Dropshipping Market to Grow at a CAGR of 18.3% to reach US$ 591.77 Billion from 2020 to 2027
[Research Report] The dropshipping market was valued at US$ 162.44 billion in 2019 and is expected to grow at a CAGR of 18.3% during the forecast period to reach US$ 591.77 billion by 2027.
The e-commerce sector offers a huge platform for shopping, which is increasing at an unprecedented rate across the world. Nowadays, consumers prefer online shopping, as a considerable number of websites are available to choose products from. Moreover, e-commerce platforms also help numerous businesses reach easily to customers, and hence necessary exposure to business is achieved. The sector is propelled by a growing emphasis on online marketing tools, including Google ads and Facebook ads. E-commerce is one of the mature industries in the US, where consumers are highly inclined toward online shopping. According to the Census Bureau of the Department of Commerce, US retail e-commerce sales were US$ 160.3 billion for the first quarter of 2020, an increase of 2.4% from the fourth quarter of 2019. The industry is also popular amongst consumers of all ages in developing countries of APAC, such as India and China. Thus, rising e-commerce industries in North America and APAC are flourishing in the business for dropshipping. Dropshipping is a profitable business model for e-commerce companies that do not need much capital to start with. According to the 2018 State of the Merchant eCommerce Report, out of 450 online stores, ~16.4% are using dropshipping and it is likely to surge in the coming years. The growing popularity of leading dropshipping stores, such as Home Depot and Macy’s, have adopted this business model to broaden their online reach.
The growing e-commerce industry offers several opportunities for selling various quality products such as electronics, food, and personal care and appliances since customers can compare a broad product portfolio, get discounts, and request easy returns. Various e-commerce platforms are acquiring dropshipping service providers to extend their presence in dropshipping business. For instance, Shopify, Inc., an e-commerce company, has acquired Oberlo, a dropshipping service provider. The acquisition allowed Shopify to enhance its position in the dropshipping market. Further, the various e-commerce businesses are expanding their product portfolio in order to offer dropshipping services to wholesalers. Thus, growth of e-commerce industry is boosting the demand for dropshipping.
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Dropshipping Market: Strategic Insights
Dropshipping Market
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![](https://www.theinsightpartners.com/assets/images/rd_int_img/cagr.png)
CAGR (2019 - 2027)
18.3%
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Market Size 2019
US$ 162.44 Billion
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Market Size 2027
US$ 591.77 Billion
Market Dynamics
GROWTH DRIVERS
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FUTURE TRENDS
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OPPORTUNITIES
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Key Players
- alidropship.com
- Doba Inc.
- DropshipZone
- Inventory Source
- Megagoods, Inc.
- MODALYST, INC.
- Orderhive
- Printify, Inc.
- SaleHoo Group Limited
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Product Type
- Toys
- Hobby
- DIY
- Furniture and Appliances
- Food and Personal Care
- Electronics and Media
- Fashion
- Others
Organization Size
- Small & Medium Enterprise and Large Enterprise
Geography
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South and Central America
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Dropshipping Market: Strategic Insights
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CAGR (2019 - 2027)18.3% -
Market Size 2019
US$ 162.44 Billion -
Market Size 2027
US$ 591.77 Billion
![](https://www.theinsightpartners.com/assets/images/rd_int_img/tip-logo.jpg)
Market Dynamics
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Key Players
- alidropship.com
- Doba Inc.
- DropshipZone
- Inventory Source
- Megagoods, Inc.
- MODALYST, INC.
- Orderhive
- Printify, Inc.
- SaleHoo Group Limited
Regional Overview
![](https://www.theinsightpartners.com/assets/images/rd_int_img/ig-regional.png)
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
![](https://www.theinsightpartners.com/assets/images/rd_int_img/cust_bullet_danger.png)
- Toys
- Hobby
- DIY
- Furniture and Appliances
- Food and Personal Care
- Electronics and Media
- Fashion
- Others
![](https://www.theinsightpartners.com/assets/images/rd_int_img/cust_bullet_warning.png)
- Small & Medium Enterprise and Large Enterprise
![](https://www.theinsightpartners.com/assets/images/rd_int_img/cust_bullet_primary.png)
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South and Central America
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Impact of COVID-19 Pandemic on Dropshipping Market
The COVID-19 outbreak has had an adverse impact on the dropshipping market in the North American region. Manufacturers, suppliers, and logistics companies are experiencing disruptions to their operations, which is delaying the products' deliveries. The continuously spreading virus-infected patients in the US has restricted numerous logistics companies to operate normally. The US accounts for the highest number of dropshipping market players in the region, and slower than usual growth during COVID-19 crisis is reflecting downfall in the dropshipping market valuation in 2020.
