Before you start your dropshipping journey in 2023, here are some of the most important dropshipping statistics you need to know
Dropshipping is one of the most popular online business strategies in the world. It has become one of the most used methods for stores on ecommerce marketplaces such as Amazon, AliExpress, eBay, and more. People find it easy to get their dropshipping store up and running, and why wouldn’t they.
Imagine running an online retail business without any hassle of keeping inventory, managing your storage space, worrying about shipping and fulfillment; seems like a dream option, doesn’t it? This is why dropshipping has become such a huge phenomenon in the online shopping sector, and it is only going to reach higher and grow further in the coming years.
If you are thinking of starting your dropshipping business or whether you already run a dropshipping store, being up to date with the latest trends and developments in the dropshipping market will only help you in becoming more successful. This is why we have collected all the latest dropshipping statistics and trends, helping you understand the present and future of the industry and taking your business to new heights.
Let’s take a closer look at how the dropshipping business market looks right now and what the future holds through some of the most important dropshipping statistics!
The global dropshipping market has been on the rise for many years now. Dropshipping is becoming more common as a business model for many stores. The increasing number of ecommerce marketplaces like Amazon, eBay, and AliExpress have all made it easier for people to set up their dropshipping store and start their business right away. It is also an easier business model compared to storing and buying inventory and completing fulfillment, which is why the dropshipping market has crossed 190 billion USD in 2022.
As the dropshipping sector continues to grow and reach new heights, the market is all set to cross 200 billion USD for the first time in 2023. Dropshipping has become more common than ever and businesses from all sectors are trying the model for their online stores, giving a boost to the dropshipping market in recent years. There is a high potential for making a profit in the dropshipping sector as well because you don’t have to worry about the overhead expenses such as inventory management, storage, shipping, and more.
As the years go on, dropshipping is not going to slow down any time soon. According to expert projections, the dropshipping market will cross 350 billion USD in value by 2025, which is a massive increase than the current numbers. It is no secret that ecommerce has taken the world by storm, and as long as ecommerce is on the rise, the dropshipping market will also keep on expanding and reaching new highs. Dropshipping is also easier to start and set up compared to other ecommerce business models, which is why the dropshipping market is projected to grow at such a rapid pace.
In a span of six years, the dropshipping market is expected to grow by 347.5 billion USD. This is almost 3.5 times, which is massive. Businesses from every line are trying their hand at dropshipping because they see how effective and convenient it is. Dropshipping is not only beneficial for the businesses, but it is also a great option for the manufacturers and fulfillment partners and they also make a lot of profit from it, which is why we are all set to see such a significant growth in the dropshipping market. Overall, dropshipping is becoming more and more accessible and it is easier to set up your dropshipping store on the various ecommerce platforms, making it one of the most popular business models all across the world.
There is no doubt that starting a dropshipping business is easier than any other retail store or business model. You don’t have to worry about purchasing inventory, having the storage space for your inventory, managing all your stock and material, creating a fulfillment infrastructure for your business, and so much more. All of this is handled by a third-party and businesses can profit from every sale they make. Ecommerce platforms and marketplaces also make it easy for people to set up their dropshipping stores through plugins and other tools, making the whole process more accessible.
Globally, dropshipping is one of the most commonly used business models currently for ecommerce. As ecommerce continues to grow all across the word, dropshipping is also going to increase and grow. Countries like the United States, the UK, European countries, India, China, and many more are offering dropshipping services as well as starting more businesses using the dropshipping model, making it more common and giving it the boost it needs across the globe. If you are looking to start an online business and don’t have a huge budget or investment, dropshipping is one of the most suitable options. This is also why it is one of the most popularly used business models all across the world currently.
From 2019 to 2020, the global dropshipping market saw a huge boost. This was because during the time the pandemic hit and people were dealing with lockdowns, ecommerce really started to take off at record speed. People were more aware of online shopping and using ecommerce platforms more comfortably, which is also why more people found out about dropshipping and started their journey with this business model, leading to a significant boost in the dropshipping market globally.
The Indian ecommerce industry and market is all set to reach 200 billion USD by 2026, at a CAGR of 51%. This is a significant statistic that shows how big ecommerce is becoming in countries all over the world. India is soon going to be one of the leaders in the global ecommerce sector, with a massive boost in the market over the next few years. This also means that the dropshipping market in India will also increase and grow at an equally rapid pace and reach new heights.
