Dropshipping has revolutionized the e-commerce world, offering entrepreneurs a low-risk way to start their businesses. But when you’re setting up a store, one critical question looms large: Should you sell seasonal products or evergreen ones?
Each model has its allure and challenges. Seasonal products come with the promise of quick surges in revenue during peak seasons, while evergreen products offer consistent, year-round sales. The question is — which approach gives you the better return on investment (ROI)?
This blog takes a data-driven approach to unpack the pros and cons of seasonal and evergreen products in the context of dropshipping. We’ll examine profit margins, marketing costs, inventory management, and even real revenue figures to help you make an informed decision.
Let’s get started.
What Are Seasonal and Evergreen Products?
Seasonal Products
Seasonal products are tied to specific times of the year, holidays, weather patterns, or events. Think Halloween costumes, Christmas decorations, or beach accessories. They generate intense demand during limited windows, but often sit idle for the rest of the year.
Examples of Seasonal Products:
- Valentine’s Day cards
- Summer pool floats
- Winter jackets
Evergreen Products
Evergreen products, on the other hand, are not confined to any time of the year. These items fulfill timeless needs and cater to broader audiences, making them steady performers no matter the season.
Examples of Evergreen Products:
- Phone cases
- Fitness equipment
- Kitchen gadgets
Both product types have potential in dropshipping, but they operate under vastly different dynamics when it comes to ROI.
Profit Margins
Success in dropshipping is often decided by how much profit you can pocket per product sold. Here’s how seasonal and evergreen products measure up.
Seasonal Products
Seasonal products tend to have higher profit margins—at least during the peak selling period. Limited-time sales create urgency, giving you the opportunity to charge premium prices.
Example:
A dropshipper selling Christmas lights reported a profit margin of 45% during November to early December. However, after December 25th, leftover inventory had to be steeply discounted, bringing margins below 15%.
Evergreen Products
Evergreen products usually have slim but consistent margins. Because competition is fierce for year-round products, pricing wars can lower profit margins. However, their steady demand offsets this downside.
Example:
A dropshipper selling silicone spatulas had an average profit margin of 30%, sustaining this rate throughout the year. Unlike seasonal sellers, they didn’t face the challenge of unsold inventory.
Which Is Better for Margins?
If your goal is to maximize short-term profit margins during specific periods, seasonal products take the cake. But if steady, predictable margins are your priority, evergreen products are more reliable.
Marketing Costs
Marketing is one of the largest expenses in dropshipping, so understanding how it impacts your ROI is crucial.
Seasonal Products
For seasonal products, time-sensitive advertising campaigns are essential. However, competition is fierce during peak seasons, driving up the cost of ads.
Example:
During Black Friday weekend, a Shopify seller promoting Halloween costumes spent $5,000 on ads but generated $15,000 in revenue. Once Halloween passed, ad spend for the same keywords dropped significantly, but so did interest in the product.
Evergreen Products
Marketing for evergreen products typically involves a steady drip-feed of low-cost ads, as there’s no race against the clock. You can also make use of search engine optimization (SEO) to create content that generates organic traffic over time, reducing long-term ad dependency.
Example:
An entrepreneur running Facebook ads for fitness bands spent $1,000 per month and saw predictable monthly revenue of $4,000.
Which Has Lower Marketing Costs?
Evergreen products are the winner here. Their consistent demand allows for lower and sustained ad spending over time, while seasonal products often require aggressive, high-budget promotion to capitalize on short peaks.
Inventory Challenges
Managing inventory can present challenges in any business model, but it plays out differently for seasonal versus evergreen products.
Seasonal Products
The ephemeral nature of seasonal products means you need to correctly anticipate demand. Order too much and you’re stuck with unsold inventory; order too little and you miss out on potential sales.
Example:
A dropshipper selling summer-themed sunglasses faced a 20% loss after an overstock left them discounting merchandise by August.
Evergreen Products
Evergreen products don’t suffer from such risks. Since they can be sold year-round, inventory turnover is more manageable. Dropshippers can place consistent orders with suppliers without worrying about “sell-by” dates.
Example:
A dropshipping business focusing on phone cases never encountered “dead stock” and enjoyed a steady 98% inventory sell-through rate.
Which Wins for Inventory Management?
Hands down, evergreen products offer smoother inventory management. Seasonal products are riskier, especially if you fail to predict demand accurately.
Seasonal Trends and Their Revenue Impact
Seasonal trends can create dramatic spikes in revenue, but these aren’t always guaranteed.
Example Case Study:
A dropshipping business compared revenue from two different models over 12 months.
- Seasonal Product Store:
- Peak Revenue During Q4 (Christmas): $50,000
- Annual Revenue (Off-Season + Peak): $80,000
- Evergreen Product Store:
- Monthly Average Revenue: $9,000
- Annual Revenue (Steady Year-Round): $108,000
While the seasonal store enjoyed a blockbuster Q4, inconsistent sales throughout the rest of the year meant its annual figures lagged behind the evergreen store.
Which Model Has Better ROI?
When you consider ROI as a combination of profit margins, marketing costs, and overall revenue, dropshipping and its products generally come out on top due to their consistency. However, seasonal products can yield higher ROI during limited windows if you execute a flawless marketing and inventory strategy.
What’s the Best Choice for You?
Your choice between seasonal and evergreen products should depend on your business goals.
- If you’re looking for quick, high-margin wins and target savvy, time-sensitive consumers, seasonal products may work for you.
- If you prefer steady, predictable cash flow and lower risks, evergreen products are a safer bet.
Start Your Dropshipping Journey
Whether you’re leaning toward seasonal or evergreen products, the key to success is a clear strategy backed by data. Test your ideas, track results, and adjust as needed.
Need help deciding what to sell or optimizing your dropshipping store? Check out our in-depth resources and guides, and get started today!
