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Shopify dropshipping has become a go-to business model for many aspiring entrepreneurs due to its low startup costs and flexibility. While this eCommerce method allows you to sell products without maintaining inventory, the question remains: is it still profitable in 2024? With rising competition and a challenging success rate, we’ll explore how Shopify dropshipping can still make money today, and introduce you to a more sustainable business model – local lead generation – which might be a better long-term strategy.
3 Ways Shopify Dropshipping Can Still Make You Money in 2025
1. Growing Number of Online Shoppers
The digital shopping landscape continues to expand, offering dropshippers an ever-growing market. In fact, Oberlo reports that digital buyers will reach 2.77 billion in 2025, while Statista estimates that the global dropshipping market will hit $476.1 billion by 2026. Shopify itself boasts 2.1 million daily active users and powers 4.8 million stores globally, making it a solid platform for dropshippers.
To succeed, dropshippers must focus on finding a winning product and a reliable supplier. Equally important is building an effective digital marketing strategy to drive traffic and generate sales.
2. Adapting to New Dropshipping Rules
Dropshipping has evolved, and success now depends on leveraging new strategies. In 2024, thriving dropshippers focus on selling in-demand products, creating user-friendly websites, and offering superior customer service. Additionally, fast shipping times and product quality are critical to keeping customers satisfied. Dropshippers must also get creative with social proof, marketing, and niche-specific products to outshine competitors.
Key strategies include:
- Targeting products that meet actual demand
- Offering fast shipping
- Optimizing for mobile-friendly shopping
- Utilizing social media marketing and FOMO techniques
3. New Dropshipping Trends to Watch
In 2024, dropshipping success is heavily tied to the customer experience. A Forrester study shows that 63% of customers will abandon a brand after just one bad experience. Providing seamless, enjoyable shopping journeys is key. Incorporating trends like AR/VR for product visualization, BNPL (Buy Now, Pay Later) options, and robust customer service channels can significantly enhance your business.
While Shopify dropshipping can still be profitable, it’s essential to continuously evolve your strategies and invest time in research to stay ahead of the competition.
The Pros and Cons of Shopify Dropshipping
Shopify Dropshipping Pros:
- Low Entry Barrier: You don’t need to handle inventory or shipping.
- Scalability: Easily scale as you identify winning products.
- User-Friendly Platform: Shopify offers easy-to-use templates and 24/7 customer support.
Shopify Dropshipping Cons:
- Low Profit Margins: Additional costs like transaction fees and advertising can eat into your earnings.
- High Competition: A low barrier to entry means saturated markets.
- Limited Control: Suppliers dictate shipping times, and account suspensions can occur if Shopify policies aren’t followed.
Is Shopify Dropshipping Still Profitable in 2024?
Yes, but the landscape is competitive, and the business requires strategy, persistence, and adaptability. With an average profit margin of 15% to 20%, the earning potential is there, but success often relies on finding high-demand products and creating targeted marketing campaigns. On average, Shopify dropshippers can earn around $1,000 to $2,000 per month, though this varies greatly based on experience, product choices, and marketing efforts.
Is Dropshipping Too Saturated?
Dropshipping isn’t saturated as a business model, but product saturation is a real concern. Many dropshippers sell the same trending products, leading to high competition and lower margins. To combat this, product research and niche targeting are crucial.
Why Shipping from China Might Be Problematic in 2024
Shipping from China remains a popular option, but long delivery times (up to 6 weeks) can deter buyers who expect fast shipping. To maintain customer satisfaction, clearly communicate shipping times and consider sourcing from local suppliers to reduce wait times.
The Better Alternative: Local Lead Generation
While dropshipping can still be profitable, local lead generation is emerging as a more sustainable and passive income model in 2024. Unlike dropshipping, where competition is fierce and reliant on third-party suppliers, lead generation allows you to build and rank small websites that generate leads for local businesses.
With local lead generation, you:
- Compete Locally: You’re only vying with a few other local businesses, not national or international competitors.
- Earn Passive Income: By renting out your lead-gen sites to local businesses, you can make anywhere from $500 to $3,000 per site monthly.
- Less Hassle: You’re not dealing with inventory, shipping, or customer complaints. Instead, your focus is on creating high-quality leads.
Entrepreneurs like myself have built several lead-gen sites and now earn over $50,000 per month. With a solid local SEO strategy, you can rank websites in just six months and create a steady flow of passive income.
Conclusion: Is Shopify Dropshipping Worth It?
Shopify dropshipping is still viable in 2025, but its success depends on your ability to adapt, market well, and find unique products. However, if you're looking for a business model with less competition and higher earning potential, local lead generation offers a more sustainable path to passive income. By focusing on local markets, you can create long-term, profitable websites that generate consistent revenue with far less effort.
