Global Dropshipping Market Size, Share & Industry Trends Analysis Report By Product Type (Fashion, Electronics & Media, Food & Personal Care, Toys, Hobby & DIY and Furniture & Appliances), By Regional Outlook and Forecast, 2022 - 2028

Global Dropshipping Market Size, Share & Industry Trends Analysis Report By Product Type (Fashion, Electronics & Media, Food & Personal Care, Toys, Hobby & DIY and Furniture & Appliances), By Regional Outlook and Forecast, 2022 - 2028

The Global Dropshipping Market size is expected to reach $623 billion by 2028, rising at a market growth of 20.6% CAGR during the forecast period.

Dropshipping is a form of retail fulfillment strategy for online businesses in which merchants sell goods to consumers and transfer the sales order to a third-party supplier, who then delivers the order straight to customers on the merchant's behalf. Also, there is a quickly spreading tendency of online intermediaries that charge additional money and constantly switch between wholesale and retail prices. Having top-notch customer service is essential for retaining customers, as dropshipping retailers lose some control over the consumer experience.

The e-commerce business is expanding, which fuels the demand for dropshipping services. Some of these factors include increased smartphone penetration and rising consumer disposable income. The worldwide dropshipping market is anticipated to increase greatly as a result of the rising acceptance of online purchasing and the inclination of cross-border e-commerce trade.

As a consequence, the e-commerce industry's growth is primarily responsible for the spike in demand for dropshipping services. Dropshipping is the process of selling products via online storefronts without keeping a stock of items in stock with the merchant. Instead, the manufacturer or wholesaler receives the client's order information from the store and ships the products directly to the customer.

Starting a dropshipping company is really inexpensive, and it eliminates the danger of losing money on unsold inventory. It helps merchants become more profitable, save time, and save money, all of which contribute to the growth of the dropshipping business.

According to a study of the dropshipping business, the market is expanding as a result of the simplicity with which online shops can now be established across a wide range of product categories. A new online shop may be easily set up with the help of new eCommerce providers, and drop shipping businesses can increase their market share by using an efficient marketing plan.

COVID-19 Impact Analysis

The lockdown period dramatically increased the use of dropshipping by customers to purchase necessities like prescription drugs online. Moreover, the COVID-19 pandmic has had the greatest impact on China and the U.S., which both contribute to the expansion of dropshipping. The demand for many items was damaged by the unstable economy, partial firm closures, and poor consumer confidence. During the pandemic, the supply chain was impacted along with logistical delays. Due to fewer regulations and growth in e-commerce platforms, the dropshipping sector is predicted to pick up steam in the post-pandemic environment.

Market Growth Factors

E-commerce platforms are being more widely used to support market expansion.

Conventional distribution techniques demand a lot of work from retailers in terms of inventory management. To save money on inventory purchases and upkeep, companies are resorting to dropshipping services as e-commerce platforms are utilized more often. Dropshipping has become increasingly popular among merchants due to fewer capital expenditures for logistics and inventory. The worldwide dropshipping market is anticipated to increase greatly as a result of the expanding trend of cross-border e-commerce trade and rising preference for online purchasing. Internet shopping portals provide a simple experience in addition to a broad selection of B2C items.

The internet of things is being used more and more to support efficient dropshipping

Small company owners may increase their consumer bases, vary their product offerings, and save expenses by using drop shipping. In order to send items using the dropshipping business model, third-party logistics providers (3PL) are required. As a consequence, the retailer has little control over the supply chain and is unaware of the supplier's inventory levels. At this stage, the Internet of Things (IoT) may assist the retailer by giving updates on any on-the-shelf and off-the-shelf movement of a particular product in the supplier's inventory as well as real-time information on the supplier's inventory status.

Market Restraining Factors

Dependence on outside supplies

If a business had a real product on hand, these kinds of problems would be less devastating, and operations may continue while looking for a new supplier. So, it's crucial for new companies to have a viable backup plan in place in case of such a disruption. Dropshipping gives third parties control over things like product supply and quality assurance. Retailers are prohibited from inspecting products before they are sent to consumers or from providing value-added services like pre-installing software on a phone or engraving a personalized message on jewelry. The future market expansion may be hampered by this dropshipping problem.

