Should You Start an eCommerce Business in 2021 [LNIM209]

Is eCommerce still a viable business model for side hustlers? In this episode, Mark makes the case for why eCommerce — and specifically dropshipping — deserves serious consideration. He breaks down the business model, explains what makes it attractive for beginners, and covers the critical pitfalls you need to avoid.

What You'll Learn in This Episode

• Why eCommerce growth during the pandemic created a permanent shift in consumer behavior
• What makes the dropshipping model uniquely attractive for beginners
• Three critical things to watch out for in any eCommerce business
• Why using domestic suppliers is essential for customer satisfaction

Episode Summary

Mark revisits the topic of dropshipping after covering it in earlier episodes. He was initially excited about the business model and wanted to explore whether it still made sense in the current climate.

Why dropshipping appeals to beginners: The model is dead simple to understand. You establish a relationship with a supplier, advertise their products, and when you make a sale, you have the supplier ship directly to the customer. You keep the difference between what the customer paid and what you paid the supplier. There is no warehouse, no spare bedroom full of inventory, and no upfront product investment. Because everything is electronic, the business is also easy to outsource.

Why the timing is right: The pandemic forced a massive shift to online shopping. People became comfortable buying things without touching them in a way they had never been before. Mark argues this shift is permanent — consumer comfort with eCommerce is here to stay, and it represents a growing market.

Three things to watch out for:

1. Use domestic suppliers. The days of drop shipping from China with 12-day delivery times are over. Customers expect fast shipping. Source from suppliers in the country where you are doing business.
2. Know your numbers. Manage your fixed and variable costs carefully. ECommerce margins can be tight, and you need good tools (or at minimum a solid spreadsheet) to track profitability on every product. This is not a business where you can be lazy with the math.
3. Have affordable traffic sources. You need to drive visitors to your store, and you need to be able to afford the cost of that traffic while maintaining profitability. Understand your customer acquisition costs before you scale.

Mark shares that eCommerce has grown at an extraordinary rate and that the pandemic-driven acceleration of online buying is not going away. The supply chain disruptions that plagued 2020 had largely resolved, making this a favorable time to enter the market.

Key Takeaways

• Dropshipping is one of the simplest business models for beginners — no inventory, no warehouse, fully electronic
• The pandemic permanently expanded consumer comfort with online purchasing
• Always use domestic suppliers to meet modern shipping expectations
• Track your numbers obsessively — eCommerce margins are tight and require careful management
• Understand your traffic costs before scaling any eCommerce operation

What's Changed Since This Episode

Mark recorded this in January 2021. ECommerce has continued to grow year over year, and the consumer behavior shift he described has proven permanent. However, the eCommerce landscape has become significantly more competitive. Advertising costs on platforms like Facebook and Google have increased substantially. Dropshipping specifically has faced increased scrutiny from marketplace platforms (Amazon, Facebook Marketplace) that have tightened policies against the practice. In 2026, successful eCommerce entrepreneurs typically need stronger branding, better customer service, and more sophisticated ad targeting than was required in 2021. The fundamentals Mark discusses — domestic suppliers, knowing your numbers, and affordable traffic — remain essential.

Resources Mentioned

• LNIM194 — Dropshipping Basics
• LNIM199 — Dropshipping Update: Google Shopping Ads
• Subscribe on Apple Podcasts
• Subscribe on Spotify

Related Episodes

• LNIM222 — $50K Drop Shipping On Facebook Marketplace
• LNIM220 — Why Now Is The Best Time To Start Your Internet Business
• LNIM212 — Four Steps To Persuasive Conversion

Listen and Subscribe

Listen to Late Night Internet Marketing on Apple Podcasts or Spotify. Have a question for Mark? Email [email protected] or call the digital recorder at 214-444-8655.