Does Dropshipping Still Work in 2020? Here’s the Truth!

David Linder

David Linder

I write about dropshipping, ecommerce and marketing. Owner of the worlds best product research agency for Dropshippers.
4 min read

Many people have found success in dropshipping over the years but, is it still profitable this year?


The questions about dropshipping being dead, saturated, or not profitable continue to pop up on forums and Facebook groups. The interest is there but some are hesitant about pursuing this business model out of fear that they’ll just be wasting their time and money.

Dropshipping is alive and healthy. It’s tougher to stand out from the sea of competitors, yes, but it’s not dead and still a lucrative way of generating income. Need more convincing? Then stick around as I tackle some of the people’s concern about dropshipping this 2020 and the things to do to make dropshipping work for them. Let’s dive in!


#1: Too much competition.

The misconception that dropshipping is dead because the industry has been saturated is wrong. Although the business model has been here in decades, it doesn’t mean that there’s no more space left for new stores. With dropshipping, the goal should be to stay competitive by working with new suppliers and selling the newest, best dropshipping products that dropped on the market.

Of course, you can still earn profits from some saturated products. After all, you can continuously generate sales from products that have established markets already while testing a new product with the potential for becoming a best-seller in your store. Yet, even if you find already a new winning product, it is still smart to keep looking for great products to sell in your store. Time will come that a trending product loses steam. Thus, to continue generating income from your store, you should already have something to replace the dying product.

You’ll never run out of products to sell in your niche because products are continuously updated. New suppliers and new brands come out which means new product lines to test in your store. Make sure that you work only with the best suppliers and stay innovative with your marketing strategy and customer service. When you have something to offer your customers that other dropshipping business owners don’t, you’d be able to stand out no matter how tough the competition.


#2: Higher costs of advertising on Facebook and other channels.

With too much competition the acquisition of customers increases. Ad spends will be higher as you will be investing lots of money to reach more people. As businesses will try to outcompete their competitors for people’s attention, the bids for keywords get higher and higher. The market is there but it’s getting more expensive to access them.

Dropshipping is getting serious nowadays. Gone are the days of gaming the system and thinking the dropshipping is a get rich scheme which anyone can jump in, click a few buttons, and start earning money. For a dropshipper to succeed in this industry, he must build something of value that not only serves him but his customers as well.

You might think that traffic costs are high these days and cheaper ten years ago. Because ten years from now, you’ll think that advertising back in 2020 is a lot cheaper than in 2030. It is expected that the tougher the competition, the higher the investment cost will be.


#3 All niches have been saturated.

Contrary to what other people say, a saturated niche is a good thing. It’s already a tested and proven market and you can certainly get profitable in it. Being the first one in a niche has many risks and if you have a small budget, it may not be feasible for you. You can end up selling something that nobody wants.

For a dropshipping business to work, focus on markets that have competition and identify their weaknesses. Find a product that provides the solution to the problems that your competitors overlook. By doing so, you’re providing people having these problems the only solution available in the market.


#4 Reputable suppliers will not work with new stores.

Unfortunately, this is true. Suppliers want to work with resellers that can provide them a steady stream of income. They’d want to partner with someone who will be in the dropshipping industry for the long-term. If you take dropshipping as a real business, you’ll ensure that you build it for the right reason. Not as a temporary source of income while you are in between jobs, on vacation, or as a means to support yourself through school until you can find a full-time office job.

If you have the mindset of growing a dropshipping business into a real business, you will plan out carefully your actions. As you will aim to establish a good relationship with reputable suppliers, you should know how to approach them professionally and effectively. You will not show any indication that you are new and don’t know your way around dropshipping. I suggest that you check out this article to learn how it’s done.



Final Words

Is dropshipping still profitable this 2020? Yes, absolutely! Dropshipping has gotten a lot of attention over the years the reason why the competition is getting more difficult than before. Yet, the potential for becoming lucrative in it is there. Just like any business, success can be achieved with dedication and hard work. You’ll need to invest money, time, and effort to build your dropshipping business from the ground up. Dropshipping is not dead, just do it the right way

David Linder

David Linder

I write about dropshipping, ecommerce and marketing. Owner of the worlds best product research agency for Dropshippers.

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