Market Insights
Surging Growth Opportunities in APAC
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 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.
In India, wholesale might cost businesses more money via the cost of goods and shipping charges. The shipping cost is high since individual entrepreneurs do not have access to government deals. However, dropshipping enables businesses to automate their business in order to focus on tasks that produce revenue. It also saves the cost of goods. With dropshipping, shipping goods can cost less and can sometimes even be free. The platform enables dropshippers in India to sell their products across the globe to grow their businesses quickly. Thus, the growing demand for dropshipping services offers an opportunity for various entrepreneurs in Asian countries to start their business with fewer capital investments in inventory.
Product Type Market Insights
Due to the growing penetration of e-commerce platforms, various retailers are opting for dropshipping services in order to reduce capital costs of inventory purchases. The rising demand for numerous products, such as electronics and fashion, opens up several avenues for dropshipping in retailers. Less overhead costs and broad product portfolio are some of the factors projected to fuel market growth. Based on product type, the dropshipping market is segmented into toys, hobby and DIY, furniture and appliances, food and personal care, electronics and media, fashion, and others.
Organization Size Market Insight
The dropshipping market is segmented into small and medium enterprises and large enterprises based on the organization size. Dropshipping helps businesses of all sizes cut costs based on warehouse rent, insurance, inventory, and other expenses. It also enables to reach customers irrespective of geography without the requirement to build brick and mortar stores.
The players operating in the enterprise content management market focus on strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
- In August 2020, Inventory Source announced new dropship suppliers for the month of August including HomeSnob, UFM Men’s Underwear, Direct Dropship UK, U Suck, ALLNET, RakADX, and ZFI Inc.
- In March 2020, Alidropship.com introduced Sellika, a new plugin for WordPress that automates product information editing.
Dropshipping Market Report Scope
Report Attribute | Details |
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Market size in 2019 | US$ 162.44 Billion |
Market Size by 2027 | US$ 591.77 Billion |
Global CAGR (2019 - 2027) | 18.3% |
Historical Data | 2017-2018 |
Forecast period | 2020-2027 |
Segments Covered |
By Product Type
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Regions and Countries Covered | North America
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Market leaders and key company profiles |
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Global Dropshipping Segments:
Dropshipping Market – By Product Type
- Toys, Hobby and DIY
- Furniture and Appliances
- Food and Personal Care
- Electronics and Media
- Fashion
- Others
Dropshipping Market – By Organization Size
- Small and Medium-Size Enterprises
- Large Enterprises
Dropshipping Market – By Geography
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Rest of Europe
- Asia Pacific (APAC)
- Australia
- China
- India
- Japan
- Rest of APAC
- Middle East & Africa (MEA)
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
- South America (SAM)
- Brazil
- Rest of SAM
Companies
- alidropship.com.
- Doba Inc.
- DropshipZone
- Inventory Source
- Megagoods, Inc.
- MODALYST, INC.
- Orderhive
- Printify, Inc.
- SaleHoo Group Limited
- Sunrise Wholesale Merchandise LLC
![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 electronics and media segment is the leading product type in the market. Consumer electronics comprises all electronics, such as televisions and DVD players, and communications devices, such as smartphones and laptops. Dropshipping of electronics and media is gaining huge popularity; several dropshippers of electronics and media have capitalized on the ready market of electronic consumers in order to profit themselves. In recent times, a huge growth in the number of wholesale electronics dropshippers has been observed, owing to the less weight of consumer electronics; also, they can reasonably ship to consumers.
The dropshipping market is likely to experience substantial growth rate owing to a surge in online shopping and the growing trend of cross-border e-commerce trade. Thus, the demand for dropshipping services is principally influenced by the growth of the e-commerce platforms. The rising penetration of smartphones and rising disposable income in emerging markets are also driving the demand for dropshipping services.
APAC led the global dropshipping market in 2019. APAC comprises prime nations 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 dropshopping market in APAC.
The List of Companies - Dropshipping Market
- alidropship.com
- Doba Inc.
- DropshipZone
- Inventory Source
- Megagoods, Inc.
- MODALYST, INC.
- Orderhive
- Printify, Inc.
- SaleHoo Group Limited
- Sunrise Wholesale Merchandise LLC