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Global dropshipping Market to Grow at 28.40% During 2022-2027, Impelled by Rapid Growth in the E-commerce Sector

Published on Nov 25, 2022

The latest report by IMARC Group, titled “Dropshipping Market: Global Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2022-2027,” finds that the global dropshipping market is anticipated to exhibit a CAGR of 28.40% during 2022-2027. Dropshipping refers to an order fulfillment model that enables retailers and e-commerce businesses to outsource procuring, storing, and shipping goods to a third-party supplier, such as a manufacturer or wholesaler, instead of warehousing inventory. It generally involves signing agreements with drop shippers, online order placement by customers, and product delivery. It offers numerous advantages, such as reduced overhead and starting costs, better scalability and flexibility, and a more comprehensive product portfolio. It aids enterprises in setting up e-commerce stores, increasing their customer base, and allowing expansion into new markets at relatively lower capital. In recent years, dropshipping has gained immense popularity across the globe as it assists in shipping orders timely, tracking inventories, and handling inbound shipments.

Global Dropshipping Market Trends:

Rapid growth in the e-commerce sector due to increasing preferences for online shopping among consumers represents the primary factor driving the market growth. Moreover, the growing usage of online retail platforms for buying essentials and consumer goods owing to the implementation of mandatory lockdowns and social distancing norms amid the sudden coronavirus disease (COVID-19) outbreak has augmented the product demand. This is further supported by the easy process of ordering and returns, multiple payment methods, and a wide range of product options offered by e-commerce platforms. In addition, there has been a significant shift from conventional distribution methods toward the dropshipping business model among retailers due to its numerous benefits, including lower capital inputs in inventory and logistics. Along with this, the surging penetration of smartphones and the widespread availability of high-speed internet across the globe are other major growth-inducing factors. Furthermore, the leading players are entering into strategic collaborations to automate business processes with higher financial output. In line with this, continual technological advancements, such as the integration of voice-enabled virtual assistants and chatbots with e-commerce websites and apps to streamline dropshipping operations, have propelled market growth. Other factors, including the growing popularity of mobile e-commerce, escalating demand for faster delivery of packages, changing consumer spending patterns, increasing number of e-commerce startups, and rising cross-border e-commerce trade activities, are creating a favorable market outlook.

Market Summary:

  • Based on the product, the market has been segmented into toy, hobby and DIY, furniture and appliances, food and personal care, electronics and media, and fashion. 
  • On the basis of the type, the market has been classified into same-day delivery, regional parcel carriers, and heavy goods delivery.
  • The market has been divided based on the application into business-to-business (B2B), business-to-consumer (B2C), and customer-to-customer (C2C).
  • Region-wise, the market has been segregated into North America (the United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
  • The competitive landscape of the market has also been examined, with some of the key players being AliDropship LLC, Doba Inc., Dropified LLC, DropshipZone, Megagoods Inc., Modalyst Inc. ( Inc.), SaleHoo Group Limited, Shopify Inc., Spocket Inc., Sunrise Wholesale Merchandise LLC, and Worldwide Brands Inc.

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IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

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