Dropshipping Market Size, Share & Trends Report

Dropshipping Market Size, Share & Trends Analysis Report By Product Type (Toys, Hobby & DIY, Furniture & Appliances, Food & Personal Care, Electronics & Media, Fashion), By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-3-68038-945-6
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Technology

Research Methodology

A three-pronged approach was followed for deducing the dropshipping market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for dropshipping market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of dropshipping market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Dropshipping Market Categorization:

The dropshipping market was categorized into two segments, namely Product type (Toys, Hobby and DIY, Furniture and Appliances, Food and Personal Care, Electronics and Media, Fashion), and region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).

Segment Market Methodology:

The dropshipping market was segmented into product types and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The dropshipping market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into eighteen countries, namely, the U.S.; Canada; the UK; Germany; France; Italy; Spain; China; India; Japan; Australia; South Korea; Brazil; Mexico; Argentina; UAE; Saudi Arabia; South Africa.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Dropshipping market companies & financials:

The dropshipping market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • Alidropship.com - Alidropship.com provides a platform as well as drop shipping solutions for retailers. The company produces online storefronts and software for merchants and other e-commerce businesses. It has about 700 vendors. Alidropship.com sells items including the AliDropship plugin, the AliDropship Woo plugin, ready-made custom stores, add-ons, hosting, and services. Retailers may create and customise their pages, as well as add items of their choice. They can also opt to buy previously generated pages from the site. The firm provides global dropshipping services. WordPress, WooCommerce, PayPal, 2CheckOut, PayU, PayPlug, Instamojo, Flutterwave, 17TRACK, Pepipost, and Sendinblue are some of the integrated solution partners.

  • Doba, Inc. - Doba, Inc. delivers tools and resources to its clients by linking them with suppliers and delivering a diverse product line. Customers may build up their online stores using the company’s software solutions and platform. The company’s interface also serves as a platform for suppliers looking to market their items to online retailers. The company’s website showcases items organised by categories, such as clothes, autos, literature, entertainment, health, home, kids, sports, and electronics. It supports a variety of formats for exporting product data, including those from e-commerce firms such as Volusion, LLC, Magento Commerce, Amazon.com, Inc., eBay Inc., BigCommerce Pty Ltd., and 3dcart. The firm provides its service to consumers in four distinct packages: basic, advanced, pro, and enterprise. This makes it easy for the merchant to obtain product listings and identify items to build a portfolio. The firm also gives its merchants with product research, data on top-selling items, and extensive search tools, which they may use to develop sales strategies. The firm presently has 139 suppliers and over 1.6 million goods available on its website.

  • Megagoods, Inc. - Megagoods, Inc. specialises in the distribution of video games and consumer electronics. The firm provides dropshipping and fulfilment services to merchants. The firm has its warehouse and offers logistical services. It sells items from several companies, including Nintendo, lasonicstore.com, Coby, Crosley, and Jensen. The firm provides goods transportation services both locally and internationally. However, it does not accept bulk orders for dropshipping items. The firm also sells a variety of electrical devices and gives a list of the top 25 products, new arrivals, and discounted products to make shopping easier for customers.

  • MODALYST, INC. - MODALYST, INC. offers software for e-commerce enterprises to source items and manage dropshipping procedures. The company connects e-commerce enterprises with wholesale dropshipping suppliers and items. It provides a unique selection of items and speedier shipment because registered vendors are authorised and supply products directly to clients. MODALYST, INC. integrates dropshipping applications, supplier sales channels, and marketplace apps with e-commerce firms. Using these integration channels, the firm offers a variety of dropshipping and supplier sales solutions. The company’s app integrations include Wix, Shopify, Bigcommerce, KIT, and P2P Apps. It provides its consumers with items from various well-known brands as well as a centralised place for easier product procurement and supplier connection. The firm services 350,000 e-commerce stores and has over ten million registered items. The price plan is based on yearly and monthly subscriptions. The firm collaborates with private label suppliers to provide personalised product branding and packaging.

  • Shopify, Inc. - Shopify, Inc. provides a cloud-based multi-channel e-commerce platform to retail businesses. It provides mobile and web-based software to help companies create online storefronts. The platform also allows merchants to operate their businesses through various channels, including social network storefronts, actual retail locations, mobile storefronts, and marketplaces. Furthermore, the programme enables customers to control several elements of all their sales channels from a single platform. Some of these responsibilities include processing payments and orders, maintaining inventories and goods, developing customer connections, dispatching orders, using reporting and analytics, product sourcing, and accessing financials. The firm provides retailers with tools to create stores in a variety of product categories, including fashion, food and beverages, crafts and books, home and décor, electronics, merchandising, artwork, and accessories. It runs its operations through a single reporting segment that comprises geographical areas and nations including Canada, the United States, the United Kingdom, Australia, and the Rest of the World. In 2019, the United States accounted for about 68.4% of the company’s total revenue. The firm offers subscription options for its software. It caters to small and medium-sized businesses (SMBs) as well as major companies in all sectors.

