Dropshipping business

Dropshipping Business in 2021: Does It Actually Work?

The dropshipping business model has been around for a while. In this blog post, we will discuss what dropshipping is and how it works in 2021. We will also discuss some of the benefits and a few drawbacks to having an online store that sells products through dropshipping.

This article will learn how dropshipping works in 2021, the pros and cons, and why you should consider starting your own dropshipping business.

What is dropshipping?

Dropshipping is a business model where retailers do not have to worry about the fulfillment process. In other words, they do not need to stock or hold any of their inventory at all since orders are fulfilled by third-party suppliers directly from the manufacturer.

The most significant benefit of dropshipping is that the retailer does not have to worry about fulfilling orders. This means they can scale up their business very quickly without having a large upfront investment.

Dropshippers can also offer lower prices because they do not need to carry inventory and pay for warehousing costs or purchase enough products in advance for all customers.

The pros and cons of dropshipping

Let’s explore the pros and cons of dropshipping to see if it is a good business model for you.

  • Dropshipping is a business model where the supplier does not keep inventory
  • A retailer can purchase goods from an overseas manufacturer and sell them to customers without having to carry any stock 
  • The main benefit of dropshipping is that you don’t need much capital in order to start your own business 
  • Dropshippers have less overhead because they don’t need warehouses or other storage facilities 
  • You can also make more money with dropshipping because you’re only paying for the products when they are sold, rather than carrying expensive inventory on hand at all times 

On the downside, there’s no guarantee that people will buy your products unless they know about them already – it’s up to marketing efforts and word-of-mouth advertising strategies like blogging and social media posts to increase sales potential.

How to start a dropshipping business?

Start dropshipping business

Here are some of the most critical steps to starting your dropshipping business in 2021:

  • Decide what type of product you want to sell
  • Find a supplier that will provide you with the products
  • Create an online storefront where customers can purchase your products
  • Set up payment processing so that people can easily buy from your store without having to give out their credit card information or personal bank account number 
  • Make sure you’re following all relevant laws and regulations for starting a dropshipping business in your area (including things like sales tax) 
  • Use Google Analytics to track how many purchases are being made, which items are selling best, and how much time on average is spent browsing the site before someone buys something 
  • If necessary, find help with marketing strategies such as Facebook Ads or Twitter Promotions through sites like Upwork or Fiverr 
  • Spend some time building up your social media presence by posting about new arrivals, discounts, and promotions on Facebook, Instagram, and other platforms to build customer loyalty and make it easier for potential buyers to find out more about what you have available at any given moment via search engines like Google 
  • Keep updating inventory regularly, so there’s always something new for customers who visit once every

Dropshipping mistakes that you should avoid

Six common mistakes that dropshippers make

  • not doing enough research on the product you want to sell before creating a store and ordering inventory
  • using an unreliable courier that takes longer than 14 days to deliver items 
  • Lacking a niche and not finding a product that is in demand
  • Not understanding the market and failing to identify your target audience
  • Neglecting customer service by refusing e-mails, being unavailable on social media, or offering poor-quality support 
  • Spending too much money at first without doing cost calculations.

The future of the industry 

Let’s talk about what you should expect about dropshipping in 2021.

  • More people are starting to open eCommerce stores (dropshipping) during the Covid 19 pandemic. This will help make money, but with rapidly increasing numbers of business models, it will be less complicated than ever to break ground in this market.
  • Dropshipping has a couple of benefits as well. For instance, dropshippers have no upfront costs to start selling products at little or no cost. 
  • More and more retailers are willing to dropship to gain a market share over other competitors. It’s also cheaper for them as they don’t have to stock any inventory or take care of shipping. They can work with smaller suppliers.
  • With online marketplaces such as Amazon, eBay, Alibaba, etc., more people buy from their homes. And because it’s so easy to set up a store these days for very little investment (in comparison to brick and mortar stores), there is no surprise that eCommerce has exploded in the last few years.

What type of products do I want to sell?

find a product

With the dropshipping business model, you can sell any products. However, the most successful dropshipping businesses sell niche items at a very low price point (less than $30).

With that said, it does not mean that you cannot sell expensive items as well. There are niches for every product, and if you have the right marketing strategy, it is possible to find customers for any of them.

Before deciding on a niche, think about your interests or passions: what type of products do you like? Do they require special skills that are different than other types of products

Some of the popular niches dropshippers sell are:

  • Home & Garden
  • Clothing
  • Pet Supplies
  • Jewelry
  • Health and beauty products
  • Phone accessories
  • Baby and kid’s items like toys or clothing

To learn more about this topic, read our article. “How to Choose the Right Niche for Your Shopify Store?

Which shipping service is best for dropshipping?

When running a dropshipping business, it’s essential to know the shipping service available in your country. It’s important to understand how and when you can ship different types of products, the rules for package weight limits, and where to get a return address if someone wants to send back an order purchased from your store.

The costs can range depending on what types of products you sell,

The best option is ePacket which allows dropshippers to keep the shipping cost low and allows the dropshipping business to offer free shipping on most items.

What is ePacket?

ePacket, also known as “E-Parcel”, is a shipping option from Hong Kong Post that offers reliable service for international shippers across Asia Pacific areas.

This shipping method allows sellers to send parcels from China to U.S.A and Europe with a weight limit of 0.25 kg to 20 kg.

The shipping time can be tracked by the shipping company on their website so that sellers know when they will receive orders from customers after dropshipping them out.

Should you use Aliexpress or other suppliers for dropshipping?

Aliexpress is one of the most popular dropshipping sources out there, but it is not the only one. There are many reliable suppliers for dropshipping that you can use, including Alibaba, Dhgate, Banggood & Etsy.

The two best things about these sites are lower wholesale prices on bulk orders, so if you buy in larger quantities, your cost will be less per unit, AND you’ll be able to sell with higher profit margins.

When choosing a supplier to work with, you should check their terms and conditions to see what they offer in customer service. It’s a good idea to select suppliers that at least offer returns, exchanges, or refunds.

It’s essential to read their reviews/feedback to know whether customers have had issues with them before.


Dropshipping is a great way to start your own business and be in control of when you work! With just some research, planning, and dedication, you can have a successful dropshipping business. To help get started with building this type of business, we put together a complete guide on setting up your eCommerce store from the ground up. We cover all the steps for starting your own dropshipping business, such as choosing a niche, finding suppliers that are suited for what you’re selling, setting prices, promote your business – everything needed to succeed at running an online dropshipping store!

Click here to download the Ultimate Dropshipping Guide Free eBook.