eCommerce Lifestyle
is dropshipping too saturated 2020

Too Saturated? We’re Just Getting Started


In this episode of The eCommerce Lifestyle, I'm addressing some questions I hear all the time.  "Is eCommerce saturated? Are all the good niches taken? Is it too late to get started?"

​The reason I get these questions so often​ ​is because they're common, and reasonable, concerns fo​r first-timers looking to build an online business.

I mean, this model has been around for a couple of decades... Is it still possible to break into the market?

Listen in to hear my take on whether or not dropshipping is too saturated in 2020!​

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Hey, what's up everybody? Anton Kraly here and welcome back to the eCommerce Lifestyle podcast. Today I want to address something that comes up all the time at my company and that is people asking us, "Is eCommerce saturated? Are all the good niches taken? Is it too late to get started?"

And some form or variation of that. And the reason I get that question so often and specifically my support gets that question so often is because we help people build new businesses and when you're first looking into this you might think, "Wow, people have been around for at this point a couple of decades doing this stuff how can I actually break into this?"

So the reason I think today is the perfect day to address this is because MasterCard just recently released a report about eCommerce spending and online spending which I think will help shed some light on what's actually happening here. And then I also want to share a couple extra tips when it comes to saturation and if it's too late to get into this and spoiler alert it's not.

But this report that MasterCard just put out, showed that this year overall holiday retail sales, now this is including offline and online retailers both, they rose 3.4% from last year. So from 2018 to 2019 holiday sales went up 3.4% and you might be thinking like, "Oh, it's good it went up but that's not a lot."

And that's true but this number is almost misleading because this year in 2019 the holiday season was actually six days shorter because of when Thanksgiving fell. Last year we had an extra six days from black Friday throughout the holiday season. This year, again, because of when the holiday fell there was actually six less days and sales still went up 3.4% as retail as a whole so both offline and online.

So not again the most important stat for us but just know that overall people still are buying more in general.

But what matters to us is are people buying more online. Because again, people think everything's set now, the authorities in eCommerce are the authorities, and that's not true. There's new customers coming all the time online and people are buying more and more online in general.

So, the one stat that really stood out to me is that this year in 2019 eCommerce as a percentage of retail in total only made up 14.6% of transactions. Less than 15% of retail sales are from eCommerce, that means 85% of retail sales are from physical brick and mortar type businesses not from going online. And when you think about the amount of money that's already spent online and then realize that's only 15% you realize how much room we have to grow and that we're really only just getting started now.

And this is another interesting stat, so even though that eCommerce sales only made up 14.6% of retail sales that was actually an increase of 18.8% from 2018. So what that means is even though it's still only 14.6% it grew almost 20% in a year, the amount of sales that come from eCommerce, and grew as a percent in relation to itself.

So if it continues to grow at 20% year over year or even if it continues to grow at a higher rate than that, you probably can't even imagine, because I know I still can't, what e-commerce looks like and what the opportunity looks like if instead of being 15% of retail sales e-commerce is now 30%, or 40% or, 50%. or what about when it gets above that? Because it will.

That's where we're headed and we're nowhere near those levels yet and when this rises it rises all of us. It doesn't just rise me, it doesn't just rise somebody else that's been in the business for a decade, it rises for everybody that's selling online as long as you're a student of the game, and you pay attention to what's happening and you do thrive to be the best.

I'm not saying you could be some store that you check in on once a week and it's going to do great I'm saying that the opportunity will rise for the people that are willing to do the work and put in the effort and if that's you definitely go to, check out my free training where I show you exactly how we do this and how you can do it too.

But what this is really showing me what these numbers have shown me is really what I've been seeing for years now, year over year, e-commerce is growing. It is still nothing in comparison to retail as a whole and if you get in now you are still in the beginning. You didn't miss the boat. You're not watching everybody blow past you. You're getting in at a time where there is a massive opportunity and there will continue to be for decades.

Now let's address the huge elephant in the room which is Amazon. Now, even though the eCommerce industry right now is about half a trillion dollars, it's actually over half a trillion dollars in sales a year, Amazon owns about half of that which I can't even comprehend how much that is in terms of transactions.

But that means there is another 250 plus billion dollars in online sales that are going through other stores. So yes, you can still compete with Amazon. Yes there are ways to still be able to build a new store and get sales when a company like Amazon exists. In fact, that's one of the points that I cover in that free training at, how to compete with Amazon. So check that out.

But the fact is guys don't use excuses like it's too late. Don't use excuses like there's other people that have more experience than me because when more people shift to buy online there's more money floating around and there is more for you to claim but not just because you're going to get lucky it's because you're going to do the work.

It's because you're going to build a real business. It's because you're going to care about your customers. And once you have all those things lined up you can literally just run your business and watch it grow on its own because as the economy grows and as online retail grows so will you.

So, my advice to you is do things right, build a business the right way, do what you know needs to get done, but as you do that, just know you're going to get that extra lift in how much money you're making because e-commerce isn't saturated, it's not dwindling down, there's not no opportunity. All it is, is growing like crazy and it is still a small, small, small sliver of what is actually out there. So get in now, build your store, treat it like a real business.

Look back in 30 years and laugh thinking, "I can't believe I thought this was too saturated and I almost didn't even give it a chance." So get to work guys. I'm going to do the same. I appreciate you and I'll talk to you in the next episode of the eCommerce Lifestyle podcast. See ya.