Is Dropshipping Worth It? How To Make The Right Choice In 2022

Is dropshipping as profitable as it seems? Find out whether dropshipping is right for you and see what you need to make your dropshipping business a success.

Dropshipping has been hailed as a great side hustle idea for years now. Since sellers don’t technically need to manufacture, hold, or ship any products themselves, people have called it an easy passive income stream. Before you sign up for that online dropshipping course or decide to find a dropshipping supplier, it will help to have as much information as possible.

Keep reading to learn more about how dropshipping works, if dropshipping is profitable, and whether you should consider some of the alternative online money-making ventures we offer here.

Is Dropshipping Worth It?

If want to make a lot of cash in a short amount of time, dropshipping is probably not the best move. But if you have the time and money to invest in the beginning, dropshipping can pay off for you and turn into a great side business or more.

How Does Dropshipping Work?

Dropshipping is an order fulfillment technique in which online businesses do not hold or ship the products they sell. Rather, they contact their product supplier (a manufacturer or wholesaler) when they get a new online sale, and the order is shipped from the supplier directly to the customer.

Dropshipping Products Popular To Sell

Some of the best dropshipping products to sell in 2022 are:

  • Phone accessories
  • Ring lights
  • Essential facial oils
  • Gaming headsets
  • Leggings (with pockets!)
  • Massagers
  • Sustainable cleaning supplies
  • Ergonomic desk chairs
  • Rice cookers
  • Tripods
  • Electric tools
  • Pet leases, toys, and supplements
  • Air purifiers
  • Jewelry making supplies
  • Hair growth oil

What Is Shopify Dropshipping?

Shopify dropshipping is a way to sell products and fulfill orders through a Shopify store. Sellers create a store and connect their store to a dropshipping app from the Shopify App Store. When a new sale comes in, the order is automatically sent to your supplier to fulfill.

Read up on the best Shopify dropshipping apps before opening your online store.

Is Amazon Dropshipping Profitable?

Amazon dropshipping is profitable if your profit margin is above Amazon’s seller fees, which includes a percentage of each sale — around 15% of what you charge for the item, plus shipping, on average. There’s also a $0.99 per-item fee or $39.99/month subscription fee, depending on the Amazon seller plan you choose.

Percentage fees can vary from 6% to 45%, depending on the product you’re selling.

Dropshipping on Amazon is different from the Fulfillment By Amazon (FBA) program. With Amazon FBA, you store products in Amazon fulfillment warehouses, and products are shipped by the fastest delivery network in the world.

With Amazon dropshipping, the products you sell go straight from the supplier to the buyer. There are shipping caveats involved in Amazon dropshipping that you should be aware of.

Best Life Insurance Companies

Finding the best life insurance company involves weighing customer service data and the insurer’s financial strength. Hundreds of life insurance companies compete for your business, often selling very similar products, so it’s smart to get life insurance quotes from at least a few before making a decision.

The best life insurance companies

To help you evaluate your options, NerdWallet scores companies that sell life insurance policies to individuals. All of the companies listed below scored at least four out of five stars.

The highest scoring companies, with five out of five stars, are:

  • Northwestern Mutual.
  • Guardian.
  • Haven Life.
  • MassMutual.

You can learn more about each company by clicking on the NerdWallet reviews.

About Northwestern Mutual Insurance

Northwestern Mutual is the largest life insurance company in the U.S. The company offers a wide range of products, such as term life, universal life and whole life insurance. Universal life policyholders have flexible payment and coverage options, while term life customers have the opportunity to convert their policy to permanent coverage without taking a medical exam.


  • Ranked high in a J.D. Power customer satisfaction survey.
  • Eligible customers can receive dividends.

About Guardian Insurance

Guardian offers both term and permanent life insurance policies, including whole life and universal life. One of the perks of Guardian’s universal coverage is the ability to increase or decrease your premiums to fit your needs.

The company also offers whole life insurance for individuals living with HIV. Applicants must meet certain eligibility requirements to qualify for coverage, such as being between the ages of 20 and 60 and free from AIDS-defining illnesses.


  • Ranks below average for customer satisfaction in J.D. Power study.
  • Offers a full menu of term and permanent life insurance.

About Haven Life Insurance

Haven Life offers term life insurance with accelerated underwriting, a process that uses algorithms and big data to quickly assess your insurability. The entire application process is conducted online and can be completed in about 25 minutes. Coverage amounts can reach as high as $3 million. All of Haven Life’s policies are issued by MassMutual.


  • Offers term life online with quick application process.
  • No medical exam required for some applicants.

About MassMutual Insurance

Massachusetts Mutual Life Insurance Co., often shortened to MassMutual, is one of the largest life insurers in the country. The company offers a wide range of products, from online term life insurance to variable universal life — a type of permanent policy with flexible premiums and investment opportunities. Other policies include universal life, whole life and standard term life.


  • Offers immediate term life insurance online.
  • Provides a full range of financial products and services.

About AARP Insurance

AARP life insurance policies are available only to the group’s members, but anyone 50 or older can join. One of the company’s biggest draws is its simplified underwriting, which means you don’t have to take a life insurance medical exam to qualify for coverage. Instead, acceptance is based on your application and information about your health. Both term and whole life products are available. All policies are issued by New York Life.


