April 8, 2020
Is Dropshipping Dead in 2019???

Is Dropshipping Dead in 2019???


Hey everybody, Anton Kraly, here from dropshiplifestyle.com, and in today’s episode
of Drop Ship Weekly, I’m gonna be answering a question that we get at least every single day. And that is “Is drop shipping dead?” Now, we’re gonna go through
some common misconceptions, and ways that it can
be, to be quite honest. And we’ll go through ways that it actually still does work very well, and to give you a hint people have been asking me this question way back since I started to talk about
my success online in 2012. You know, that question was popular then, it is still popular now. So, in this video, let’s
get into the real answer and how drop shipping
is still alive and well if you choose to do things the right way. (serene music) Alright, so I actually wrote down a list of questions before I started this video. I actually worked with
our support team in Slack and got a list of the
common questions attached to the question that comes
in: Is drop shipping dead? I heard x, y and z. So, the first thing that people
ask about is competition. Which leads to saturation, right? Drop shipping is not new. I’ve been doing it, myself, since way back in 2008. And people have been
doing it longer than me. So, the misconception is, you know what? This has been around for a long, long time aren’t there just so
many people doing it now that there’s no space for new stores. Short answer is: No, that’s not true. When you’re using this model
when you’re drop shipping, you goal should always be
to work with new suppliers and new brands and get the newest and the best products that come out. So, the products that
were popular back when I first started, are
not still popular today. While some of them are,
the majority are not. What do I mean by this? The industries that we sell in, they are still getting sales, they are still selling strong. But the top brands, the
top SKUs, the top products, they are now in their,
going back what, 12 years? In their 12th iteration,
some more than that, right? Products get updated. New brands come out. Brands release new product lines. So a big part of this is
to always be that person that’s out front of your industry. And I’m not saying to only
sell trending products, but if you’re in the
office furniture space then make sure every
year you’re working with the best brands that
make office furniture. Make sure you’re getting all of their new SKU numbers on your website. Make sure you’re promoting them. Because then all that competition
you’re thinking about. All those people that have
been doing it for so long, guess what? Some of them are lazy, some of them don’t update their sites. Some of them are comfortable
making what they’re making with stuff they haven’t
updated in the past five years. So as long as you’re
willing to do the work And stay on top of your business, which I hope you would be, if you’re really planning on doing this. Then, no, it’s not too saturated. They’re literally new
opportunities popping up every single day when it comes
to products and suppliers. And I use the word suppliers
interchangeably with brands. But, again, always new opportunity there. Do not worry about this
being too competitive, because it’s really not. And the other thing I’ll say
about that is competition. You do want some, if nobodies selling what you want to sell, that’s
probably your red flag. So keep that in mind. Next question that we
get that comes in with is drop shipping dead? Is I heard Trump is
having all these tariffs and we’re in a trade war with China and everything is going
to be more expensive. Is this worth my time starting? Couple things on that. First, we do not drop ship from China, so if I was directly in that business, would I be worried right now, if I was drop shipping from China? Honestly, I probably would. I would definitely be
looking a lot closer at it than I’m looking at what we do. What we do, and what I recommend you do, is work with domestic brands. So, for me, that means
suppliers in the States. If you’re watching this from Australia, that means suppliers in Australia. If you’re in the U.K., That means suppliers in the U.K. Now, with this whole tax
and tariff thing, right? Even if products that come
from China to our suppliers here in the States get more expensive, you know, it might happen. And then maybe suppliers
raise our product costs. But guess what? hen the product cost
to the customer goes up and everything kind of works itself out. I’m not worried about it. You shouldn’t be, either. Especially not if you’re no
the Drop Ship Lifestyle model. That, of course, I teach
at dropshiplifestyle.com. So, again, with us I
wouldn’t worry about it. If you are relying on
drop shipping from China, maybe re-evaluate your business, anyway. Okay, next question is about is drop shipping dead because Facebook ads are so expensive now and Google ads are so expensive now. Listen, they’re really not. If you wanna say that
things are expensive now because 10 years ago they were dirt cheap. Well, guess what? Ten years from now
people are going to say, “in 2019 things were so cheap.” Yes, ad costs go up. Yes, as more competition
goes to different platforms, bids get higher and higher and higher. Does that mean there’s not a market? Absolutely not. What it does mean is that you can’t just be someone who’s trying
to game the system. Someone that doesn’t
want to learn anything. Someone that believes that
they can click a few buttons, and Google and get rich. Guess what?
That’s dead. Maybe if you were one of the
first advertisers on Google, that was a real thing. But that mindset, that business,
has been gone a long time. Now, if you’re a real business owner, you get into this
because you actually want to build something of value, that serves your customers and you. Then guess what? Ad costs are still
ridiculously under-priced. Yes, on Google. Yes, on Facebook. Of course you have to
run them the right way. Again, I teach that in
Drop Ship Lifestyle, but yeah it’s not dead
because traffic costs are up. Again, just wait ten years. People are going to say, You had so much opportunity back in 2019. I can’t believe you didn’t
do, you know, everything. Start a business and build it. Don’t look back with regret. Do this now and look back and be like wow that was an amazing ride. Okay, so that covers that one. Next one is with people saying: is this dead, every niche is taken? I hit on this briefly before. But, you want to be involved a niche that other people are in. If you have some idea for a
product that nobody is selling, that’s a not a good thing. I mean, even back when I
started, in late 2007 early 2008, I did not want to be the first one to ever try to sell something online. That’s not how this business model works. You want to find markets
that has competition, you want to identify their weaknesses, your future competitors, and then you want to
start competing with them. Okay so that’s a good
