US-based customer relationship management software for online stores, Klaviyo, has launched an AI agent. Users of the software can now offer customers a webchat with an AI agent. It provides personalized customer support, combined with marketing integration.
Continue readingThe dropshipping industry has exploded over the past decade, transforming from a niche business model into a mainstream entrepreneurial pathway. But with increased competition and evolving consumer expectations, is dropshipping still worth it in 2025? This article will help you understand the current state of the industry, weigh the pros and cons of dropshipping, and determine whether this business model aligns with your entrepreneurial goals. How to sell online Tips from e-commerce experts for small business owners and aspiring entrepreneurs. Subscribe Please enter a valid email address I consent to receive Ecwid Newsletter. I can unsubscribe anytime. Current State of Dropshipping in 2025 If you’re wondering, “Is dropshipping dead?” chances are you’re already familiar with the basics of this business model, but let’s take a moment to recap. Dropshipping is defined as a retail fulfillment method where the seller doesn’t keep any products in stock. Instead, orders are forwarded to a third-party supplier who then ships the product directly to the customer. Industry Growth and Trends Is dropshipping profitable? The numbers speak for themselves. According to Precedence Research, the global dropshipping market was valued at $351.81 billion in 2024 and is projected to reach $2573.99 billion by 2034. This growth is fueled by several key factors: Consumer behavior shifts: Online shopping has become the preferred method for many consumers, creating more opportunities for dropshippers to reach their target audience. Ecommerce platform accessibility: Ecommerce platforms like Ecwid by Lightspeed have made it easier than ever to launch an online store without technical expertise. Global supply chain integration: Improved logistics and international shipping have made it possible to source products from anywhere in the world. Market Awareness The number of people searching “dropshipping” has increased from 2016 through 2025, indicating sustained interest in this business model. This factor alone can help answer the question: “Is dropshipping worth it?” Google Trends shows a steady rise in searches for “dropshipping” since 2016 However, the increased awareness comes with both opportunities and challenges: Opportunity: More entrepreneurs are discovering dropshipping as a viable business option Challenge: Increased competition and consumer awareness of dropshipping practices. The latter is particularly true as consumers grow accustomed to shopping on Aliexpress and Temu, where popular products are often available at lower prices. The Reality Behind the Hype Social media influencers and online gurus have promoted dropshipping as a “get-rich-quick” scheme, which has resulted in a flood of aspiring entrepreneurs entering the market. However, business owners who tried dropshipping know the reality is different. The initial cost may be lower than other business models, but dropshipping isn’t as simple as reselling a product from Alibaba and getting rich in a month. Building a profitable dropshipping business requires strategic thinking, substantial time investment, and continuous effort to stand out from the competition. Is Dropshipping Legal? The way dropshipping is often promoted makes it seem too good to be true, which naturally leads to people wondering, “Is dropshipping legal?” The answer is yes, dropshipping is a legitimate business model. So, if you’ve been wondering, “Is dropshipping a scam?” you now have your answer. However, while this business model is legitimate, it won’t hurt to check the laws and regulations within your country before starting a dropshipping venture. Now, let’s discuss the pros and cons of dropshipping so you have a full picture of this business model. Benefits of Dropshipping Is dropshipping worth it? For many entrepreneurs, the answer is a resounding yes. Let’s dive into what makes this business model so appealing. Low Startup Costs One of the most compelling reasons entrepreneurs choose dropshipping is its low barrier to entry. Traditional retail businesses require significant upfront investment in inventory, but dropshippers can start with minimal capital. Your main expenses include: Ecommerce platform subscription (with affordable options like Ecwid, starting at just $5 per month) Domain name and hosting Marketing and advertising Product sampling (optional but recommended) — testing your products before selling them to ensure quality and customer satisfaction. This appeals to budget-conscious business owners looking to make money dropshipping. Flexibility and Scalability Dropshipping offers unmatched flexibility for entrepreneurs. You can: Test products quickly: Add or remove products from your store without inventory risk Scale efficiently: Expand your product catalog as your business grows Work from anywhere: Manage your business remotely with just a laptop and internet connection Adapt to trends: Pivot your product selection based on market demand. Wide Product Selection Without inventory constraints, dropshippers can offer an extensive range of products. This advantage allows you to: Experiment with different niches Respond quickly to seasonal trends Offer complementary products to increase average order value Test market demand before committing to specific product lines. Simple Product Testing Process Since suppliers handle fulfillment and shipping, your primary focus becomes marketing and customer acquisition. This streamlined approach helps you: Identify winning products faster Develop marketing skills across multiple channels Learn ecommerce fundamentals without operational complexity Build expertise in customer acquisition and retention. Challenges of Dropshipping Meanwhile, some might argue that the answer to “Is dropshipping worth it?” is a definitive no. The widespread popularity and low barrier to entry of this model inevitably give rise to certain challenges: Intense Competition The low barrier to entry that makes dropshipping attractive also creates intense competition. With thousands of dropshippers selling similar products, standing out requires: Unique value propositions: Offering something competitors don’t Superior customer service: Exceeding customer expectations Strong branding: Building trust and recognition in your market Effective