eCommerce Lifestyle

Is Dropshipping Too Competitive In 2021?


Is dropshipping too competitive in 2021?

Not if you know where to look…

Anton explains how to find opportunities within a competitive landscape.

As always, if you have any questions and suggestions, please feel free to leave a comment below. Don’t forget to share this with someone who needs to hear it.

What's Covered in This Episode:

  • How competitive are the actual products you're selling
  • Competitor research
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What's up, everybody, Anton Kraly here from, and welcome back to the podcast. If you're new here, just know this show comes out twice a week. Every single Monday and Thursday morning, we have a brand new episode on every podcast player. Just search for eCommerce Lifestyle and click subscribe. That way, you'll be notified every time a new episode goes live.

Now, all the episodes I create here are designed to help e-commerce store owners to increase their revenue, automate their operations, and become the authority in their niche. And today's episode really is more designed for people that are a little bit earlier on, on their journey. People that are thinking about getting into dropshipping, or even are like dabbling in it and thinking about going all in and basically making this a real business. And wondering, with a real concern, is dropshipping too competitive now that we're in 2021? Which, by the way, we're like, what mid-February now? It's crazy. This year is flying by already, just like last. I don't like it. But you know, regardless of that, this is a question that I get all the time. So I wanted to just spend a few minutes with you and share my thoughts on this and let you know what you can do to find opportunity in a business that, of course, there's competition. There's competition everywhere, especially online.

Now here's the deal. First thing I want you to realize is that even though other people are selling things that you might want to sell, that does not mean you shouldn't sell them. That would be ridiculous. If you think, oh, well, this person or these people are making money in this business, I can't do it because they're doing it. No, that's the wrong mentality. What you want to do, when you're doing your research, this is something I hit on big inside my coaching program over at, but that is if you cannot find competition, then you're not going to have a good time, and you should move on. If there is nobody out there selling what you want to sell and making money, then you don't want to sell it because there's not a market for it. E-commerce has been around for a long time now. And people know what sells, which is pretty much everything. So people are selling pretty much everything online. Okay? So just know that. You need competition to help validate your niche idea when you are doing your research.

Now, knowing that, okay, I get it, Anton, of course, people are going to be selling things I want to sell, but are there too many people selling the things I want to sell? How can I break in now when other companies are out there and doing it? They're selling things. Well, I'm going to take it through actual numbers that I look at, so that should be really helpful. But I also want to let you know that sometimes from the outside looking in, we can be deceived. So let's just say you think of some niche you want to sell in, and you Google it, and you find 100 different websites selling the types of products you want to sell. Maybe the first thing that pops into your head is like, wow, there's 100 companies out there that have stores selling, what do I have in front of me right now, an office chair, all right? I could find 100 online stores selling office chairs. How am I possibly going to be able to break into this niche?

Well, from the outside looking in, you see 100 stores that are selling them, but you don't know what's going on with those 100 stores. Maybe 20 of them haven't been updated in five years, and if you email support, it gets bounced back to you because the sites are just something that somebody or some company let die. Maybe another 20 of them are just stores that literally have no support, where the owner will randomly check emails on it every few days and respond to people. Maybe 20 of them are making money, but they're not approved with the good suppliers within their niche. Maybe they got approved with one or two brands, and they thought, okay, I'm going to build this store and make $1000 a month. Then maybe there's 20 of them that actually are actively building, that are focused on growing their stores. And then maybe out of all of them, there's five or 10 of them that actually have a good, solid business that understand marketing, that understand their niche, that are focused on growth, and those are the ones that you're actually competing with.

So again, I want to get into some actual numbers here. But just know if you search your niche and you find 100 stores, that does not mean you're competing with 100 stores. Because a lot of them, I'm telling you, are running terrible businesses, and your job is to build one of the best in your industry. So the ones you're truly going to be competing with are the ones at the top. Okay? Which again, might be five or 10 out of everybody you find. Now with that being said, I want to approach this from a different angle a little bit because I think this would have been helpful for me earlier on to help kind of gauge competition. And this isn't just with dropshipping in general, but this is with different niches within dropshipping.

