Is Dropshipping Profitable in 2022? How to Make It Profitable

Table of Contents

  1. What Is Dropshipping?
  2. Customer Benefits of Shopping Online
  3. Why Customers Still Enjoy Shopping Online
  4. How to Build a Successful Dropshipping Business
  5. Key Factors to Succeed in a Dropshipping Business
  6. Why Some Dropshipping Business Fail
  7. Conclusion

If we travel back a few years ago, the dropshipping model had just boomed and the ‘laptop’ lifestyle was the next big thing. Entrepreneurs enjoyed riding the wave of success and passive income of which running a successful dropshipping enterprise afforded you, profits were healthy and business was booming.

We’ve consistently read about laptop lifestyles with many YouTube videos and other marketing describing how easy it is to make a living while sitting on a beach. But what about those that missed the initial surge? Is there still a market for dropshipping and is it still the megabucks business model it has been in recent years?

Let’s take a look in this article as to whether you should still be busy creating that killer product inventory, getting busy organizing your supply line and joining the ranks of the laptop lifestylers pulling in a significant passive income.

Should we still be building a dropshipping business in 2022? With the online retail shopping boom set to continue into the future, dropshipping is still an excellent business to begin enjoying all the benefits of passive income. To help us understand a little more about whether dropshipping is still an option in 2022,

First of all, let’s take a look briefly at what dropshipping actually is…

What Is Dropshipping?

Dropshipping is a method of retail where your store doesn’t hold any stock of the products sold. They are bought through a third party which is then shipped to the customer. The seller never handles or sees the products throughout the delivery or order process.

A store owner who uses dropshipping to deliver to their customers doesn’t own any of the stock he sells, instead, the products are purchased directly from a supplier, which can either be a wholesaler or a manufacturer.

Now we understand a little more about the dropshipping model, let’s take a look at why customers are choosing to shop online and how you can help to meet that demand by starting a dropshipping business.

Customer Benefits of Shopping Online

With 25% of Americans purchasing at least one product online in 2018 according to maristpoll, we can easily see why many people prefer online shopping experience. But why do so many consumers choose to shop this way?

“Let’s take a look below at why this convenient method of shopping in your pajamas has created an online retail revolution bubble, which is not set to burst at any time soon.”


Why Customers Still Enjoy Shopping Online

Let’s take a look below at some fascinating statistics as to why customers are shopping online more than ever. According to a survey by NPR Marist in 2018, these are some of the main reasons customers are still choosing to shop online.

  • 56% of Shoppers are persuaded to buy by product and service reviews by other customers.
  • 39% of online shoppers cite the speed of delivery is the most persuasive factor when choosing to purchase online over a physical retail space.
  • Difficulty getting to a physical store is the reason 23% of consumers choose to purchase online.
  • Lower prices of online shopping experiences are the reason why shoppers prefer to shop in an online store.

Now that we can clearly see the upward trend in coming summers shopping online, let’s look at how to get your dropshipping business working for you and how to build a successful dropshipping business.

How to Build a Successful Dropshipping Business

Unfortunately, at the time of writing, there are no official statistics or figures available measuring the success of dropshipping.

“Dropshipping is an eCommerce business model and is considered as a medium-risk business.”

However, we do know that as business e-commerce is still as popular as ever with consumers, so let’s take a look at some of the key factors you will need to succeed.

Key Factors to Succeed in a Dropshipping Business

Choose Your Niche Wisely

Before you get carried away with the latest and best gadgets on your product listings, make sure you are choosing a product with a high search volume but low competition. These kinds of products are known as ‘niche products’. This will ensure a steady stream of customers and a large number of potential buyers. However. Make sure your product isn’t competing with major shopping chains such as Walmart which will be guaranteed to obtain page one Google rankings.

Finding your niche product could take some considerable time in thorough research, so make sure you give this important part of your business the time it deserves. Although there are many experienced marketers that understand this, there will still be a significant number of undiscovered products ready to bring you good profits.

