North America Dropshipping - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

North America Dropshipping - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The North America Dropshipping Market size is estimated at USD 90.35 billion in 2024, and is expected to reach USD 228.98 billion by 2029, growing at a CAGR of 20.86% during the forecast period (2024-2029).

The dropshipping market is booming in North America due to the increasing demand for consumer electronics. Consumer electronics such as tablets, smartphones, and laptops are becoming increasingly popular in North America, opening up new and exciting possibilities for various upcoming technological developments. This has resulted in a growing penetration of consumer electronics in economies across North America, including Mexico and Canada.

The consumer electronics industry in North America has a lot of room for growth, and consumption is expected to increase as more and more brands enter the market. Mobile phone cases are a promising niche in e-commerce, and they are growing quickly. Consumer electronics are one of the product categories that are driving dropshipping businesses in North America, and many start-ups are taking advantage of this. The growing e-commerce sector is also expected to positively impact the demand for dropshipping.

The Electronics and media segment dominated the North American dropshipping market by product type. Dropshipping for electronics and media has become very popular, and it has the potential to make more sales and profit.

Dropshippers for electronics and media are taking advantage of the well-established electronics consumer market to make more profit. In recent years, there has been a significant increase in wholesale electronics dropshippers. This is due to the fact that consumer electronics are much lighter and can be easily shipped to the consumer.

Furthermore, you can quickly make more money by selling accessories. For example, dropshippers of consumer electronics can sell tablet and phone covers directly to buyers. As the demand for electronics and media continues to grow, the number of electronics dropshippers will increase due to the increased profit and sales, which will continue to drive the North American dropshipping market.

North America Dropshipping Market Trends

The electronics and media segment is expanding rapidly

The US is not only known for its technology-savvy consumer base that buys electronic devices through digital channels but also for its lucrative consumer electronics E-commerce segment, which generated revenues of more than USD 90 billion in 2022.

Home to the world-famous Silicon Valley, it’s no surprise that US tech companies dominated the global market. Looking at the top consumer electronics online stores worldwide, all but one among the top five companies were U.S-based enterprises. Amazon and Apple ranked as the world’s two most valuable brands in 2023, with a combined brand value approaching USD 300 billion.

In fact, Amazon accounts for almost 50% of total retail e-commerce revenue in the United States in the category of computers and consumer electronics. This is also evident in the Top Consumer Electronics Online Stores list in the United States, where Amazon was the clear market leader. In 2022, Amazon generated more than USD 44 billion in net e-commerce sales, surpassing industry leader Apple by a whopping USD 15 billion.

United States holds a prominent position in the market

The US e-commerce market has been constantly changing over the last decade and can claim to be one of the biggest e-commerce markets in the world. E-commerce sales in the retail sector are expected to increase at a CAGR of 9.2% from 2023 to 2027, reaching an estimated USD 1.4 trillion.

Amazon is by far the largest online retailer in the United States. Not only does it hold the largest online shopping market share, but it also leads the pack when it comes to online retail sales. In 2022, Amazon significantly outpaced its US competitors, generating approximately USD 130 billion in retail e-commerce revenue in the country. Other leading e-retailers include eBay, Walmart, Target, and Apple.

Customer satisfaction with e-commerce retail is high in the US. However, e-commerce sales account for only about 15 percent of total retail sales in 2023, and eight in ten US internet users were expected to shop online in 2022.

E-commerce channels such as online retailers, brand websites, and online marketplaces are all popular, but social media is becoming increasingly important for online shoppers. For example, in the last four months of 2022, 3 out of every 10 Gen Z shoppers surveyed in the United States bought a product from a social platform.

Mobile shopping is one of the fastest-growing aspects of the global e-commerce market, and it’s no different in the United States. As social commerce continues to grow, so does the number of mobile shoppers. It’s no surprise that smartphones are the most popular devices used to shop online in the United States today. This large base of mobile shoppers directly affects mobile commerce revenue.

By the end of 2022, mobile commerce accounted for 38 percent of total e-commerce sales. While online retail orders have decreased overall in the United States, mobile commerce has remained the shopping channel with the least impact.

North America Dropshipping Industry Overview

The North American drop shipping market has a highly competitive landscape, with numerous players vying for market share. Drop shipping has gained popularity in recent years due to its low entry barriers and potential for high-profit margins.

One of the key factors driving the competitiveness of the North American drop shipping market is the rise of e-commerce. With the increasing number of online retailers, there is a growing demand for efficient and cost-effective order fulfillment solutions. Drop shipping, which allows retailers to sell products without physically stocking them, has emerged as a popular choice.

The major players in the market include Shopify, Oberlo, Doba, SaleHoo, AliExpress, etc.

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