Dropshipping Market Report Scope ; Revenue forecast in 2030. USD 1,253.79 billion ; Growth Rate. CAGR of 23.4% from 2023 to 2030 ;
Dropshipping Market Report Scope via: grandviewresearch.com
From 2019 to 2025, the dropshipping market is predicted to grow at a CAGR of 28.8 percent, with a market value of USD 102.2 billion in 2018. Growth in online shopping and e-commerce trading across borders is expected to drive the market.
There has been a significant increase in demand for dropshipping as the e-commerce business has grown. Dropshipping is the practice of selling products through online storefronts without keeping a physical inventory of the products themselves in stock.
The retailer sends the customer’s order and shipping information to either the manufacturer or wholesaler, who then ships the items straight to the client from the manufacturer or wholesaler.
|The market size value in 2020||USD 149.4 billion|
|The revenue forecast in 2025||USD 557.9 billion|
|Growth Rate||CAGR of 28.8% from 2019 to 2025|
|The base year for estimation||2018|
|Historical data||2015 – 2017|
|Forecast period||2019 – 2025|
|Quantitative units||Revenue in USD billion and CAGR from 2019 to 2025|
|Report Coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Segments Covered||Product and region.|
|Regional scope||North America; Europe; Asia Pacific; Latin America; Middle East & Africa.|
|Country scope||U.S.; Canada; U.K.; Germany; France; India; China; Japan; and Brazil.|
|Key companies profiled||AliDropship; Doba, Inc.; SaleHoo Group Limited; and Oberlo.|
|Customization scope||Free report customization (equivalent to up to 8 analyst working days) with purchase. Addition or alteration to country; regional & segment scope.|
|Pricing and purchase options||Avail customized purchase options to meet your exact research needs. Explore purchase options|
Smartphones have made internet purchasing easier with mobile apps. Rising smartphone penetration and consumer discretionary income are fueling e-commerce growth and demand for dropshipping services. Due to the popularity of online purchasing, e-commerce industry leaders have increased their investments. According to UNCTAD, there were 1,078 million online shoppers in 2015 and 1,342 million in 2017.
The Asia Pacific e-commerce market has grown due to rising disposable income and online purchasing preferences. This e-commerce expansion should favor dropshipping. The Indian e-commerce market was worth USD 38.5 billion in 2017 and is predicted to reach USD 200.0 billion by 2026, a CAGR of 51.0%.
Traditional distribution systems demand enormous inventory management expenses. With the rise of e-commerce, retailers are opting for dropshipping to cut inventory purchase/management costs. Fewer inventory and logistics investments have raised merchants’ demand for dropshipping. Fewer overhead expenditures and a wide product variety will stimulate market expansion.
Unauthorized or fraudulent transactions may slow market growth. Since dropshipping involves internet transactions, payment security is a major concern. Security breaches/cyberattacks on payment gateways are a market challenge. Dropshipping services need a delivery infrastructure to avoid late deliveries, damage, or loss. Shipping and logistical complications could slow market expansion.
According to the provided information, the market has been classified into several segments based on different product categories. Let’s take a closer look at the insights for each segment:
- Toys: No specific insights are mentioned in the given text.
- Hobby and DIY: No specific insights are mentioned in the given text.
- Furniture and Appliances: No specific insights are mentioned in the given text.
- Food and Personal Care: The beauty and personal care segment is highlighted as having significant potential in the dropshipping market. Customers prefer online shopping for personal and beauty-related products due to the convenience and the ability to clearly see what they will receive. Data is crucial for personal and beauty care brands to target clients and develop products. By utilizing social commerce, beauty brands can reach a global audience and explore foreign markets without relying on local merchants and distributors.
- Electronics and Media: The electronics segment accounted for a significant market share in 2022, driven by the growing demand for electronic products. E-commerce platforms play a crucial role in the sale of electronics, providing customers with extensive product portfolios, discounts, and easy returns.
- Fashion: The fashion segment is anticipated to experience positive growth in the dropshipping market from 2023 to 2030. This growth is attributed to rapid globalization, changes in consumer spending behavior, and the preference for branded products. Online platforms that offer multiple fashion brands in one place contribute to the growth of this segment. It is estimated to have the highest compound annual growth rate (CAGR) of 24.8% during the forecast period.
In summary, while the provided information lacks specific insights for all product segments, it suggests that the beauty and personal care segment and the fashion segment hold significant potential in the dropshipping market.
Market Share Insights and Key Companies
In order to maintain a competitive edge in the market, companies are adopting both organic and inorganic growth strategies, including the launch of new solutions/products, geographical expansions, mergers and acquisitions, and partnerships. A notable example of such strategic collaboration took place in February 2022, when Alibaba.com joined forces with Dropified to enhance their dropshipping services. This partnership enables dropshippers to seamlessly connect their online storefronts on Dropified and Alibaba.com. Consequently, fulfillment companies receive timely notifications when orders are placed, ensuring efficient order fulfillment.
The global dropshipping market features several prominent players, including:
- Etsy, Inc.
- Doba Inc.
- Megagoods Inc.
- Inventory Source
- Modalyst Inc.
- Shopify Inc.
- SaleHoo Group Limited
- Sunrise Wholesale Merchandise LLC
- Cin7 Orderhive Inc.
These companies play significant roles in the dropshipping market, offering a range of services and solutions to meet the needs of online retailers and customers alike. Through their expertise and market presence, these players contribute to the growth and development of the dropshipping industry.