  • Offers small selection of New York Life term and whole life policies to AARP members.
  • No medical exam required to apply.

About Auto-Owners Insurance

Auto-Owners’ 48,000 licensed agents offer a range of insurance products across 26 states. Its life insurance products include term, whole and universal life, as well as long-term care policies. For term policies, you can choose among 10-, 20- or 30-year term lengths. The company’s whole life insurance covers you until you’re 110 and has flexible payment options. Multiple family members can be insured under Auto-Owners’ universal policy, which can then be converted to an individual policy if needed.


  • Has fewer than the expected number of complaints to state regulators for life, home and auto insurance.
  • Has lots of policy and coverage options.
  • Available in 26 states.

About New York Life Insurance

New York Life is a mutual company, which means it’s owned by its policyholders. As such, you may be eligible to vote in board elections if you buy certain policies. The company is one of the largest insurers in the U.S. It offers both term and permanent life insurance policies, such as whole life, universal life and variable universal life. One of its whole life policies includes a flexible payment option, allowing you to pay off your premiums early. You can also convert your term life policy to a permanent one if you want lifelong coverage.


  • Ranks high in J.D. Power’s 2020 customer satisfaction study for life insurance.
  • Doesn’t offer life insurance quotes online.

About State Farm Insurance

When you think of State Farm, you probably think of its auto insurance products, but it also offers a wide range of life insurance policies and riders. For example, its instant life insurance policy is available for people ages 16 to 45, includes $50,000 of coverage and doesn’t require a medical exam. Furthermore, you may be able to convert your term policy to a permanent product when it expires. State Farm’s permanent policies include whole life and universal life insurance.


  • Ranked first for customer satisfaction in J.D. Power life insurance study.
  • Drew fewer life insurance complaints to state regulators than expected for a company of its size.

About USAA Insurance

USAA offers both permanent and term life insurance specifically designed for military members and their families, and its life insurance products are available to nonmilitary customers as well.

USAA policies can be used to supplement the government-provided Servicemembers’ Group Life Insurance, which is automatically issued to eligible military personnel. USAA’s term life insurance policies typically cover you during wartime, including acts of terrorism. Policyholders between 18 and 35 years old can also increase their coverage amount if they get married, buy a house or have a baby.


  • Some policies not available in New York or Montana.
  • Far fewer life insurance complaints to state regulators than expected for a company of its size.
  • About Pacific Life Insurance

Pacific Life was founded in 1868 and offers a wide range of term and permanent products, including term life, universal life, indexed universal life and variable universal life insurance. In fact, Pacific Life is a top seller of indexed universal life insurance, which grows investments based on stock market indexes like the S&P 500. Pacific Life’s policy has a guaranteed floor, which means your life insurance cash value won’t go below a certain value if the stock market dives.


  • Ranked about average in J.D. Power’s customer satisfaction study for life insurance.
  • Offers a wide range of life insurance policies.

About Amica Insurance

Chartered in 1969, Amica Life Insurance Company sells term and whole life policies in all U.S. states except Hawaii. Its term life policy comes in 10-, 15-, 20-, 25- and 30-year terms and can be converted to a whole life policy regardless of changes to your health. In addition, healthy applicants may not need to take a medical exam to qualify for coverage. Amica’s whole life policy ranges from $25,000 to $1 million and includes a terminal illness rider free of charge. This rider allows you to withdraw part of the death benefit early if you become terminally ill.


  • Customer satisfaction ratings for Amica are generally top-notch.
  • Amica has fewer consumer complaints than the industry median relative to its size.
  • Amica’s auto insurance includes several free perks most insurers don’t, such as free lock and air bag replacement.

About Country Financial Insurance

Started by Illinois farmers, Country Financial sells a broad range of insurance products, including term, whole and universal life. Its term life amounts range from $50,000 to more than $1 million and you can add extras to your policy, such as $50,000 of coverage for a child or a return-of-premium rider. This rider means you get back any paid premiums on a 20- or 30-year policy if you’re still around after it expires. The company’s whole life product gives you five payment options, such as paying your premiums in one lump sum or stretching them out over the length of the policy.


  • Overall customer satisfaction is among the best for auto insurance claims.
  • Complaints against Country Financial are fewer than expected for the industry.
  • Available in 19 states.

About Penn Mutual Insurance

Similar to other mutual companies, Penn Mutual is owned by its policyholders, which means customers who purchase whole life insurance can receive dividends when the company performs well. Founded in 1847, Penn Mutual sells both term and permanent life insurance. One of the perks of buying Penn Mutual’s Guaranteed Convertible Term policy is the option to convert it to permanent coverage without needing to provide proof of good health.


  • Broad selection of term and permanent life insurance.
  • Quotes aren’t available online.

About Principal Financial Insurance

Principal Financial offers both term and permanent life insurance, including survivorship insurance, which is a type of life insurance for married couples. The company’s term life policies come in a variety of lengths, ranging from one to 30 years. In addition, you can convert your term life policy to permanent coverage without providing additional proof of good health.


  • Offers term, universal, indexed universal, variable universal and survivorsh