Can you get rich with dropshipping?

By Samuel 

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Reading time | Last update: May 2024

You've probably heard of dropshipping and wondered if you can get rich doing it. The answer is yes. With the right strategy, it is absolutely possible to make a lot of money with dropshipping. It requires hard work and discipline, of course, but if you know what you're doing, you can definitely succeed.

Learn in this article what it takes to achieve time, financial and geographical freedom with dropshipping. Now let's find out together if you can realize your dream of being rich with dropshipping!

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What does "getting rich" through dropshipping mean to you?

According to the German tax office, you are rich from an annual income of 277,826€. From this income you pay the so-called "rich tax" of 45% in Germany.

If you're thinking about becoming rich, it's important to understand what that means to you personally. Everyone has different ideas about what it means to be "rich.

For one person, it may mean earning enough money to afford a luxurious apartment or to go on vacation every year. For another, it may mean no more financial worries and freedom from debt. For this reason, it's important to determine your unique lifestyle and financial goal.

Getting rich is an intangible goal and that's why many fail. Instead, you should quantify your goals and set a fixed amount of money you need to live your dream life. This includes accommodation costs, travel and money for a certain lifestyle. Determine the amount of money you need and come up with a plan to reach that goal.

For the rest of the article, we define an annual turnover of 1 million euros as "getting rich". This is exactly the turnover you need to reach the above mentioned sum with 25-30% profit margin.

This is how many sales you need annually to get rich with dropshipping

To achieve sales of €1 million with a product costing €20, 50,000 sales must be made. For a product costing more than €50, the number of sales required is correspondingly lower: around 20,000 sales. If the product costs €100, 10,000 sales are sufficient to achieve the same success.

To achieve a sales target of one million euros a year with products priced at €70, Only 39 sales have to be made daily. This is already much more tangible and we can work better with such a figure.

However, it is more difficult to sell such a high number of products and the costs for advertising and logistics are higher. Nevertheless, it is often worth investing more time in higher quality products, as this still requires less commitment and effort than investing in cheap goods. However, it is important to note that success is usually not achieved immediately after the sale - instead, you need patience and perseverance to achieve your goals in the long run. However, with the right strategies, you can improve your chances and increase your revenue faster than would otherwise be possible.

How to choose the right price for your dropshipping product to reach your goal

For beginners, it is recommended to set a product price between 30 and 70 euros. At this price, you can estimate the success of your offer higher than at lower product prices. On the one hand, a higher price point is more interesting for potential customers, as it suggests that a high-quality and beneficial product is delivered. For another, such a price point also allows for greater profit margins.

However, you can't make a profit at the lower end of the price spectrum and it's fatal to offer products below €29. The reason for this is the compromised profit margin. Selling goods with low profit margins will ultimately reduce sales and increase the cost of marketing and advertising.

In short, costs are rising steadily and sales remain the same or fall. That's why experts recommend foregoing inexpensive goods and preferring to offer high-quality products for those who are willing to spend a little more money.

My conclusion

In summary, dropshipping can be a rewarding way to earn an income. However, it is important to have the right strategy and pay attention to prices between 30 - 70 € to be profitable. It is not advisable to offer products below €29 and advertise these types of products, as the profit margin is so low and sales will eventually decrease. With some dedication and the right business model, it is possible to become quite successful and ideally even rich with dropshipping - but it takes a lot of effort and patience to achieve success.

If you want to read more about dropshipping, browse the articles and guides on our website.

Your mentor

Samuel Peiffer
Ecommerce expert

Since 2015, I have made it my mission to help other people achieve temporal, financial and geographical freedom.

I'll walk you through a proven step-by-step process by which you can get off the hamster wheel by building a successful lifestyle business online.

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