If you’re looking for a low-startup-cost business with a scaling potential, dropshipping is definitely a good idea. However, the industry is becoming increasingly competitive year after year.

That means you’ll have to put a lot of effort into finding an unsaturated dropshipping niche, maintaining good profit margins, and finding the right ways to differentiate your business from competitors.

Yes, dropshipping is a legitimate business model. As with any business, you must do your research, work with reputable suppliers, and follow all legal requirements.

For example, charging the correct taxes and accurately representing the products you’re selling. It’s also important to be transparent with customers about your products’ shipping times and origins.

Making dropshipping profitable for your ecommerce store will depend on various factors such as your niche, the competitive landscape, and how well your sales funnel is set up. On average, dropshipping businesses make around 20%–30% on each sale. If you sell 500 items and profit $10 from each, you’ll make $5000 a month. Your biggest challenge is understanding your market and finding the right marketing strategy to attract those 500 customers.