The Italy dropshipping market size is expected to reach USD 5.82 billion by 2028, according to a new report by Grand View Research, Inc. It is projected to expand at a CAGR of 18.1% from 2021 to 2028. Although e-commerce penetration is lower than 5% in Italy, the COVID-19 pandemic in 2020 proved transformational for the online business models. Since the outbreak of coronavirus and the resultant lockdown, the uptake of online shopping has witnessed a surge. While it is early to deduce whether the pandemic will bring about a massive shift in consumer buying behavior or not, it is most likely expected to result in changing shopping habits among consumers.
A shift in consumer preference for online shopping amidst the pandemic will bring about several changes to the logistic and e-commerce sector in the country. Although the grocery and provision sector has been at the forefront in online shopping through 2020, we expect this will create a shift in consumer buying patterns, with habits gradually expected to change from brick-and-mortar to online shopping. These changing patterns will create considerable opportunities for online marketplaces that offer various product categories ranging from apparel to electronics.
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E-commerce growth has resulted in investments in the Italian logistics sector. In 2019, these investments exceeded USD 1 billion, an uptick over the last couple of years. The growth in online commerce came on the back of investments in the logistics sector in 2017, mainly because of the Logicor deal
Growing smartphone penetration and access to the internet have emerged as the key factors driving the market growth. In Italy, the smartphone penetration rate is over 40%, and it is estimated that, by the end of 2025, more than 70% population in the country is estimated to use a smartphone
Several companies, such as Shopify and Magento, Inc., to name a few, are developing mobile applications for sellers to manage multiple suppliers across the dropshipping business
Even the e-commerce software companies are focused on designing multi-vendor dropshipping mobile applications with features that allow sellers in managing orders, location tracking, addition/editing of products, viewing transaction lists and product lists, and more
Such innovations/software upgrades help companies manage their dropshipping businesses smoothly. The increasing adoption of these solutions is expected to drive the market growth
Grand View Research has segmented the Italy dropshipping market based on product:
Italy Dropshipping Product Outlook (Revenue, USD Million, 2017 - 2028)
Beauty & Personal Care
Personal Electronics and Media
Other Electronics (Home Appliances including Refrigerators, Washing Machines, Television, etc.)
Others (Toys, Hobby, & DIY)
List of Key Players in the Italy Dropshipping Market
Medici in Firenze
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