The Global Dropshipping Market size is expected to reach $623 billion by 2028, rising at a market growth of 20.6% CAGR during the forecast period.
Dropshipping is a form of retail fulfillment strategy for online businesses in which merchants sell goods to consumers and transfer the sales order to a third-party supplier, who then delivers the order straight to customers on the merchant's behalf. Also, there is a quickly spreading tendency of online intermediaries that charge additional money and constantly switch between wholesale and retail prices. Having top-notch customer service is essential for retaining customers, as dropshipping retailers lose some control over the consumer experience.
The e-commerce business is expanding, which fuels the demand for dropshipping services. Some of these factors include increased smartphone penetration and rising consumer disposable income. The worldwide dropshipping market is anticipated to increase greatly as a result of the rising acceptance of online purchasing and the inclination of cross-border e-commerce trade.
As a consequence, the e-commerce industry's growth is primarily responsible for the spike in demand for dropshipping services. Dropshipping is the process of selling products via online storefronts without keeping a stock of items in stock with the merchant. Instead, the manufacturer or wholesaler receives the client's order information from the store and ships the products directly to the customer.
Starting a dropshipping company is really inexpensive, and it eliminates the danger of losing money on unsold inventory. It helps merchants become more profitable, save time, and save money, all of which contribute to the growth of the dropshipping business.
According to a study of the dropshipping business, the market is expanding as a result of the simplicity with which online shops can now be established across a wide range of product categories. A new online shop may be easily set up with the help of new eCommerce providers, and drop shipping businesses can increase their market share by using an efficient marketing plan.
COVID-19 Impact Analysis
The lockdown period dramatically increased the use of dropshipping by customers to purchase necessities like prescription drugs online. Moreover, the COVID-19 pandemic has had the greatest impact on China and the U.S., which both contribute to the expansion of dropshipping. The demand for many items was damaged by the unstable economy, partial firm closures, and poor consumer confidence. During the pandemic, the supply chain was impacted along with logistical delays. Due to fewer regulations and growth in e-commerce platforms, the dropshipping sector is predicted to pick up steam in the post-pandemic environment.
Market Growth Factors
E-commerce platforms are being more widely used to support market expansion.
Conventional distribution techniques demand a lot of work from retailers in terms of inventory management. To save money on inventory purchases and upkeep, companies are resorting to dropshipping services as e-commerce platforms are utilized more often. Dropshipping has become increasingly popular among merchants due to fewer capital expenditures for logistics and inventory. The worldwide dropshipping market is anticipated to increase greatly as a result of the expanding trend of cross-border e-commerce trade and rising preference for online purchasing. Internet shopping portals provide a simple experience in addition to a broad selection of B2C items.
The internet of things is being used more and more to support efficient dropshipping
Small company owners may increase their consumer bases, vary their product offerings, and save expenses by using drop shipping. In order to send items using the dropshipping business model, third-party logistics providers (3PL) are required. As a consequence, the retailer has little control over the supply chain and is unaware of the supplier's inventory levels. At this stage, the Internet of Things (IoT) may assist the retailer by giving updates on any on-the-shelf and off-the-shelf movement of a particular product in the supplier's inventory as well as real-time information on the supplier's inventory status.
Market Restraining Factors
Dependence on outside supplies
If a business had a real product on hand, these kinds of problems would be less devastating, and operations may continue while looking for a new supplier. So, it's crucial for new companies to have a viable backup plan in place in case of such a disruption. Dropshipping gives third parties control over things like product supply and quality assurance. Retailers are prohibited from inspecting products before they are sent to consumers or from providing value-added services like pre-installing software on a phone or engraving a personalized message on jewelry. The future market expansion may be hampered by this dropshipping problem.
