Global Dropshipping Market By Type (Product Reselling, Print On Demand, and Business Extensions), By Product Type (Toys Hobby and DIY, Furniture and Appliances, and Other Product Types), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Sep 2023
- Report ID: 100844
- Number of Pages: 201
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Report Overview
The Global Dropshipping Market size is expected to be worth around USD 2032.00 Billion by 2032 from USD 228.92 Billion in 2022, growing at a CAGR of 25.10% during the forecast period from 2023 to 2032.
Dropshipping has seen explosive growth in recent years due to advances in e-commerce and technology. Dropshipping allows businesses to sell items without owning inventory which reduces upfront expenses & minimizes risks. This has resulted in the growth of niche e-commerce stores that offer a diverse selection of items from fashion to tech gadgets.
Unfortunately, competition for customers is fierce with thousands of drop shippers competing for customers’ attention. However, technological advancements like automation & AI have allowed drop shippers to streamline their operations & boost efficiency. They have new ways to reach potential customers through social media and influencer advertising. Dropshippers need to stay on top of emerging technologies and trends to keep their business competitive in today’s marketplace.
Driving Factors
Rise of e-Commerce and Online Shopping, Increasing Availability of Automation and AI Technologies.
The dropshipping market is being driven by various factors which are fueling its growth & popularity. One primary driver is the increase in e-commerce & online shopping which have both fostered growth 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. Dropshippers can simplify their operations, cut costs, and boost efficiency by automating tasks like order processing & inventory management, and by doing this they can focus on other important aspects of their business like marketing & customer acquisition.
Another factor driving growth in the dropshipping market is its increasing focus on niche markets & specialized products. With increased competition in this space, drop shippers are looking for ways to stand out and provide unique items to their customers. This has led to the growth of specialty dropshipping stores like those offering eco-friendly & sustainable items, personalized gifts, and luxury goods.
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. Influencer marketing has become a popular way for drop shippers to reach these prospects; influencers promote products to their followers in exchange for commission or fee payments.
Restraining Factors
High Competition, Lack of Control Over the Supply Chain, The Risk of Fraud and Chargebacks.
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.
Growth Opportunities
Continued Growth of e-commerce and continued Use of Automation, To Tap Untapped Markets.
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. As consumer preferences and behaviors shift, drop shippers can adjust and offer products tailored to them. This includes offering specialized items like eco-friendly goods, sustainable goods, personalized gifts, and luxury items.
Latest Trends
Increasing Use of Automation & AI, Rise of Niche Markets, Collaborations & Partnerships.
The dropshipping market has witnessed several recent trends that are revolutionizing how businesses run & consumers shop. One major development is the increasing use of automation & artificial intelligence to streamline processes and boost efficiency. Dropshippers are using software & tools to automate tasks like order processing, inventory management, and shipping, freeing them up to focus on other aspects of their business. Another trend in the dropshipping market is the rise of niche markets and specialized products.
Dropshippers are seeking ways to differentiate themselves and stand out in a crowded market. One strategy they are employing is offering unique and specialized products like eco-friendly or sustainable goods, personalized gifts, and luxury items. Dropshippers are increasingly focused on offering a superior customer experience. This includes offering fast and dependable shipping, attentive customer service, and straightforward returns and exchanges. As consumers become more sophisticated and demanding, drop shippers recognize the significance of providing an effortless shopping experience.
By Type Analysis
The Product Reselling Segment Accounted for the Largest Revenue Share in Dropshipping Market in 2022.
Based on type, the market is segmented into product reselling, print-on-demand, creation of the product, and business extensions. Among these types, product reselling is expected to be the most lucrative in the global dropshipping market, with the largest revenue share of 41.7% and a projected CAGR of 25.6% during the forecast period.
Due to the retailer’s partners with suppliers who already produce & ship products to customers. The retailers then market these products in their online stores and take orders from customers. The suppliers handle the production and shipping of the products directly to the customers, whereas retailers earn profit from the difference between the wholesale price paid to the supplier & retail price charged to the customer.
The Print on Demand Segment is the Fastest Growing Type Segment in the Dropshipping Market.
The print-on-demand segment is projected as the fastest-growing type segment in the dropshipping market from 2022 to 2031. Owing the POD allows entrepreneurs to create unique & customized products without having to hold inventory or invest in equipment. POD also enables to offer of a huge variety of products, from clothing to home decor and accessories, with unique designs which are not available anywhere.
Additionally, POD offers a low-risk entry point for entrepreneurs as they can start with a small investment and expand their business. The ability to test out new products & designs without committing to large quantities of inventory is an attractive suggestion for youngsters.
By Product Type Analysis
The Electronics and Media Segment Holds a Significant Share of the Product Type Segment in the Dropshipping Market.
Based on product type, the market is divided into toys hobby, and DIY, furniture and appliances, food and personal care, electronics and media, fashion, beauty, health, personal and household care, and other types. Among these, the electronics and media segment is dominant in the product type segment in the dropshipping market, with a market share of 33.7% and a CAGR of 25.8% during the forecasted period. This is due to the high demand or increased dependency on technology in our daily lives.
