Is Dropshipping Business A Good Side Hustle?

Dropshipping is the practice of selling goods over the internet without keeping stock. Instead, you entrust all heavy lifting’s to suppliers or manufacturers, who then deliver things to customers.

It appears to be a great business strategy for entrepreneurs who want to generate money online without investing a lot of money upfront.

Is there, however, any risk involved? How much money do you think you’ll be able to make in the long run? Is it possible for you to make a living doing it?

We’ll help you evaluate whether dropshipping is a good side hustle in 2021 in this article.

Reasons Why Dropshipping Is A Good Side Hustle

The following are eight reasons why dropshipping is a fantastic side business.

It’s Never Too Late For Dropshipping

Dropshipping is not, and will never be, extinct. On the contrary, it’s a legitimate business strategy used by globally famous firms like Wish, Gymshark, Zappos, and Wayfair since the 1960s.

The model was gaining traction among entrepreneurs before the launch of AliExpress.

According to GrandViewResearch, the global drop shipping industry is predicted to grow at a staggering 28.8% CAGR from $102.2 billion in 2018 to $557.9 billion in 2025.

The rising popularity of cell phones, the intensifying trend in online purchasing, and the rapid expansion of cross-border trade contribute to this growth.

In reality, dropshipping accounts for 34% of Amazon’s total sales. Over the last few years, overall drop shipping transactions on eBay have increased by 146 percent.

Given these considerations, we can confidently state that it is never too late to begin dropshipping as a side business.

Dropshipping Is Simple And Quick To Learn

The second reason dropshipping is a great side hustle is that setting up a full-fledged dropshipping store takes only a few hours or days at most.

Shopify, Oberlo, CJDropshipping, Klaviyo, and other advanced and economic dropshipping platforms are responsible for this. They’ve done all the heavy lifting behind the scenes to make it as simple as possible for you to start selling.

You also don’t require any prior knowledge or expertise. You can always learn the ins and outs of drop shipping along the way, thanks to a large community and a wealth of free lessons available on the internet.

There is no requirement to register for a business license. The principal purpose of a business license is to protect your assets if your company is issued.

For example, suppose you and your customers get into a lawsuit (which is extremely unlikely). In that case, they can only go after the assets of the legal company (in this case, your dropshipping business), and that’s it. They cannot gain access to your personal belongings (e.g., your houses, cars, bank accounts, etc.).

You don’t need to be concerned when you’re just getting started when it comes to taxes.

Only when you generate a significant profit from your dropshipping store (e.g., $12,400 for those under the age of 65 in the United States), do you pay income tax to your country’s government. Additionally, sales tax may be easily controlled using Shopify’s built-in tax system or other automated tax software like TaxJar.

Overall, starting a dropshipping side hustle is simple and quick.

Dropshipping Is A Business Model With A Quick Feedback Loop

A feedback loop in business refers to collecting consumer input and utilizing that data to enhance products or services.

In the case of dropshipping, you may immediately gauge demand for a particular item by advertising it on Facebook or Pinterest for a few days and then making informed judgments about what to do next.

With all of the data offered by these advertising networks, optimizing your dropshipping store for maximum conversion rates becomes even easier.

For example, starting a blog may take at least 6 months before you notice any benefits.

You Can Work From Anywhere, At Any Time With Dropshipping

One of the most appealing aspects of beginning a dropshipping business as a side hustle is that you can run it fully online, from anywhere you want, whenever you want.

All you’ll need is a laptop and access to the internet.

This independence allows you to manage your work-life balance better, resulting in more time to do whatever you desire, such as play with your children or explore the world.

This Side Hustle Can Provide You With Passive Income

You may create a fully automated system to market your products, collect money, and fulfill consumer orders.

In addition, you can use Fiverr or Upwork to hire a virtual assistant to handle customer service, email campaigns, and other time-consuming duties.

This implies you can generate money drop shipping while sleeping, which is the holy grail for any side hustler or a business owner.

There’s Virtually No Ceiling To How Much You Can Earn

You may sell things to people all around the world with dropshipping. You can make an extra $100 per month or $10,000 per month with the correct tactics and mindsets.