  • SaleHoo Group Limited - SaleHoo Group Limited is an online dropshipping platform that links merchants and suppliers. The organisation is a member of the Better Business Bureau’s Online Reliability Programme and the eBay Developer Programme. The firm provides merchants with tools for selecting items from qualified vendors and importing them into their online storefronts. SaleHoo Group Limited has suppliers and wholesalers in a variety of product categories, including consumer electronics, fashion and clothes, travel and outdoors, business and industrial, health and beauty, books and magazines, auto parts, jewellery and watches, computers and software, and sports goods. The website has over 1,000 dropship vendors and over 8,000 wholesale suppliers. The providers sell items from a variety of brands, including Sony Corporation, The LEGO Group, Oakley Inc., Disney, 3M, and Adidas America Inc. The company’s suppliers provide approximately 1.6 million goods. SaleHoo Group Limited provides subscription services to its consumers. The firm has partnered with several service providers in the areas of auction administration software, shipping/storage, supplier directories, currency exchange, online payment processing, and online selling platforms. The company’s partner brands include eBay, Inc., ClickBank, FedEx, and BQool, Inc.

  • Sunrise Wholesale Merchandise, LLC - Sunrise Wholesale Merchandise, LLC provides merchants with tools and solutions for their dropshipping companies. It is a member of the BBB and the eBay Developers Programme. The organisation offers A portfolio of approximately 30,000 items, with suppliers listed in several categories on its website. The company’s products are classified into several areas, including kitchen appliances, garden equipment, home décor, autos, electronics, jewellery, security, and sports. It integrates with e-commerce firms such as eBay, Inc., Amazon.com, Inc., Shopify, Inc., and BigCommerce Pty Ltd. The firm provides a 7-day trial period and subscription services later on. The company’s registered suppliers supply their items both domestically and globally.

  • Wholesale2b - Wholesale2b is a software development business that focuses on the dropshipping sector. Onlinestorebiz.com LLC owns the firm. It provides order fulfilment, returns management, import tools, and product sourcing for e-commerce companies. Wholesale2b is linked with over 100 dropshipping firms and has over 1 million items displayed on its website from registered suppliers. Clothing, gadgets, laptops, baby items, collectables, costumes, consumables, home décor and jewellery are among the categories offered by the firm. The items advertised by the firm may be imported from a variety of marketplaces, including Bing, Bonanza, eBay File Exchange, Amazon, Google, TheFind, Shopzilla, and Pronto. The firm provides numerous membership packages based on the services and marketplaces that retailers wish to sell their items on.

  • Oberlo - Oberlo is an online marketplace that brings together merchants and suppliers on one platform. The firm is Shopify’s sole dropshipping partner. It allows Shopify businesses to import items into their Shopify stores. Once an order is placed, the goods is dispatched straight from the provider specified on the Oberlo website. The portal allows customers to monitor product trends from the previous 30 days to six months. Oberlo offers a Google Chrome plugin that allows customers to import items from Alidropship.com into their Shopify store. It also offers a diverse selection of things, including cosmetics, fashion, toys, and technology. The firm provides three subscription levels to users: beginning, basic, and pro. The beginning pack is free, but the other two need a monthly cost. The pro plan is the costliest of the three, but it includes all of the same features and advantages as the beginning and basic packages. The providers featured on Oberlo provide shipping services globally, and the shipping time depends on the region of delivery.

  • Chinabrands.com - Chinabrands.com provides a global dropshipping and distribution platform for merchants. It provides supply chain solutions for cross-border ecommerce sales. Chinabrands.com is a B2B e-commerce platform. The organisation also offers international payment, trust and security, product distribution warehouses worldwide, online finance, escrow protection, and logistics. The firm offers a diverse range of items, including cellphones and accessories, consumer electronics, toys and hobbies, sports and entertainment, fashion accessories, home and garden, beauty and wellness, and jewellery. It has over 40 warehouses globally and 400 logistical channels in over 200 countries. It features a specific ready-to-ship zone that guarantees delivery of items within 24 hours after purchase confirmation. It accepts payments via PayPal and Payoneer. The firm also accepts wire transactions. Meanwhile, the company’s distribution partners include DHL International GmbH and EMS.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Dropshipping Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Dropshipping Market Report Assumptions:

  • The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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