Critical
E-commerce & Varejo
Generic Dropshipping
Margins destroyed by Temu and Shein. Impossible price competition with players that have integrated supply chains and billions in capital.
📊 Evidence
- • Temu grew 100x in 2023, reaching 50M users in the US
- • Typical margins < 5% after ads
- • Average CAC 3x higher than LTV
- • Shein launches 6,000 new products per day
⚠️ Risks
- • Race to the bottom on prices
- • Total dependence on Chinese suppliers
- • 15-45 day shipping times unacceptable
- • Return policies impossible to compete with
💡 Opportunities
- • Ultra-specific niches (e.g., exotic pet accessories)
- • Custom products on demand
- • Local market with fast delivery
- • White-label for established brands
Verdict
Avoid. Commoditized market where only players with billions in capital survive.
95
of 100
Saturation Score
Extremely saturated market. Avoid.
Trend
↓↓ Collapse
Category
E-commerce & Varejo