Product Type Outlook
Based on product type, the dropshipping market is divided into toys, furniture & appliances, hobby & DIY, food & personal care, electronics & media, and fashion. The electronics segment recorded a remarkable revenue share in the dropshipping market in 2021. As consumers can evaluate a wide range of items, take advantage of discounts, and submit a simple return request, e-commerce platforms provide a number of opportunities for the sale of electronic goods. Also, the growing availability of reasonably priced electronic goods has made it possible for internet shopping to enter previously unreachable locations. As a result, there is a massive worldwide application of such dropshipping services.
Dropshipping Market Report Coverage Report Attribute | Details |
Market size value in 2021 | USD 172.5 Billion |
Market size forecast in 2028 | USD 623 Billion |
Base Year | 2021 |
Historical Period | 2018 to 2020 |
Forecast Period | 2022 to 2028 |
Revenue Growth Rate | CAGR of 20.6% from 2022 to 2028 |
Number of Pages | 116 |
Number of Table | 189 |
Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
Segments covered | Product Type, Region |
Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
Growth Drivers | - E-commerce platforms are being more widely used to support market expansion
- The internet of things is being used more and more to support efficient dropshipping
|
Restraints | - Dependence on outside supplies
|
Regional Outlook
Region wise, the dropshipping market is analyzed across North America, Europe, Asia Pacific and LAMEA. The Asia Pacific region led the dropshipping market with the maximum revenue share in 2021. Due to the explosion of online shopping platforms, the APAC region's e-commerce market is expanding at an unheard-of pace. Also, the need for online shopping has increased due to the rising use of smart devices like computers, mobile phones, and tablets, among others. This region's growth is also primarily attributable to improvements in telecommunications infrastructure, the proliferation of smartphones and the internet, and the widespread use of social media platforms such as Facebook, Snapchat, and Twitter.
Free Valuable Insights: Global Dropshipping Market size to reach USD 623 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Shopify Inc., AliDropship LLC (Sunshine Group), Doba, Inc. (Focus Technology Co., Ltd.), Megagoods, Inc., Modalyst, Inc. (Wix.com Ltd.), Printify, Inc., SaleHoo Group Limited (Doubledot), Sunrise Wholesale Merchandise LLC, and Wholesale2b.
Scope of the Study
Market Segments Covered in the Report:
By Product Type
- Fashion
- Electronics & Media
- Food & Personal Care
- Toys, Hobby & DIY
- Furniture & Appliances
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Shopify Inc.
- AliDropship LLC (Sunshine Group)
- Doba, Inc. (Focus Technology Co., Ltd.)
- Megagoods, Inc.
- Modalyst, Inc. (Wix.com Ltd.)
- Printify, Inc.
- SaleHoo Group Limited (Doubledot)
- Sunrise Wholesale Merchandise LLC
- Wholesale2b
TABLE 1 Global Dropshipping Market, 2018 - 2021, USD Million
TABLE 2 Global Dropshipping Market, 2022 - 2028, USD Million
TABLE 3 Global Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 4 Global Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 5 Global Fashion Market by Region, 2018 - 2021, USD Million
TABLE 6 Global Fashion Market by Region, 2022 - 2028, USD Million
TABLE 7 Global Electronics & Media Market by Region, 2018 - 2021, USD Million
TABLE 8 Global Electronics & Media Market by Region, 2022 - 2028, USD Million
TABLE 9 Global Food & Personal Care Market by Region, 2018 - 2021, USD Million
TABLE 10 Global Food & Personal Care Market by Region, 2022 - 2028, USD Million
TABLE 11 Global Toys, Hobby & DIY Market by Region, 2018 - 2021, USD Million
TABLE 12 Global Toys, Hobby & DIY Market by Region, 2022 - 2028, USD Million
TABLE 13 Global Furniture & Appliances Market by Region, 2018 - 2021, USD Million
TABLE 14 Global Furniture & Appliances Market by Region, 2022 - 2028, USD Million
TABLE 15 Global Dropshipping Market by Region, 2018 - 2021, USD Million
