Dropshipping Market Share, Size, Trends, Industry Analysis Report, By Products (Toys, Hobby & DIY, Furniture & Appliances, Electronics & Media, Food & Personal Care, and Fashion), By Destination, By Application, By Organization Size, By Region, Segments & Forecast, 2024 – 2032
- Published Date:Jan-2024
- Pages: 115
- Format: PDF
- Report ID: PM2061
- Base Year: 2023
- Historical Data: 2019-2021
Report Outlook
The global dropshipping market was valued at USD 276.71 Billion in 2023 and is projected to grow at a CAGR of 23.20% in the forecast period. The expansion of the e-commerce market and the ease of starting online stores are the major factors responsible for the growth in the last few years. The rapid surge in the trend of cross-border e-commerce trade worldwide, backed by the rapidly increasing penetration of smartphones, is likely to boost the market in the forecast period.
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The e-commerce retail model is a retail fulfillment technique where an online store doesn't have to keep the products it sells in stock. In this case, the store sells a product by purchasing it from a third party and shipping it directly to the customer. It means that the store never physically handles the products it sells. The market has grown rapidly in recent years due to the rise of e-commerce and the ease of starting an online store. With dropshipping, there's no need to invest in inventory upfront, which makes it an appealing option for entrepreneurs looking to start a business with little capital.
One of the main advantages of the market is that it allows businesses to offer a wide range of products without worrying about storing inventory or managing fulfillment. It also allows them to test new product ideas and markets without taking on the risk of buying and holding stock. It has become a popular option for entrepreneurs looking to start an online business without the upfront inventory investment. It also allows companies to offer a wide range of products without needing a large warehouse or storage space.
For instance, as per the U.S. Department of Commerce, U.S. e-commerce sales in 2022 accounted for 14.6 percent of total sales and estimated a value of 1,034.1 billion USD in the same period, an increase of about 8.1 percent in 2021.
The covid-19 pandemic had an overall positive impact on the market. The pandemic has been characterized by suspending product deliveries and disruption of several logistics companies due to the constant spreading of virus-infected patients worldwide. Supply chain disruptions have made it difficult to source products from suppliers, leading to delays and out-of-stock products. Shipping and fulfillment have also been impacted, with longer shipping times and increased costs.
However, the pandemic has led to a surge in online shopping as people have been forced to stay home and avoid physical stores. It has created new opportunities for this market as consumers increasingly shop online to purchase products. Additionally, the pandemic has accelerated the shift towards e-commerce, as companies have been forced to close physical stores and focus on online sales. It has created new opportunities for businesses as more businesses are looking to expand their online offerings.
Besides several advantages of the distribution model to retailers and consumers, lower profit margins, limited control over the product, dependence on suppliers, and fluctuating delivery times are expected to be the limiting factors for the market in the forecast period. For instance, the business relies on suppliers to fulfill orders, which means they have limited control over the quality of the product and the shipping process. It can lead to negative customer experiences and damage the business's reputation.
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Industry Dynamics
Growth Drivers
The increasing penetration of e-commerce platforms has been a significant driver of the growth of the dropshipping market. E-commerce platforms like Amazon, eBay, and Shopify have made it easier for businesses to sell products online, with dropshipping being a popular business model for many entrepreneurs. The growth of e-commerce platforms has made it easier for companies to find suppliers and connect with customers. Many e-commerce platforms have built-in features, making it easier for businesses to manage inventory and fulfill orders.
The second most important reason for the significant demand for the particular business model includes its various benefits over the traditional retail model. Its benefits include lower startup costs, flexibility and ease of doing, scalability, reduced risk, and location independence. The businesses do not need to purchase and store inventory, reducing the upfront costs of starting a business. With the model, companies can sell a wide range of products without investing in the stock. Further, it can also be run from anywhere with an internet connection, providing flexibility and freedom for business owners.
Report Segmentation
The market is primarily segmented based on product type, destination, application, organization size, and region
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By Product Type |
By Destination |
By Application |
By Organization Size |
By Region |
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The fashion segment will account for a major share in the forecast period.
Developing economies such as China, India and others have witnessed a significant shift in consumer buying behavior from brick-and-mortar store to online mediums in the last few years. The fashion industry offers a wide range of products, from clothing and accessories to shoes and jewelry, providing dropshipping businesses with many opportunities to diversify their product offerings. The e-commerce retail model allows fashion entrepreneurs to start a business with minimal upfront costs, making it an attractive option for those with limited capital.
