Dropshipping Market Size, Share Report, Analysis, Trends, Growth 2032

Dropshipping Industry Prospective:

The global dropshipping market size was worth around USD 281.35 billion in 2023 and is predicted to grow to around USD 1825.01 billion by 2032 with a compound annual growth rate (CAGR) of roughly 23.09% between 2024 and 2032.        

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Dropshipping Market: Overview

Dropshipping (or drop shipping) is a kind of product fulfilment in which products are sent directly from the manufacturer or wholesaler to the client. A third-party shop promotes drop shipping by listing things for sale on its website. The merchant only pays for inventory when a buyer purchases the item through its sales platform. This business model places the duty for storage and eCommerce fulfilment on the manufacturer or distributor rather than the merchant.

The dropshipping market is being driven by several factors including the growth of the e-commerce industry, technological advancements, improved logistics and supply chain networks, growing demand for personalized products, rising trend of cross-border e-commerce trade, rise in demand for fast delivery of packages, consumer inclination toward online shopping and many others.

Key Insights

• As per the analysis shared by our research analyst, the global Dropshipping market is estimated to grow annually at a CAGR of around 23.09% over the forecast period (2024-2032).
• In terms of revenue, the global Dropshipping market size was valued at around USD 281.35 billion in 2023 and is projected to reach USD 1825.01 billion, by 2032.
• The growing e-commerce sector is expected to drive the dropshipping market during the forecast period.
• Based on the destination, the Domestic segment is expected to hold a substantial market share over the forecast period.
• Based on the product, the Electronics and Media segment is expected to capture the largest market share over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market over the forecast period.

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Dropshipping Market: Growth Drivers

Growth in demand for fast delivery of packages

With the introduction of online shopping and customers' preference for purchasing things from an online source, the demand for better and more efficient delivery services for products has risen. With the COVID-19 epidemic, customers' inclination for online shipment of everyday essentials has expanded, bolstering the expansion of the dropshipping sector. For instance, there has been an increase in e-grocery orders in China as people turn to e-commerce businesses like JD.com, Alibaba Group, and MTDP to shop online for their home necessities.

In addition, to reduce the necessity for direct communication between humans, JD.com in China has provided a platform for clients to engage directly with manufacturers in Wuhan to manage groceries and medical package delivery. Thus, the growth in demand for fast delivery of packages is anticipated to propel the market growth over the forecast period.

Dropshipping Market: Restraints

Security issues regarding online payments hindering the market growth

Increased awareness of online payment security due to the global upsurge in online fraud is expected to hinder the growth of the dropshipping sector globally over the forecast period. For instance, the cybercrime agency of the Indian government reported receiving over 61,100 complaints of digital fraud in May 2021. Additionally, UPI fraud was the subject of 50% of these complaints. Similarly, the Merchant Risk Council organization said in 2019 that payment fraud cost businesses 6.2% of their global sales.

In addition, there has been a global upsurge in scams involving fake dropshipping stores on e-commerce platforms. Thus, the rise in worldwide payment fraud and the rise in the number of false dropshipping businesses on e-commerce platforms are expected to limit market growth over the projection period.

Dropshipping Market: Opportunities

The rising expansion of e-commerce offers an attractive opportunity for market growth

One of the main reasons for the need for dropshipping is the ongoing growth of e-commerce platforms. Retailers are searching for effective ways to fulfil orders without keeping a physical inventory as more and more customers purchase online. Through dropshipping, they may work directly with suppliers or manufacturers, who then deliver the goods to their clients.

This concept facilitates the retailer's ability to provide a large selection of items while lowering overhead expenses. It is anticipated that the trend toward online shopping will continue, increasing demand for dropshipping.

Dropshipping Market: Challenges

Inventory concern poses a major challenge to market expansion

Dropshipping has advantages, including not having to handle inventory directly, but there are drawbacks as well. Retailers may find it difficult to predict demand precisely and avoid stockouts or overselling as they lack control over product availability and visibility into real stock levels. Customers may become dissatisfied as a result, and the retailer's reputation may suffer.

Dropshipping Market: Segmentation

The global Dropshipping industry is segmented based on Destination, Product and region.

Based on the destination, the global Dropshipping market is bifurcated into International and Domestic. The Domestic segment is expected to hold a substantial market share over the forecast period. Retailers who engage in domestic dropshipping frequently purchase goods from regional producers or suppliers. Better control over product quality, quicker shipment times, and lower transportation costs are just a few benefits that may result from this. shops may provide customers with a flawless shopping experience and more effectively rival conventional shops in terms of reliability of delivery and promptness by forming partnerships with domestic suppliers. Thereby, driving the segment growth.

Based on the product, the global Dropshipping industry is segmented into Food and Personal Care, Toys, Hobby and DIY, Furniture and Appliances, Electronics and Media, Fashion and Others. The Electronics and Media segment is expected to capture the largest market share over the forecast period. Consumer demand for electronics and media items is strong due to several reasons including the development of digital entertainment trends, technical breakthroughs, and the increasing reliance of consumers on electronic devices for work, communication, and pleasure. Dropshippers may profit from this need by offering their clients trendy and innovative items. Besides, the fashion segment is expected to grow at the highest CAGR during the forecast period. Customers like online shopping for personal and beauty-related items since they do not have to touch them and can see exactly what they will receive after making a purchase. When it comes to client targeting and product development, personal and beauty care brand owners and marketers place a high value on data. Without acquiring or employing local merchants and wholesalers, beauty companies may reach a big global audience and overseas markets through social commerce.

Dropshipping Market: Report Scope

Regional Analysis

The Asia Pacific is expected to dominate the market over the projected period

The Asia Pacific is expected to dominate the market over the forecast period. Because there are so many more online purchasing platforms available, the APAC e-commerce market is expanding at a never-before-seen rate. In addition, the need for online shopping has increased due to the rising use of smart devices like tablets, laptops, and mobile phones. Furthermore, the growth of this area may be primarily ascribed to advancements in the field of telecommunications infrastructure, the proliferation of smartphones and the internet, and the widespread attraction of social media sites like Instagram, Facebook, Snapchat, and Twitter. Furthermore, the growth of social media and smartphone usage in countries such as China is the main factor driving the expansion of regional markets. On the other hand, the

North American region is anticipated to hold a substantial market share over the projected period. The market in North America is expected to be driven by the use of artificial intelligence in dropshipping operations. Online businesses have used artificial intelligence to automate certain aspects of their client contacts. Automation of e-commerce processes has been feasible for a while, but as artificial intelligence advances, it is anticipated to become more pervasive and customized. Advances in artificial intelligence have enabled the dropshipping industry to enhance lead generation rates without sacrificing lead quality. When compared to emerging nations, the U.S. e-commerce and social commerce landscapes are far more fragmented, and customer attitudes and behaviors around digital buying, social media usage, payments, and online privacy are also different.

Dropshipping Market: Competitive Analysis

The global Dropshipping market is dominated by players:

• Inventory Source
• Etsy Inc.
• Megagoods Inc.
• Alidropship
• Doba Inc.
• Modalyst Inc.
• SaleHoo Group Limited
• Shopify Inc.
• Printify
• Sunrise Wholesale Merchandise LLC
• Wholesale2b
• Cin7 Orderhive Inc.

The Global Dropshipping market is segmented as follows:

By Destination

• International
• Domestic

By Product

• Food and Personal Care
• Toys, Hobby and DIY
• Furniture and Appliances
• Electronics and Media
• Fashion
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa