Article published on 24 July 2021*

is dropshipping profitable? Or it’s a scam?


Is dropshipping profitable or a scam?

We hear a lot about dropshipping and figures amounting to several hundred thousand euros or even several million euros. Is dropshipping a scam or is it really profitable? And what is the salary of the people who live from dropshipping? I answer all these questions in this article which may be embarrassing, but it must stop.

Is it possible to be profitable in dropshipping?

The answer is of course yes. You can make a very good living with dropshipping from home. Although dropshipping has its disadvantages such as customs, VAT and delivery time, it really allows you to test a market before moving on to a real stock building strategy.

Let’s say your product costs you one euro. You sell it at 20 €. You therefore have a substantial margin that will certainly allow you to manage customs, VAT, charges and advertising. The more you sell an expensive product while having a nice margin, the more you will be sure to have a big turnover. This is the problem with people who show their figures about dropshipping.

The difference between profitability and turnover

It is all very well to make several hundred thousand euros in sales, but if you are not profitable, it is useless. Here our margins are ridiculous, we earn only a little at the end or we even go bankrupt. This is why many trainers only talk about turnover and not about profitability. However, it is the profitability that is important. You take your turnover and subtract all the expenses of your company. These are the contributions, but also the purchase price of the products and the advertising. Also take out your salary and everything else to get your profitability. On 100 000€ of turnover in dropshipping, if you don’t optimize your business and your margins, you can lose. You can very well get only 5000€ at the end after having put some money aside for your future expenses. It is therefore necessary to alert as much as possible on the charges and expenses that can have people who start in dropshipping. Of course, the profitability will also depend on your legal status.

Profitability dropshipping: Is traffic dependent on advertising?

Profitability in dropshipping depends essentially on a set of parameters that requires a minimum investment. Several items of expenditure are then essential for the efficiency of the activity. We can refer to the expenses related to the product, its delivery, the maintenance of the site, advertising and others. In relation to the expenses related to advertising, a real controversy is created preventing access to the reality. Many professionals and trainers in dropshipping recommend, for example, to make the option of paid traffic.

In general, these are Google Ads and Facebook Ads. This approach has certain advantages among which we can mention an instant return characterized by numerous tests. Indeed, a set of alternatives with a very fast and winning effect is set in motion in order to allow you to scale. One can then realize that paid traffic is a pragmatic approach when it comes to testing as well as immediate return. Nevertheless, paid traffic is an expensive method of generating traffic.

Other alternatives such as SEO are very profitable methods whose effects are long term. It consists in working in order to position yourself well on Google. To do so, a meticulous work must be done regarding the optimization of your site as well as the netlinking. We can also take advantage of social networks which are also important providers of traffic. Among others, we can mention You Tube, SnapChat, Faceebook, Pinterest, Instagram, Twitter etc. You must therefore mark your constant presence on these networks where you have the opportunity to meet your prospects. A good approach will allow you to reach the attention of many prospects with efficiency.

Profitability dropshipping: How to find a dropshipping supplier?

Several solutions are available to you if you decide to look for a credible supplier to launch your dropshipping e-commerce. Among others, we can mention the SAAS method, Shopify, Dropizi etc… By reading the dropshipping testimonial, you can collect a minimum of information that can inform you effectively.

SAAS approach favored

The SAAS solution allows you to have with a modest investment a powerful store with satisfactory features. Thousands of euros are needed to have an e-commerce site with the same performance. You can access your turnkey store with the possibility to get in touch with recognized reference suppliers in dropshipping. Among these suppliers, we can distinguish the Chinese reference “Aliexpress”; the European one “BigBuy” and others.

It is a solution that requires no technical prerequisites. Just click to become the owner of a store. You have de facto hosting, domain name, customization features, site design and more. All Internet users who wish to practice dropshipping can then easily launch their online store for a monthly subscription fee and a commission on sales. You can then become a great e-merchant and sell considerable quantities of imported goods.

Profitability dropshipping: Free or paid wholesale websites

Some sites offer you to pay monthly fees to access the updated list of providers on their platform. Others offer free access to the list. In any case, you must be vigilant. You should be very careful with sites that ask you for monthly payments. Indeed, marketing a supplier through your dropshipping activity should not require a financial contribution.

It is also important to remember that credible suppliers are sometimes poorly referenced. When accessing a free supplier access platform, don’t reduce your searches to the first few pages of Google. Providers that have the best natural search engine optimization are not absolutely the best. Also take the time to learn about the ones you are interested in by typing their names into Google and reading dropshipping reviews.

How to sustain a dropshipping business?

Dropshipping is a very ephemeral and seasonal business depending on the products and the niche. It may very well be that you or a competitor will exhaust your niche after a few weeks or months. In this case, all the money you have earned will not be generated in the next few months and you will have to find other product ideas. The creation of a business in dropshipping is therefore part of a constant renewal.

One can then perpetuate the dropshipping business with ideas such as creating a real box sent each month to customers, extension by a service or the creation of a brand. There is the creation of white labels. That’s all I explain in my realistic and responsible dropshipping training.

You will be able to discover a lot of free courses and tutorials on dropshipping on my YouTube channel Yavok (Peii Henry) and I invite you to join me on my training which will allow you to avoid mistakes and to progress serenely in dropshipping. I hope to see you again and thank you for reading.

Transparency: I may receive affiliate compensation for some of the links below, at no cost to you if you decide to purchase a paid plan. You can read our affiliate statement in our privacy policy. This site is not intended to provide financial advice. It is for entertainment purposes only.

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About the author

Financially free with SEO, e-commerce, dropshipping and affiliation. Real estate & stock market investor, Peii Henry works as an SEO coach and trainer while also working on his e-commerce and affiliate websites. Born and raised in France, he is now living in Bangkok, Thailand.

Peii Henry

"An Former Military Guy who preaches Liberty with Entrepreneurship"

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