I started a website listing products a couple different common dropship sources. I feel like there is no room for my slice of the market, or that i can't compete with people and their insanely low prices.
It's dropshipping that is saturated. In the last few years I have seen dropshipping more heavily marketed as a business model. The claims of huge profits have sucked in huge numbers of people most of whom slavishly follow the gurus' advice and end up competing with one another, using the same methods, the same products and the same suppliers. The result is an ever decreasing success rate, mainly because the newbies are being beaten by their suppliers who are competing with them. You need to look for a business model that can offer decent profits and a sustainable business. You don't need a lot of cash to start such a business. Here's an email from someone who has built a highly profitable business with only $300 to start with: "Ok. From extremely skeptical to successful completion. Credit given where credit is due. I followed the book instructions you laid out. Took my time to double check everything and was able to successfully import an order from China. Not only that but it was also a “sample order” for less than 300.00. A 300% mark up has allowed to get initial investment back and I have 70% of my inventory left. Stop promoting your book. Your encouraging competition for me Many thanks." Email on file for FTC inspection if required. Walter Hay
Dropshipping electronics is not profitable. The margins on electronics are way too small for it to work, and it is extremely competitive. Btw who is in your avatar?
You'd have to be bringing something quite special to the table - but that goes for any new online venture. I'd say it's this guy: http://jetsetradio.wikia.com/wiki/DJ_Professor_K
Short answer: yes, it is very saturated. Do you know what you need to do, though? Find your niche! That's right. Instead of drop shipping everything under the sun in an electronics category, find a small niche "at first". Instead of going for a PC niche, go for a mousepad or something that is much smaller. You can never compete with the big boys in bigger niches if they monopolize for awhile. For example, I wouldn't make shoes to compete with Nike, but what about selling "colorful shoelaces" - now you have a better chance.