Italy Dropshipping Market Size, Share & Trends Analysis Report By Product (Food, Furniture, Beauty & Personal Care, Personal Electronics & Media, Fashion), And Segment Forecasts, 2021 - 2028

Report Overview

The Italy dropshipping market size was valued at USD 1.53 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 18.1% from 2021 to 2028. Due to the COVID-19 outbreak, Italian customers turned to e-commerce in great numbers. The e-commerce penetration in the country was less than 5% before the pandemic. However, the pandemic is expected to change this scenario, creating growth avenues for the drop shipping industry. The market is still in the growing phase and is projected to witness healthy growth over the forecast period. The e-commerce industry has been slow-moving due to unemployment and a struggling economy. However, with the pandemic, the growth is expected to pace up over the coming years.

Dropshipping business involves selling products through online stores by the retailers and the shipment of products by third-party suppliers or product manufacturers. The dropshipping model offers brick and mortar stores and individuals opportunities to launch online stores and expand their businesses to new customers and places.

The low initial investment is driving several retailers to step into the dropshipping business. It also presents the retailers an opportunity to expand their product portfolio and venture into new categories without maintaining inventory for the product. With the improved network connectivity, the retailers have easy access to the internet, making it easier to launch an online store, thereby resulting in the growth of the market.

The Italy dropshipping market is gaining momentum owing to the growing adoption of online buying and the shopping ease it offers. Customers are now able to order products from the comfort of their homes without any effort. Additionally, e-commerce companies are investing in technologies such as Artificial Intelligence, chatbots, machine learning, and augmented reality, among others to improve customer experience. The growing ease of online buying is expected to be one of the prominent factors driving the market growth over the forecast period.

The demand for cross-border trade has witnessed a surge in the country over the last few years. A few top cross-border origin markets for Italy are Germany, China, and the U.S., among others. Drop shippers can leverage this opportunity to make foreign brands or low-cost products available to Italian customers. The opening of a major logistic hub by Poste Italiane, a primary post service provider in Italy, is an example of how Italy supports online trade by supporting delivery. In addition, several international players such as Amazon are opening warehouses in Italy to promote online commerce. This will undoubtedly favor the dropshipping business over the next few years.

In Europe, Italy has the lowest rate of e-commerce penetration; however, the landscape is changing rapidly. Although from a regional perspective, Italy ranks low in terms of average online spending as a percentage of individual income. As of 2021, the country reported less than 5% eCommerce penetration of the total retail sales. However, the recent pandemic has to an extent, positively transformed the industry dynamics.

Product Insights

The product segment has been categorized into food, furniture, beauty and personal care, personal electronics and media, other electronics, fashion, and others. The fashion segment held the majority market share of over 20% in 2020 accounting for close to USD 400 Million and is anticipated to witness significant growth by 2028. The growth is attributed to the changing consumer preference of moving from unbranded clothing & accessories to the branded ones. Moreover, the growing number of fashion brands on the e-commerce store and social media marketplaces has also contributed to the growth of the segment.

The dropshipping market in Italy is mainly aimed at the Small and Medium Enterprises (SMEs) that produce and manufacture local and high-quality products but lacks marketing such products at a global level. Many SMEs are unable to structure their businesses, and are unwilling to invest in the online platform, owing to which the product reach is almost confined to the local space. Dropshipping provides an avenue for such SMEs to grow and extend their product offering at a global level.

E-commerce players are focused on trying to understand consumers’ buying patterns and are align with consumers’ desire to shop from the comfort of their homes and offices, and even on the move. The change in consumer buying behavior, along with the convenience of reliable technology for secure transactions, will come as a respite for the Italian dropshipping industry.

Key Companies & Market Share Insights

Key drop shippers in the Italian market include Bazarissimo.com, bindCommerce srl, ItalianModa.Com, Italjapan S.r.l., and Mediatoys srl. Small and medium enterprises in Italy account for over 90% of the overall market. However, they are outnumbered when it comes to innovation. They tend to focus on improving their products and processes without understanding that they stand a chance for innovation. As against large enterprises, human resources excellence and R&D budget are among the several other constraints not allowing SMEs to pursue initiatives aimed at innovation.

The SMEs are among the prominent suppliers on Amazon.com, Inc. According to Amazon.com, Inc., more than 10,000 Italian SMEs were selling on Amazon in 2018, an increase of around 2,000 or 20% from the previous year. Italian SMEs listing and selling their products on Amazon recorded an export sale of around EUR 500 (USD 571.8) million in 2018, an increase of over 50% from the previous year. Some of the prominent players operating in the Italy dropshipping market are:

• alidropship.com

• Bazarissimo.com

• Chinabrands.com

• Medici in Firenze

• MediaToys Srl

• Oberlo

• WholesaleDeals.co.uk

• Shopify, Inc.

Italy Dropshipping Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the Italy Dropshipping market report by product:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Food

  • Furniture

  • Beauty & Personal Care

  • Personal Electronics and Media

  • Other Electronics (Home Appliances including Refrigerators, Washing Machines, Television, etc.)

  • Fashion

  • Others (Toys, Hobby, & DIY)