North America has been a hub for ecommerce and dropshipping over the years. In recent times, it has dominated the ecommerce market and the dropshipping market equally. In 2019, North America’s share in the dropshipping market was 35.6%, which was the highest out of every region. This shows that more dropshipping businesses were thriving in North America and this business model was being more frequently used in the region.
Oberlo was an industry leader when it comes to dropshipping services. It was the dropshipping extension offered by Shopify on their ecommerce platform. However, Oberlo was shut down by the end of 2022. It held the highest share in the dropshipping market, with over 30%. After Oberlo, Printful is the second highest stakeholder in the dropshipping market online, with a 25% share in the market. It is also known to be one of the most effective tools for dropshippers and online stores.
Other than Oberlo and Printful, there are other shareholders in the global dropshipping market as well. Printify has a 6.3% share in the global dropshipping market. Followed by Customcat with a 1.9% share, Teelaunch with a 1.8% share, Spocket with a 1.5% share, Dsers with a 1.4% share, and Spod with a 1.2% share in the global dropshipping market. If you want to set up a dropshipping business, there are many tools and services that you can use which will help you and provide the solutions that you need.
Shopify is one of the leading ecommerce platforms for online businesses all over the world. Of course, it is also a leading platform for dropshipping businesses. Shopify provides customers and clients with plug-ins that make dropshipping easier than ever. In the United States, Shopify is the most widely used and popular platform for dropshipping. Followed by the U.S, Canada and Australia are also huge market share holders for dropshipping businesses on Shopify.
Back in 2018, the electronics sector was the largest shareholder in the dropshipping sector, with over 30% of dropshipping businesses dealing in electronics and gadgets. There is still a huge demand for electronic products online and dropshipping businesses are still choosing electronics as their choice of industry. However, it is not the top shareholder in the market anymore.
In recent times, clothing and apparel has taken hold of the dropshipping market and clothing sales made up over 20% of the global dropshipping market size, which means around 142 billion USD globally. Clothing and apparel is a massive industry for ecommerce and there are many dropshipping businesses that set up stores on online marketplaces for fashion and clothing.
The ecommerce sector has really taken off in recent times. It is one of the most valuable markets for retail everywhere in the world. If any business wants to make sure they are successful and have a vast reach, they use ecommerce as a sales channel. With around 24 million ecommerce stores and businesses in the world, there is a huge percentage that are dropshipping businesses. As ecommerce grows over the years, so does dropshipping. There are countless businesses using dropshipping fulfillment method to get their business up and running online without having to put in a lot of time getting inventory and having to build a fulfillment infrastructure.
When you run a dropshipping business, it is crucial to understand that you need to build an excellent online store and make sure you can grab your customers’ attention. According to surveys and research, a customer will browse for 15 seconds on a dropshipping store and if nothing catches their attention, they will click out of the page. This means every dropshipping business must make sure their website and online store offers a wonderful shopping experience and you can grab people’s attention with ease. It is also important for dropshipping businesses to pay attention to their marketing and ensure their strategies are top-notch.
When you run a dropshipping business, your online presence is everything. Simply creating your online store or ecommerce website is not enough, you also need to focus on the marketing and online reputation for your business. Dropshipping businesses that use social media can generate 32% higher revenue than the ones that don’t. This shows how important social media presence and marketing is, especially for dropshipping businesses. It is crucial that you use all the platforms available for your dropshipping store’s promotion and marketing.
Out of the 24 million online stores and businesses, 33% are using dropshipping fulfillment model. This shows how popular dropshipping has become in the ecommerce world. It is relatively easy and efficient to set up a dropshipping store and get your business started, especially with all the plugins and tools offered by ecommerce platforms for dropshipping these days. Many businesses prefer using the dropshipping fulfillment model because it is easy and convenient.
Statistics show that dropshipping is not just beneficial for the businesses that use it as a fulfillment model, but it is also great for the manufacturers that provide dropshipping services for businesses. If you provide dropshipping services as a manufacturer, you can earn over 18% more than the manufacturers who don’t provide these services. It is an excellent way to make sure your products are being sold and you will always have customers once you start working with a business that uses the dropshipping model.