thing if other people are selling the products
types that you want to sell. Now, that kind of leads into the next thing that we get sometimes. Like why would a supplier work with me? I’m brand new and there’s
established websites that have been doing this for so long. That’s true, but if you’re
actually a real player here. Meaning you’re trying to
build a real business. Again, you’re not trying
to game any system or get in for a quick buck, if you’re trying to build something real, then the good suppliers are more than willing to work with you. They want partnerships like
the ones they have with me, and my students, and you, if
you follow a proven system. And, again, if you focus on
building a real business. If you’re trying to, again, say hey can I drop ship this
this this this this? Can I- Can I put up a website real fast? Then yeah, guess what? The suppliers that
won’t work with you now, they wouldn’t have wanted to work with you ten years ago either. So, yeah, the thing that
maintains is if you have integrity and you’re building a
business for the right reason. You will be rewarded,
in many different ways. Even speaking of that, that leads into the next two points that
I have written down. One of them being, hey I
heard that Google ads, right? Formerly AdWords, doesn’t
like drop shipping. And you know what? It’s in their terms of service that they don’t like drop
shipping, and guess what? It’s been there, again,
the past ten years. I have never had a problem with Google Ads accounts for that. Neither have any of my
students that use this system. What they don’t like is the model of trying to get into arbitrage deals like buy something on eBay
and sell it on Amazon. And drop ship from Amazon and sell it on Etsy and all that stuff. They don’t like that because
it’s not a real business. Again, is that type of drop shipping dead because Google doesn’t like
them to advertise with them? I wouldn’t say it’s dead, but it’s not a real business. But, again, it never was, okay? It was just a little way
to try to have a hack and get some easy money. But, no, don’t do that. And, is it dead? Maybe, maybe not, but
it’s not what we do here. Another one, Stripe, same thing. You might see in different
Facebook groups you’re part of. “Hey I’m drop shipping and
Strip closed my account.” They didn’t close your account
because you’re drop shipping, We’ve had Stripe since 2012, So have tons of our students. The reason Stripe closes accounts is because there’s too much risk. And they see that there’s risk when there’s a ton of refunds,
a ton of charge backs. And you know what type of stores get a ton of refunds and
a ton of charge backs? Ones that don’t care
about their customers. Ones that take three weeks to ship items. Ones that don’t answer support tickets. So, is that model dead? Yes, but that’s the model of
ripping people off, right? And that has been dead, again, since before there was
even a little window to try to game the system. That’s not sustainable. So, yes, that model of not
taking care of your customers and hoping you get rich, guess what? That form of drop shipping is dead. Oh no, right? Doesn’t matter. The model of having a real business that provides real value
to your customers, though. When you ship them products. When the customers get
them in three to five days. When you have customer support. Then, not only will you thrive,
on all of these platforms. On Shopify, with Stripe,
with Google, with Facebook. But you’ll be rewarded
in terms of customers coming back to you, sending
more people your way, and seeing your business grow. So, another thing that comes up is, Hey, I heard Amazon doesn’t
allow drop shipping, is drop shipping dead? Amazon’s never liked drop shipping. And it doesn’t matter. Again, you don’t want to
be in the arbitrage model. You don’t wanna sell
something on your site and have it shipped from Amazon. You don’t want to sell something on Amazon then find somebody on
eBay to fulfill the order. That’s not a good way of doing business, whether it’s drop shipping or not. So just don’t do it,
and it doesn’t matter. That’s always been dead. Now, hope that answers the question. No, drop shipping is not dead, if you do it the right way, if you actually care
about building a business that provides real
value to your customers. You will be in business. You will be rewarded in terms of profits, in terms of an asset,
which is your business, in terms of people coming back
to do more business with you. There’s no end in sight for
building legitimate businesses online with the drop ship business model. Now, one more thing
that’s somewhat related that people do ask about, which is totally valid and fair that I thought would make
sense to add to this video is, okay if this model’s not dead, then why every time I
go on youtube do I see, you know, 20, 15 year old kids telling me that I should join their course about how to make all this
money drop shipping, right? If they’re all making all this money, why are they selling courses on it? Yeah, listen, I have
problem with that, too. Again, I do believe that
the model of drop shipping from China with three week
lead times with bad support, I believe that has been
dead for a very long time. And I believe that a lot
of these kids you see popping up, telling you hey buy my thing. They are not doing well
with their business. Surprise, surprise, right? So, that’s my thought on that. It’s not what I would
recommend doing at any point in my e-commerce career
over the past 12 years. I do think there’s ways to do it right. But I think most people
that you see out there, when you get flooded with
a million people saying, Hey buy my thing. I think, a lot of them don’t
have a thing besides that. And I think the reason is because, again, they’re not trying to
drop ship the right way, They’re trying to use a model that maybe had a small
window where it worked, where they were gaming the system, by basically just trying to
sell as much crap as possible, and not caring what
customers thought about it. So, never did that. Never recommend doing that. If you stick with real, quality products from quality brands, And focus on your business, you’re not gonna have that issue. You’re going to see a lot less people that actually do this the right way. But, hey, that’s a good
thing for you, right? So, with that being said,
don’t look for loopholes. Look for building something real, work with quality brands, care about your customers. Use those ingredients. And if you do, drop
shipping is far from dead. Our businesses have only been growing since I first got into this. And again, I don’t see
slowing down anytime soon. So, as always, guys, if you got value from this video, please do give it a thumbs up. Definitely click “subscribe” if you haven’t already. And I would love to hear your comments on this topic as well, so let me know in the comments below. Do you think drop shipping is dead? Why or why not? Let me know in the comment box. And I’ll talk to you down there. See ya. (serene music)

