Dropshipping Market: Is It Too Competitive to Start Now?

Video transcript: Hey, everyone, it’s question time. My name is David and each week, we dive into questions that you all left behind on the Oberlo YouTube channel. If you have a question of your own, ask away.

Alright, today’s question is from Shane. He writes:

“If everyone can join the dropshipping market then what competitive advantage could I possibly have? Is there a shortage of sites that sells fitted bedsheets, for example? Consumers can always find their way to Amazon, walmart.com, target.com, etcetera, and find the same products that I dropship at a much lower price.”

Great points, Shane. So, to be honest, no, there is no shortage of sites that sell fitted bedsheets. Also no shortage of sites that sell fidget spinners, or headphones, or lots of other run-of-the-mill products. Consumers can indeed find all sorts of stuff at Amazon, Walmart, Target, and elsewhere. You’re right.

Finding a Competitive Advantage in the Dropshipping Market

So what competitive advantage could you possibly have? Lots of them. First off, when you use Oberlo you have access to tons, tons of products, millions of them. This gives you a chance to sell stuff that Amazon doesn’t sell, or at the very least it gives you a chance to sell stuff that people don’t look for on Amazon.

a running race as competitive as the dropshipping market

If you have a clearly defined niche, you can become the place to buy a certain type of product. Once you have that niche, you can build a brand through social, through email, through your blog. Lots of our most successful merchants have cultivated a personality around their brands. People like buying from their stores in a way that they don’t like buying from corporations like Amazon and Walmart.

Now, the very beginning of Shane’s question was: “If everyone can dropship then what competitive advantage can I possibly have?” Sure, everyone can enter the dropshipping market, but not everyone does. Everyone can run a marathon, and I promise you, I will never run a marathon. Don’t get me wrong, lots of people are dropshipping, and more are starting every day. That’s why Oberlo merchants have now sold more than 100 million products. But don’t let that stop you from starting. Yeah, everyone can open a dropshipping store. But maybe starting an online business excites you more than other people. Maybe you have more passion to execute a marketing strategy and more determination not to give up when things don’t go as planned.

So Shane, thanks for the question. And if you’re not sure whether or not you can carve out your own niche in the dropshipping market, you can get started with Oberlo for free. Dig around, do some research, try to find a niche that Walmart isn’t serving.

Got your own questions? Don’t be shy. We’re always scanning the comments and would love to use your question in our next video. We’re cranking out videos every week, so if you’re as into e-commerce and dropshipping as we are, be sure to subscribe for more. Until next time, happy dropshipping.

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