Dropshipping is a simple e-commerce business model that allows merchants to sell products from a third-party supplier. While it is expected to remain thriving in 2022, dropshipping trends have changed since it boomed at the height of the pandemic. Would you like to know the future of the dropshipping market industry?

To help you out, we’ve gathered some valuable Dropshipping stats and facts to know in 2024 and beyond.

Let’s take a look at the general stats below.

Dropshipping Statistics Highlights

1. In 2018, the global dropshipping market accounted for USD 102.2 billion.
2. The dropshipping industry is estimated to be a $500 billion valuation by as early as 2027.
3. Approximately 27% of online retailers are using drop shipping.
4. Dropshipping businesses generate 50% more profits than sellers who maintain an online inventory.
5. In 2017 dropshipping accounted for 23% of online sales worldwide.

Dropshipping – Key Statistics

Now let’s dive into the stats a bit further.

In 2018, the global dropshipping market accounted for USD 102.2 billion.

(Grand View Research)

The dropshipping market was valued at USD 102.2 billion in 2018 and is expected to grow by 24% from 2020 to 2026. The market has anticipated witnessing significant growth owing to an increase in preference for online shopping coupled with the rising trend of cross-border e-commerce trade. Hence, the development of the e-commerce industry has primarily been responsible for the rise in dropshipping services.

The dropshipping industry is estimated to be a $500 billion valuation by as early as 2027.

(Oberlo)

Dropshipping has become a key income generator for entrepreneurs over the years, and the pandemic is mainly responsible for dropshipping’s exploding popularity. Research shows that 52% of consumers increasingly turned to online shopping compared to before the pandemic, with one in three purchasing items they’d otherwise buy through traditional retail.

Hence, the dropshipping industry is expected to be worth $197 billion in 2022, a 53% increase from 2020, and by 2027, it is estimated to be worth $500 billion.

The dropshipping market has anticipated an average annual growth of 24% from 2020 to 2026.

(Oberlo)

Dropshipping is a popular route for new businesses because it offers low entry barriers, flexibility, and simple testing. This market is growing globally; from 2020 to 2026, the average annual growth rate is expected to be 24%. The vast increase will come in 2026, when it’s forecast to rise by 27.82%. 

Approximately 27% of online retailers are using drop shipping.

(Torchbankz)

A dropshipping business model is a tool that helps with e-commerce operations, improving them and adding value to what is supposed to be a well-rounded and detailed system. An estimated 27% of online retailers now see the dropshipping model as an easier path to tread as a retailer. Not only are online retailers enjoying the dropshipping business model, but manufacturers and suppliers have also recorded an increase in their revenue.

Dropshipping businesses generate 50% more profits than sellers who maintain an online inventory.

(Torchbankz)

Dropshipping has become a lucrative business for online sellers. It enables small businesses to source products at lower costs from manufacturers worldwide and sells them at competitive prices in the retail market without the need to ship products themselves. While suppliers have recorded a profit increase after choosing the dropshipping business models, statistics also state that drop shippers earn 50% more profit than those who keep their own inventory.

In 2017, dropshipping accounted for 23% of online sales worldwide.

(Shift4shop)

Dropshipping is everywhere, from a relatively unheard-of practice to a central practice in millions of businesses. In 2017, dropshipping accounted for 23% of online sales valued at $85 billion, among other fulfillment models. This is a large increase because more and more businesses are choosing the dropshipping model because they see a higher conversion rate and net profit. On the other hand, e-commerce is said to grow by 17% yearly, which also means growth for dropshipping.

Nearly 33% of online stores are using the dropshipping method.

(Shift4shop)

Dropshipping is a very viable way of doing business. It has grown tremendously and is now estimated to be the chosen fulfillment model for over 33% of online stores. The prospect of quickly selling products online without worrying about shipping, inventory management, or up-front costs is understandably desirable. With the e-commerce industry growing at a 17% clip annually, the popularity of dropshipping is only expected to increase.

Additional Dropshipping Stats

• 66% of online shoppers will purchase from a competitor with multiple shipping options.
• 61% of retailers are making their e-commerce platform a budget priority.
• The average success rate of a dropshipping business is between 10% and 20%.
• 84% of e-commerce retailers say securing a good supplier is the biggest obstacle to starting a dropshipping business.
• Suppliers earn 18.33% more profit if they sell to drop shippers than their sales.
• 86% of drop shippers using AliDropship prefer niche stores
• eBay Dropshipping has lower Profit Margins than other forms of e-commerce.

Wrapping Up

Although Dropshipping industry has been on a steady trajectory for the last few years, COVID-19 has propelled growth beyond expectation. Now, two years into the pandemic, companies, and retailers are seeing their business growing and scaling. Dropshipping dramatically lowers the barrier to entry, making it easy for anybody to start, grow and build a profitable dropshipping store. But with any venture, it does take hard work, finesse, and the right amount of research to succeed in drop shipping.

That’s all for today. See you at the next one.

Sources

https://www.grandviewresearch.com/industry-analysis/dropshipping-market

https://www.oberlo.com/statistics/dropshipping-market

https://torchbankz.com/dropshipping-statistics/

https://blog.shift4shop.com/can-dropshipping-be-profitable-check-these-key-statistics