Global Dropshipping Market
The global dropshipping market is on a rapid growth trajectory and the size of the global dropshipping market is expected to be worth USD 984.4 billion by 2029 from USD 344.04 billion in 2024, growing at a whopping 23.4% CAGR from 2024 to 2029.
Drivers
The dropshipping market growth is fueled by the rising demand for express delivery. The expansion of e-commerce has considerably surged the need for one-day or ultra-fast deliveries, making it an important part of the prosperity of this ever-rising sector. This caused quick commerce to propel tremendously. Another factor driving the market growth is the expanding reach of digital platforms which has been a substantial booster of the rise of the dropshipping market. E-commerce applications such as Shopify, eBay, and Amazon have made it convenient for companies to sell items online, with product sourcing being a common model for various entrepreneurs.
Restraints
Identifying dependable and credible suppliers is one of the primary restraints for the growth of the dropshipping market. Today, the majority of customers have access to all the relevant information through the internet, so they expect the desired quality product which worthy of that price. With the rise of online shopping, e-commerce returns or refunds have also increased. The return rate for online sales ranges between 20 per cent to 30 per cent. They are usually greater than brick-and-mortar shops and should be accounted for as an element of common business practices. Hence, finding reliable suppliers is a major constraint for the market.
Segment Analysis
By Product
· Toys
· Hobbies and DIY
· Furniture and Appliances
· Food and Personal Care
· Electronics and Media
· Fashion
The fashion segment holds the maximum share of the dropshipping market and is estimated to maintain its position over the forecast period. Clothing or apparel is one of the leading profitable dropshipping niche ideas. For instance, Purchasing clothes from online platforms has become more prevalent, with fashion e-commerce holding around 23 per cent of all digital retail sales in the United States. On the other hand, the food and personal care segment is also expanding quickly.
Regional Analysis
Asia Pacific is swiftly moving forward in the dropshipping market and is projected to be in a commanding position in the coming years. The regional market growth is believed to be driven by China and India. The Indian e-commerce market has expanded significantly in recent years, which has surged the number of new companies serving this market. This is expected to escalate further the demand for dropshipping services in the Asia Pacific over the forecast period. The approximate success rate in this nation ranges between 10 per cent to 20 per cent. In China, this business is extremely profitable due to the high sales of cheaper products.
North America is likely to be the biggest dropshipping market and is anticipated to keep its growth trajectory during the forecast period. The large base of online shoppers across the region is a big plus to this industry. Moreover, the regional market share is largely dominated by giant e-commerce players like Amazon and eBay. According to Tourchbank, Amazon presently accommodates more than 5 million active sellers. Also, eBay continues to be a common choice for drop shippers, with several utilising the platform to source goods from suppliers such as Amazon and resell these products at premium costs.
Europe is a significant dropshipping market which is speedily gaining ground. Germany is projected to be an attractive market and is believed to rapidly advance in the estimation period. Moreover, cross-border e-commerce is quickly growing in the continent, which is encouraging the market size of Europe. Apart from other countries like the US, the competition is not so intense and with online shopping increasing it presents a perfect opportunity for the industry players to capitalise.
Latin America, the Middle East and Africa are propelling forward at a moderate with still many untapped prospects, especially in Saudi Arabia and the United Arab Emirates.
Recent Market Developments
· In July 2024, Fiverr reported the completion of the acquisition process for AutoDS to further deepen its e-commerce offerings. AutoDS offers a subscription-based end-to-end solution, involving inventory management, product research and sourcing, and automated fulfillment. Moreover, its omni-channel approach and comprehensive worldwide reach totals more than 150 million products and caters to a large number of paid subscribers via its platform.
· In June 2024, AuHood LTD introduced a next-generation one-click dropshipping system which strives to assist e-commerce retailers handle inventory management issues and decrease stock at risk. AuHood LTD is an e-commerce company that commenced in April 2019.
· In April 2024, ZQdropshipping, a revolutionary company of dropshipping solutions, press released the formal introduction of its extensive service packages which are slated to transform the field of e-commerce. It launches a variety of precisely engineered services conceived to optimize sourcing, acquisition, and order completion processes and also lowers expenditure and provides profitable innovative products.
Related Reports
Cross Border E-Commerce Market
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