Dublin, April 03, 2023 (GLOBE NEWSWIRE) -- The "Global Dropshipping Market Size, Share & Industry Trends Analysis Report By Product Type, By Regional Outlook and Forecast, 2022 - 2028" report has been added to ResearchAndMarkets.com's offering.
The Global Dropshipping Market size is expected to reach $623 billion by 2028, rising at a market growth of 20.6% CAGR during the forecast period.
Key Market Players
List of Companies Profiled in the Report:
- Shopify Inc.
- AliDropship LLC (Sunshine Group)
- Doba, Inc. (Focus Technology Co., Ltd.)
- Megagoods, Inc.
- Modalyst, Inc. (Wix.com Ltd.)
- Printify, Inc.
- SaleHoo Group Limited (Doubledot)
- Sunrise Wholesale Merchandise LLC
- Wholesale2b
Dropshipping is a form of retail fulfillment strategy for online businesses in which merchants sell goods to consumers and transfer the sales order to a third-party supplier, who then delivers the order straight to customers on the merchant's behalf.
Also, there is a quickly spreading tendency of online intermediaries that charge additional money and constantly switch between wholesale and retail prices. Having top-notch customer service is essential for retaining customers, as dropshipping retailers lose some control over the consumer experience.
The e-commerce business is expanding, which fuels the demand for dropshipping services. Some of these factors include increased smartphone penetration and rising consumer disposable income. The worldwide dropshipping market is anticipated to increase greatly as a result of the rising acceptance of online purchasing and the inclination of cross-border e-commerce trade.
As a consequence, the e-commerce industry's growth is primarily responsible for the spike in demand for dropshipping services. Dropshipping is the process of selling products via online storefronts without keeping a stock of items in stock with the merchant. Instead, the manufacturer or wholesaler receives the client's order information from the store and ships the products directly to the customer.
Starting a dropshipping company is really inexpensive, and it eliminates the danger of losing money on unsold inventory. It helps merchants become more profitable, save time, and save money, all of which contribute to the growth of the dropshipping business.
According to a study of the dropshipping business, the market is expanding as a result of the simplicity with which online shops can now be established across a wide range of product categories. A new online shop may be easily set up with the help of new eCommerce providers, and drop shipping businesses can increase their market share by using an efficient marketing plan.
Market Growth Factors
E-commerce platforms are being more widely used to support market expansion.
Conventional distribution techniques demand a lot of work from retailers in terms of inventory management. To save money on inventory purchases and upkeep, companies are resorting to dropshipping services as e-commerce platforms are utilized more often. Dropshipping has become increasingly popular among merchants due to fewer capital expenditures for logistics and inventory.
The worldwide dropshipping market is anticipated to increase greatly as a result of the expanding trend of cross-border e-commerce trade and rising preference for online purchasing. Internet shopping portals provide a simple experience in addition to a broad selection of B2C items.
The internet of things is being used more and more to support efficient dropshipping
Small company owners may increase their consumer bases, vary their product offerings, and save expenses by using drop shipping. In order to send items using the dropshipping business model, third-party logistics providers (3PL) are required. As a consequence, the retailer has little control over the supply chain and is unaware of the supplier's inventory levels.
At this stage, the Internet of Things (IoT) may assist the retailer by giving updates on any on-the-shelf and off-the-shelf movement of a particular product in the supplier's inventory as well as real-time information on the supplier's inventory status.
Market Restraining Factors
Dependence on outside supplies
If a business had a real product on hand, these kinds of problems would be less devastating, and operations may continue while looking for a new supplier. So, it's crucial for new companies to have a viable backup plan in place in case of such a disruption. Dropshipping gives third parties control over things like product supply and quality assurance.
Retailers are prohibited from inspecting products before they are sent to consumers or from providing value-added services like pre-installing software on a phone or engraving a personalized message on jewelry. The future market expansion may be hampered by this dropshipping problem.
Scope of the Study
By Product Type
- Fashion
- Electronics & Media
- Food & Personal Care
- Toys, Hobby & DIY
- Furniture & Appliances
By Geography
North America
- US
- Canada
- Mexico
- Rest of North America
Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
For more information about this report visit https://www.researchandmarkets.com/r/hd1f73
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