For example, Alex Philip, a dropshipping billionaire, has generated over $2 million (£1.5 million) in sales from his Alibaba dropshipping firm since he was only 15 years old. You can Publish A Real ECommerce Brand.

Ben Francis launched Gymshark, a well-known workout wear company, as a dropshipping store as a side hustle. He noticed a void in the sportswear market in 2021, namely the lack of affordable gear for youthful gym-goers.

He has grown the tiny idea into a billion-dollar company by focusing on this niche and effectively teaming with social media influencers and celebrity trainers.

Gymshark now sells its line of workout apparel with print-on-demand and private labeling, yet it still relies largely on dropshipping to cut costs.

As you can see, dropshipping is much more than a way to supplement your income online. Instead, it might serve as a springboard for you to develop a true eCommerce brand that customers will remember for years to come.

There is potential here. So, don’t be frightened to dream big if you want to.

Even if you fail, you will gain valuable knowledge

Dropshipping is not a waste of time or money, even if you fail. Dropshipping allows you to learn valuable skills such as time management, supply chain management, product research, marketing, copywriting, branding, and financial management, to mention a few.

Each of the abilities listed above can be monetized on its own, or you can use them in the future for any project or job opportunity.

Reasons Why Dropshipping Is Not A Good Side Hustle

Here are five reasons why you shouldn’t start dropshipping as a side business.

You Put Your Business On Other People’s Shoulders

Because you’ve given your suppliers complete control over the backend, they may provide defective products to your clients or introduce sluggish shipping. As a result, it may harm your brand’s reputation in the long run, or worse, cause your entire organization to fail.

Selecting dependable and highly rated providers is one answer to this challenge. Even so, there’s no assurance they’ll always live up to your expectations.

Dropshipping is thus not a smart side hustle if you desire complete control over your firm.

Dropshipping Is Highly Competitive

Dropshipping’s nature allows anyone to create a side business in the blink of an eye and compete with you on the same products.

That’s not all, though. Ecommerce behemoths like Amazon, eBay, and Walmart are well-known and reliable. As a result, shoppers are more inclined to visit them to locate and purchase an item they have seen on the internet.

It’s tough to stand out and make money unless you have competitive advantages (e.g., reduced prices, unique products, or added perks).

It’s Hard To Generate A sizable profit margin.

Another reason why dropshipping isn’t a decent side hustle is that the profit margins are usually poor.

Many people have a rough concept of how much something should cost. As a result, you cannot overcharge for your product. No one would buy from your dropshipping store otherwise.

Furthermore, you must pay for running charges, payment processing fees, and, most importantly, advertising costs, all of which will leave you with slim profit margins.

The average drop shipping net profit margin is 15%, according to ECommerceFuel. So, for instance, if you establish a blogging business, you may expect to make an 80 percent to 90 percent profit margin.

Significant results may take a long time to appear

Beginner dropshippers should expect to make a profit in three months on average. And, if you want to create a 5-6-figure income each year, you’ll probably have to work on your store for at least 2-3 years.

That’s the amount of time you’ll need to study everything there is to know about dropshipping and experiment with different tactics to see what works best for your specific dropshipping niches and conditions.

You Might Be Banned By Third-Party Services Left And Right

The third reason to avoid starting a dropshipping business as a side hustle is that many payment services, such as Paypal or Stripe, regard dropshipping as a high-risk or medium-risk business model. They can block your accounts at any time if you have a lot of disputes and chargebacks.

Dropshippers are also frequently banned by Facebook for selling counterfeit or substandard goods.

To overcome this issue, it’s critical to choose reputable dropshipping providers with a track record.


Dropshipping is a good and simple side hustle to start if you want to earn passive income online without investing a lot of money upfront. Dropshipping can also be used to create a legitimate eCommerce brand. Even if you fail, you will get useful experience for future employment prospects.

Dropshipping isn’t a get-rich-quick scheme, so don’t expect it to be. To stand out in this extremely competitive industry, you’ll need a lot of time and work, as well as the correct mindsets and methods.