Dropshipping Market Size Worth $1,804.03 Billion By 2032 | CAGR: 23.20%

The global dropshipping market size is expected to reach USD 1,804.03 Billion by 2032, according to a new study by Polaris Market Research. The report “Dropshipping Market Share, Size, Trends, Industry Analysis Report, By Products (Toys, Hobby & DIY, Furniture & Appliances, Electronics & Media, Food & Personal Care, and Fashion), By Destination, By Application, By Organization Size, By Region, Segments & Forecast, 2024 – 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

The key factors responsible for the market growth are the expanding e-commerce market, backed by the trend of cross-border e-commerce trade worldwide, and the ease of starting online stores.

The e-commerce retail model is a retail fulfillment technique where an online store doesn't have to keep the products it sells in stock. In this case, the store sells a product by purchasing it from a third party and shipping it directly to the customer.

The main benefit of dropshipping is that it enables businesses to offer a wide range of products without having to invest in inventory instantly. It makes it an appealing option for entrepreneurs who want to start an online business without a significant upfront investment. Dropshipping also allows firms to test new product ideas and markets without taking on the risk of buying and storing inventory.

For instance, as per the U.S. Department of Commerce, U.S. e-commerce sales in 2022 accounted for 14.6 percent of total sales and estimated a value of 1,034.1 billion USD in the same period, an increase of about 8.1 percent in 2021.

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The pandemic negatively impacted the demand for dropshipping due to supply chain disruptions, fluctuating markets, and shipping & fulfillment delays. But the pandemic has also led to a surge in online shopping as people have been forced to stay home and avoid physical stores. In addition, the pandemic has accelerated the shift towards e-commerce, as businesses have been forced to close physical stores and focus on online sales.

Lower profit margins, limited control over the product, dependence on suppliers, higher shipping costs, and longer delivery times are projected to act as limiting factors for the market.

Report Highlights

• The fashion segment will witness a positive growth rate in the forecast period. Increasing demand for fashion segments online through e-commerce channels has pushed the adoption rate of dropshipping business model among retailers.
• The domestic segment is projected for a major market share in the forecast period. The segment is experiencing significant growth, with many businesses focusing on selling products within their country or region. It also offers retailers lower shipping costs, as they do not need to pay international shipping fees.
• The business-to-consumer (B2C) segment to account for a major share in the forecast period. The growth of the B2C segment in the dropshipping market is expected to continue as more entrepreneurs and small businesses turn to e-commerce and online selling.
• The pellets form segment is expected to witness a significant CAGR in the forecast period. The growth of the pellets form segment in the Dropshipping market has been driven by the increasing demand for more efficient and convenient feed options and the benefits that pelleted feed offers for animal health and performance.
• Asia Pacific accounted for the largest market share in 2022 and is projected to dominate the market in the forecast period. The dropshipping market in the Asia Pacific region is expected to continue growing in the coming years due to the region's large population, the rise of e-commerce platforms, and the increasing number of online shoppers.

Polaris Market Research has segmented the dropshipping market report based on product type, destination, application, organization size, and region:

Dropshipping Market, Product Type Outlook (Revenue - USD Billion, 2019 - 2032)

• Toys, Hobby & DIY
• Furniture & Appliances
• Electronics & Media
• Food & Personal Care
• Fashion

Dropshipping Market, Destination Outlook (Revenue - USD Billion, 2019 - 2032)

• Domestic
• International

Dropshipping Market, Application Outlook (Revenue - USD Billion, 2019- 2032)

• Business-to-Business (B2B)
• Business-to-Consumer (B2C)
• Customer-to-Customer (C2C)

Dropshipping Market, Organization Size Outlook (Revenue - USD Billion, 2019- 2032)

• Large Enterprises
• SMEs

Dropshipping Market, Regional Outlook (Revenue - USD Billion, 2019 - 2032)

• North America

• U.S.
• Canada

• Europe

• Germany
• UK
• France
• Italy
• Spain
• Russia
• Netherlands

• Asia Pacific

• China
• India
• Japan
• South Korea
• Indonesia
• Malaysia

• Latin America

• Argentina
• Brazil
• Mexico

• Middle East & Africa

• UAE
• Saudi Arabia
• Israel
• South Africa