Product Type Outlook

Based on product type, the dropshipping market is divided into toys, furniture & appliances, hobby & DIY, food & personal care, electronics & media, and fashion. The electronics segment recorded a remarkable revenue share in the dropshipping market in 2021. As consumers can evaluate a wide range of items, take advantage of discounts, and submit a simple return request, e-commerce platforms provide a number of opportunities for the sale of electronic goods. Also, the growing availability of reasonably priced electronic goods has made it possible for internet shopping to enter previously unreachable locations. As a result, there is a massive worldwide application of such dropshipping services.

Regional Outlook

Region wise, the dropshipping market is analyzed across North America, Europe, Asia Pacific and LAMEA. The Asia Pacific region led the dropshipping market with the maximum revenue share in 2021. Due to the explosion of online shopping platforms, the APAC region's e-commerce market is expanding at an unheard-of pace. Also, the need for online shopping has increased due to the rising use of smart devices like computers, mobile phones, and tablets, among others. This region's growth is also primarily attributable to improvements in telecommunications infrastructure, the proliferation of smartphones and the internet, and the widespread use of social media platforms such as Facebook, Snapchat, and Twitter.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Shopify Inc., AliDropship LLC (Sunshine Group), Doba, Inc. (Focus Technology Co., Ltd.), Megagoods, Inc., Modalyst, Inc. (Wix.com Ltd.), Printify, Inc., SaleHoo Group Limited (Doubledot), Sunrise Wholesale Merchandise LLC, and Wholesale2b.

Scope of the Study

Market Segments covered in the Report:

