With the increased competition in the dropshipping space, the constant question that a new dropshipper has in mind is whether dropshipping is worth it. Is it safe to start a dropshipping store to earn passive income, or are there other business ideas to look at?
In this article, we will glide through the dropshipping path to understand if this business model is practical in 2024 or if you should look at other business opportunities.
Is dropshipping worth it in 2024?
Yes, dropshipping is still a great business venture to make money online. It has a low entry barrier, low investment, and does not require you to store inventories. The low setup cost of dropshipping makes it an ideal business to start online without capital investment. To make a profit from dropshipping, you need to nail your store’s branding, set acceptable price margins, and connect with reliable suppliers for quality products. Doing these things right will help you earn better with dropshipping.
If you are looking to make quick profits, then starting a dropshipping store is not ideal. Dropshipping does not guarantee quick profits and you need to spend your time and hard work in making your online store profitable.
On average, a dropshipper can make a profit of 20-30% depending on the niche they cater to. But niche selection is not the only factor that decides the profit margin, other factors like your marketing & branding effort will also decide the profits you will make from your store.
Fashion and home decor are the popular niches that can skyrocket your dropshipping profits. The growing popularity of sustainable fashion and home decor products will surely attract eco-conscious customers to your online store. Selling rattan furniture is also a great idea to make more profits.
Which dropshipping model is the best?
Before building your online ecommerce store, you must know which dropshipping business model will boost your side hustle. Here are the common dropshipping models that you can choose to help your business flourish.
- Low-ticket dropshipping: This business model allows you to earn more profits by making higher sales. You can sell low-ticket items such as mugs and dainty home decor pieces in large volumes to start earning from this dropshipping model. The profits are generally low in this category but you can sell more by making your business well-known. Running social media ads is one of the tricks that can make customers know about your brand.
- High-ticket dropshipping: High-ticket dropshipping is about selling fewer but high-quality products. This can include luxury goods, high-end furniture, expensive clothes, and more. It generates more profit than low-ticket dropshipping and on average the profits can range from $1,000 to $10,000. To generate more profit with this dropshipping model, you can use customer reviews, high-quality product images, detailed product descriptions, and exceptional customer service.
You can sign up on dropshippingXL to start dropshipping high-ticket rattan furniture, outdoor furniture, and kid’s clothes.
- Private-label dropshipping: In private-label dropshipping, you can sell the products manufactured by a third-party vendor under your own brand name. With this dropshipping model, you can build your brand in the market. To promote your store, you need to build customer loyalty, define your business goals, and focus on brand building.
Dropshipping can help you earn passive income without much investment and offer great returns. It can be a great business to give momentum to your side hustle. Start your dropshipping journey with dropshippingXL to start making money online.
