That sounds like an easy thing to do, right? Dropshipping is heavily competitive, you might have an identical product with another merchant, and if they sell it cheaper than you, you don’t get an advantage. Dropshipping is still a very popular trend as you can see on Google Trends.
Here are some pros and cons of dropshipping:
Pros:
- No inventory pressure
- Little capital to start your business at a low entry.
- Able to product test products to see what works and what doesn’t
- Able to sell trending products and take advantage of trends
Cons:
- No control over fulfilment and lead times
- Reliant on third-party stock
- No brand building opportunity
- No control over product quality and Low-profit margins
Dropshipping is really a 50-50 situation. It depends on what you want for your business. If you’re going to develop a brand, then dropshipping is not for you. Otherwise, dropshipping is a quality source of passive income.
If you’re still reading, then you’re probably interested in starting a dropshipping business. Securing your niche should be the first thing when it comes to dropshipping.
Some dropshippers like to have multiple niches and build their online store like a grocery store. That is not a bad idea when it comes to building a dropshipping business because you can test out multiple niches and products to see what works best for you.
Two things to consider when dropshipping. First is your niche, and second is trends. If you can get ahold of trends, your revenue will double or triple at the right time.
Choose a dropshipping niche
How do I choose a dropshipping niche?
Discovering a dropshipping niche is a tricky question. Some people like to sell things they are passionate about. For example, selling the guitar, guitar pics, amplifiers, etc., isn’t a bad idea if you are a guitar enthusiast and know the products very well. However, the flip side is that your passions might not bring you the revenue you want.
The majority of dropshippers look at niche trends. Whether it’s google Trends or a reliable database like FindNiche. I use FindNiche because it provides me with such gold when it comes to data.
FindNiche provides data from Shopify stores, Aliexpress and Amazon. It gives you an idea of who is selling, what are they selling and how they are selling. According to trends, you get the complete picture and can strategically build your dropshipping business.
What I look at when determining a dropshipping niche are a few things
- Competitiveness of Niche
- Average profit per item
- Product Quality
- Average lead time for the supplier
All in all, it’s really up to you when it comes to determining your dropshipping niche. Remember, products matter, but how you operate your business is what determines success. Using the right e-commerce platform, having the right database to do research, nailing your ads for traffic. These are all equally important as your products.
You can also use SHOPLINE’s Catcher app located in the SHOPLINE App Store:
- Data collection from eCommerce platforms, social media platforms and data sources.
- Weekly product ranking based on the sales, social and search performance in the past 7 days.
- Latest rankings of online stores and analyze competitors’ business strategies.
- Allows merchants to have an overview of the products selling online and find their potential suppliers quickly.
Profitable dropshipping niches in 2021 and 2022
I did some research on the profitable dropshipping niches and trending niches. You’re welcome.
All my research is done with FindNiche and also Google Trends.
Consumer electronics
Consumer electronics is always one of the best niches because profit is high for consumer electronic products, plus quality isn’t an issue. It is highly competitive, but I think it’s a very stable niche because people are constantly consuming these products, causing a high demand.
Baby Products
The baby product industry will grow by around 19 billion dollars by 2026. This considerable growth is already enough to persuade you to take a piece of this trending market. Considering baby products are always have a high demand and that babies themselves overgrow and some of these products need to be replaced by parents. Baby products are a fascinating niche if you know how to pick what parents like, it results in a positive amount of profit.
Athleisure
Athleisure is a part of the fashion industry, which is ALWAYS profitable and in demand, mainly women’s clothing. Since the pandemic hit in 2020, people are leaning toward more comfortable options because of being at home for long periods, as you can see from the FindNiche data. I searched women’s clothing, and the top sales on Aliexpress were all yoga pants and leggings.
Dropshipping trending products
The opposite of finding a niche and working your way to the top in a certain category is just selling trending products—kind of like a boutique dropshipping store.
You can take advantage of trends and make a decent profit, but the downside is that your store will not have a specific category to specialise in, which can cause people who purchased from you to forget about your store. This way, you will have fewer recurring customers than a regular Niche.
Why dropshipping trending products can bring in extreme profit
Dropshipping trending products are more of a quick money grab. You need to have a strong sense of what’s coming next to sell.
