Is Dropshipping Dead? How to Succeed in a Competitive Market

Want to start a dropshipping business but worried that it’s too late? If you think dropshipping is dead in 2023, your concerns are legitimate. The dropshipping business model has long been considered a viable business model for several years now. There are thousands of other dropshippers out there, and it’s gotten so competitive. With such a saturated market, is it still worth pursuing?

The short answer is no. Dropshipping isn’t dead yet. However, dropshipping has gotten very competitive in recent years, and Statista estimates the dropshipping industry to be worth $476 Billion in 2026 (1).  Using this model, the right approach and business strategy will enable you to have a legitimate business.

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shopify dropshipping store set up

Let’s dive into why some people believe this is no longer a viable business model. Plus, you’ll find tips to make this business thrive.

Why Many People Think That Dropshipping Is No Longer Profitable

Why do most people have the notion that dropshipping is dead? 

First off, the market is highly saturated. There are a lot of active dropshippers globally. There is a concern that you won’t generate as much profit from this business due to the high level of competition. With several dropshippers selling the same products online, it will be tough for new business owners to penetrate the market.

The reliance on third-party suppliers makes entering the dropshipping business challenging. Your business will likely succeed if you find a reliable supplier. However, this is often a trial-and-error case, and many dropshipping experts estimate that over 90% of dropshippers will fail within the first 30 days (2). 

In addition to that, the fact that the third-party supplier is responsible for packing and shipping products to your customers means longer shipping times. There could also be an issue with quality control since you won’t be able to check the items before shipping them out.

Unless you can find a trusted and legitimate supplier, any quality issues or poor shipping experience can hurt your business significantly. This gives the traditional wholesaler model an advantage over dropshipping (3).

Also, the changing e-commerce landscape means new technologies are emerging, so aspiring dropshippers must stay ahead of these trends to remain competitive

How to Become a Successful Dropshipper

Dropshipping is not without challenges. Many dropshippers fail initially because they enter the business thinking all they have to do is set up an online store, and then orders will trickle in. However, dropshipping entails hard work and commitment.

Identifying the common hurdles of the dropshipping business model enables you to understand what steps to take to overcome them. 

  • Find your niche

Make your online store stand out by focusing on a specific niche. Some dropshippers want to target as many customers as possible by selling everything to everyone. But this approach rarely succeeds, especially in a saturated market. So instead, find your niche and focus on listing products within that niche so you can stand out.

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shopify dropshipping store set up
  • Choose quality products

Investing in the best products to sell is also important, not just any product you can find. Many dropshippers focus on finding the cheapest products to sell with a higher profit margin. But when you sell low-quality products, it leads to a poor customer experience. As a result, you won’t be able to get repeat customers or it could negatively impact your seller rating.

  • Vet your suppliers carefully

Find a legitimate supplier with good feedback and track record. It’s one of the biggest challenges for a dropshipping business, but it’s also one way to ensure you can sell high-quality products to your target customers. Find a good balance between high-quality products and reasonable prices to earn profits from your sales (4).

  • Focus on quality customer service

Another way to make your dropshipping business stand out is by offering personalized customer service. Make sure to respond to your customer inquiries in a prompt manner. Also, be professional in dealing with their questions or concerns. How you handle your customer’s concerns can impact their overall shopping experience. 


In conclusion, dropshipping is not dead, but it’s more challenging. Competition is stiff as millions of other dropshippers strive to succeed in this business. Focusing on finding your niche, getting a trusted supplier, and providing exceptional customer service is important. By doing so, you set yourself up to be in a good position to succeed with your dropshipping business.