Dropshipping Market is expected to reach US$ 591.77 Bn by 2027

PRESS RELEASE BY The Insight Partners 28 Aug 2020

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According to our latest market study on "Dropshipping Market Forecast to 2027 - COVID-19 Impact and Global Analysis - by Product Type (Toys, Hobby, and DIY; Furniture and Appliances; Food and Personal Care; Electronics and Media; Fashion; and Others), Organization Size (Small & Medium Enterprise and Large Enterprise), Geography," the market was valued at US$ 162.44 billion in 2019 and is projected to reach US$ 591.77 billion by 2027; it is expected to grow at a CAGR of 18.3% from 2020 to 2027.


The global dropshipping market is segmented into five major regions North America, Europe, APAC, MEA, and SAM. In 2019, APAC led the global dropshipping market with more than 31.9% revenue share, followed by Europe and North America. APAC comprises countries, such as China, India, Japan, South Korea, and Australia. India and China are the fastest-growing e-commerce markets in APAC. With the rising Internet penetration, consumers in these countries are inclined toward online shopping, which, in turn is transforming several areas of e-commerce in the region. With the right technology, it is easy to facilitate online shopping and delivery to the customers, even in rural areas. Thus, these factors are propelling the growth of the dropshipping market in APAC. At present, the dropshipping has moved from traditional stores to online, which makes shipment possible anywhere, as majority of the population has access to Internet. Less investment is a beneficial part of dropshipping, allowing new start-ups and entrepreneurs to enter and launch companies in the APAC market.


Demand for dropshipping business model is increasing immensely in various APAC countries, such as India and China. It is one of the cost-effective models for entrepreneurs to start an e-commerce business. It enables an entrepreneur to sell products online without having to carry inventory. E-commerce sales in APAC countries are growing at a rapid pace making it one of the largest industries. For instance, as per IBEF, in 2017, e-commerce sales grew at an annual rate of 51%, making it the biggest opportunity for online retailers.


Additionally, as per the China Internet Information Center, China's online retail sales surpassed US$ 1.29 trillion in 2018. Several smart products such as smart speakers and smartwatches are favored by consumers of this region, with sales upsurge of ~80% year-on-year. Sales of cosmetics and furniture also achieved swift growth in China.


Alidropship; Doba Inc.; Dropshipzone; Inventory Source; Megagoods, Inc.; Modalyst, Inc.; Orderhive; Printify, Inc.; Salehoo Group Limited; and Sunrise Wholesale Merchandise LLC are among the key players profiled in the report during this market study. Additionally, several other important market players were studied and analyzed during this market research study to get a holistic view of the global dropshipping market and its ecosystem.

Impact of COVID-19 on Dropshipping Market

According to the latest report from the World Health Organization (WHO), the US, Spain, Italy, France, Germany, UK, Russia, Turkey, Brazil, Iran, and China are some of the worst affected countries due to COVID-19 outbreak. The outbreak first began in Wuhan, China, during December 2019, and since then, it has spread at a fast pace across the globe. As of August 12, 2020, there are around 20,162,474 confirmed COVID-19 cases globally, with ~737,417 total deaths, and the number is growing at varying rates in different countries. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in 2020, which is likely to have impact on 2021 as well. The pandemic has disturbed dropshipping businesses and suppliers around the globe. Warehouses, suppliers, and delivery companies are not operating at their full capacity. This might cause some order delays. These companies are experiencing disruptions in their operations, and it is likely to have negative impact on companies across the globe, including dropshipping stores. The factory shutdowns, travel bans, trade bans, and border lockdowns to combat and contain the outbreak have adversely affected the dropshipping industry.


Dropshipping Market - Geographic Breakdown, 2019
Dropshipping Market - Geographic Breakdown, 2019

Dropshipping Market to Grow at a CAGR of 18.3% to reach US$ 591.77 Billion from 2020 to 2027

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Dropshipping Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Product Type (Toys, Hobby, and DIY; Furniture and Appliances; Food and Personal Care; Electronics and Media; Fashion; and Others), Organization Size (Small & Medium Enterprise and Large Enterprise), and Geography


The report segments the global dropshipping market as follows:

By Product Type

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

By Organization Size

  • Small & Medium Enterprise
  • Large Enterprise

By Geography

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • France
    • Germany
    • Italy
    • UK
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • India
    • South Korea
    • Japan
    • Australia
    • Rest of APAC
  • Middle East & Africa (MEA)
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA
  • South America (SAM)
    • Brazil
    • Argentina
    • Rest of SAM

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