TABLE 16 Global Dropshipping Market by Region, 2022 - 2028, USD Million
TABLE 17 North America Dropshipping Market, 2018 - 2021, USD Million
TABLE 18 North America Dropshipping Market, 2022 - 2028, USD Million
TABLE 19 North America Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 20 North America Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 21 North America Fashion Market by Country, 2018 - 2021, USD Million
TABLE 22 North America Fashion Market by Country, 2022 - 2028, USD Million
TABLE 23 North America Electronics & Media Market by Country, 2018 - 2021, USD Million
TABLE 24 North America Electronics & Media Market by Country, 2022 - 2028, USD Million
TABLE 25 North America Food & Personal Care Market by Country, 2018 - 2021, USD Million
TABLE 26 North America Food & Personal Care Market by Country, 2022 - 2028, USD Million
TABLE 27 North America Toys, Hobby & DIY Market by Country, 2018 - 2021, USD Million
TABLE 28 North America Toys, Hobby & DIY Market by Country, 2022 - 2028, USD Million
TABLE 29 North America Furniture & Appliances Market by Country, 2018 - 2021, USD Million
TABLE 30 North America Furniture & Appliances Market by Country, 2022 - 2028, USD Million
TABLE 31 North America Dropshipping Market by Country, 2018 - 2021, USD Million
TABLE 32 North America Dropshipping Market by Country, 2022 - 2028, USD Million
TABLE 33 US Dropshipping Market, 2018 - 2021, USD Million
TABLE 34 US Dropshipping Market, 2022 - 2028, USD Million
TABLE 35 US Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 36 US Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 37 Canada Dropshipping Market, 2018 - 2021, USD Million
TABLE 38 Canada Dropshipping Market, 2022 - 2028, USD Million
TABLE 39 Canada Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 40 Canada Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 41 Mexico Dropshipping Market, 2018 - 2021, USD Million
TABLE 42 Mexico Dropshipping Market, 2022 - 2028, USD Million
TABLE 43 Mexico Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 44 Mexico Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 45 Rest of North America Dropshipping Market, 2018 - 2021, USD Million
TABLE 46 Rest of North America Dropshipping Market, 2022 - 2028, USD Million
TABLE 47 Rest of North America Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 48 Rest of North America Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 49 Europe Dropshipping Market, 2018 - 2021, USD Million
TABLE 50 Europe Dropshipping Market, 2022 - 2028, USD Million
TABLE 51 Europe Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 52 Europe Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 53 Europe Fashion Market by Country, 2018 - 2021, USD Million
TABLE 54 Europe Fashion Market by Country, 2022 - 2028, USD Million
TABLE 55 Europe Electronics & Media Market by Country, 2018 - 2021, USD Million
TABLE 56 Europe Electronics & Media Market by Country, 2022 - 2028, USD Million
TABLE 57 Europe Food & Personal Care Market by Country, 2018 - 2021, USD Million
TABLE 58 Europe Food & Personal Care Market by Country, 2022 - 2028, USD Million
TABLE 59 Europe Toys, Hobby & DIY Market by Country, 2018 - 2021, USD Million
TABLE 60 Europe Toys, Hobby & DIY Market by Country, 2022 - 2028, USD Million
TABLE 61 Europe Furniture & Appliances Market by Country, 2018 - 2021, USD Million
TABLE 62 Europe Furniture & Appliances Market by Country, 2022 - 2028, USD Million
TABLE 63 Europe Dropshipping Market by Country, 2018 - 2021, USD Million
TABLE 64 Europe Dropshipping Market by Country, 2022 - 2028, USD Million
TABLE 65 Germany Dropshipping Market, 2018 - 2021, USD Million
TABLE 66 Germany Dropshipping Market, 2022 - 2028, USD Million
TABLE 67 Germany Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 68 Germany Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 69 UK Dropshipping Market, 2018 - 2021, USD Million
TABLE 70 UK Dropshipping Market, 2022 - 2028, USD Million
TABLE 71 UK Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 72 UK Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 73 France Dropshipping Market, 2018 - 2021, USD Million
