Dropshipping Global Market Report 2024

Dropshipping is a retail model where stores sell products to customers without holding inventory, instead, items are shipped directly from suppliers to customers. This allows merchants to operate with minimal upfront investment and eliminates the need for warehousing and fulfillment logistics. The primary objective of dropshipping is to simplify the operation of online stores by avoiding inventory management and reducing initial costs.

The key product categories in dropshipping encompass furniture and appliances, toys, hobbies and DIY, food and personal care, fashion, electronics, and others. Dropshipping companies specialize in offering a diverse array of furniture and appliances to meet various customer preferences and needs, ensuring ease in purchasing large items without the complexities of traditional retail. Recipients of dropshipping services include both domestic and international destinations, serving applications such as business-to-business (B2B), business-to-consumer (B2C), and customer-to-customer (C2C).

The dropshipping market research report is one of a series of new reports that provides dropshipping market statistics, including dropshipping industry global market size, regional shares, competitors with an dropshipping market share, detailed dropshipping market segments, market trends and opportunities, and any further data you may need to thrive in the dropshipping industry. This dropshipping market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The dropshipping market size has grown exponentially in recent years. It will grow from $225 billion in 2023 to $272.97 billion in 2024 at a compound annual growth rate (CAGR) of 21.3%. The growth observed in the historic period can be attributed to the expansion of e-commerce, globalization, minimal barriers to entry, evolving consumer expectations, and increased entrepreneurial opportunities.

The dropshipping market size is expected to see exponential growth in the next few years. It will grow to $594.02 billion in 2028 at a compound annual growth rate (CAGR) of 21.5%. The anticipated growth in the forecast period can be attributed to rising consumer demand for personalized and customized products, increasing concerns among consumers about sustainability and ethical sourcing practices, expanding marketplaces, resilient supply chains, and facilitation of cross-border trade. Key trends expected in the forecast period include the integration of technology, diversification of product offerings, emphasis on customization and personalization, vertical integration, optimization of supply chains, and the adoption of automation tools to enhance operational efficiency.

The expansion of the e-commerce sector is set to drive growth in the dropshipping market moving forward. E-commerce encompasses the online trade of goods and services facilitated through digital transactions. This industry is rapidly growing due to increased internet accessibility, the convenience of online shopping, rising mobile device usage, and technological advancements that support seamless transactions and personalized shopping experiences. Dropshipping plays a crucial role in this growth by enabling retailers to offer a wide array of products without the need for inventory storage, thereby reducing upfront costs and providing flexibility in product offerings and market expansion. For example, Ecommerce Europe reported a substantial surge in the European e-commerce market in 2021, reaching approximately USD 869 billion, marking a 13% increase from the previous year's USD 681.9 billion. The growth trajectory is expected to continue in 2022, with projections indicating an 11% growth rate and an anticipated turnover of around USD 958 billion. This upward trend underscores how the flourishing e-commerce industry will fuel expansion in the dropshipping sector.

Leading companies in the dropshipping market are enhancing their capabilities by integrating mapping functionality to optimize inventory management and boost sales strategies. Mapping tools enable e-commerce and dropshipping sellers to efficiently categorize SKUs, organize distribution, and implement effective marketing initiatives such as BOGO (Buy-One-Get-One) offers and product bundles. For instance, DSers, based in Hong Kong, recently introduced a significant upgrade to its mapping function in June 2022. This enhanced feature simplifies dropshipping product management by offering various methods such as SKU mapping and upsell mapping, tailored to align with sellers' business models, brand identities, and product assortments. Options include basic mapping for quick SKU categorization across multiple suppliers, standard mapping for precise SKU management, BOGO mapping for promotional campaigns, and bundle mapping for selling product kits at discounted rates.

In June 2021, wix.com, Inc., headquartered in Israel, acquired Modalyst to augment its eCommerce platform capabilities. Modalyst, a US-based dropshipping platform, facilitates seamless integration between online stores and a vast network of US and European suppliers. This acquisition enhances Wix's offering by enabling merchants to access millions of high-quality products and implement white-label solutions, thereby expanding their e-commerce business opportunities.

Major companies operating in the dropshipping market are Costco Wholesale Corporation, Shopify Inc., Etsy Inc., Wix.com Inc., Printful Inc., Printify Inc., Doba Inc., Oberlo, Gooten, SaleHoo Group Limited, AliExpress Ltd., Inventory Source, Megagoods Inc., Wholesale2b, Dropshipper.com, CJDropshipping Inc., GreenDropShip, Alidropship, Modalyst Inc., Sunrise Wholesale Merchandise LLC, Cin7 Orderhive Inc., Spocket, Importify, Teelaunch, BigBuy.

North America was the largest region in the dropshipping market in 2023. The regions covered in the dropshipping market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the dropshipping market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The dropshipping market includes revenues earned by entities by providing product sourcing, order processing, the marketplace platform, shipping, and logistics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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