If you’re reading this, chances are you already know about dropshipping, how it works, and some of the profits other people have made.
But one big question may still remain.
Does dropshipping work in 2025?
After all, the concept of dropshipping is no longer new. Now, with more dropshippers joining the party every day, there is more competition than ever, with some being quick to claim that ‘dropshipping is finished.’
But that’s not entirely true. Instead, you need to be savvy, calculated, and driven to see success. Here, I’ll show you that dropshipping continues to be profitable in 2025 and how you can get started today.
Short on time? Here are the key takeaways
- While dropshipping is certainly more saturated than it was a decade ago, it can still be extremely profitable for the right products, brands, and marketing.
- The key to a successful dropshipping business is to choose the right products and niches that meet several important criteria, such as profit, ease, and audience size.
- Successful branding can help differentiate yourself from others in your niche.
Dropshipping in 2025
It’s easy to understand why some people think dropshipping is dead in 2025. After all, there are more people than ever trying their hand at it.
Anecdotally speaking, I was in Bali recently, and I would say one in every three people I met was doing dropshipping!
However, there’s a reason why people continue to give it a go. Here are some of the most notable dropshipping statistics for you to be aware of, highlighting just why it’s still a profitable endeavor.
- $85 billion in sales are made via dropshipping. That’s almost 23% of all online sales.
- Dropshipping stores with at least one social media account tend to generate 32% more revenue.
- The dropshipping market is expected to be valued at $372.47 billion in the year 2025.
- The e-commerce market share of the US is expected to reach 19.4% in 2025.
How to Start Dropshipping
With that in mind, let’s take a look at the steps you need to take to start your dropshipping business.
Choose a business model
First off, you need to decide what business model you are going to opt for. Are you going to niche down and select a store that focuses on a very small but fiercely loyal community? Are you going to try and set up a general store that appeals to a larger audience but comes with more competition? Or are you going to go down the ‘one-product store’ approach?
Each option comes with its own pros and cons, so it’s important to identify a route and ensure everything you do helps you achieve that goal.
Want to understand niche markets in more detail? Check out this article.
Research your niche
Once you have decided on your niche, whether it’s a very specific or broader one, it’s important to swat up on everything you can about it. This will help you understand what your competition is selling, what your audience is looking for, where they shop and engage with brands on the internet, and any potential pain points you could look to exploit for quick success.
To do this, tools like TikTok, Instagram, Amazon Best Sellers, and Google Trends are all excellent options. They will help you understand what the competition is doing well and also what you could do better than them, allowing you to carve out a much-needed USP, especially in a saturated market.
Another important factor to consider at this stage is profit margins and feasibility. If you can’t find a way of making a profit from your chosen niche, then it’s essentially a non-starter. You need to be confident that sales will at least cover your costs at first and have the potential to scale smoothly, thanks to easy shipping.
As a dropshipping company, not handling inventory can seem excellent, but it does also come with some downsides, most notably, if there are issues with shipping, it can have a major impact on your brand’s perception as it can be tricky to rectify issues that are out of your control.
Find a reliable supplier
Firstly, you need to find a reliable supplier. I cannot stress enough how important this step is. So much so that everything else from this point becomes significantly less impactful if you fall at this hurdle.
Some of the most popular options include AliExpress, DSers, Zendrop, CJ Dropshipping, and Spocket, but we also have a fantastic video training course on this subject.
If you’re planning on dropshipping on Amazon, you need to be really careful who you partner up with. Amazon has some pretty strict policies on suppliers and wholesale distributors, so I strongly recommend checking out their list of vetted candidates.
Once picked, take time to order samples, making a note of the product quality, delivery speed, and other important aspects of the customer experience.
Set up your online store
Once you’re happy with the supplier you opted for, it’s time to consider where you’re going to set up your online store.
The most popular options tend to be Shopify or Amazon, each of which comes with its own benefits.