TABLE 74 France Dropshipping Market, 2022 - 2028, USD Million
TABLE 75 France Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 76 France Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 77 Russia Dropshipping Market, 2018 - 2021, USD Million
TABLE 78 Russia Dropshipping Market, 2022 - 2028, USD Million
TABLE 79 Russia Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 80 Russia Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 81 Spain Dropshipping Market, 2018 - 2021, USD Million
TABLE 82 Spain Dropshipping Market, 2022 - 2028, USD Million
TABLE 83 Spain Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 84 Spain Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 85 Italy Dropshipping Market, 2018 - 2021, USD Million
TABLE 86 Italy Dropshipping Market, 2022 - 2028, USD Million
TABLE 87 Italy Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 88 Italy Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 89 Rest of Europe Dropshipping Market, 2018 - 2021, USD Million
TABLE 90 Rest of Europe Dropshipping Market, 2022 - 2028, USD Million
TABLE 91 Rest of Europe Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 92 Rest of Europe Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 93 Asia Pacific Dropshipping Market, 2018 - 2021, USD Million
TABLE 94 Asia Pacific Dropshipping Market, 2022 - 2028, USD Million
TABLE 95 Asia Pacific Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 96 Asia Pacific Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 97 Asia Pacific Fashion Market by Country, 2018 - 2021, USD Million
TABLE 98 Asia Pacific Fashion Market by Country, 2022 - 2028, USD Million
TABLE 99 Asia Pacific Electronics & Media Market by Country, 2018 - 2021, USD Million
TABLE 100 Asia Pacific Electronics & Media Market by Country, 2022 - 2028, USD Million
TABLE 101 Asia Pacific Food & Personal Care Market by Country, 2018 - 2021, USD Million
TABLE 102 Asia Pacific Food & Personal Care Market by Country, 2022 - 2028, USD Million
TABLE 103 Asia Pacific Toys, Hobby & DIY Market by Country, 2018 - 2021, USD Million
TABLE 104 Asia Pacific Toys, Hobby & DIY Market by Country, 2022 - 2028, USD Million
TABLE 105 Asia Pacific Furniture & Appliances Market by Country, 2018 - 2021, USD Million
TABLE 106 Asia Pacific Furniture & Appliances Market by Country, 2022 - 2028, USD Million
TABLE 107 Asia Pacific Dropshipping Market by Country, 2018 - 2021, USD Million
TABLE 108 Asia Pacific Dropshipping Market by Country, 2022 - 2028, USD Million
TABLE 109 China Dropshipping Market, 2018 - 2021, USD Million
TABLE 110 China Dropshipping Market, 2022 - 2028, USD Million
TABLE 111 China Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 112 China Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 113 Japan Dropshipping Market, 2018 - 2021, USD Million
TABLE 114 Japan Dropshipping Market, 2022 - 2028, USD Million
TABLE 115 Japan Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 116 Japan Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 117 India Dropshipping Market, 2018 - 2021, USD Million
TABLE 118 India Dropshipping Market, 2022 - 2028, USD Million
TABLE 119 India Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 120 India Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 121 South Korea Dropshipping Market, 2018 - 2021, USD Million
TABLE 122 South Korea Dropshipping Market, 2022 - 2028, USD Million
TABLE 123 South Korea Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 124 South Korea Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 125 Singapore Dropshipping Market, 2018 - 2021, USD Million
TABLE 126 Singapore Dropshipping Market, 2022 - 2028, USD Million
TABLE 127 Singapore Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 128 Singapore Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 129 Malaysia Dropshipping Market, 2018 - 2021, USD Million
TABLE 130 Malaysia Dropshipping Market, 2022 - 2028, USD Million
TABLE 131 Malaysia Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 132 Malaysia Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 133 Rest of Asia Pacific Dropshipping Market, 2018 - 2021, USD Million
