Dropshipping has very low risk compared to most businesses. If you use organic marketing, you don’t really have any major expenses. You don’t need to buy inventory, and you don’t need to hold stock.
Even if you use paid marketing, your main cost is your ad spend on platforms like Meta and others. And if a store fails, the only real losses are your ad spend and basic setup costs like your Shopify plan. You don’t lose money on unsold inventory because you never purchased products upfront.
That’s why dropshipping is considered a low-risk business model.