Is Dropshipping DEAD?! What You Need to Know in 2025

Almost every single day, I hear the same question: “Is dropshipping dead?”

The short answer? Absolutely not. Dropshipping in 2025 is alive and well—but only if you’re doing it the right way.

Since 2012, when I first started talking publicly about my success with dropshipping, people have been asking me this exact same thing. And I get it. With technology constantly evolving, ad costs rising, and new competitors entering the market, it’s normal to wonder whether dropshipping is still a viable business model.

In this guide, I’ll break down the truth about dropshipping in 2025, clear up the most common myths, and show you why this business model continues to work for people who treat it like a real business.

Why People Think Dropshipping Is Dead

Dropshipping has been around for decades. Because it’s not new, many beginners assume that the opportunity has already passed them by. Some of the common doubts I hear include:

These questions are valid, but the truth is that they’re based on misconceptions. Let’s go through them one by one.

Myth #1: Dropshipping Is Too Competitive

Yes, there’s competition in dropshipping. But competition is actually a good thing; it means people are buying in that niche.

The real issue isn’t “too much competition.” It’s that many store owners get lazy. They don’t update their websites. They keep selling outdated products. They stop building relationships with suppliers.

If you’re willing to do the work, staying on top of trends, adding new products, and working with the best suppliers, you’ll always find opportunities. New products and suppliers launch every single day.

👉 Pro tip: A little competition in your niche is healthy. If no one is selling what you want to sell, that’s usually a red flag.

Myth #2: Tariffs and Trade Wars Will Kill Dropshipping

This misconception usually comes from people who think dropshipping = ordering cheap products from China. That’s not the business I run, and it’s not the business I recommend.

The Drop Ship Lifestyle model focuses on working with domestic suppliers. If you’re in the U.S., that means U.S. suppliers. If you’re in Australia, that means Australian suppliers. If you’re in the U.K., that means U.K. suppliers.

When you work with domestic suppliers, you don’t need to worry about tariffs wiping out your business. Even if wholesale costs increase slightly, retail prices adjust and margins stay intact.

Myth #3: Advertising Costs Are Too High

It’s true; ads on Facebook and Google are more expensive than they were 10 years ago. But here’s the thing: that will always be the case. Ten years from now, people will look back at 2025 and say, “Wow, ad costs were so cheap back then!”

What matters isn’t cheap clicks, it’s running ads profitably. Businesses that learn how to target the right audience, sell quality products, and provide excellent service still see fantastic returns on paid ads.

If you’re hoping to get rich quick by “gaming the system,” then yes, that version of dropshipping is dead. But if you’re building a real business with real value, ad costs are still an incredible bargain in 2025.

Myth #4: Good Suppliers Don’t Work With New Stores

This one comes up all the time. New entrepreneurs worry that suppliers only want to work with established websites. But here’s the truth:

Suppliers want to work with serious business owners. If you present yourself professionally, show you’re building a legitimate business, and follow a proven system, you’ll get approved.

I’ve been partnering with top suppliers since 2008, and so have thousands of Drop Ship Lifestyle students. The key is building real relationships, not trying to “game” suppliers for quick cash.

Myth #5: Google Ads, Stripe, and Amazon Don’t Like Dropshipping

Let’s set the record straight:

• Google Ads: They don’t like arbitrage (ex. buying from eBay and reselling on Amazon). But if you’re running a legitimate dropshipping store with real suppliers, you’re fine.

• Stripe: Accounts get shut down when stores deliver poor customer experiences (slow shipping, bad support, lots of refunds). If you treat your customers right, you won’t have a problem.

• Amazon: They’ve never liked dropshipping in the arbitrage sense. But guess what? You don’t need Amazon to succeed. In fact, the best dropshipping businesses focus on building their own brand and website.

So, Is Dropshipping Dead in 2025?

No. Dropshipping is not dead.

What’s dead are the shortcuts:

But if you’re willing to build a real business, working with high-quality suppliers, selling great products, and providing excellent customer support, then dropshipping in 2025 is thriving.

I’ve been doing this since 2008, and my stores (and my students’ stores) are still growing today. The opportunities are bigger than ever.

Final Thoughts

The next time you hear someone ask, “Is dropshipping dead?” remember this:

If you’re ready to start, focus on high-ticket products, domestic suppliers, and real customer service. Do that, and you’ll build a profitable, long-term business that will continue to thrive no matter how the eCommerce world evolves.

👉 Want to learn how to start the right way? Check out my Ultimate Drop Shipping Guide for a step-by-step blueprint.