The global dropshipping market size is expected to reach USD 1,804.03 Billion by 2032, according to a new study by Polaris Market Research. The report “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, 2019 – 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.
The key factors responsible for the market growth are the expanding e-commerce market, backed by the trend of cross-border e-commerce trade worldwide, and the ease of starting online stores.
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.
The main benefit of dropshipping is that it enables businesses to offer a wide range of products without having to invest in inventory instantly. It makes it an appealing option for entrepreneurs who want to start an online business without a significant upfront investment. Dropshipping also allows firms to test new product ideas and markets without taking on the risk of buying and storing inventory.
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.
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The pandemic negatively impacted the demand for dropshipping due to supply chain disruptions, fluctuating markets, and shipping & fulfillment delays. But the pandemic has also led to a surge in online shopping as people have been forced to stay home and avoid physical stores. In addition, the pandemic has accelerated the shift towards e-commerce, as businesses have been forced to close physical stores and focus on online sales.
Lower profit margins, limited control over the product, dependence on suppliers, higher shipping costs, and longer delivery times are projected to act as limiting factors for the market.
Polaris Market Research has segmented the dropshipping market report based on product type, destination, application, organization size, and region:
Dropshipping Market, Product Type Outlook (Revenue - USD Billion, 2019 - 2032)
Dropshipping Market, Destination Outlook (Revenue - USD Billion, 2019 - 2032)
Dropshipping Market, Application Outlook (Revenue - USD Billion, 2019- 2032)
Dropshipping Market, Organization Size Outlook (Revenue - USD Billion, 2019- 2032)
Dropshipping Market, Regional Outlook (Revenue - USD Billion, 2019 - 2032)