E-commerce has continued to grow and change in recent years. It is a business that is more easily adapted to the changes in our societies. And yet, some people claim that dropshipping is an outdated e-commerce model. If you have plans to start dropshipping, you probably have to ask yourself this question: is dropshipping dead in 2022?
Without leaving too much suspense, we will show you that dropshipping is not dead but it is constantly changing and you should be aware of these changes to adapt your business in 2022.
Why is dropshipping considered dead by some?
There are several reasons why some people say that dropshipping is dead in 2022.
There is too much competition in the dropshipping market
Dropshipping requires virtually no capital to get started, as you are only a middleman for each sale and delivery from a manufacturer to a consumer. You can make a profit on every transaction and not have to spend a single penny on storage and shipping costs.
And because of the ease of access, anyone with a Wi-Fi connection is a potential competitor. So experienced dropshippers would have filled every niche you can think of. And thanks to the pandemic, the demand for online shopping will only increase, hence the number of new dropshipping entrepreneurs.
In other words, some people think that you have a slim chance of making it big and generating money in the dropshipping market. This is the idea that the market is saturated and that there is too much competition.
There is an increase in advertising costs on Facebook and Google
Your main activity in your dropshipping business is marketing!
This is essential for gaining leads and converting them into customers. But as competition increases, the different platforms to do your marketing have understood this and are taking advantage of it.
This is why Facebook and Google have in turn increased the cost of advertising, and will certainly continue to increase it.
The increase in import tariffs from China
Goods imported from China are now more expensive. This is mainly due to a political and trade war between Europe and China.
But if you are dropshipping only in France or from other countries, there is absolutely nothing to fear.
So, is dropshipping dead in 2022?
We will give you the answer right away: no, dropshipping is not dead in 2022!
All the statistics might make you think otherwise and show that the market is saturated and competitive, but that doesn’t mean that dropshipping is dead.
Lots of competition doesn’t mean you won’t have a place
Sure, the competition you face is huge, but it’s not insurmountable. You can always find new suppliers and brands to work with and sell the best or newest products coming out.
The good thing is that consumer expectations and needs change all the time. Something can be trendy for 2 months and then become completely obsolete. As long as you can stay up to date and follow the trends, you can be among the best dropshipping sellers.
Keep innovating and looking for novelty, and don’t hesitate to expand your product listings.
Rising advertising costs are inevitable
Since it’s something you can’t avoid, you might as well learn to deal with it. As the overall cost of living increases in most companies, advertising costs increase. However, those who have effective marketing campaigns are bound to stand out.
E-commerce is not a smooth ride, so expect difficulties. Don’t sell poor quality products with poor quality marketing. That should be your main concern.
And these days, there are plenty of online tools to help your dropshipping business and get you ahead on marketing. Platforms like Shopify or BigCommerce offer you many marketing tools that specialize in conversion or lead generation. It’s up to you to be curious and look to be creative to maximize your marketing campaigns and thus, suffer less from rising costs.
Politics and international trade will always be in flux
International trade warfare is permanent and habitual in the world. It is the reality we live in, and the economy is tied to the balance and imbalance of power. New regulations and tariffs are inevitable and constantly shake up the economy. Everyone will be affected, not just business people.
Sometimes things work out in your favor and bring prices down, but other times they don’t. It’s up to you to adapt to international events.
How to be among the best in dropshipping business?
It’s all about marketing! When the market is saturated, dropshipping entrepreneurs will struggle to get customers and suppliers, so you need to maintain a good brand image to stand out and show them the value you can offer in order to keep attracting new customers but also the best suppliers.
Here are some tips you can apply:
Find the right niche by knowing what customers need!
In order to make maximum sales, you must absolutely know your customers and their expectations. It is important to know what product is trending among consumers and what these consumers have in common to choose a product or a few products to sell in your store. To do this, you can join online communities such as forums, conduct surveys, use analysis tools to find out what motivates consumers and what their current needs are.
More and more people are buying online. Since not everyone has the same tastes, you can be sure that there will be more and more immersed niches that you can take advantage of. But you need to research the market thoroughly, looking everywhere you can to find the perfect products to sell.
Know where you need to advertise!
Facebook and Google are the 2 biggest marketing platforms for finding new customers. However, they don’t work the same way, don’t reach the same type of audience and don’t have the same advertising costs.
It is important to know that Facebook users are generally not looking to buy anything. So if you can get them to see your ads on this platform, chances are they will be mildly interested, but have no intention of buying your products. Even if they are interested, you might even interrupt their initial action and make a negative impression.
Of course, you can convert on Facebook which is still a very effective marketing platform, but it will be more difficult and your ads really need to be creative and impactful to capture leads.
On the other hand, Google is a much better platform for conversion. Simply selling according to Google’s guidelines already guarantees a higher and safer return on investment. Apart from that, opt for specialized SEO marketing tools to ensure a top position in the searches of potential customers.
Use the right marketing tools!
Marketing tools play an important role in spreading your brand and advertising.
Market research is the essential first step for any successful business whether it is physical or online. It is imperative that you find a good niche or niche to start selling in. This requires a good market research. Fortunately, there are various online analysis tools that you can choose from to help you do your market research.
To use the best marketing tools, you need to consider some key criteria:
The ability of the tool to analyze multiple markets.
The ability to easily analyze your competitors.
The ability to clearly define and visualize profits and expenses.
It must be a complete tool to streamline the process and save money.
After analyzing and configuring your website, you will be able to use different tools and applications that allow you to deliver advertising. For example, you can use pop-ups or banner ads that scroll across your site to inform your visitors about your promotions and discounts.