marketing: Reaching customers more efficiently than competitors. Low Profit Margins Dropshipping typically involves lower profit margins compared to traditional retail. Factors affecting profitability include: Supplier premiums: Dropshipping suppliers often charge higher prices than wholesale suppliers Marketing costs: A significant investment is required to drive traffic and sales Platform fees: Ecommerce platforms charge transaction fees (not if you use Ecwid, though, as it doesn’t charge transaction fees) Payment processing: Credit card processing fees reduce margins. If you’d like to make money dropshipping, you definitely need to consider the factors mentioned above. Supply Chain Challenges Relying on third-party suppliers creates potential complications: Quality control issues: Limited ability to inspect products before shipment Shipping delays: Dependence on supplier fulfillment speed Inventory management: Products may go out of stock without warning Communication barriers: Working with international suppliers can present language and time zone challenges. Customer Service Responsibility With tasks like order fulfillment and shipping handled, dropshipping business owners often focus only on marketing and neglect existing customers. Running a dropshipping business means you’re still responsible for customer satisfaction, even if you don’t manage fulfillment or shipping. This responsibility includes: Managing customer complaints Communicating shipping delays Handling returns and refunds. Is Dropshipping Worth It in 2025? The answer to “Is dropshipping worth it?” depends on your specific circumstances, goals, and commitment level. Consider these factors: Market Viability Factors Consumer awareness: Modern consumers are more aware of dropshipping practices, especially younger generations who understand they can often buy products directly from platforms like Temu and Alibaba for lower prices. Platform saturation: Popular platforms like Facebook and Instagram are saturated with dropshipping ads, making it harder to capture attention. Quality expectations: Consumers expect higher-quality products and faster shipping times than many traditional dropshipping suppliers provide. Success Requirements Time investment: One of the biggest questions of aspiring dropshippers is, “How much time do we have to put into dropshipping?” The reality is far less appealing than what many selling dropshipping courses would have…
Continue readingDutch payments fintech Mollie is launching in Hungary, Slovenia and the Czech Republic. Online sellers in these countries can now use the company’s payment solutions and local support. It wants to simplify money management for businesses.
Continue readingChinese online marketplace AliExpress has launched its hourly delivery service in the United Kingdom. Shoppers in London who order packaged food, beverages and everyday household items can now enjoy same-day delivery. The platform wants to expand the service in the rest of the country soon.
Continue readingThe European Parliament has adopted new proposals to manage the growing influx of substandard and unsafe cheap products into the European Union, from non-EU online stores. Currently, 12 million small ecommerce packages arrive in the EU every day. The new proposals could make checking their quality easier.
Continue readingSocial media is playing a big role in online retail in Germany. A majority of 59 percent of retailers in the country use a profile on social networks to promote their offerings online. And more than a quarter offer consumers the option to place orders in their store via social media.
Continue readingAccording to the German government, cancelling an online purchase should be as easy as placing an order. The Ministry of Justice has announced a cancellation button for online purchases of goods, services, and financial products. The perpetual right of withdrawal is being abolished.
Continue readingOnline revenue in Spain has increased 13.1 percent year-over-year in 2024. The total online revenue came to 95.2 billion euros. In the last quarter of the year specifically, online turnover increased 13.4 percent compared to a year earlier.
Continue reading“The upswing is here”, writes bevh above a report on online retail spending in Germany. According to the industry association, consumers spent 39.84 billion euros on products online in the first half of this year. This marks a 3.5 percent increase compared to the same period last year. The growth was even stronger in the second quarter.
Continue readingRetail isn’t just about permanent storefronts. Business owners use temporary spaces to test markets, build buzz, and boost sales without the long-term commitment of traditional retail leases. Whether you’re launching a new product, expanding into a new market, or simply want to create excitement around your brand, pop-up retail offers a flexible, cost-effective solution that can deliver impressive results. This blog post will walk you through everything you need to know about pop-up retail spaces—from understanding the basics to launching your first temporary storefront. How to sell online Tips from e-commerce experts for small business owners and aspiring entrepreneurs. Subscribe Please enter a valid email address I consent to receive Ecwid Newsletter. I can unsubscribe anytime. What Is Pop-Up Retail? Pop-up retail refers to temporary retail spaces that operate for a limited time, typically ranging from a few days to several months. These retail pop-up spaces can appear in various locations—from vacant storefronts and shopping malls to festivals, farmers markets, and even unconventional venues like parking lots or rooftops. The concept gained momentum during the 2008 recession when vacant commercial spaces became abundant and retailers needed cost-effective ways to reach customers. Since then, pop-up retailing has evolved into a marketing strategy used by everyone from emerging brands to established corporations. Key characteristics of pop-up retail include: Temporary nature — Operating for a predetermined, limited time Flexibility — Adaptable to various locations and formats Lower commitment — Reduced financial risk compared to permanent retail Unique experiences — Often designed to create memorable brand interactions Limited availability — Creates urgency and exclusivity for customers. Pop-up retail spaces can take many forms. Traditional pop-up stores occupy vacant retail locations, while pop-up shops might appear within existing stores. Mobile pop-ups