Dropshipping Market to Grow at a CAGR of 27.1% and will Reach USD 1670.1 billion by 2031

Rise in smartphone penetration and surge in consumer disposable income have boosted the growth of the global dropshipping market.

WILMINGTON, NEW CASTLE, DELAWARE, UNITED STATES, July 22, 2024 /EINPresswire.com/ -- Rise in smartphone penetration and surge in consumer disposable income have boosted the growth of the global 𝐃𝐫𝐨𝐩𝐬𝐡𝐢𝐩𝐩𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭. However, fraudulent or illegal transactions hinder the market growth. On the contrary, growth of e-commerce industry offers lucrative opportunities for the market players for selling various quality products such as foods, electronics, and personal care & appliances. The concept of dropshipping is typically attributed to the business model which mostly involves retailers working with other retailers, or working with players up the hierarchy. It is an order fulfillment method where a business doesn’t keep the products it sells in stock. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders.

𝐑𝐞𝐪𝐮𝐞𝐬𝐭 𝐒𝐚𝐦𝐩𝐥𝐞 𝐏𝐚𝐠𝐞𝐬 𝐍𝐨𝐰: https://www.alliedmarketresearch.com/request-sample/A31519

The factors such as growth in e-commerce industry, rise in international trade, increase in demand for fast delivery of packages supplement the growth of the dropshipping market. However, security concerns regarding online payments and lack of control in shipping are the factors expected to hamper the growth of the dropshipping industry. In addition, rise in adoption of smartphone and 5G technology and consumer inclination toward online shopping creates market opportunities for the key players operating in the market.

𝐓𝐡𝐞 𝐤𝐞𝐲 𝐩𝐥𝐚𝐲𝐞𝐫𝐬 𝐩𝐫𝐨𝐟𝐢𝐥𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐫𝐞𝐩𝐨𝐫𝐭 𝐢𝐧𝐜𝐥𝐮𝐝𝐞

𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐒𝐨𝐮𝐫𝐜𝐞, 𝐂𝐢𝐧𝟕 𝐎𝐫𝐝𝐞𝐫𝐡𝐢𝐯𝐞 𝐈𝐧𝐜., 𝐒𝐮𝐧𝐫𝐢𝐬𝐞 𝐖𝐡𝐨𝐥𝐞𝐬𝐚𝐥𝐞 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐝𝐢𝐬𝐞 𝐋𝐋𝐂, 𝐌𝐨𝐝𝐚𝐥𝐲𝐬𝐭 𝐈𝐧𝐜., 𝐒𝐡𝐨𝐩𝐢𝐟𝐲 𝐈𝐧𝐜., 𝐖𝐡𝐨𝐥𝐞𝐬𝐚𝐥𝐞𝟐𝐛, 𝐃𝐨𝐛𝐚 𝐈𝐧𝐜., 𝐀𝐥𝐢𝐝𝐫𝐨𝐩𝐬𝐡𝐢𝐩, 𝐏𝐫𝐢𝐧𝐭𝐢𝐟𝐲, 𝐌𝐞𝐠𝐚𝐠𝐨𝐨𝐝𝐬 𝐈𝐧𝐜., 𝐒𝐚𝐥𝐞𝐇𝐨𝐨 𝐆𝐫𝐨𝐮𝐩 𝐋𝐢𝐦𝐢𝐭𝐞𝐝

In addition, the dropshipping market has witnessed significant growth in recent years, owing to an increase in preference for online shopping, coupled with the rising trend of cross-border e-commerce trade. For instance, in August 2021, according to the OECD (Organization for Economic Co-operation and Development) organization, among the G20's largest exporters of those products, Argentina (exports up 33.3%), Australia (exports up 17.5%), Brazil (exports up 14.7%), and South Africa (exports up 17.3%) have benefited from increased commodity prices.

𝐁𝐮𝐲 𝐍𝐨𝐰 𝐭𝐡𝐞 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞 𝐑𝐞𝐩𝐨𝐫𝐭: https://www.alliedmarketresearch.com/checkout-final/8a212ae312b715a6704b5c26635c3bf2

Additionally, the emergence of the COVID-19 pandemic has increased customer preference for online delivery of groceries, complementing the growth of the dropshipping market. According to the Census Bureau of the Department of Commerce, U.S. retail e-commerce sales were $160.3 billion for the first quarter of 2020, an increase of 2.4% from the fourth quarter of 2019. The industry is also popular amongst consumers of all ages in developing countries of Asia-Pacific, such as India and China. According to the IBEF (Indian Brand Equity Foundation) mentioned that in 2020, India is the third largest country in terms of customer base with over 140 million. Moreover, the presence of market players such as Flipkart, Amazon, AJIO, and others which are heavily investing on improving platforms and expansion their presence in India is expected to offer lucrative growth to dropshipping supplers.

By product, the beauty, health, personal, and household care segment is expected to register the highest CAGR of 31.1% during the forecast period. This is due to increase in fashion trends and major product innovations in cosmetic formulations and formats, such as hair color and other skin care products contribute toward growth of the segment. In addition, various market players are making great efforts to initiate digital marketing strategies, prepare interactive advertisements, and promote their products through social media. This increases demand for products. However, the electronics segment held the largest share in 2021, contributing to nearly one-fourth of the global dropshipping market. However, the fashion segment is expected to dominate the market in terms of revenue throughout the forecast period, owing to the innovative designs, favorite fashion choices, and perfect marketing strategies always benefit the industry. Growth in online and e-commerce presence has increased fashion awareness and made high-end his brands and limited-edition products more accessible.

𝐑𝐞𝐠𝐢𝐨𝐧𝐚𝐥 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬:

By region, the global dropshipping market across North America dominated the market in 2021, holding more than one-third of the market, and is expected to dominate in terms of revenue during the forecast period, due to rise in e-commerce for buying and selling of goods and services. Digital skills and literacy are also on the rise in Europe as internet users grew from 87% to 89% in 2020, which propels growth of dropshipping in Europe. However, the market across LAMEA is expected to register the highest CAGR of 31.5% during the forecast period. The booming economies of various countries in LAMEA have increased demand for advanced and improved technology. This opens growth prospects for the dropshipping market in the region. The dropshipping market in the region is more mature, owing to growing adoption of B2B e-commerce in the region, especially in Africa. The report includes analysis of the market across Europe and Asia-Pacific.

𝐆𝐞𝐭 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐞𝐝 𝐑𝐞𝐩𝐨𝐫𝐭𝐬 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮’𝐫𝐞 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬: https://www.alliedmarketresearch.com/request-for-customization/A31519

By destination, the domestic segment held the largest share in 2021, accounting for more than three-fourths of the global dropshipping market, and is estimated to dominate the market throughout the forecast period. This is due to the fact that domestic dropshipping involves within-border transactions through the internet. These transactions refer to selling or buying goods and/or services, which are then delivered to respective customers. However, the international segment is expected to register the highest CAGR of 29.0% during the forecast period, due to increase in penetration of internet propels smartphone-using population across the world. Digital content, travel & leisure, financial services, and e-tailing constitute a variety of e-commerce options available to the internet accessing customer base that is gaining momentum with increased internet usage. This fuels the market growth.

𝐂𝐡𝐞𝐜𝐤 𝐨𝐮𝐭 𝐦𝐨𝐫𝐞 𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐬𝐭𝐮𝐝𝐢𝐞𝐬 𝐩𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐝 𝐛𝐲 𝐀𝐌𝐑 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡:

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David Correa
Allied Market Research
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