The internet has made it possible for almost anyone to start a business with very little money. And while that’s a good thing, it also means that some online business models have become extremely crowded. People often jump in after watching a few videos or reading success stories, only to realize it’s not as easy as it looks.
In this blog, we’ll go through some online business types that are now saturated. You’ll see why so many people fail, what mistakes they make, and what to keep in mind if you’re thinking of trying something similar. This isn’t meant to discourage you—it’s here to help you avoid wasting time and money chasing something that no longer works the way it used to.
Dropshipping
Dropshipping exploded online a few years ago, mostly because of the way it was promoted on platforms like YouTube and Instagram. Influencers and "gurus" were showing off big numbers on their Shopify dashboards, claiming they made tens of thousands of dollars with barely any effort. The truth? Many of them made more money selling courses than selling products.
People got pulled in by the idea of selling without holding inventory. It sounded too good to be true—and in most cases, it was. What many didn’t see was the huge amount of money spent on ads, the number of failed product tests, and the angry customers who waited weeks for their orders.
Today, thousands of people are selling the same cheap products from the same suppliers. The market is flooded with generic stores offering the same phone cases, kitchen gadgets, and fitness tools. It's hard to build trust or stand out when customers have seen the exact same item on five different websites.
For someone new, dropshipping now requires a lot more than just setting up a store. You’ll need real product research, strong customer support, fast shipping options, and a brand that actually looks trustworthy. Otherwise, you’ll likely end up with a few sales, a lot of refunds, and a dead store after a couple of months.
Selling Templates and Printables on Etsy
There was a time when people could upload a few digital planners or printable wall art designs on Etsy and start making money within weeks. It worked well because buyers were looking for affordable, downloadable items, and there weren’t too many sellers offering them.
That’s no longer the case. Today, Etsy is packed with digital products. Try searching for “wedding planner printable” or “budget tracker” and you’ll see thousands of listings that look almost the same. New sellers often copy what’s already working, but that just adds to the clutter.
Some of the top sellers on Etsy are doing well, but many of them started years ago and have built a reputation. They have thousands of reviews, established branding, and loyal buyers. A new seller with a generic product, no reviews, and poor design won’t get noticed—especially when buyers can choose from cheaper and more polished options.
If you want to enter this space, you’ll need more than just a Canva template. Think about what specific group of people you're designing for. For example, instead of making a “Daily Planner,” make one that’s built for new moms, teachers, or freelancers. That kind of focus will help you avoid being just another store with lookalike products.
Affiliate Marketing Isn’t What It Used to Be
Affiliate marketing is often seen as a way to make passive income. You recommend a product, someone clicks your link and buys it, and you earn a small cut. It sounds simple, and in the early days of the internet, it kind of was. But things are very different now.
Large websites like Wirecutter, TechRadar, and Business Insider dominate Google search results. These companies have full-time writers, editors, SEO teams, and thousands of backlinks. A beginner starting a blog has almost no chance of ranking above them.
Even social media affiliate marketing has changed. Algorithms on platforms like Instagram and TikTok are harder to crack, and people are tired of being sold something every time they open their phone. On top of that, many affiliate programs have lowered their commission rates. Amazon, for example, reduced its rates significantly in recent years, so promoting products there pays less than before.
Success in affiliate marketing today requires either deep niche knowledge or a loyal audience. You need to provide real value, whether that’s through personal reviews, tutorials, or unique content. Simply creating a blog post titled “Top 10 Headphones in 2025” isn’t enough—it’s been done thousands of times already, often by sites with much more authority.
Amazon FBA
Amazon FBA was once the dream for many people who wanted to get into e-commerce. The idea was to find a trending product, get it manufactured (often in China), ship it to Amazon’s warehouses, and let Amazon handle storage, packing, and delivery. It worked well for early adopters, especially those who found gaps in the market.
Today, those gaps are harder to find. Tools like Jungle Scout and Helium 10 have made product research easier—but they also made it easier for thousands of other sellers to find the same product ideas. This led to a flood of copycat products and intense price competition.
To make things worse, launching a new product on Amazon now requires a good amount of money. You have to order inventory upfront, pay for ads to get visibility, and hope that your product doesn’t get buried under 100 identical listings. If you get a bad batch from the supplier or face delays, it can ruin your entire launch.
FBA still works for people who treat it like a serious business—those who invest in branding, packaging, photography, and customer service. But it’s no longer the easy money-maker it once appeared to be. If you go in thinking you can “get rich with one product,” you’re setting yourself up for disappointment.
Courses and Coaching: Everyone’s an Expert
Online courses and coaching became a big trend during the pandemic. With so many people stuck at home, they started creating digital products based on what they knew—or what they claimed to know. In some cases, people were selling business courses before they even had a real business.
The result? A flood of low-quality courses, vague advice, and unhappy customers. Many people lost trust in online coaching altogether, which made it even harder for honest creators to sell their content.
Now, buyers are more cautious. They want to see real results, not just screenshots or sales talk. If you’re planning to sell a course or offer coaching, ask yourself: have I actually done this successfully myself? Can I teach it in a way that helps people get results?
Selling information is still a good business—if you have something real to offer. But if you're just repeating what you heard in another course, it won't be long before people call it out.
Key Takeaways for New Entrepreneurs
- Hype is dangerous. Most of the businesses listed above became crowded after people overhyped them on social media and YouTube. When something looks too easy, it usually isn’t.
- Copying doesn’t work anymore. The old method of “find what’s trending and do the same” rarely works now. You need to bring something different.
- Every market gets harder over time. The longer a business model exists, the more people enter it. That doesn’t mean it’s impossible—but it does mean you have to try harder to stand out.
- Don’t believe every success story. A lot of people make money by selling the dream, not by running the actual business they talk about. Be careful who you learn from.
If you’re thinking of starting an online business, do your research. Look for real problems to solve. And ask yourself what makes you different—not just what’s making others money.
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