Dropshipping is a fulfillment method that has become more popular than ever and is only projected to grow even more and reach new heights. As of now, more than 20% of all online sales are fulfilled using dropshipping. This means that the dropshipping businesses have become a huge part of the ecommerce market and they are adding even more value to it. The ease of setting up a dropshipping store and having access to companies that provide dropshipping fulfillment services has also played a huge role in making dropshipping a significant branch of ecommerce.
One of the reasons why dropshipping is as huge as it is right now is because it is a fulfillment method that enables businesses to increase their earnings and revenue. Businesses that don’t use the dropshipping fulfillment method have to pay for their inventory and warehousing, get a team of skilled workers that can fulfill orders by picking and packing, handle the shipping, and so many other expenses and costs. This is why businesses that use dropshipping can make 50% more earnings compared to businesses that have to rely on keeping their inventory on-site and fulfill orders themselves.
Whether you run an online dropshipping business or are thinking of starting one, it is always beneficial to know and understand how your audience thinks and what your customers want from your business. More than 65% of online shoppers will prefer buying from a business that can offer multiple shipping options. This is crucial to note for dropshipping businesses because you don’t have any control over the shipping yourself, which is why you need to make sure you can find a dropshipping fulfillment partner that can provide multiple shipping options for your online store and you can keep your customers satisfied with your services.
One of the biggest problems for online dropshipping businesses is finding the right fulfillment partner for your business. More than 80% of the dropshipping businesses and merchants state that finding a reliable supplier is the biggest obstacle they face with their business. It is important to find a dropshipping fulfillment partner that can provide the best products and services for your customers, making sure that they keep coming back to shop from your store. It is essential that the dropshipping fulfillment partner you work with also provides efficient shipping and secure packaging, making sure your customers don’t have any complaints about their shopping experience with your online business.
As a dropshipping company, you need to understand how vast the ecommerce market really is. In 2021, as people were still dealing with the pandemic, there were still over 2 billion buyers online. That is a huge number considering the population of the world is at 8 billion now. A lot of people realized that shopping online is convenient and easy, as you get the products delivered to your doorstep. Online shopping became a huge part of everyone’s lives during the pandemic, and more dropshipping businesses started to take off as well. The more people shop online, the more people will come across dropshipping stores and shop from there as well.
If you are getting into dropshipping and starting your online business, it is crucial that you are aware of the success rate for dropshipping. Many people who run dropshipping companies have stated that the first year of a dropshipping business is the most difficult and if you stick it out, your store can become a success. Most people don’t have the patience to get through a difficult first year, which is why they leave their dropshipping business behind. Although it seems like the success rate for dropshipping is low, if you make it through the first year you can have a good chance at success.
When you start an online business or are looking for ways to improve your online business, it is always important to get familiar with what your customers want and expect from your store. More than 40% of people who shop online want short shipping times and they are not willing to wait more than two days for shipping. If you want your dropshipping business to be successful, you have to make sure your fulfillment partner can provide two-day shipping for your customers. As an online business, you are competing with the shipping times provided by giants such as Amazon Prime, and you need to make sure your services are also at the same standard if you want to be successful.
When the pandemic hit, everyone around the world was trying to deal with the strict lockdowns and restrictions on going out. During such harsh times, shops were closed or operational only for a limited time, which is why people had to start shopping online more. Soon everyone realized that online shopping was very convenient, as you buy the items you want and they get delivered straight to your doorstep, saving a lot of time. Even as the world is slowly moving towards normalcy again, people are still shopping online and ecommerce is continuing to grow, which is also an opportunity for dropshipping businesses to expand and hold an even bigger market share in the online business sector.
It is important to note that the dropshipping sales hold a huge share in the ecommerce market and amount to over 85 billion USD, which is a lot. As more businesses have started to adopt the dropshipping fulfillment method, the sales are growing and the revenue generated each year from dropshipping also continues to increase. Over the next few years, the dropshipping revenue is set to surpass 300 billion USD as the sector is becoming more popular and expanding all across the globe.
Ecommerce is a sector that has shown significant growth over the last few years and it is an industry that will continue to expand each year. According to experts, the ecommerce industry will be growing by at least 17% every year, and as the ecommerce market grows, so will dropshipping. More businesses have started using dropshipping as their preferred method of fulfillment, and there is a lot of scope in the sector for up and coming dropshipping companies as well.
