Call centre trends for 2021
Dropshipping in 2021 and Beyond

All customers aren't created equally. It's strange how some customers buying small items feel entitled to demand the moon while other big spenders rarely ask for anything. Targeting the right demographic can be a big boon for a business. Dropshipping products appeal to clients who tend to crave niche products.

E-commerce has been steadily growing and shape-shifting in recent years, accounting for 16.1% of worldwide retail sales. And the dropshipping industry is projected to reach a market valuation of a whopping $557.9 billion before 2025.

What is Dropshipping?

Drop-shipping is an e-commerce business model, except that it involves selling products that are not available in stores. Dropshipping is an order fulfilment method that does not require a business to keep products in stock. Instead, the store sells the product and passes the sales order to a third-party supplier, who then ships the order to the customer.

Dropshipping is mainly about outsourcing the inconvenient parts of production and/or selling a product.

Why dropshipping is still going strong in 2021?

According to research posted by ResearchAndMarkets.com, the market value of dropshipping was $162.44 billion in 2019, and it is expected to reach $ 591.77 billion by 2027.

Here is why:

  • The world has embraced e-commerce

  • More people are buying online than ever before

  • Merchants understand the concept of dropshipping and are willing to work with them

  • Sending online payments is easy

  • Can help with online paid marketing campaigns

  • The upfront cost is almost zero

Is Dropshipping Dead in Present Times?

In a word, no. Several stats show that the dropshipping industry is saturated, but there are still many potentials, and it's nowhere close to dying. The Dropshipping market was valued at US$ 162.44 billion in 2019 and is projected to reach US$ 591.77 billion by 2027; it is expected to grow at a CAGR of 18.3% during the forecast period. E-commerce is said to increase by 17% yearly, which also means growth for dropshipping.

The Dropshipping market in North America is expected to grow from US$ 36.11 billion in 2019 to US$ 125.45 billion by 2027; it is estimated to grow at a CAGR of 17.6% from 2020 to 2027.

Best Dropshipping Products

  1. E-Commerce Niche and Hobbyist products
  2. People love their hobbies and will spend mind-boggling amounts on equipment, training and tools for them. Many serious mountain bikers have bikes that cost more than their cars, and folks who love to fish might spend a fortune outfitting their boats. You can do very well if you can target the right hobbyist niche and successfully connect with enthusiasts and their needs.

  3. Business products
  4. Business clients are sometimes more price-sensitive but will almost always order in larger quantities than individual consumers. Once you've established a rapport and earned their trust, you open the door to a long-term, high-volume profitable relationship. If at all possible, try to sell products that appeal to both individual customers and businesses.

  5. Products with repeat purchases
  6. Recurring revenue is a beautiful thing. If you sell disposable and/or need to be reordered frequently, you can proliferate as you build a loyal customer base that often returns to purchase.

Advantages of Dropshipping

  • Low barrier to entry, little capital, required

  • Low monthly overheads

  • Not stuck holding stock which may possibly not sell

  • Endless resources to learn on the subject before starting

  • Great platforms which aid automation with this business model

The Right Approaches to Dropshipping

  1. Market research
  2. Dropshipping works better as a means to an end, not the end itself. While a long-term commitment to dropshipping is unviable, using it for temporary projects can be extremely useful — particularly in market research. Use dropshipping to mitigate the risk of trying out new products and use for market research. Rather than raising your inventory costs by packing your warehouse with an unpredictable outcome, test it out with a trial period using dropshipping. More than just discovering if it sells or not, you'll also have a better estimate of how much it sells for, giving you a more accurate number of what quantity to buy for your initial stock. This is doubly important for trying out new product types, which always carry an inherent risk.

  3. Protection from overselling.
  4. Experienced e-commerce brands know that market fluctuations aren't always predictable. Rather than raising inventory costs by overstocking to meet unlikely maximums, having a dropshipping supplier as a backup saves you money without losing those sales. This is especially useful for seasonal overflow. You can cut costs by stocking up on only the inventory you know will sell, and if an unexpected demand for sales comes in, you can satisfy them with dropshipping. It's a great safeguard against the uncertainties all retailers face. Having dropshipping options in place also makes great insurance against extreme circumstances. If a natural disaster happens to your warehouse, you can still fulfil pre-made orders by dropshipping the products from elsewhere. The same holds true for side-stepping surprise shipping delays.

