Is Dropshipping dead? The truth and strategies to break the deadlock in 2025
The argument that “Dropshipping is dead” has been rampant in recent years, but is it really so? The answer is no – Dropshipping is not dead, but has entered the “evolutionary period”. The early model of “making quick money by distributing goods” is indeed unsustainable, but sellers who focus on niche markets and localized operations are still making profits. This article will reveal the true survival status of Dropshipping through industry data, model evolution and success cases.
1. Why do some people claim that “Dropshipping is dead”?
1. The dividends of the traditional model have faded
Traffic costs have skyrocketed: Facebook advertising CPC (cost per click) has risen from 0.43 in 2018 to 1.15 in 2023, and the ROAS (return on advertising) of advertising-driven stores is generally lower than 1.5.
Homogeneous involution: AliExpress and other platforms have transparent prices, and the profit margins of standard products such as mobile phone cases and data cables have been compressed to 5%-10%.
2. Supply chain shortcomings exposed
Poor logistics timeliness: Direct mail from China to Europe and the United States takes 15-30 days, and the customer negative review rate exceeds 30%.
Lack of quality control: Suppliers cut corners and the goods are not the same as the pictures, resulting in refund disputes.
3. Tightening of platform policies
PayPal risk control: The probability of freezing funds for new stores has increased, and the withdrawal cycle has been extended.
Shopify closure: Stores that have been complained about “goods not being the same as the pictures” have been closed in batches.
2. Data truth: “New and old differentiation” of Dropshipping
According to the eCommerceDB 2024 report:
Market size: Global Dropshipping transaction volume exceeds US$287 billion, with an annual growth rate of 18%, far higher than traditional e-commerce (9%).
Profit polarization:
The top 10% of sellers contribute 60% of profits, with an average profit margin of 25%-40%.
The bottom 50% of sellers have a monthly profit of <$500, and the elimination rate exceeds 70%.
The rise of emerging markets:
The volume of dropshipping orders in Latin America and the Middle East increased by 45%, far exceeding Europe and the United States (12%).
Conclusion: The market is still growing, but the “lying and making money era” has ended, and professional and differentiated operations have become the key to survival.
III. Four ways for dropshipping in 2025
1. Regionalized supply chain: using “local warehouses” to solve the logistics dilemma
Case:
Seller A shortened the time limit for South American orders to 5 days through BRDropship’s services, and the repurchase rate increased to 22%.
Seller B uses US 3PL (third-party logistics), and the average order value increased by 30% (consumers are willing to pay a premium for “fast”).
Strategy:
Cooperate with reliable suppliers (such as BRDropship)
Indicate “X-day delivery” on the page and show logistics tracking proof
2. Content-driven product selection: from “moving hot items” to “creating demand”
Trend categories:
Emotional products: pet memorial peripherals, personalized customized jewelry
Solution products: portable air conditioners (for areas without air conditioning), smart vegetable growers
Methodology:
Use TikTok/Instagram Reels to explore potential needs (such as planting pain points under the #PlantMom tag)
Cooperate with suppliers to develop exclusive products (such as BRDropship’s Amazon rainforest handmade series)
3. Branding upgrade: from “white label store” to “mind occupation”
Key actions:
Visual unification: customized packaging, brand mascot, exclusive unboxing experience
Story marketing: telling the supplier’s background (such as “each order supports 1 Brazilian craftsman”)
Private domain precipitation: building user communities through WhatsApp/email
Case: a home furnishing brand has achieved a repurchase rate of 38% and a 5-fold increase in LTV (user lifetime value) through brand story + private domain operation.
4. Hybrid traffic model: reduce advertising dependence
Formula: natural traffic (40%) + paid advertising (30%) + affiliate marketing (30%)
Practical suggestions:
TikTok SEO: optimize video titles and tags (such as “How to style XX product”)
Red people distribution: cooperate with small and medium-sized KOLs (commission 10%-15%)
UGC fission: encourage users to post unboxing videos and reward $10 coupons
IV. Dropshipping death list: touch these categories again!
Categories to be cautious of in 2025:
3C accessories: mobile phone cases, charging cables (AliExpress price crushes)
Clothing and shoes: many size disputes, return rate exceeds 25%
Large home furnishings: logistics costs account for more than 50%, and profits are negative
Beauty and personal care: high compliance threshold, FDA/CPNP certification required
Recommended alternative categories:
Pet smart devices: automatic feeders, GPS trackers (large premium space)
Outdoor portable equipment: solar power banks, folding picnic tables (TikTok is easy to spread)
Cultural specialty products: Turkish handmade carpets, Peruvian alpaca wool products (local warehouse support)
V. Future Outlook: 3 Evolutionary Directions of Dropshipping
Verticalization: from general categories to niche areas (such as “specialized camping equipment”).
Intelligent: AI product selection tools + automated customer service to reduce operating costs.
Ecological: Alliance with reliable suppliers, logistics providers, and KOLs (such as BRDropship’s regional seller program).
Conclusion: Dropshipping is not dead, it just changed the playing field
Law of survival of the fittest:
Early players make money by “information gap” → current winners make profits by “poor efficiency” and “poor experience”
Future competition focus: supply chain response speed × user demand insight
Action suggestions:
Use reliable suppliers such as BRDropship
Publish 3 original short videos every week to accumulate natural traffic assets
Invest at least 10% of profits in brand building (packaging/content)
Dropshipping is still a low-threshold track, but it is no longer a brainless game, but a long-term business that requires refined operations. Your competitiveness depends on whether you are willing to take one more step than your opponent.
