Five years ago dropshipping become popular online and in the next few years it witnessed an unprecedented rise, and many made millions in a short span of time.

However, since 2019, a noticeable dip in dropshipping volume has been observed and this begs the question that does dropshipping still work in 2021. 

So here are a few pointers which help you understand the scope of dropshipping in 2021.

#1 Low-Profit Margins  

Although the owner of a dropshipping store does not have to pay any overheads in terms of storage, still a large chunk of money earned lands in the pockets of the original supplier and the middle man which in this case is the drop shipper, therefore this is the reason why people are now shifting away from dropshipping in 2021. 

#2 Tough Competition

There was a time when dropshipping was a relatively new concept and the early people were not faced with competition and this is the reason why they made millions in profits. 

However, with more people flocking into dropshipping each day made the field saturated, and now until and unless anyone has a product that is unique and scarce, the chances are that one would have to face fierce competition online. 

It has also been observed that many times a person does all the hard work and chooses a product which is not only unique but also has high demand in the market, but as soon as the business starts making profits the big businesses take over and offer the same product at a much cheaper rate and consequently the dropshipper unable to match the competitor is kicked out of the arena. 

#3 No control over the supply chain

In any business control over the supply chain is crucial and perhaps the biggest downside of dropshipping is that one has no control over the supply chain and this sometimes not only results in the cancellation of orders but also damages dropshipper’s reputation beyond repair. Therefore many dropshippers have opted to close down shops before customers start asking them questions about shipment delays.

No control over the supply chain is perhaps the biggest reason why dropshipping is almost dead in 2021 and although there are various businesses online that have perfected the dropshipping mode thanks to their reliable and reputable supplier, the others struggle.

Intelligent Marketing is the key

When it comes to creating an online marketing campaign, many product suppliers don’t know how to create one as they lack the knowledge and team, and this is where the importance of dropshipper comes in. An intelligent dropshipper is one who creates a captivating marketing campaign to capture the attention of an audience. 

At the end of the day dropshipping is an old idea that emerged in the 1970s and since then it has stood the test of time, although there have been ups and downs the idea has prevailed and has helped scores of individuals to establish a business. There is just one thing if dropshippers can get it right in 2021, we might see a return of dropshipping and that is intelligent marketing campaigns. 

At the end of the day, it is the advertisement that matters and this is where dropshippers can take the lead, there is an existing market for all the products but it is the person who sells it in the most convincing manner who gets the highest volumes of sales. 

Therefore instead of thinking that dropshipping might be dead this year, it is high time to spend energies on making marketing campaigns that would help dropshippers not only capture the attention of the audience but also make huge profits for themselves.