Shopify is an excellent option as it offers a lot of excellent eCommerce features, it’s easy to set up, and it gives you control over the design of your page and branding.
However, it is trickier to get people to find and purchase from your brand at first, especially when compared to setting up on Amazon.
As you can imagine, setting up on Amazon means you open yourself up to a much bigger target audience automatically, which is very attractive for new dropshippers.
However, Amazon is also aware of the many benefits they offer you and that your choices are minimal due to their market dominance. As such, they often take significant fees, monthly costs, and a percentage of sales.
Fortunately for you, I’ve compiled a list below of some excellent Shopify guidance, ensuring you give yourself the best chance of success:
- The Absolute Best Premium and Free Shopify Templates
- How to Set Up a Shopify Store in 8 Easy Steps
- 11 Proven Strategies to Increase Shopify Sales
- Shopify SEO Tools for Your New Store
Sort the boring bits
Okay, calling them ‘the boring bits’ might be a bit harsh, but I know I would much rather be working on the creative aspects of a brand rather than setting up policies for shipping, returns, and refunds.
However, these pieces of legislation are all absolutely crucial for protecting yourself in case of any issues, which can get quite complicated as a drop shipper.
You also need to consider other important aspects like basic liability insurance or whether you want to set up as an LLC or a sole proprietor.
Luckily, you can learn a bit more about all that here: Sole Proprietorship vs. LLC: Everything You Need to Know.
Optimize
Now that those bits are out of the way, it’s time to optimize your website. That means writing compelling product descriptions that are SEO-friendly and what the consumer wants to see. Focus more on the benefits of your products rather than the features.
Does a consumer want to know that your vacuum has powerful 26kPa suction? No, probably not. Do they want to know that it has the power needed to suck up everything, even dog hair? Yes!
You should also focus on using other important user-focused features, such as high-quality imagery. It makes your brand look professional and your products more valuable.
Lastly, test out different urgency elements, such as highlighting limited stock and countdowns; just make sure not to overdo it.
Launch marketing campaigns
Once all your foundations are in place, it’s time to get your brand in front of your target audience.
Start getting an email list in place for future discounts and new products by adding pop-ups to your website and promotions on social media.
Use micro and macro influencers to promote your product, ensuring you work with influencers specifically within your niche.
Tips and Tricks for Success
While it’s easy for almost anyone to set up a dropshipping business in 2025, making it a success is a different matter altogether. Here are a few tips and tricks I recommend that will help you ensure your brand gets off to a great start and builds sustainable long-term success.
Branding
For branding, it’s absolutely crucial that you invest time and effort into this early on. Use websites like Fiverr to get a quality logo made, ensure you have a consistent color palette in place, and don’t be afraid to lean into the story of how your brand came to be and what you want it to represent.
Consumers also want to see other trust signals, especially those who haven’t purchased from you before. That means collecting legitimate reviews, laying out a detailed frequently asked questions page for customer support, and adding real photos of the products you’re selling.
Marketing and ads
When it comes to marketing, it can be very tempting to spend big in the hopes of attracting new customers.
However, the best approach is to actually start small, testing each route before identifying where you are seeing the most success and then spending more in those areas.
Mindset and strategy
Dropshipping is not passive income.
I can’t stress this enough: Anyone who tells you it is passive either doesn’t do dropshipping themselves, or if they do, they don’t do it successfully!
You have to treat your dropshipping like a real business, focusing on long-term strategies like focusing on customer experience.
Always be learning
Lastly, it’s important to know that once you’ve done all of the above, the work doesn’t stop there! Dropshipping and eCommerce as a whole are rapidly evolving, and staying up to date with the most recent trends, success stories, and products is a must for long-term success.
There are plenty of great resources, such as r/dropshipping on Reddit, but for the very best results, joining Foundr’s community is the best solution, as it will put you in touch with authentic, current eCommerce business owners and dropshippers, allowing you to learn and grow with each other.
Get Started Today For Just $1
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