Global Dropshipping Market Report and Forecast 2024-2032

Global Dropshipping Market Outlook

The global dropshipping market size attained a value of USD 309.63 billion in 2023. The market is further expected to grow at a CAGR of 24.7% between 2024 and 2032, to reach a value of USD 2257.57 billion by 2032.

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Key Trends in the Market

Dropshipping is a type of order fulfilment system used in eCommerce where a third-party supplier provides the purchased products directly to the customers, removing the need for in-house physical inventory, warehousing, storage, and shipping. Retailers using dropshipping can display products on their online store, and upon receiving purchase orders, forward purchased products directly to the consumers. Dropshipping expands the product offerings for retailers and reduces costs which is leading to a heightened growth of the dropshipping market. 

• The cost of starting up a dropshipping business is extremely low and it eradicates the risk of money wastage on unsold stock. It saves time, money and increases profitability of the retailers, which is supporting the expansion of the dropshipping market size.

• The thriving e-commerce sector is a crucial trend in the market for dropshipping. Increasing online sales of a wide range of products, including consumer electronics, food, and personal care products, is leading to increased opportunities for dropshipping.

• As per the dropshipping market analysis, the increased ease of opening online stores across numerous product categories is contributing to the growth of the market. With new eCommerce providers, a new online store can be set up with minimal investments and with an effective marketing strategy, retailers can expand their market share under the drop shipping model.

Market Analysis

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Based on product, the market is segmented into toys, hobby, and DIY, furniture and appliances, food and personal care, electronics and media, and fashion, among others. On the basis of destination, the market is bifurcated into domestic and international. The regional markets for dropshipping are divided into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.  

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global dropshipping market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• DropCommerce

• Sunrise Wholesale Merchandise

• Worldwide Brands

• Spocket

• Wholesale2b

• Doba Inc.

• Alibaba Group Holding Limited

• DropshipZone

• Modalyst Inc

• SaleHoo Group Limited

• Others

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Market Share by Product

The electronics and media segment, based on product, accounts for a healthy share of the market for dropshipping. Electronics and media are one of the highest revenue generating segments which involves the sale of both cheap and expensive consumer electronics. Dropshipping of electronics can enhance profitability of a business by improving the scalability. Over the forecast period, the increasing product portfolio of retailers, coupled with the induction of high-end devices such as portable speakers, headphones, cameras, electronic car accessories, and chargers, among others, is expected to fuel the segment’s growth. 

Market Share by Destination

Based on destination, the international segment accounts for a significant share in the dropshipping market, which can be attributed to the global ambitions of retailers. Consumers can find better deals because of the emergence of retailers utilising international dropshipping due to differences in product pricings across nations. Dropshipping provides internationally in-demand products at affordable prices, while enabling the development of dropshipping brands with white-label products. It also promotes easy access of unique and hard-to-find products. Meanwhile, the domestic segment is expected to witness a healthy growth in the forecast period, owing to the enhanced customisability, easy communication, and faster shipping. 

Competitive Landscape

DropCommerce, based out of British Columbia in Canada, is a leading dropshipping company which acts as a bridge between dropshipping and high-quality branded products. DropCommerce integrates with e-commerce giants such as Shopify, Wix, and BigCommerce, among others. The company was established in 2018 and focuses on order fulfilment and product portfolio expansion. 

Sunrise Wholesale Merchandise is a dropshipping company which sells products from top brand such as Belkin, D&G, Fujifilm, Gucci, Dior, and Disney, among others. The product portfolio of the company includes 30,000+ products. The company has tied up with leading e-commerce companies such as Amazon, Ebay, and Shopify, among others. With headquarters in California in the United States, the company was founded in 1999.

Worldwide Brands is a prominent internet-based dropshipping company which provides a diverse range of high-end products including pet supplies, toys, games, jewellery, watches, home and garden appliances, and consumer electronics, among others. The company claims to provide safe, low-cost, and scam-free products. It was founded in the year 1999 and is currently headquartered in Florida, United States. 

Other market players include Spocket, Wholesale2b, Doba Inc., Alibaba Group Holding Limited, DropshipZone, Modalyst Inc, and SaleHoo Group Limited, among others.

Key Highlights of the Report