This morning, I stumbled upon a thought-provoking post on Reddit titled "Is dropshipping still a viable way to make a living in 2024?" It struck me as peculiar that this question is so frequently asked. Coincidentally, I came across two other posts where individuals expressed their intention to give up or take a break from dropshipping. Their sense of helplessness was palpable, and it left me feeling disheartened.
Undeniably, dropshipping has become more challenging. However, I firmly believe that it will never cease to exist, much like keyboard cellphones. Despite the prevalence of touchscreen devices, even older generations still opt for keyboard cellphones. Just take a look at the Nokia 2780 Flip, which continues to sell thousands of units on Amazon.
As a dropship supplier, I'd like to share my perspective on why dropshipping will endure. At its core, dropshipping offers the convenience of ecommerce without the need to hold inventory. For those who find investing in inventory too risky, it provides a smoother entry into the world of ecommerce. Moreover, it allows for instant product switching. Just as in dating, rarely do we settle for the first person we meet. Similarly, in ecommerce, it's unlikely that the first product we sell will be our final choice.
Once you embark on the dropshipping journey, there are two paths to growth: horizontal and vertical.
Horizontal: Continuously sell various products and fulfill orders without holding inventory. By developing a reliable system for product selection and mastering the art of advertising, you can consistently generate orders. The hallmark of this approach is the ever-changing product offerings, with sales primarily driven by advertisements.
Vertical: Specialize in selling products within a specific niche and hold inventory to optimize cost and supply chain. Through trial and error, you can settle on a particular product category and transform your venture into a full-fledged ecommerce business. While you may still generate orders through ads, your sales from organic traffic will increase. Your store name will gradually be recognized as a brand.
I personally favor the vertical route. The horizontal route heavily relies on advertisements, which are becoming increasingly expensive. Therefore, the vertical route offers greater long-term sustainability. However, the horizontal route is also acceptable. In the words of Keynes, "In the long run, we are all dead." Alternatively, you can even combine both approaches and take a diagonal path.
Remember, all roads lead to Rome. As we approach 2024, the choice ultimately rests with you. Dropshipping is not dead in 2024. As long as you remain focused on the right business strategy, the world is your oyster.