TABLE 134 Rest of Asia Pacific Dropshipping Market, 2022 - 2028, USD Million
TABLE 135 Rest of Asia Pacific Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 136 Rest of Asia Pacific Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 137 LAMEA Dropshipping Market, 2018 - 2021, USD Million
TABLE 138 LAMEA Dropshipping Market, 2022 - 2028, USD Million
TABLE 139 LAMEA Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 140 LAMEA Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 141 LAMEA Fashion Market by Country, 2018 - 2021, USD Million
TABLE 142 LAMEA Fashion Market by Country, 2022 - 2028, USD Million
TABLE 143 LAMEA Electronics & Media Market by Country, 2018 - 2021, USD Million
TABLE 144 LAMEA Electronics & Media Market by Country, 2022 - 2028, USD Million
TABLE 145 LAMEA Food & Personal Care Market by Country, 2018 - 2021, USD Million
TABLE 146 LAMEA Food & Personal Care Market by Country, 2022 - 2028, USD Million
TABLE 147 LAMEA Toys, Hobby & DIY Market by Country, 2018 - 2021, USD Million
TABLE 148 LAMEA Toys, Hobby & DIY Market by Country, 2022 - 2028, USD Million
TABLE 149 LAMEA Furniture & Appliances Market by Country, 2018 - 2021, USD Million
TABLE 150 LAMEA Furniture & Appliances Market by Country, 2022 - 2028, USD Million
TABLE 151 LAMEA Dropshipping Market by Country, 2018 - 2021, USD Million
TABLE 152 LAMEA Dropshipping Market by Country, 2022 - 2028, USD Million
TABLE 153 Brazil Dropshipping Market, 2018 - 2021, USD Million
TABLE 154 Brazil Dropshipping Market, 2022 - 2028, USD Million
TABLE 155 Brazil Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 156 Brazil Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 157 Argentina Dropshipping Market, 2018 - 2021, USD Million
TABLE 158 Argentina Dropshipping Market, 2022 - 2028, USD Million
TABLE 159 Argentina Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 160 Argentina Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 161 UAE Dropshipping Market, 2018 - 2021, USD Million
TABLE 162 UAE Dropshipping Market, 2022 - 2028, USD Million
TABLE 163 UAE Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 164 UAE Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 165 Saudi Arabia Dropshipping Market, 2018 - 2021, USD Million
TABLE 166 Saudi Arabia Dropshipping Market, 2022 - 2028, USD Million
TABLE 167 Saudi Arabia Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 168 Saudi Arabia Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 169 South Africa Dropshipping Market, 2018 - 2021, USD Million
TABLE 170 South Africa Dropshipping Market, 2022 - 2028, USD Million
TABLE 171 South Africa Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 172 South Africa Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 173 Nigeria Dropshipping Market, 2018 - 2021, USD Million
TABLE 174 Nigeria Dropshipping Market, 2022 - 2028, USD Million
TABLE 175 Nigeria Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 176 Nigeria Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 177 Rest of LAMEA Dropshipping Market, 2018 - 2021, USD Million
TABLE 178 Rest of LAMEA Dropshipping Market, 2022 - 2028, USD Million
TABLE 179 Rest of LAMEA Dropshipping Market by Product Type, 2018 - 2021, USD Million
TABLE 180 Rest of LAMEA Dropshipping Market by Product Type, 2022 - 2028, USD Million
TABLE 181 key information – Shopify, Inc.
TABLE 182 Key Information – AliDropship LLC
TABLE 183 Key Information – Doba, Inc.
TABLE 184 Key Information – Megagoods, Inc.
TABLE 185 Key Information – Modalyst, Inc.
TABLE 186 Key Information – Printify, Inc.
TABLE 187 Key Information – SaleHoo Group Limited
TABLE 188 Key Information – Sunrise Wholesale Merchandise LLC
TABLE 189 Key Information – Wholesale2b
List of Figures
FIG 1 Methodology for the research
FIG 2 Global Dropshipping Market Share by Product Type, 2021
FIG 3 Global Dropshipping Market Share by Product Type, 2028
FIG 4 Global Dropshipping Market by Product Type, 2018 - 2028, USD Million
FIG 5 Global Dropshipping Market Share by Region, 2021
FIG 6 Global Dropshipping Market Share by Region, 2028
FIG 7 Global Dropshipping Market by Region, 2018 - 2028, USD Million