Online shopping has become popular among consumers, and dropshipping businesses are well-positioned to capitalize on this trend.
The convenience of shopping from home, combined with the vast selection of products available through dropshipping stores, has made online shopping more appealing than ever.
Social media and influencer marketing have also greatly contributed to the popularity of ecommerce. In fact, millennials, Gen Z, and Gen X prefer to discover products on social media.
Source: Unsplash
6. Over 27% of retailers use dropshipping for fulfillment
Being able to sell products on ecommerce platforms or through your own ecommerce store without needing inventory is one of the main reasons so many businesses choose the dropshipping fulfillment model.
Since you don’t have to worry about delivering customer orders, there’s more time to focus on creating new products and marketing strategies to increase online sales.
Source: Pexels
7. 87% of ecommerce retailers struggle to find a good supplier
Choosing the right third-party supplier to trust with your entire fulfillment operation requires research. Here are some tips to help you get started:
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Check the company’s history and market experience
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Check pricing, shipping rates, and delivery times
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Read customer reviews
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Get sample orders to check the quality of the products you want to sell
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Check if the supplier offers customization services—it can help you stand out from competitors
Printful is one of the leading prin-on-demand dropshipping providers in the industry. We offer 367 premium products, including apparel, accessories, and home & living items.
8. Dropshipping can increase an online store’s profitability by up to 50%
The dropshipping business model allows store owners to sell products without holding stock, dramatically reducing overhead costs such as storage, unsold inventory, and upfront purchases.
Because there’s no physical inventory, dropshipping stores can offer various products and switch up their catalog without the risk of losing money. Each product is fulfilled only after a customer makes a purchase.
However, it’s important to manage expectations and understand that while dropshipping can lead to high profitability, success depends on effective supplier relationships, smart pricing strategies, and strong marketing efforts. Maximizing profits also involves selecting high-margin products and continuously optimizing the sales process to enhance customer satisfaction and loyalty.
Valuable read: How Profitable Is Dropshipping?
9. Dropshipping businesses typically have a 15–20% profit margin
To calculate the profit margin for your dropshipping business, consider all the involved costs. This includes the dropshipping services you use, shipping, taxes, ecommerce platform, marketplace, website hosting fees, and marketing investments.
Keep this in mind when pricing the products on your online store.
Source: Unsplash
Remember, with dropshipping, you’re hiring a third party to do part of the work for you—fulfillment, packing, shipping, etc. That means you’re also paying for that service, not just the product.
Pro tip: If you’re unsure what to charge for your products, explore our Beginner’s Guide to Product Pricing. Your price point will depend on your dropshipping niche, product type, and what your target audience is willing to pay.
10. TikTok is becoming increasingly popular for online purchases
While TikTok’s digital buyer base isn’t as big as Facebook’s or Instagram’s, it’s already become the fastest-growing online shopping platform since its TikTop Shop rollout in 2023.
Source: Insider Intelligence
Adult TikTok users spend way more time on TikTok (54 minutes per day) than on Instagram (33 minutes per day), and 68% of Gen Z adults in the US are willing to buy on TikTok.
The #TikTokMadeMeBuyIt hashtag shows that the social network strongly influences online consumption habits.
Source: Insider Intelligence
If you're aiming to make money on TikTok, using TikTok Dropshipping is a powerful way to sell merch directly on the platform.
5 dropshipping lessons from those who are doing it right
Choose your niche wisely
When choosing a dropshipping niche, a good approach is finding an intersection between personal interests and market demand. If you’re passionate about something, someone else will probably be too.
Learn more:
Check out Dogecore, a top-selling brand making money with internet meme designs. The brand uses humor and authenticity as tools to attract customers.
Source: Printful
Create value for your business
You need to create unique value for your customers to stand out in the market. Think about what you can provide that goes beyond just products.
Women Who Code is an excellent example of how a higher purpose and dropshipping can go hand in hand.
Source: Printful
Take time to build your audience
Making your first sale and establishing a loyal customer base will take time. Building an audience on social media can be a good starting point.
Take a look at Inspire Uplift—the brand started out as a social media community before becoming a custom-built marketplace with 15K monthly orders.
Source: Printful
Explore how different businesses approach dropshipping
Not every business uses dropshipping for the same goal. For Match Kicks, it was a way to diversify their business. For itsjusta6, dropshipping was the solution for scaling the brand.
Take your time to think about how dropshipping can benefit your business.
