Dropshipping Market Predicted to Garner USD 2032.0 billion in 2032 | CAGR of 25.1%; Market.us Report

According to the latest insights by Market.us, product reselling is the dominant segment in the industry's type segment, with a market share of 41.7% in 2022. This segment is driven by its low upfront costs, as retailers do not need to create or design their products.


New York, April 28, 2023 (GLOBE NEWSWIRE) -- As per Market.us research, the global Dropshipping Market size is expanding by around USD 2,032.0 billion in 2032 from USD 228.92 billion in 2022; It is growing at a registered CAGR of 25.1% from 2023 to 2032.

Dropshipping is a business model in which an online store sells products to customers without actually stocking the items. Instead, the store purchases the products from a third-party supplier who ships the items directly to the customers.

This enables the store to avoid the cost of holding inventory, as well as the initial investment required to purchase products. Dropshipping can be a dominant business model because it enables entrepreneurs to start an online store without a huge initial investment. However, it also comes with some potential restraints, like lower profit margins, the risk of relying on a single supplier, and less control over the shipping process for all of your products.

Dropshipping Market

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Key Takeaway:

  • Based on type, in 2022, the dropshipping market was dominated by the product reselling segment owing to the partnership with suppliers and price.
  • By product type, in 2022, the electronics and media segment dominated the largest market share product type segment.
  • In 2022, Asia-Pacific dominated the market with the highest revenue share of 38.6%.
  • North America is expected to have the highest CAGR among all regions, owing to the adoption of AI for dropshipping and the difference in consumer mindsets.

Factors affecting the growth of the Dropshipping industry

There are several factors that can have an impact on the growth of the dropshipping industry including:

  • E-commerce boom: The rapid growth of e-commerce has created a huge demand for dropshipping as more consumers shop online, and entrepreneurs are looking for ways to capitalize on the trend without having to hold inventory.
  • Advancement in technology: Particularly in e-commerce platforms & payment processing which made it easier for entrepreneurs to set up and run a dropshipping business.
  • Low start-up costs: Dropshipping requires very less upfront investment as compared to traditional retail models which makes it an attractive option for entrepreneurs with available resources.
  • Flexibility: Dropshipping enables businesses to be more flexible, as they can quickly & easily change the products they offer and respond to changing market conditions.
  • Social media: Social media platforms like Instagram and Facebook have made it very easy for entrepreneurs to market their products & build a customer base.

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Top Trends in Dropshipping Market

Dropshipping has seen several emerging trends that are revolutionizing how businesses and consumers shop. Automation and artificial intelligence are being employed more frequently to boost efficiency levels and streamline procedures. Dropshippers use software and tools to automate mundane tasks such as order processing, inventory management, and shipping - freeing them up to focus on other aspects of their business. Dropshipping has seen a recent surge in niche markets with highly specialized products, further fuelling this trend. Dropshippers are looking for ways to stand out in a highly competitive market. Many are offering unique and specialized items, such as eco-friendly or sustainable goods and personalized gifts. Furthermore, drop shippers prioritize providing an outstanding customer experience.

Market Growth

Dropshipping has emerged as a popular business model in recent years, with the market growing rapidly. This method of retail fulfillment enables entrepreneurs to sell products without holding inventory or managing shipping logistics. Apart from that they work with suppliers who handle the inventory & shipping on their behalf. The dropshipping market has seen significant growth, as more and more people turn towards e-commerce & seek opportunities for starting their businesses. The increasing demand for convenient & affordable online shopping, with the low overhead costs & flexibility offered by dropshipping is expected to continue fuelling the growth of this market in coming years.

Regional Analysis

Asia-Pacific is projected to be the leading market in global dropshipping with a market share of 38.6% during the forecasted period. This region's dominance in online shopping platforms, coupled with rising smart device popularity such as laptops, mobile phones, and tablets has further fuelled this region's demand for online shipping services. Furthermore, developments in telecommunications infrastructure, internet & smartphone penetration rate, and the appeal of social media platforms like Instagram, Snapchat, Twitter, and Facebook all play an important role in its expansion potential.

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Scope of Report

Report AttributeDetails
Market Value (2022)USD 228.92 billion
Market Size (2032)USD 2032 billion
CAGR (from 2023 to 2032)25.1% from 2023 to 2032
Asia-Pacific Revenue Share38.6%
Historic Period2016 to 2022
Base Year2022
Forecast Year2023 to 2032

Market Drivers

One primary driver is the rise of e-commerce & online shopping which have grown within this space. Dropshipping services are becoming more and more popular as more consumers shop online which enables businesses to provide a wider selection of items without needing physical inventory. Furthermore, the dropshipping market is being driven forward by advancements in automation & AI technologies. Another factor driving growth in the dropshipping market is its increasing focus on niche markets & specialized products. With increased competition in this space and drop shippers are looking for ways to stand out & provide unique items to their customers. Furthermore, social media and influencer marketing have become major forces driving demand in this market. Dropshippers are taking advantage of social media platforms like Instagram & Facebook, to reach new customers and market their products.