If you look at the profits for dropshipping and ecommerce, there has been a 7% year on year increase. This amounts to around 4 billion USD in profit. It is important to note that dropshipping businesses have become an integral component of the ecommerce industry and bring in a huge percentage of the total online sales. The businesses that use dropshipping make a lot of profit, and are almost 50% more profitable than the businesses that store their inventory on-site and carry out traditional fulfillment for their business. This also means that a lot of the profit that the ecommerce industry has made over the years has come from dropshipping businesses.
Oberlo has been a huge tool for the dropshipping industry and the businesses that used Oberlo for their stores were sourcing more than 80% of their products from Oberlo as well. Oberlo was the dropshipping service extension offered by Shopify for their ecommerce businesses. However, in 2022, Shopify announced that it is shutting Oberlo down. There are many other dropshipping extensions for online stores and websites other than Oberlo as well that they can use for their fulfillment operations.
According to recent statistics, more than 12% of all ecommerce stores on the Shopify platform are using at least one dropshipping product. It is also important to note that more than 7% of all the products available on the Shopify ecommerce stores are coming from a dropshipping service. This goes on to show how important dropshipping has become in today’s day and age and a lot of the ecommerce businesses are using dropshipping in some capacity for their online store.
As a dropshipping business, you must understand that the first year of operations can be challenging and it might not bring the results you are hoping for immediately. It is crucial that you stick around for a while and be patient with your dropshipping business. You should also make sure that you do everything you can for your marketing and more people can see and access your online store, helping you get sales. It is noted by successful dropshipping businesses that the highest success rate for the first year even for them is around 10%, which is why you have to trust the process and the time it takes.
When you are getting into dropshipping, understanding the ecommerce industry and how the businesses operate is important. More than 20% of all the online sales carried out are fulfilled through dropshipping, which is a huge number. Even more important to note is that the majority of the sales that are not fulfilled through dropshipping are for the industry giants and big brands. These companies have the resources and infrastructure to handle their own fulfillment efficiently and don’t have to rely on dropshipping.
AliDropship is one of the most popular dropshipping plugins for WordPress. This plug-in helps in making dropshipping easy for businesses in the United States, the UK, Canada, Malaysia, and many other countries, by enabling them to get products from AliExpress shipped worldwide efficiently. Most of the users on AliDropship cater to a niche category and there are very few general store owners that use AliDropship for their online business.
Amazon is one of, if not the, biggest and most popular global ecommerce marketplace. It is unmatched in sales made every day, with some of the small and midsize businesses on Amazon selling more than 4000 items every minute. It is important to note that almost half of all sales made on Amazon are being fulfilled by third-party companies, and 34% of these third-party companies are dropshipping services. Dropshipping has become a huge part of the Amazon marketplace and people are using Amazon to set up their dropshipping stores. As the number of sellers on Amazon increases every day, so does the number of dropshipping businesses on Amazon.
eBay is one of the most popular platforms for ecommerce and especially dropshipping businesses. There are many dropshippers using eBay to set up their stores and make profit. There is a huge margin for profit on eBay for these businesses. Although the profit is not as high as other ecommerce platforms and avenues, dropshippers still continue to use eBay because it is easy to set up a store on the site and get their business running. A vast majority of the dropshippers on eBay are using it as a side business, which is why even making a profit of more than 1000 USD is more than enough for them. However, when you use eBay for your dropshipping business, you have to keep in mind that you need to pay the eBay fees and PayPal fees as well.
As dropshipping gains more traction all across the globe, more people are looking forward to starting their dropshipping business and you could be one of them. Whether you are beginning your dropshipping journey or are looking for a fulfillment partner for your online store, you have come to the right place!
Here at Meteor Space, we understand that running your dropshipping store online is not as easy as it looks and there are some challenges with fulfillment of orders that you must overcome. It is crucial that your dropshipping fulfillment partner is reliable and can provide excellent service for your customers, which is why Meteor Space is a leading choice for you!
We know that you need reliable and fast fulfillment for your dropshipping store, and we provide it for you. Meteor Space can keep the inventory for your online store at our state of the art warehouse, manage all orders, pick and pack orders accurately, and ship them out to your customers on your behalf.
When you team up with Meteor Space, you don’t have to worry about anything! From efficient and reliable dropshipping fulfillment to special services like customer support and custom packaging, we offer everything, making sure you have all the resources you need to take your business to new heights and keep your customers happy.
So, what are you waiting for?
Get started today!