By Product Type

  • Fashion
  • Electronics & Media
  • Food & Personal Care
  • Toys, Hobby & DIY
  • Furniture & Appliances
By Geography
  • North America
  • US
  • Canada
  • Mexico
  • Rest of North America
  • Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
  • Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
  • LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA
Companies Profiled
  • Shopify Inc.
  • AliDropship LLC (Sunshine Group)
  • Doba, Inc. (Focus Technology Co., Ltd.)
  • Megagoods, Inc.
  • Modalyst, Inc. (Wix.com Ltd.)
  • Printify, Inc.
  • SaleHoo Group Limited (Doubledot)
  • Sunrise Wholesale Merchandise LLC
  • Wholesale2b
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Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 Global Dropshipping Market, by Product Type
1.4.2 Global Dropshipping Market, by Geography
1.5 Methodology for the research
Chapter 2. Market Overview
2.1 Introduction
2.1.1 Overview
2.1.1.1 Market Composition & Scenario
2.2 Key Factors Impacting the Market
2.2.1 Market Drivers
2.2.2 Market Restraints
Chapter 3. Global Dropshipping Market by Product Type
3.1 Global Fashion Market by Region
3.2 Global Electronics & Media Market by Region
3.3 Global Food & Personal Care Market by Region
3.4 Global Toys, Hobby & DIY Market by Region
3.5 Global Furniture & Appliances Market by Region
Chapter 4. Global Dropshipping Market by Region
4.1 North America Dropshipping Market
4.1.1 North America Dropshipping Market by Product Type
4.1.1.1 North America Fashion Market by Country
4.1.1.2 North America Electronics & Media Market by Country
4.1.1.3 North America Food & Personal Care Market by Country
4.1.1.4 North America Toys, Hobby & DIY Market by Country
4.1.1.5 North America Furniture & Appliances Market by Country
4.1.2 North America Dropshipping Market by Country
4.1.2.1 US Dropshipping Market
4.1.2.1.1 US Dropshipping Market by Product Type
4.1.2.2 Canada Dropshipping Market
4.1.2.2.1 Canada Dropshipping Market by Product Type
4.1.2.3 Mexico Dropshipping Market
4.1.2.3.1 Mexico Dropshipping Market by Product Type
4.1.2.4 Rest of North America Dropshipping Market
4.1.2.4.1 Rest of North America Dropshipping Market by Product Type
4.2 Europe Dropshipping Market
4.2.1 Europe Dropshipping Market by Product Type
4.2.1.1 Europe Fashion Market by Country
4.2.1.2 Europe Electronics & Media Market by Country
4.2.1.3 Europe Food & Personal Care Market by Country
4.2.1.4 Europe Toys, Hobby & DIY Market by Country
4.2.1.5 Europe Furniture & Appliances Market by Country
4.2.2 Europe Dropshipping Market by Country
4.2.2.1 Germany Dropshipping Market
4.2.2.1.1 Germany Dropshipping Market by Product Type
4.2.2.2 UK Dropshipping Market
4.2.2.2.1 UK Dropshipping Market by Product Type
4.2.2.3 France Dropshipping Market
4.2.2.3.1 France Dropshipping Market by Product Type
4.2.2.4 Russia Dropshipping Market
4.2.2.4.1 Russia Dropshipping Market by Product Type
4.2.2.5 Spain Dropshipping Market
4.2.2.5.1 Spain Dropshipping Market by Product Type
4.2.2.6 Italy Dropshipping Market
4.2.2.6.1 Italy Dropshipping Market by Product Type
4.2.2.7 Rest of Europe Dropshipping Market
4.2.2.7.1 Rest of Europe Dropshipping Market by Product Type
4.3 Asia Pacific Dropshipping Market
4.3.1 Asia Pacific Dropshipping Market by Product Type
4.3.1.1 Asia Pacific Fashion Market by Country
4.3.1.2 Asia Pacific Electronics & Media Market by Country
4.3.1.3 Asia Pacific Food & Personal Care Market by Country
4.3.1.4 Asia Pacific Toys, Hobby & DIY Market by Country
4.3.1.5 Asia Pacific Furniture & Appliances Market by Country
4.3.2 Asia Pacific Dropshipping Market by Country
4.3.2.1 China Dropshipping Market
4.3.2.1.1 China Dropshipping Market by Product Type
4.3.2.2 Japan Dropshipping Market
4.3.2.2.1 Japan Dropshipping Market by Product Type
4.3.2.3 India Dropshipping Market
4.3.2.3.1 India Dropshipping Market by Product Type
4.3.2.4 South Korea Dropshipping Market
4.3.2.4.1 South Korea Dropshipping Market by Product Type
4.3.2.5 Singapore Dropshipping Market
4.3.2.5.1 Singapore Dropshipping Market by Product Type
4.3.2.6 Malaysia Dropshipping Market
4.3.2.6.1 Malaysia Dropshipping Market by Product Type
4.3.2.7 Rest of Asia Pacific Dropshipping Market
4.3.2.7.1 Rest of Asia Pacific Dropshipping Market by Product Type
4.4 LAMEA Dropshipping Market
4.4.1 LAMEA Dropshipping Market by Product Type
4.4.1.1 LAMEA Fashion Market by Country
4.4.1.2 LAMEA Electronics & Media Market by Country
4.4.1.3 LAMEA Food & Personal Care Market by Country
4.4.1.4 LAMEA Toys, Hobby & DIY Market by Country
4.4.1.5 LAMEA Furniture & Appliances Market by Country
4.4.2 LAMEA Dropshipping Market by Country
4.4.2.1 Brazil Dropshipping Market
4.4.2.1.1 Brazil Dropshipping Market by Product Type
4.4.2.2 Argentina Dropshipping Market
4.4.2.2.1 Argentina Dropshipping Market by Product Type
4.4.2.3 UAE Dropshipping Market
4.4.2.3.1 UAE Dropshipping Market by Product Type
4.4.2.4 Saudi Arabia Dropshipping Market
4.4.2.4.1 Saudi Arabia Dropshipping Market by Product Type
4.4.2.5 South Africa Dropshipping Market
4.4.2.5.1 South Africa Dropshipping Market by Product Type
4.4.2.6 Nigeria Dropshipping Market
4.4.2.6.1 Nigeria Dropshipping Market by Product Type
4.4.2.7 Rest of LAMEA Dropshipping Market
4.4.2.7.1 Rest of LAMEA Dropshipping Market by Product Type
Chapter 5. Company Profiles
5.1 Shopify, Inc.
5.1.1 Company Overview
5.1.2 Financial Analysis
5.1.3 Regional Analysis
5.1.4 Research & Development Expense
5.1.5 Recent strategies and developments:
5.1.5.1 Partnerships, Collaborations, and Agreements:
5.1.5.2 Acquisition and Mergers:
5.2 AliDropship LLC (Sunshine Group)
5.2.1 Company Overview
5.3 Doba, Inc. (Focus Technology Co., Ltd.)
5.3.1 Company Overview
5.4 Megagoods, Inc.
5.4.1 Company Overview
5.5 Modalyst, Inc. (Wix.com Ltd.)
5.5.1 Company Overview
5.5.2 Financial Analysis
5.5.3 Regional Analysis
5.5.4 Research & Development Expenses
5.6 Printify, Inc.
5.6.1 Company Overview
5.7 SaleHoo Group Limited (Doubledot)
5.7.1 Company Overview
5.8 Sunrise Wholesale Merchandise LLC
5.8.1 Company Overview
5.9 Wholesale2b
5.9.1 Company Overview

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