On the other hand, the food and personal care segment accounted for the fastest CAGR over the forecast period and is witnessing considerable growth worldwide. It can be attributed to the growing consumer purchasing power and spending to procure personal care products and the rising growth of the personal care industry in developed and developing markets. Furthermore, individuals typically opt for online platforms to buy foods and unique care products, which provides time-saving and cost-saving benefits, which is also expected to propel the segment's growth.
The domestic segment is projected for a major market share in the forecast period.
The domestic segment has experienced significant growth in the market, with many businesses focusing on selling products within their own country or region. Domestic segment offers retailers lower shipping costs, as they do not need to pay international shipping fees. Further, businesses can target their marketing efforts to a specific region or country, making connecting with customers and building a loyal customer base easier.
The business-to-consumer (B2C) segment to account for a major share in the forecast period.
The B2C (business-to-consumer) segment in the market has been experiencing significant growth in recent years. The change can be attributed to several factors, including the rise of e-commerce, the increasing number of online shoppers, and the convenience and cost-effectiveness of this particular business model.
In the B2C segment, the model has become an attractive option for entrepreneurs and small businesses looking to start an online store without a large upfront investment. The low startup costs and ease of entry make it an accessible way for anyone to start an e-commerce business. Furthermore, the COVID-19 pandemic has accelerated the growth of e-commerce and online shopping. Many people are now more comfortable buying products online, and its convenience has made it an even more appealing option for online retailers.
Asia Pacific accounted for the largest market share in 2022 and is projected to dominate the market in the forecast period.
In recent years, the market has grown rapidly in the Asia Pacific region. The growth can be attributed to several factors, including the increasing number of online shoppers, the rise of e-commerce platforms, and the region's large population.
One of the main drivers of growth in the Asia Pacific market is the rise of e-commerce platforms such as Alibaba, JD.com, and Lazada. These platforms provide an easy way for sellers to access a large customer base, and they offer a range of tools and services to help sellers manage their online businesses. As a result, many entrepreneurs and small businesses are turning to these platforms to start the businesses.
Another factor contributing to the market growth in Asia Pacific is the region's large population. With over 4.5 billion people living in the area, online sellers have a vast potential customer base. Moreover, many countries in the region have a growing middle class with disposable income to spend on online shopping.
For instance, as per International Trade Administration, China is the largest e-commerce market globally, accounting almost 50 percent of global transactions. In 2020, China's transactions touched 2.29 trillion USD and reached more than 710 million digital buyers. The research further estimated that, by 2021, China's e-commerce market was predicted to be larger than U.K., U.S.A, France, Germany, and France combined.
Competitive Insight
Some of the prominent key players operating in the dropshipping market space includes Etsy, Inc., AliDropship, Doba Inc., Megagoods, Inc., Wix.com, Inc, AliDropship, Onlinestorebiz.com LLC., SaleHoo Group Limited, Sunrise Wholesale Merchandise, LLC, Shopify Inc., Printify, Inc., Wholesale2B, MerchMixer
Recent Developments
- June 2021: Wix.com, Inc. has acquired Modalyst, a key player in the dropshipping platform, to enable the company’s e-commerce merchants to a native marketplace and can integrate the dropshipping platform for white-label product fulfillment.
- May 2021: Shopify Inc. has announced its agreement to acquire Deliverr, a fulfillment technology provider, to remove the supply chain complexity for merchants.
Dropshipping Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 340.35 Billion |
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Revenue forecast in 2032 |
USD 1,804.03 Billion |
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CAGR |
23.20% from 2024 - 2032 |
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Base year |
2023 |
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Historical data |
2019 - 2022 |
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Forecast period |
2024 - 2032 |
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Quantitative units |
Revenue in USD Billion and CAGR from 2024 to 2032 |
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Segments covered |
By Product Type, By Destination, By Application, By Organization Size, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key companies |
Etsy, Inc., AliDropship, Doba Inc., Megagoods, Inc., Wix.com, Inc, AliDropship, Onlinestorebiz.com LLC., SaleHoo Group Limited, Sunrise Wholesale Merchandise, LLC, Shopify Inc., Printify, Inc., Wholesale2B, MerchMixe |
FAQ's
The global dropshipping market size is expected to reach USD 1,804.03 Billion by 2032.
Key players in the dropshipping market are Etsy, Inc., AliDropship, Doba Inc., Megagoods, Inc., Wix.com, Inc, AliDropship, Onlinestorebiz.com LLC., SaleHoo Group Limited, Sunrise Wholesale Merchandise, LLC.
Asia Pacific contribute notably towards the global dropshipping market.
The global dropshipping market projected to grow at a CAGR of 23.16% in the forecast period.
The dropshipping market report covering key segments are product type, destination, application, organization size, and region.