  5. Strategic shipping systems.
  6. One unfortunate consequence of expanding your business is shipping complications. The farther out you get from your warehouse or fulfilment centres, the more shipping fees you'll incur. Dropshipping can be the perfect solution for some problematic locations that fall outside your prosperous regions. Maybe shipping that costs far too much, or perhaps storage prices are too high to justify setting up a new shipping centre. If there is an issue of taxes or extra fees, like shipping out of the state or country, relying on dropshipping for these select areas could be the determining factor in keeping you out of the red. Moreover, just as dropshipping can be helpful in market research, you can also use it to test new locales.

  7. High-maintenance products.
  8. Some products cost more to stock and ship than others. In certain circumstances, it may be more profitable for you to dropship them versus storing them yourself.

    What do we mean by high-maintenance products?

    Any products that necessitate extra fees for storing or shipping, such as:

    • Large products -Some products take up so much space, their sales don't make up the costs of the excessive storage room.
    • Heavy products -If a product's weight makes it cost too much to ship, try dropshipping from a manufacturer or wholesaler.
    • Fragile products -Fragile products require special care when shipping. In these cases, the supplier or manufacturer might be better equipped to meet these requirements than you.
    • Valuables -High-value items like fine jewellery, antiques, etc., require additional security that not all warehouses can offer. Rather than risking theft, you could leave the storage to someone who can adequately protect them.
    • Special conditions - Maybe you want to sell items that need to be kept frozen or materials sensitive to light. If your inventory needs special requirements, you may be better off dropshipping than storing it yourself.

Using Google Trends for Dropshipping

If you have a dropshipping store and are trying to find the right niche or products to sell, Google Trends can help you get started on your dropshipping journey. It is a must-have for any online reseller looking to find a niche, understand the market, and do product research.

Google Trends tracks Google search interest from 2004 until now. The fundamental function of Google Trends is to track search interest over a given period. With Google Trends, dropshipping ends up being about providing things that people are trying to find. When there is a big audience searching for an item through Google search, it's a great indicator that the item has a considerable pool of prospective consumers you can market to.

Learning how to use Google Trends with your dropshipping store will give you a competitive edge in a crowded marketplace. You'll be able to understand your target audience and take advantage of emerging market trends. This means you could even be one of the first to offer an upcoming product to eager consumers.

How Did Covid-19 affect Dropshipping?

COVID-19 has affected everything in e-commerce. From decreased orders to supply chain problems to standstill manufacturing, dropshipping was no walk in the park in 2020. As the pandemic spreads across the globe, governments are, of course, prioritizing public safety. Many countries have set up surveillance, prevention, and control measures to avert a potential epidemic. However, these measures disrupt the free movement of people and goods both within and between countries.

E-commerce stores that rely heavily on dropshipping suppliers are already facing problems since the outbreak of the disease. Businesses are facing many changes due to the virus. China is an important manufacturing hub in global commerce, and Chinese manufacturers face production disruptions due to factory closures.

While it feels like doom and gloom, there's some good news for dropshippers on the horizon: e-commerce spiked by 93% in May 2020. Customers are browsing more online today than they did pre-pandemic. People satisfy their retail therapy into buying more niche products. Dropshippers who cater to niche retail will see a boom in their business.


Dropshipping is beautiful in its simplicity to get started and its difficulty in running efficiently, and this is what sets entrepreneurs apart from people destined to work their 9-5 jobs. 2021 is indeed a challenging year to get into dropshipping, and it is progressively getting harder to squeeze into many markets unless your store is ultra-niche. CogentHub can provide you with customized solutions so that you can set up a successful E-Commerce and Retail business. Partner with us to stay ahead of the curve.