What percentage of small shopify stores' whole business is dropshipping cheap Chinese garbage at huge mark ups?
I don't buy from shopify or facebook anymore, and probably won't even if they clean up their act.
Most stores buy and hold inventory, taking on the risk of not selling that inventory. Dropshippers send the order to someone else to fulfil, and are essentially glorified lead generators.
There are certainly good small businesses, both on Shopify and elsewhere, and some would be hurt to some small degree by this change. I'm simply arguing that the majority of business which would go broke without the use of the FB ad system tracking panopticon are not the sort of small business which are societally useful or that we should mourn their loss.
"Small businesses going bankrupt" typically is thought of a negative thing, but there are flavors of small businesses where it is really a net societal good.
That's certainly selling drop-shippers short.
They provide products, at prices people are willing to pay for convenience, trustability, etc. They handle complaints, shoulder the risk of returns and/or damaged in shipment items, pay for their own advertising/marketing and more.
Many Tier-1 distributors enjoy their relationship with drop-shippers... and many customers enjoy that very same relationship too.