Dropshipping Market Key Findings, Size, and Share by 2031
The global dropshipping market size is expected to grow from US$ 230.56 billion in 2023 to US$ 896.46 billion by 2031; it is anticipated to expand at a CAGR of 18.5% from 2023 to 2031. The increasing utilization of AI and automation is likely to remain a key dropshipping market trends.
Dropshipping Market Analysis
The burgeoning e-commerce sector has seen tremendous expansion in recent years, propelling the dropshipping business. The rise of the e-commerce industry has made it simpler for firms to establish online storefronts and access a worldwide client base, propelling the dropshipping market.
Dropshipping Market Overview
Dropshipping is a retail approach in which an online business does not hold its items in inventory. Instead, when a consumer places an order, the business sends it along with payment to a dropshipping provider. The supplier then sends the goods to the consumer. Many business owners choose dropshipping because it allows suppliers to handle order fulfillment. This implies that retailers do not need to invest in storage space or risk being trapped with unsold products. As a result, firms may devote more resources to other retail operations, including marketing.
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Dropshipping Market: Strategic Insights
Market Size Value in US$ 162.44 Billion in 2019 Market Size Value by US$ 591.77 Billion by 2027 Growth rate CAGR of 18.3% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Dropshipping Market: Strategic Insights
![dropshipping-market](https://www.theinsightpartners.com/assets/rdimages/dropshipping-market-img1.png)
Market Size Value in | US$ 162.44 Billion in 2019 |
Market Size Value by | US$ 591.77 Billion by 2027 |
Growth rate | CAGR of 18.3% from 2020-2027 |
Forecast Period | 2020-2027 |
Base Year | 2020 |
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Dropshipping Market Drivers and Opportunities
Growing Preference for Online Shopping to Favor Market
Ecommerce is transforming the retail landscape. People's purchasing habits are changing swiftly, and buying anything online is becoming the new standard. This expansion is being driven by a variety of causes, including the development of mobile commerce, the rise of social networking, and the growing popularity of subscription services. Countries in Asia-Pacific and South America are now experiencing the fastest development in the ecommerce sector. This is attributable to both the fast adaption of new technology and the demographic structure of these nations, which has more young people than senior individuals. These younger generations are more tech-savvy and prefer to shop online rather than offline.
Automation and Technology
Dropshipping is a business strategy in which the seller does not hold inventory in stock but instead sends customer orders and shipment data to the manufacturer, another merchant, or a wholesaler, who distributes the products straight to the client. Drop shippers benefit greatly from automation since it improves productivity and streamlines operations. Drop shippers may save time and minimize burden by automating many areas of their business, resulting in a more efficient and profitable operation. Dropshipping automation software helps dropshippers automate daily duties including order routing to manufacturers, inventory management, and shipment procedures.
Dropshipping Market Report Segmentation Analysis
Key segments that contributed to the derivation of the dropshipping market analysis product type, and organization size.
- Based on product type, the market is divided into smart toys, hobby and DIY, furniture and appliances, food and personal care, electronics and media, fashion, and others. The electronics and media segment held a larger market share in 2023.
- Based on organization size, the market is bifurcated into small & medium enterprise and large enterprise. The large enterprise segment held a larger market share in 2023.
Dropshipping Market Share Analysis by Geography
The geographic scope of the Dropshipping market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. North America dominated the dropshipping market in 2023. The rise in consumer disposable income is one of the factors driving the growth of the dropshipping market in North America. Dropshipping offers advantages such as fewer overhead costs and a broad product portfolio, which attract retailers and contribute to the growth of the market.
Dropshipping Market Report Scope
Dropshipping Market News and Recent Developments
The dropshipping market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
- In March 2023, ShipStation launched ShipStation Dropship Manager, a new solution designed specifically for dropship managers. This product aims to automate and streamline order fulfillment processes, reducing errors caused by manual vendor management. The core features of ShipStation Dropship Manager include order routing, real-time order status updates between dropship managers and vendors, branded tracking, and the ability to use a custom email domain for enhanced customer engagement. Additionally, dropship managers can invite their suppliers to join the platform, facilitating quick onboarding and entry into the market.
(Source: ShipStation, Press Release, 2023)
Dropshipping Market Report Coverage and Deliverables
The "Dropshipping Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
![Report Coverage](https://www.theinsightpartners.com/assets/rdimages/report_coverage.png)
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
![Segment Covered](https://www.theinsightpartners.com/assets/rdimages/segment_covered.png)
Segment Covered
Product Type , Organization Size , and Geography
![Regional Scope](https://www.theinsightpartners.com/assets/rdimages/regional_scope.png)
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
![Country Scope](https://www.theinsightpartners.com/assets/rdimages/country_scope.png)
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The growing e-commerce market has experienced significant growth in recent years, which in turn is driving the dropshipping market.
The key players holding the majority of shares in global dropshipping are AliDropship, Doba Inc., Dropship Zone, Inventory Source, and Megagoods, Inc.
The global dropshipping market is expected to reach US$ 896.46 billion by 2031.
The dropshipping market size is expected to grow from US$ 230.56 billion in 2023 to US$ 896.46 billion by 2031; it is anticipated to expand at a CAGR of 18.5% from 2024 to 2031.
The increasing utilization of AI and automation is likely to remain a key dropshipping market trends.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.