So again, with dropshipping in general, no, it's not too competitive. Again, what you see from the outside looking in might look like there's all these stores in these niches. But where you want to play, where you want to become good, which is marketing, supplier approvals, customer relationships, everything I teach you in the Drop Ship Blueprint, there is not much competition there. Okay? But when it comes to specific niches now, a lot of people, again, might find these stores when they're doing their supplier research and see, oh, wow there are, I don't know there's all these stores selling for all these different brands. That must mean, again, that this niche is saturated, right? Maybe, I said, what did I say office chairs before? Maybe you do your office chair research, and you find 50 stores that are all selling for between 20 and, I don't know, 40 different brands. And when I say brands, I mean the companies that make the office chairs. And again, you think, okay, well, that's saturated. That's too competitive

Well, it's not, because at the niche level of dropshipping, when you niche down, competition does not occur there. It's not about how competitive is my niche. It's about how competitive are the actual products that I am selling. The actual specific products that you're going to list on your store, how competitive are they? How many people are competing to sell them? So let's go into an example. Again, we find office chairs. So let's say we find office chairs. That is our niche. Now we're doing supplier research, and I'm sure there's 100s of suppliers. I've never actually researched it, but I would bet money. There's 100s of different brands that make these things, but let's just say you find 100, right? You find 100 brands.

So even at that point, something you can look at is when you Google these brand names, these office chair brand names, how many stores are selling for them? Because again, maybe there's 50 out of those 100 brands that everybody is selling for, right? That 100 different stores have listed. Well, for those 50, guess what? Competition is going to be high. But maybe for the other 50, right? They're being sold by only a handful of stores. So, in that case, those 50 brands have less competition within your niche. So even though the niche you might think is competitive, when you get to the brand level, right, the supplier level, competition suddenly starts to dwindle. But where we look is actually a level deeper, and that is at the product level. So out of those, again, what did I say, a hypothetical 100 brands that we find in our niche. Well, let's just say they all sell or better say they all offer 50 different products, 50 different variations of what they sell. So what is that? If we had 100 suppliers, 50 products each, we have 5,000 potential products within our niche to sell.

And what you're going to find as you do your research. Again, something I teach heavily and spend a lot of time on, inside of the Drop Ship Blueprint, which is my e-commerce coaching program. By the way, you want to learn more, get a free training and get a special offer for that course, go to I will link that up in the description of this podcast. But again, let's just say we find 5,000 different possible products to sell within our niche. I'm telling you, even if you found 100 competitors, none of your 100 competitors are going to have all 5,000 products listed.

Why is that? Well, something that actually gives us an edge when it comes to dropshipping and the type of brands we work with is they're constantly updating their product lines. They are releasing new variants, they're releasing upgraded models, they're releasing different colors and styles, and that is where the competition lies. So going back to office chairs, let's just say in a, I don't know when they update their products, I would guess around like a big office furniture trade show every year. But let's just say we're going into 2021, and let's say next month there was a trade show for, I don't know, home office furniture of America or of the world.

Now at that trade show, it's possible that 50 of those brands would all have maybe five different products that are new for this year. And because they're new, when they tell the other 100 companies that might be selling their products, hey, we have these new things. Guess what? They're not all going to upload them. Again, some of them might be out of business. Some of them just might run terrible businesses and not even pay attention to update their websites. So that is where, now, at the product level, there is new opportunity. So that is what I'm talking about, guys, when I say dropshipping is not too competitive in 2021.

First of all, again, because what you see from the outside looking in is different than reality. Most of these online stores, you find by doing a Google search, are not running good businesses, are not putting actual time and energy and focus into growing them. And because of that, again, by everything I've ever seen while researching different niches, what is actually your competition compared to what you find with a simple Google search is much smaller. And then on top of that, remember, you want to compete with the top five to 10% of stores in your niche because you're going to focus on getting the best suppliers, getting the best traffic, and building the best customer relationships. Then you move on to your niche, and you look at competition at the product level. And I don't care how saturated or competitive you think any niche is. I'm telling you there is opportunity within every niche for you to be the store that leads, for you to be the store that stands out, and for you to be at the top of the leaderboard in revenue and profits within your niche.

So, I don't know guys, hope you found this helpful, kind of a quick rant. Just wanted to share that because it is obviously a common question. As always, if you got value from this episode, do me a favor, go over to Apple Podcasts and leave a review. I read all of them. I will link how to do that in this podcast description. And if you want my full program, that was voted Best Ecommerce Course by Shopify, that again is called the Drop Ship Blueprint. I will post a link in the description for you to get that as well. So thanks again, everybody. I appreciate you. And I will talk to you in the next episode of the eCommerce Lifestyle Podcast. See you, everybody.