Is drop shipping on Shopify worth it?

For someone who has a full time job, but is looking to start a web based business with no experience.

After some research, it looks fairly simple to inter grade Shopify & oberlo to start my e commerce business. I just had a few questions…

Can this be a lucrative business? Is it realistic to assume that, with the right work & market, that I can pull off 5-10k/mo in profits by using this type of business model?

Once the website is up & running, I am looking to spend about 1k/month the first 3 months in advertising (social media, SEO, etc)

Thanks guys

View Reddit by neen209View Source

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  1. Yes but $1K/month might be hard. Reason is that it’s incrementally getting harder and more expensive to start off.

    My adspend to test/gather data is notably higher than it was say a year ago. This results in 0.5X-2.5X ROAS at first. This is because I’m bidding against other people doing the same whilst also heavily bidding against new people.

    Once I’ve tested and gathered data though it can usually hit 4X-10X and no that’s not including retargeting.

    Personally with every product launch I have, I spend about $100-$300 or so per day for about a week with the 0.5-2.5X ROAS. By the following week i usually am around 2.5X-6X, then the 3rd week I’m 4X-10X.

    Sometimes I’ll do a collection launch of 3-5 products and you can imagine how that goes.

  2. It can be lucrative, for those who make it an actual business, but your numbers don’t add up. And frankly you got a full time job; you’re not making 5-10k profit on the side with a few hours a week.

    If you want to make 5-10k profit you likely need to sell 50k or more worth of items as the margins suck (after all most the work is outsourced) and 1k in ads with an average 1-2% conversion rate isn’t likely to sell 50k of product.

    If you’re starting a business, or thinking about it, run the numbers. That’s all what matters. A business lives or dies by the numbers. Spending a total of 3k to get 5-10k steady income every month isn’t happening. It’s not that easy.

  3. Shopify is just an ecommerce platform so doesn’t really have anything to do with whether dropshipping will work for you or not.

    But yes, it can be a very lucrative business if done correctly. Just look at the dropshipping businesses for sale on Empire Flippers.

    If you’re going for the simple, no-work method you likely will fail.

    Put in some real work and you might succeed. But you need to find good suppliers yourself, not rely on a plugin that everyone else uses. You need suppliers where you are the only person (or one of a few) dropshipping for them. Don’t look up dropshiping companies, but contact non-dropshippig companies and ask them to dropship for you. Some will be willing to do it if you have a real business.

  4. 2018s Amway. A few make it, the rest go broke trying. It will take a superhuman effort at anything to earn an EXTRA $10-$15k a month. Do you make that in your full time job?

  5. I use Shopify just as a platform, I still order in my stock, list it and sell it like a normal business.

    This has all been very little time and effort besides packing and shipping and social media presence, I have not paid for a single ad since by law the product cannot be advertised in Australia.

    It’s simple for me and less issues of advertising, I wish I could but then I wouldn’t of started due to big guns dumping way more money in the mean time.

    Use Shopify as a platform not a possible income stream, that stream is what you make of it

  6. Even if the margins suck, dropshipping is a great way to validate your business or build site authority.

    Let’s say you want to launch a t-shirt business. Setting up partnerships, getting designs made, etc. is going to take time. With dropshipping, you avoid all of that and go straight to selling. If you are counting on SEO to make sales, you may also need to get an aged website – with dropshipping, you can set a page for various categories and let it run on autopilot for a while till your site picks authority.

    Once you start seeing sales, you can dive in deeper and invest in product design and manufacturing.

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