Global Dropshipping Market to Grow at 23.46% During 2024-2032, Impelled by Rapid Growth in the E-commerce Sector

November 25, 2022 | Transportation and Logistics

The latest report by IMARC Group, titled “Dropshipping Market Report by Product (Toys, Hobby and DIY, Furniture and Appliances, Food and Personal Care, Electronics and Media, Fashion), Type (Same-Day Delivery, Regional Parcel Carriers, Heavy Goods Delivery), Application (Business-to-Business (B2B), Business-to-Consumer (B2C), Customer-to-Customer (C2C)), and Region 2024-2032,” finds that the global dropshipping market is anticipated to grow at a CAGR of 23.46% during 2024-2032. 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 (Sunshine Ecommerce LLC), Doba Inc. (Focus Technology Co. Ltd.), Dropified, DropshipZone, Megagoods Inc., Modalyst Inc. ( Ltd.), SaleHoo Group Limited, Spocket, Sunrise Wholesale Merchandise and Worldwide Brands Inc.

Report Coverage:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Segment Coverage Product, Type, Application, Region
Region Covered  Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered AliDropship (Sunshine Ecommerce LLC), Doba Inc. (Focus Technology Co. Ltd.), Dropified, DropshipZone, Megagoods Inc., Modalyst Inc. ( Ltd.), SaleHoo Group Limited, Spocket, Sunrise Wholesale Merchandise and Worldwide Brands Inc.
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Global Dropshipping Market to Grow at 23.46% During 2024-2032, Impelled by Rapid Growth in the E-commerce Sector
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