Why You Should Start Dropshipping In 2023

Why You Should Start Dropshipping In 2023

A new year is approaching and many people who dream of launching their own businesses are wondering if they should start dropshipping in 2023. Since some eCommerce "experts" like to warn others, their hype has already faded. Are their claims substantiated? Let's find out! What usually fuels people's passion to pursue their dreams? True, the same thing can prevent them from doing this.

why-you-should-start-dropshipping-in-2023

Success or failure stories of others. It can inspire the first. The second - saves you from "illusions". It's been a lot of time since companies like Amazon, eBay, and Alibaba broke the mold and set new rules. Before that, most people only dreamed of owning their own businesses. While reaching out to an international audience was an unaffordable luxury that only the wealthiest companies could boast about.

What is dropshipping?

Dropshipping is one of the modern but popular concepts in the world of product resale, especially in e-commerce. It is a procedure or method of order fulfillment where e-commerce companies outsource the purchase, storage, and delivery of products ordered by their customers.

Sellers simply place an order with the manufacturing unit or fulfillment center. Once an order is placed, it becomes the responsibility of the third party to manage the product, prepare it for delivery and ultimately deliver it. This order fulfillment method appeals to Indian companies looking for low overhead and capital investments. 

However, this method also has a list of cons. Dropshipping may appeal to companies that intend to sell generic products, but it may limit opportunities to build a global brand or offer different products.


1. Stable eCommerce growth

According to Statista, in 2021, e-retail sales exceeded $5.2 trillion worldwide, and this figure is expected to reach new heights only in the coming years. 

Sounds promising, right? Meanwhile, even well-established and established brick-and-mortar giants have made sure to sell their products online. 

For them, this is a remedy to reduce their spending on employees and inventory to avoid bankruptcy. And that brings us to the second reason why you should start dropshipping in 2023.

2. Brick and mortar retail crisis provides new opportunities

The traditional model of retail business is undergoing irretrievable changes. The huge investments in staff, warehouses, and stores put a strain on brick-and-mortar companies.

As a result, plenty of them have gone belly-up, and many are expected to do so. According to CNBC Lauren Thomas’s report, 80,000 stores will close in the U.S. by 2026.

Big retail companies were compelled to move out of business due to the huge maintenance cost that brick-and-mortar business requires. While these unfortunate companies are going bankrupt, they’re leaving a gap in the market – and dozens of their ex-clients.

3. Why wouldn’t you fill the gap and win the abandoned market share?

Since dropshipping is free from the burden of dragging down brick-and-mortar retailers, it seems to be a great chance to succeed! An increase in the use of mobile devices and social media pushes online shopping up Does your grandpa have an account on Facebook? According to a Statista report, 99% of adults ages 18 to 29 use the internet, people ages 30 to 49 -98%, people ages 50 to 64 – 96%, 65 and above – 75%.

Compare that to the number of people who use smartphones on a daily basis, and you won’t even be surprised why the online shopping space is expanding so rapidly. As technology continues to advance, mobile devices are becoming more prevalent among people. Even older generations following the younger generations deepen their dependence on smartphones and tablets to deal with everyday problems.

Another great sign that looks promising for online entrepreneurs is the increase in the time spent by the average internet user on social media. Social networks have long been useful marketing tools for online store owners. They have always served as a bridge between customers and vendors. 

Social media users can access a necessary online store with a single click with the help of Facebook or Instagram ads or direct links within social communities. And there is more good news! Social networks promise to bring online shopping to a new level. Following Facebook, Instagram will allow its users to register their credit cards as part of their accounts. That will let them make a purchase right on the social network. 

As a result, it will reduce the process of checking out to one click and increase online sales.

4. Lack of trust in big famous companies

One of the challenges every company will face in 2023 is overcoming a lack of customer trust. It has never been as difficult to win and so easy to lose as it is today. Believing anyone becomes difficult if you are surrounded by "fake news", cunning criminals, and hackers. But it gets worse when you highlight a scam on a global scale.

Everyone remembers the infamous "Dieselgate". Volkswagen, the company that is supposed to cherish its customers, puts money before customers. The company falsified the pollution control system of its cars in order to meet US regulations. In other words, they have betrayed the trust of customers for profit. By the way, this scandal caused the examination of other automakers. She revealed that they were cheating too.

5. More and more people prefer to shop online

It’s really striking how the world has changed in the last 30 years! 30 years ago, nobody could imagine buying anything without leaving their homes. Yes, the Internet and technological progress have definitely made our life different! 

Recent research conducted by EmpathyBroker in the UK reveals that 51% of consumers prefer to shop online rather than go to a physical shop. Another survey done by Periscope by McKinsey shows even the items of daily use are more and more commonly bought online!

Indeed, what could in-store shopping offer consumers? Limited choice, high prices, staying in line? Doesn’t seem to be a great pleasure. People choose convenience. Online shopping gives it to them.



Conclusion

We've listed seven reasons why it's worth starting dropshipping in 2023. And now, it's up to you to estimate the risks you take and the opportunities you may get. We have no doubt that you will make the right decision. Good luck in your online business in 2023!

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