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Is dropshipping still profitable in 2024 or is it dead?

Every YouTube guru says dropshipping is the way to make money but then I see other videos saying it's oversaturated and dead. I have about $2000 to invest in starting an online business. Is dropshipping realistic or should I look at something else?

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Let me give you an honest take - I run an e-commerce consulting business and have seen both sides.

Is dropshipping dead? No.
Is dropshipping what YouTube gurus promise? Also no.

The reality of dropshipping in 2024:

What's harder now:

  • Facebook ad costs are 3-4x what they were in 2019

  • Customers expect fast shipping (AliExpress 30+ days doesn't cut it)

  • More competition in every niche

  • Margins are thin (15-30% typically)

  • Returns eat into profit fast
  • What still works:

  • US-based suppliers (CJDropshipping, Zendrop, Spocket)

  • Niche products, not generic stuff

  • Building a real brand, not a one-product store

  • TikTok organic content before paid ads

  • Higher ticket items ($50-200 range)
  • The $2000 budget:

    Honestly, it's tight. Here's a realistic breakdown:

  • Shopify: $39/month

  • Domain: $15

  • Product samples: $100-200

  • Initial ad testing: $500-1000

  • Apps/tools: $50-100/month
  • You'd have maybe $1000 for ads to validate a product. That's 2-3 product tests maximum.

    Better alternatives with $2000:

    1. Print-on-demand - Lower risk, no inventory

    2. Amazon FBA wholesale - Buy bulk, sell on Amazon

    3. Service business - Use your existing skills

    4. Local reselling - Goodwill to eBay/Poshmark


    If you still want to try dropshipping:
  • Learn TikTok organic marketing (free traffic)

  • Use US suppliers from day one

  • Find a niche you actually care about

  • Be prepared to test 10+ products before finding a winner

  • Ignore anyone promising easy money


It's a real business, not a get-rich-quick scheme. Most people quit before profitability.

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Asked By
Joshua Anderson
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