Dropshipping is dead: How to make money with online courses instead

The dropshipping model has faced a massive shakeup, especially for those sourcing from platforms like AliExpress. Recent regulations from the US government make it harder for sellers to rely on dropshipping due to tariffs, increased compliance costs, and burdensome requirements for shipping overseas. These changes mean that many traditional dropshipping stores could soon find themselves unsustainable.

However, there’s an excellent alternative to dropshipping: creating and selling online courses through LearnWorlds. This platform offers a powerful, passive-income model, allowing you to profit by sharing your knowledge in a structured course format.

The current state of dropshipping: Why it’s becoming unsustainable

The dropshipping model, particularly from international sources like AliExpress, has been attractive because of its low and sometimes non-existent startup costs and no-inventory approach. But new changes introduced in the US have placed severe restrictions on these imports:

1. Tariffs on low-value imports

Previously, items under $800 were exempt from customs fees. Now, tariffs and customs duties apply to all Chinese imports, reducing dropshipping profitability.

2. Compliance requirements

Sellers must now collect sensitive information from US buyers, including social security numbers, which will deter many potential customers.

3. Safety and compliance certifications

Products shipped from overseas must meet US safety regulations, meaning sellers or buyers need to file certificates of compliance.

With these regulations, setting up and maintaining a dropshipping business has become increasingly complicated, particularly when dealing with low-cost products. Fortunately, LearnWorlds offers a high-value, passive-income solution that doesn’t face these limitations.