use trucks, trailers, or carts to bring products directly to customers. Some brands create pop-up experiences at events, festivals, or temporary installations. Popups are also used for brand activations — this is a marketing tactic aimed at increasing brand awareness through interactive or memorable experiences. Brand activations often take place in pop-up retail spaces and can include product launches, demos, and even unique shopping experiences. For example, Coachella 2025 showcased brand activations and pop-up spaces like 818 Tequila’s AutoCamp-inspired outpost, One/Size’s beauty station, and Rhode’s photo booth. In partnership with 818 Tequila, Rhode brought a photobooth to Coachella, where festival-goers could take photos and get lip tints and mini bottles of 818 The roster of brands hosting pop-ups at Coachella seems endless, featuring major names like Sol De Janeiro, Pinterest, American Express, and Crocs. This highlights yet again how pop-ups and experiential marketing are becoming a crucial element of any brand’s overall strategy. Sol De Janeiro’s pop-up experience at Coachella Benefits of Pop-Up Retail Shops Pop-up retail stores offer advantages that make them an attractive option for businesses of all sizes. Here are the key benefits that drive their popularity: Test New Markets with Minimal Risk Launching a permanent store in a new location requires significant investment and long-term commitment. Pop-up retail spaces allow you to gauge customer interest and market viability without the financial burden of a traditional lease. You can test different neighborhoods, cities, or even countries to identify the most promising markets for future expansion. Build Brand Awareness and Buzz Pop-up retail stores create excitement and urgency around your brand. The temporary nature generates word-of-mouth marketing as customers share their discoveries on social media. Limited-time pop-ups often attract media attention, providing free publicity that would be expensive to achieve through traditional advertising. A Crocs pop-up shop, available for a limited time at Coachella Generate Immediate Revenue While building brand awareness is valuable, pop-up retail shops can also drive direct sales. Many businesses use pop-ups during peak shopping seasons, holidays, or special events to capitalize on high consumer spending periods. The urgency created by limited availability often leads to higher conversion rates. Connect with Customers Face-to-Face Digital brands can use pop-up retail to create tangible connections with their online customers. These physical touchpoints allow customers to experience products firsthand, building trust and strengthening brand relationships that are harder to achieve through screens alone. Notion, a productivity web application, connected with its customers offline through a coffee cart pop-up Reduce Overhead Costs Traditional retail requires substantial upfront investment in rent, utilities, staffing, and inventory. Pop-up retail space for rent typically costs significantly less than permanent locations, and the shorter commitment reduces financial risk. This makes retail accessible to businesses with limited capital. Who Benefits Most from Pop-Up Retail? While any business can potentially benefit from pop-up retail, certain types of companies are particularly well-suited to this approach: Ecommerce and Online Retailers Online businesses often struggle to provide the tactile experience that many customers desire. Pop-up retail shops bridge this gap, allowing digital-first brands to showcase products in person. This is especially valuable for products that customers prefer to touch, try, or test before purchasing. Startups and Emerging Brands New businesses with limited budgets can use pop-up retail shops to establish market presence without the commitment of permanent retail space. It’s a great way to validate product-market fit and build initial customer bases. Seasonal and Holiday Businesses Companies that experience seasonal sales spikes can use pop-up retail during peak periods. Halloween costume retailers, holiday gift vendors, and summer product sellers can maximize revenue during their busy seasons without paying for year-round retail space. Product Launches and Limited Editions Brands introducing new products or limited-edition items can create excitement through exclusive pop-up experiences. The temporary nature aligns perfectly with limited-availability products. Pop-ups are also great for showcasing limited-edition collections from collaborating brands. ASOS and Nike partnered to host a summer tennis-themed pop-up event Service-Based Businesses While traditionally associated with physical products, pop-up retail events can work for service businesses, too. Salons, spas, fitness instructors, and consultants can use temporary spaces to offer services in new locations or during special events. Getting Started: Your Pop-Up Retail Launch Guide Ready to launch your first pop-up retail venture? Follow these steps: Step 1: Define Your Goals and Budget Before searching for pop-up retail space for rent, clarify what you want to achieve. Are you testing a new market? Launching a product? Building brand awareness? Your goals will influence your location choice, duration, and design approach. Establish a realistic budget that includes: Rent and deposits Utilities and insurance Pop-up retail design and fixtures Inventory and staffing Marketing and promotion Permits and licenses Step 2: Find the Right Location Location is crucial for pop-up retail success. Consider these factors when evaluating potential retail pop-up spaces: Foot traffic: Choose areas with high pedestrian traffic that match your target demographic. Shopping districts, busy streets, and event venues often provide excellent visibility. Target audience: Ensure the location attracts your ideal customers. A yoga apparel pop-up might thrive near fitness studios, while a tech gadget pop-up could work well in business districts. Prada opened a pop-up café at Harrods, a luxury department store, strategically selecting a location that aligns with its target audience Accessibility: Consider parking availability, public transportation access, and ADA compliance for customers with disabilities. Competition: Research nearby businesses to understand the competitive landscape and identify potential collaboration opportunities. Flexibility: Look for spaces that allow modifications for your pop-up retail display needs….
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