Global Dropshipping Market
As stated in our extensive report; the Global Dropshipping Market accounted for USD 221.3 Billion in the year 2022 and is projected to reach a value of USD 931.9 Billion by 2030
The market is expected to grow significantly due to consumers’ increasing preference for online shopping and the expanding cross-border e-commerce industry. Therefore, the expansion of the e-commerce business has dramatically impacted the increase in demand for Dropshipping services. Dropshipping is selling products via online shops without the retailers maintaining an inventory of goods. Instead, the manufacturer or wholesaler ships the products straight to the client after receiving customer orders and shipment information from the retailer.
With the development of technology, Dropshipping has become a profitable industry that moves quickly. In the current environment where on-demand business models and e-commerce companies are being used to combat the pandemic, Dropshipping businesses offer innovation in various ways. In addition, many mobile applications have changed internet shopping on smartphones, enhancing the user experience and making it more convenient. As a result, the e-commerce business is expanding, boosting demand for Dropshipping services. This expansion is fueled by rising smartphone penetration and consumer disposable income. Due to the growing number of consumers favoring online shopping platforms, major businesses in the e-commerce sector have increased their investments noticeably.
Key Factors Influencing Dropshipping Market Growth
The growth of the global Dropshipping market can be attributed to the following:
- Dropshipping has become more popular among retailers due to fewer capital expenditures on logistics and inventory.
- Due to the increased internet adoption, the e-commerce sector is expanding quickly. With the use of the internet, anyone can purchase and sell almost anything, including books, gadgets, apparel, software, and furniture.
- The rapid growth of Dropshipping services is partly attributable to Asia Pacific’’s thriving e-commerce market.
- The need for Dropshipping services is being fueled by the expansion of the e-commerce business, driven by expanding smartphone penetration and rising consumer disposable income.
Asia Pacific Region to Lead the Market
The largest market share was held by Asia Pacific in 2022, and this region is anticipated to continue to expand gradually during the projected period. Due to the explosion of online shopping platforms, the e-commerce sector in Asia Pacific is increasing at an unheard-of rate. A further factor driving the need for online shopping is the rising popularity of smart devices like laptops, smartphones, and tablets.
Furthermore, the growth of the telecommunications industry, the widespread use of smartphones and the Internet, and the general attraction of social media sites like Instagram, Facebook, Snapchat, and Twitter are all major factors in the rise of this region. Furthermore, smartphone and social media usage growth in countries like China has significantly supported the spread of regional markets.
The growth of the e-commerce industry predominantly influences the rise in demand for Dropshipping services.
Some of the key players in the Global Dropshipping include- Alidropship (U.S.), Doba Inc. (U.S.), Inventory Source (U.S.), Megagoods Inc. (U.S.), Modalyst Inc. (U.S.), SaleHoo Group Limited (New Zealand), Shopify Inc. (Canada) and others.