Why Dropshipping isn't Dead: A Software Engineering Student's Perspective

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If I see one more TikTok “guru” renting a Lamborghini and screaming about dropshipping, I might delete the app.

The hype cycle is annoying. But as a Software Engineering student who looks at data for a living, I wanted to know: Is the business model actually dead?

Or is it just dead for the lazy people?

I spent the last semester running a small experiment. I didn’t verify a Lambo, but I did verify a sustainable income stream that runs while I’m in my Algorithms lecture.

Here is the truth about dropshipping in 2025.

The “Old Way” is 100% Dead

You know the drill:

  1. Find a cheap plastic gadget on AliExpress for $2.
  2. Put it on a crappy website for $20.
  3. Wait 45 days for shipping.
  4. Customer gets angry.

Yeah, that’s dead. Amazon Prime killed it. People won’t wait a month for a fidget spinner.

The New Way: Local Suppliers & Brand

The model that works now is Branded Dropshipping with Local Suppliers.

Instead of shipping from China, you find suppliers in the US or Europe who hold the stock. Shipping takes 3-5 days. The product quality is actually good.

Step 1: Solving the Supplier Problem

This is where 99% of students fail. They use AliExpress.

I used SaleHoo.

Why? Because SaleHoo is a directory of pre-vetted suppliers. I could filter by “Ships from USA.” Suddenly, my shipping times went from 30 days to 4 days.

  • Cost: It’s a small yearly fee, but it saved me from refunding 50 angry customers.
  • Quality: I ordered samples. They weren’t junk.

Step 2: Analysis Paralysis vs. Action

I see my classmates spend months coding a custom website. Stop. You are wasting time.

I set up my store on Shopify in one weekend.

  • Friday Night: Signed up for the Shopify $1/month trial. Picked a clean theme (Dawn).
  • Saturday: Imported products from SaleHoo. Wrote unique descriptions (didn’t just copy-paste).
  • Sunday: Configured payments and launched.

As a dev, it hurts to say this, but don’t code your own store. Use Shopify. It handles the SSL, the checkout security, and the mobile optimization better than your custom React app ever will.

The Numbers (Transparency Time)

I’m not a millionaire.

  • Month 1 Revenue: $450
  • Month 2 Revenue: $1,200
  • Month 3 Revenue: $2,100

Profit Margins: After ads and product costs, I keep about 25%. So that’s roughly $500 profit/month purely passive now.

Is it “retired at 20” money? No. Does it pay my share of the rent without me working a shift? Yes.

Why This Fits Students

  1. Low Risk: With the Shopify trial, your upfront cost is basically the price of a coffee.
  2. Automated: Once the ads are running, sales happen while you sleep (or study).
  3. Resume Builder: “Built and scaled an e-commerce brand to $2k MRR” looks really good on a resume, even if you want a corporate job later.

Final Verdict

Dropshipping isn’t dead. Lazy dropshipping is dead.

If you treat it like a real business—vetting your suppliers with SaleHoo and building a solid storefront on Shopify—it is still one of the best ways to learn digital business.

Just please, don’t rent the Lambo.

Curious if you have the right personality for e-commerce? Take our Self-Employed Business Quiz to find out.

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