“Google’s keyword planner can be a great starting point and is a free resource to help you find low competition products.”

Research Your Product Thoroughly

Many new business owners have an emotional view of their new lifestyle and generally are inexperienced in making a private enterprise successful alone. So to make sure you have the best chance of success, make sure you thoroughly test your business idea and not get too excited about the glossy advertising you see around this type of business giving you unobtainable plucked from the air, likely profits. For dropshippers, split test is a quite efficient way to figure the best strategy.

Keep your feet on the ground and remember, every business needs hard work to make it succeed. There is no such thing as a quick hit. Think about getting a business mentor, someone who may have been on the same journey as you, who can help and guide you.

Target the Right Country for Your Product

When you spend a fortune on Facebook or other targeted ads, make sure you test your chosen countries out thoroughly first. It could be your amazing gadget that you were sure would sell like hotcakes in the US is not the right niche for that particular country, it could be that by changing your targeting to, for example, Ukraine, you become inundated with orders! US is a big market while with fierce competition, and it’s always good idea to go for less competitive countries with great spending power. So make sure you thoroughly test, test and test again!

Make Sure to Focus on Product Margins

Always make sure you pay enough attention and understand profit margins on your products. Make sure you factor in shipping costs, as it could be that once you have discounted your goods to compete with other sellers, or because of the size or weight, it’s not a viable opportunity. One of the huge advantages of dropshipping over other e-commerce retail business is it seriously cuts your overhead costs – no huge payouts of upfront business rents, warehouses or staff. But managing business across platforms is challenging – there are currency conversions, payment fees, advertisement fees, software subscriptions and product cost and more – keep track of them carefully and make sure you factor in the profitability of your new business venture.

Find Reliable and Experienced Suppliers

Finding reliable and experienced suppliers is the key to success in any dropshipping business. Before you spend hard earned cash on great looking websites and logos, make sure you can find a supplier for your chosen products.

Finding a supplier you can work with and who understands your product is rule number one before you attempt to work on any other part of your business. It could cause you valuable lost cash and time of your progress too quickly building your online store.

If you would like more information on how to work with us to achieve your goals, get in touch and we’ll be able to help and guide you through the process.”

Now we’ve taken a look at some of the points to consider to run a successful dropshipping enterprise, let’s look at why sadly some dropshipping fail and how you can overcome those issues.

Why Some Dropshipping Business Fail

Many dropshippers fail during their first month in their new business venture. These are some of the most common reasons why.

  • Poor choice of advertising – Make sure you select one of the major sales channels to market your killer product, as selecting wrongly can impact your dropshipping business. The most important channels are Google Ads, Facebook Ads and Bing Ads. If you are already using one of these channels and things aren’t working out, then consider using a combination of the above.
  • Lack of Investment – Drop shipping business is successful mainly due to your advertising so without suitable investment in online ads such as Facebook, this may be a reason why a dropshipping venture can fail at the first hurdle. You will likely require between $300 and $400 to begin a successful ad campaign.
  • Poor Customer Service – Being a good manager of a dropshipping store doesn’t end when the order has come in! Keeping in contact with your customers is a necessity when running your dropshipping business. You must be available to reply to your customers’ queries and keep connected to them in a timely way until they have received their product. There are certain queries you may avoid such as shipping – keep customers updated on the shipping status and choose express shipping.

 HyperSKU provides express shipping with tracking numbers at affordable price. Get in touch and we’ll be able to help and guide you through the process.”


Now we can see that customers are choosing more than ever to shop online we can clearly see that the successful dropshipping model is certainly set to continue well into the foreseeable future.

Making sure you follow our carefully chosen tips above and make sure you don’t fall into some of the traps that can trip up an enthusiastic new store owner, will ensure your ongoing success. If you would like any more information on any of the topics in this article or need some guidance, then get in touch and one of our experienced team will be happy to help.

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