Global Dropshipping Market is projected to reach the value of $1096.5 billion by 2030

Published on January 23rd, 2023.

According to the report published by Virtue Market Research, In 2022, the Global Dropshipping Market was valued at $190 billion and is projected to reach a market capitalization of $1096.5 billion by 2030. Over the forecast period of 2023-2030, the market is estimated to grow at a CAGR of 24.5% owing to the high growth of the e-commerce industry coupled with increasing popularity for cross-border trade.

The Dropshipping market is estimated to grow due to the increase in the number of people preferring online shopping and the subsequent increase in the e-commerce industry's customer base. The availability & affordability of smartphones coupled with increasing internet penetration is primarily responsible for this significant growth in the e-commerce industry and consequently, in the Dropshipping market as well. However, the Dropshipping market was affected crucially by the COVID-19 pandemic, as the warehouses, suppliers and delivery companies were not able to operate at full capacity due to the restrictions of lockdowns and other protocols.

Dropshipping involves selling products through online retailers and these retailers do not own or stock the products, rather they just transfer the orders placed by the customers along with the required shipment details to the manufacturers/wholesalers of the products and these manufacturers/wholesalers are then responsible for delivering the products to the customer as per the provided shipment details. A significant rise in Dropshipping retailers has been observed, as Dropshipping does not involve any investment in warehousing or inventory management, unlike the traditional retail channels and it helps the retailers cut their major expenses significantly. With the rise in the trend of customers preferring online shopping due to the attractive attributes including smooth & comfortable process, delivery tracking, timely delivery, easy returns & refunds, etc., the Dropshipping market is also estimated to experience similar growth. A very crucial element that is estimated to propel the Dropshipping market in the near future is the introduction of more overseas and international trade in the e-commerce industry.

The Electronics & Media segment holds the largest share of the Dropshipping market, approximately 30% of the total sales, owing to the rise in demand for electronic products as the e-commerce platforms offer several services including product portfolio comparison, discounts, and easy returns & refunds. Due to the rise in globalization and increasing preference for branded products, the Fashion segment is the fastest-growing segment in the Dropshipping market and with the availability of various brands on common platforms, this segment is anticipated to grow even faster during the forecast period.

The Large Enterprises segment accounts for the largest share of the Dropshipping market due to their robust global presence, whereas the SMEs segment is estimated to expand rapidly during the forecast period owing to the rising number of startups in developing countries.

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