25 thoughts on “Is Dropshipping Dead in 2019???

  1. I had a question Anton, you said dropshipping from eBay or amazon is dead but what about dropshipping from AliExpress using ship from US product

  2. Being from the UK, it is clear Dropshipping is not even at the beginning of its life. More and more high street stores are closing as more and more people start buying online.

  3. I am looking into getting into online retail with women fashion, I am a fashion photographer and a lot of times people ask where the model go the dress or outfit from. I want to be able to shoot people wearing products that I sell without actually having them on stock (dropshipping) I also work as a freelance SEO and content creator (video) so I feel like I know a few things about getting the website ranked. I want to take your course but it is quite a lot for me to fork out and I am wondering if I will get any value from it?

  4. IMO AliExpress dropshipping is dead. Long shipping times, cheap products, no branding, and no repeat customers.

  5. Thank you Anton, it's almost like this video was made for me. I was doing retail arbitrage with retailers from US only for 3.5 years on eBay and eBay shut down my account. I was very ethical, served my customers, 100% feedback, but my account was closed due to "high risk" activity. I would have loved to know what that risk was, but I don't think that's important. What's important is that it brought me to your course which I am currently going through and I want to really take the opportunity to thank you for putting together a system where it teaches you a real asset and a real business. Excited for this journey!

  6. Absolutely not! Drop shipping is still profitable and will continue to be a profitable business to be in as long as it is done right. ❌🤔

  7. There’s some kid that keeps running an ad to me saying that dropshipping is dead…. and it’s irritating me lol.

    I think that dropshipping without building a brand , and dropshipoung salad cutters is dead.

    But I think If you build a real BUSINESS. Then it’s a different story.

    I really see dropshipping as more of a fullfillment model rather than an entire business because I believe the brand and the people behind the brand is the business.

    My girlfriend has a dropshipping store and its a fashion boutique so I looked this video up to make sure she’ll be alright. She’s focused on building an actual following , a tribe of people that love her and her store (the personal brand route) so this was a good video for clarity.

    Thanks man.

  8. Don't waste your time using aliexpress to dropship from china it's not a sustainable business model. I use US based dropshippers to sell my products and my buyers get their item in just a few days not months. If you want to build a sustainable dropshipping business without buying products from china then check this company out: http://www.worldwidebrands.com/?kbid=32369 this is where I find all my US based dropshippers it's great they have thousands to choose from. Good luck!

  9. I'm considering Dropship Lifestyle, but I'm wondering why someone would buy from my store if they can simply go to Amazon.

  10. Excellent video! So useful considering all the noise out there in this space. Liked and subscribed. Looking forward to more content.

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