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. Electronics and media products are generally lightweight and easy to ship which makes them an ideal product for dropshipping.
The fashion Segment is Identified as the Fastest Growing Product Type Segment in the Projected Period.
Fashion is also an important product type segment in the dropshipping market and it is expected to grow faster in the product type segment in the dropshipping market with a CAGR of 26.4% and a market value is 26.3.%. It is fastest growing due to high-profit margins like the electronics and media the fashion industry also has high-profit margins.
Constantly evolving trends allow retailers to quickly add new products to their inventory. Additionally, fashion products are easy to ship which makes them an ideal product category for dropshipping. Social media & influencers have a major impact on the fashion industry and the fashion industry offers a variety of products from clothing to accessories which drives the fashion segment.
Key Market Segments:
Based on Type
- Product Reselling
- Print on Demand
- Creation of the Product
- Business Extensions
Based on 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
COVID-19 Impact Analysis
A surge in Online Shopping, Supply Chain Disruptions.
The COVID-19 pandemic has had a profound effect on the dropshipping industry, changing how businesses operate and consumers shop. Governments implemented lockdowns and social distancing measures to contain the virus’ spread, leading many physical stores to close their doors, leaving consumers with few choices for purchasing goods. This has led to an explosion of online shopping, with many consumers turning to drop shipping as a convenient way to obtain products without ever leaving their homes.
On one hand, the pandemic has presented drop shippers with a unique opportunity to meet the needs of consumers who are increasingly turning towards online shopping. Dropshippers have seen increased demand for their products as consumers seek ways to purchase goods without visiting a physical store. This has translated to increased sales for some drop shippers who were able to benefit from the shift in consumer habits.
However, the pandemic has presented numerous obstacles for dropshipping businesses. With supply chains disrupted and logistical difficulties arising, many drop shippers have struggled to keep up with demand. Shipping delays have become more frequent, while shipping costs have gone up as carriers try to manage their pandemic-related issues.
Dropshippers have had to adapt their product offerings during the pandemic in order to meet changing consumer needs. Many have switched over from selling personal protective equipment (PPE) and other pandemic-related items like masks, hand sanitizers, and medical supplies into selling medical equipment – which not only provided them with a new revenue stream but also required them to navigate new regulatory and compliance obligations associated with selling such medical supplies.
Regional Analysis
Asia-Pacific Accounted for the Largest Revenue Share in Dropshipping Market in 2022.
Asia-Pacific is estimated to be the most lucrative market in the global dropshipping market, with the largest market share of 38.6%, and is expected to register a CAGR of 25.4% during the forecast period. Owing to the rush in online shopping platforms. Additionally, the growing popularity of smart gadgets like laptops, mobile phones, and tablets has accelerated the demand for online shipping.
Moreover, the expansion of this region is heavily dependent on developments in telecommunications infrastructure, the spread of the internet & smartphones, and the broad appeal of social media platforms such as Instagram, Snapchat, Twitter, and Facebook.
North America is Expected as Fastest Growing Region in Projected Period in Dropshipping Market.
North America is expected as the fastest-growing region in the forecast period dropshipping market with a CAGR of 22.2%. North America’s dropshipping market is projected to experience significant growth due to factors like the adoption of AI for drop shipping operations. Online firms have already begun using AI technology to automate parts of their customer communications.
Recent advances have allowed these drop shippers to boost lead generation rates without compromising lead quality, as well as shifts in consumer mindsets towards digital shopping, social media consumption, online privacy issues, and payments.
Key Regions and Countries Covered in this Report:
- 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
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. Through this collaboration, Dropshippers can link their online storefronts on Dropified and Alibaba.com so fulfillment companies are informed when an order needs to be filled.
Market Key Players:
Listed below are some of the most prominent dropshipping market 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
Recent Developments:
- 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.
Report Scope:
Report Features Description Market Value (2022) USD 228.92 Bn Forecast Revenue (2032) USD 2032.0 Bn CAGR (2023-2032) 25.1% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type (Product Reselling, Print On Demand, Creation Of The Product, Business Extensions) By 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)
Regional Analysis 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 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 Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What will be the market size for Dropshipping Market in 2032?In 2032, the Dropshipping Market will reach USD 2032.0 billion.
What CAGR is projected for the Dropshipping Market?The Dropshipping Market is expected to grow at 25.1% CAGR (2023-2032).
Name the major industry players in the Dropshipping Market.Etsy Inc., Alidropship Doba Inc., Megagoods Inc., Inventory Source Corporation, Modalyst Inc., Shopify Inc., SaleHoo Group Ltd., Sunrise Wholesale Merchandise LLC and Other Key Players are the main vendors in this market.
List the segments encompassed in this report on the Dropshipping Market?Market.US has segmented the Dropshipping Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Type, market has been segmented into Product Reselling, Print on Demand, Creation of the Product and Business Extensions. By Product Type, the market has been further divided into, Toys Hobby and DIY, Furniture and Appliances, Food and Personal Care, Electronics and Media, Fashion, Beauty Health Personal and Household Care and Other Types.
- 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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