For example, in 2020, if you could sell masks or toilet paper, you would mask an insane amount of money during that period of time, but you would have to look for the following product to dropship. Researching and finding could take a generous amount of time, and if you find the wrong product, the majority of the income will still come from your previous product
What’s the best option for a dropshipper?
The best option would be to find a niche and sell trending products with different stores.
Remember, dropshipping is HIGHLY competitive, and there’s no guarantee that you will succeed, but like I said earlier. Choosing the right product and using the right platform and software can get you a higher success rate.
Use a reliable e-commerce platform to support your dropshipping issues
Now that we’ve finished talking about products, a reliable platform is also essential for you to run a smooth dropshipping business. SHOPLINE is an online e-commerce platform empowering merchants to succeed globally. SHOPLINE is a true Omnichannel Platform that provides merchants with a suite of services from Product Selection, Website Development, Traffic, Payments, Logistics, and Training, giving you everything you need to succeed.
Learn how to get your first sales in 14 days with SHOPLINE
Omnichannel & multiple store management dropshipping
Omnichannel sales and multiple store management is something that SHOPLINE provides that is unique from other e-commerce platforms and can generate more revenue with SHOPLINE than other platforms.
- Omnichannel dropshipping
- Creation of multiple sites
With Omnichannel dropshipping you can sell across different sales channels and take advantage of social commerce and shopping platforms like Shopee.
Learn how to get your first sale on Instagram with our e-book
This way, you have multiple channels to generate revenue which is a big plus when you dropship.
SHOPLINE also allows you to create multiple stores with one account. Unlike other e-commerce platforms, you will have to pay another subscription to buy another site.
This is budget-friendly and allows you to have niche stores and trending stores to get the best of both worlds in dropshipping.
All in all, Dropshipping is still very popular and can still generate a good amount of income if you make the right moves. Would I say it’s for everyone? Not necessarily. I hope this article gives
Dropshipping apps
SHOPLINE App Marketplace has over 100+ apps, and there are a few catered for dropshippers to choose products.
- Catcher
- ERPOLO
- Kakaclo
Catcher is a dropshipping app where you can directly import products from Aliexpress to save time. It also has an analytics dashboard and smart recommendations for product selection, making research much more effortless.
ERPOLO is a dropshipping partner and sourcing agent from China. ERPOLO can also import products from Aliexpress and provides eight shipping methods globally. Brand customisation is also available, which is a massive plus for dropshippers who want to build a brand. You can, with the help of ERPOLO.
Kakaclo specialises in apparel dropshipping, a vast market, as stated in this article. They have their own factory and supply chain, which also provides customisation services—upload products you want with just one click. Customisations are also available with logos, fabric etc. Suppose you want to start an apparel dropshipping business. This app is for you.
Conversion boosters
Once your dropshipping business is up and running, you need methods to boost your conversions. SHOPLINE has over 20 apps that can help with optimising conversions. Here are a few that goes well with dropshipping businesses
- Marketing calendar
- Smart Landing Pages
- Product bundles
- ShopAI
Marketing Calendar provides merchants with multiple festive atmosphere decorations to enhance the store’s festive marketing effect. This app is exceptional if you are dropshipping holiday items or trending items during that season. It gives your customers a unique shopping experience which can help you increase sales.
Smart Landing Pages are good if you use paid ads and want the traffic to go to a specific product selling page. With pre-built templates to make everything easier. This is perfect for building campaigns or using the Marketing calendar during peak seasons.
Product bundles are pretty straightforward. Bundle two products together for a specific discount. Increase sales if you can work out a good deal for the bundle and bundle the right products.
ShopAI gives customers more of what they love. ShopAI draws on that experience and expertise in machine learning to deliver personalised recommendations that suit each customer’s tastes and preferences across all your touch-points.
Key takeaways
- Dropshipping is very saturated, and finding the right niche and products is crucial.
- Do your research before getting started; Google Trends and FindNiche are good options.
- Selling trending products at the right time will result in high revenue.
- Find a reliable e-commerce platform like SHOPLINE that have features to support dropshipping businesses.
Want to get straight into it? We highly recommend using SHOPLINE to start your online store. It’s easy to use, perfect for beginners, and incredibly affordable. Sign up for a 7-day free trial to get started.