Market Restraints

One of the primary challenges in the dropshipping market is high competition. With so many drop shippers competing for customers, it can be hard to stand out and attract a loyal following - making it difficult for new drop shippers to break into the space and compete against established players. Furthermore, drop shippers lack control over their supply chains; they rely on suppliers and manufacturers for products and orders which creates quality control issues, slow shipping times, and product availability issues that lead to poor customer experiences which could damage a drop shipper's reputation.

Market Opportunities

Entrepreneurs and business owners in the dropshipping market have numerous opportunities. One of the greatest prospects in the future lies in the continued growth of e-commerce, as more consumers shop online. As more consumers shop this way, demand for dropshipping services is expected to increase significantly. Dropshippers now have an opportunity to expand their customer base and boost revenue. Furthermore, the dropshipping market continues to see the use of automation and AI for further growth. With technology constantly progressing, drop shippers can take advantage of new tools and software to boost efficiency and simplify operations. Doing so frees them up to focus on other aspects of their business, like customer acquisition or marketing. Dropshippers have an opportunity to explore new markets and product niches.

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Report Segmentation of the Dropshipping Market

Type Insight

Product reselling dominates the type segment with a 41.7% market share in 2022. This segment drives the market in the type segment due to its low upfront costs, as retailers do not need to create or design their products. It also provides a wide variety of products for offering to customers. Many suppliers specialize in different categories. Overall, product reselling is the most common & popular segment in the dropshipping market.

Product Type Insight

Dropshipping market share is dominated by the electronics and media segment with a share of 33.7%, due to the high demand or increased dependency on technology in our daily life. People are constantly upgrading their gadgets. Electronic products have a global reach, and dropshipping enables retailers to sell products to customers all over the world without the need for physical stores. Additionally, high-profit margins than other product categories, which makes them attractive to drop shippers.

Recent Developments of the Dropshipping Market

  • In 2021, The dropshipping market continued to expand, as more businesses and individuals launched their online stores. The rise of e-commerce and increased demand for online shopping due to the pandemic fuelled this growth. Nevertheless, there was also increased competition in this space which necessitated improved marketing strategies and customer service approaches.
  • In 2020, The COVID-19 pandemic caused major disruptions in the global supply chain, impacting dropshipping. Some suppliers experienced delays and shortages while others needed to adjust their business models due to shifting market conditions.
  • In 2019, Dropshipping has seen a meteoric rise in popularity among entrepreneurs due to its low startup costs and versatility. More suppliers and manufacturers are now providing dropshipping services as well.

For more insights on the historical and Forecast market data from 2016 to 2032 - download a sample report at https://market.us/report/dropshipping-market/request-sample/

Market Segmentation

Based on Type

  • Product Reselling
  • Print on Demand
  • Creation of the Product
  • Business Extensions

Based on the Product Type

  • Toys Hobby and DIY
  • Furniture and Appliances
  • Food and Personal Care
  • Electronics and Media
  • Fashion
  • Beauty Health Personal and Household Care
  • Other Types

By Geography

  • North America
    • The US
    • Canada
    • Mexico
  • Western Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Portugal
    • Ireland
    • Austria
    • Switzerland
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • The Czech Republic
    • Greece
    • Rest of Eastern Europe
  • APAC
    • China
    • Japan
    • South Korea
    • India
    • Australia & New Zealand
    • Indonesia
    • Malaysia
    • Philippines
    • Singapore
    • Thailand
    • Vietnam
    • Rest of APAC
  • Latin America
    • Brazil
    • Colombia
    • Chile
    • Argentina
    • Costa Rica
    • Rest of Latin America
  • Middle East & Africa
    • Algeria
    • Egypt
    • Israel
    • Kuwait
    • Nigeria
    • Saudi Arabia
    • South Africa
    • Turkey
    • United Arab Emirates
    • Rest of MEA

Competitive Landscape

Companies are adopting both organic and inorganic growth strategies such as solution/product launches & developments, geographical expansions, mergers & acquisitions, and partnerships to stay ahead of the competitive market situation. For instance, in February 2022 Alibaba.com entered into a partnership with Dropified to offer better dropshipping services.

Key Market Players:

Listed below are some of the most important dropshipping industry players.

  • Etsy Inc.
  • Alidropship Doba Inc.
  • Megagoods Inc.
  • Inventory Source Corporation
  • Modalyst Inc.
  • Shopify Inc.
  • SaleHoo Group Ltd.
  • Sunrise Wholesale Merchandise LLC
  • Printify Inc.
  • Cin7 Orderhive Inc.
  • Wholesale2b Corporation
  • DropshipZone.in
  • Other Key Players

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