Will Dropshipping Still be Profitable in 2021?

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The dropshipping industry is expected to grow by $557.9 billion by the end of 2025. Yet some people are questioning if dropshipping will work in 2021? The answer is yes!

In fact, the same question arises for a lot of platforms and businesses every year. Remember, it is the way of work that changes from time to time, but the basics of a business remain the same.

More than 27% of the retailers use dropshipping and make 50% more profit than a regular retail business. With such a huge profit margin, dropshipping is definitely here to stay. Here are some of the reasons why dropshipping will work in 2021.

Will Dropshipping work in 2021?

Improved Purchasing Power

The collapse of the global economy in 2020 was inevitable due to the ongoing pandemic. But, economists have predicted a 5% rise in global purchasing power, which means more people will be able to buy things. In the US, the competition is already tough, but with the rise in purchasing power across Europe, and other countries, you can set up a store aiming to sell in different regions.

Increased Internet Accessibility

Unlike the 90s, more than 60% of people have internet access (even in developing countries). With these rising stats, the internet is going to be everywhere, which means your products will be available to everyone. For those who are planning to start their dropshipping business, there is no better time than this.

Higher Popularity of Phones

In a recent survey, it was found that 79% of smartphone users have bought something online in the last 6 months. Consumers prefer to shop on-the-go and expect a convenient shopping experience. Set up a responsive store for your dropshipping business and make it mobile-friendly to attain maximum benefits.


One of the biggest concerns of an e-commerce business is the investment in inventory. Dropshipping eliminates the cost of buying and storing inventory. You can simply start by creating an online store and as you proceed, you have the liberty to make adjustments. The scalability of the business is higher than what you will find in other low-investment businesses.

Several Emerging Niches

For a decade, there has been a swift rise in the number of people looking for unique products like handmade gifts, ornaments, décor, and attire. This has led to the rise of platforms like dropshippingXL, where you can find a wide range of products. Traders can easily find a good amount of products belonging to a niche where there is less competition.

Automated Operative Solutions

The technological developments we are witnessing in the dropshipping business point towards its success story. Certain parts of a dropshipping business include repetitive and time-consuming actions. To minimize the operative burdens dropshippers are continually utilizing automation. Repetitive processes like setting up prices, importing products, tracking orders, and promotions can be automated to reduce burden on resources.

With a rise in customer demands and availability of dropshipping service providers, dropshipping is one business trend, which is definitely going to stay.

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