Dropshipping Statistics By Market Size, Profit, Platforms, Industry, Sales, Abandonment, Social Media, Email Marketing And SEO

Introduction

Drop shipping Statistics: Drop shipping is a popular business model that allows people to sell products online without needing to keep stock. Instead, when a customer places an order, the seller buys the item from a supplier who ships it directly to the buyer. This makes drop shipping a low-risk and cost-effective way to start an online store.

Due to the rise of e-commerce, drop shipping has grown rapidly in recent years. This is known to be one of the fastest-growing industries, attracting entrepreneurs worldwide. Understanding drop shipping statistics can help business owners plan better and stay ahead in this competitive market. Key data like market size, growth trends, and customer preferences provide valuable insights into how this business model is evolving and what opportunities lie ahead in 2024.

Editor’s Choice

• Dropshipping Statistics show that the dropshipping market is projected to reach USD 351.8 billion in 2024, marking a 23.6% increase from 2023.
• Meanwhile, approximately 27% of online retailers have adopted dropshipping as their primary order fulfillment method.
• Dropshipping businesses typically have profit margins of 15% to 20%, depending on the niche and pricing strategies.
• In 2023, Asia Pacific led the dropshipping market with 35.2%, North America held 31.5%, and Europe had 24.3%.
• The fashion segment is anticipated to have the highest compound annual growth rate (CAGR) of 24.8% in the dropshipping market from 2023 to 2030.
• Manufacturers who engage in dropshipping report an average profit increase of 18.33% compared to those who sell directly through their online stores.
• Dropshipping Statistics further states that the success rate for dropshipping businesses is estimated to be between 10% and 20%.
• In 2023, smartphones were over 70% of all retail website visits worldwide.
• Over 64% of dropshipping deliveries utilized recycled packaging, reflecting a shift towards more sustainable business practices.
• 66% of online shoppers prefer purchasing from companies that offer multiple shipping options.

General Dropshipping Statistics

(Reference: appscenic.com)

• About 27% of online stores now use dropshipping as their main way to sell.
• Selecting the right supplier is the biggest challenge for 84% of eCommerce businesses.
• E-commerce sales in the U.S. will increase significantly throughout 2024, showing strong growth.
• Around 1 in 10 to 2 in 10 dropshipping businesses succeed on average.
• As mentioned in Dropshipping Statistics, in 2024, around 2.71 billion people shop online, and this number is estimated to be 2.77 billion by 2025.

(Reference: statista.com)

• A Statista report predicts that the global dropshipping market will grow to USD 301.11 billion in 2024.
• This growth is expected to continue, with the market reaching USD 476.1 billion by 2026.

(Source: appscenic.com)

• The above graph shows that the U.S. eCommerce market is expected to grow steadily, with sales projected to increase by 8.7% in 2024.
• This will bring the total to almost USD 1.199 trillion, making up 16.2% of all retail sales.
• Dropshipping Statistics also show that Asia-Pacific leads dropshipping growth, expecting a 37.7% CAGR by 2031, followed by North America’s 33.3%.
• Suppliers earn 18.33% higher profits selling to drop shippers compared to running their online stores.

Key Facts of Dropshipping Statistics

• Only 1 in 10 dropshippers find success within their first year of starting.
• As of 2024, Dropshipping makes up 23% of all online sales.
• Dropshipping accounts for 34% of Amazon’s total sales, showing its significant role in their business.
• About 86% of people using AliDropship choose to focus on one specific niche for their dropshipping business.
• The percentage of Shopify dropshipping stores grew significantly, rising from 5.16% to 12.82%.
• Around 27% of companies now use dropshipping as their main way to run their business.
• Only 1.5% of dropshipping stores make over USD 50,000 in monthly revenue, showing rare success.
• Electronics account for 30% of the dropshipping market in North America.
• Dropshipping stores that use at least one social media account make 32% more money.
• Dropshipping stores make 50% more money compared to businesses that only sell products from their stock.
• Dropshipping earns about 15 times more money compared to affiliate marketing.
• Over 30% of online stores rely on dropshipping to handle their order fulfilment.

Dropshipping Market Size Statistics

(Reference: shopify.com)

• The global dropshipping market will grow significantly in 2024, reaching USD 351.8 billion.
• This marks the first time it will cross the USD 300 billion mark, following a 23.6% rise compared to 2023.
• Furthermore, the estimated market size of dropshipping will be in 2025 (USD 435 billion), 2026 (USD 537.8 billion), 2027 (USD 665 billion), 2028 (USD 822.1 billion), 2029 (USD 1,016.5 billion), 2030 (USD 1,256.8 billion), 2031 (USD 1,553.9 billion), 2032 (USD 1,921.2 billion) and 2033 (USD 2,241.8 billion).

Dropshipping Profit Margin Statistics

• In recent years, dropshipping profits have normally been 10 to 25%, but we target 20 to 25%.
• As mentioned in Dropshipping Statistics, according to Jungle Scout, over half of Amazon sellers make a profit of more than 15%.
• In 2023, online stores had a 42.78% gross margin but only a 0.64% net margin.
• Grocery stores make small profits, usually around 1 to 3%, based on the products and store type.
• Convenience stores usually make a profit of 5-10%, depending on how many stores they own.

Major Dropshipping Statistics by Platforms

• Dropshipping Statistics in 2024 show that Printify controls 6.3% of the dropshipping market.
• CustomCat, Teelaunch, Spocket, DSers, and SPOD hold small market shares: 1.9%, 1.8%, 1.5%, 1.4%, and 1.2%, respectively.

By Product Categories

(Source: appscenic.com)

• Dropshipping Statistics show that the food and personal care market will grow 30% yearly from 2019 to 2025.
• The fashion niche in dropshipping is growing fast and may reach USD 2 trillion by 2026.
• The global dropshipping market for fashion and clothing is expected to grow steadily at an annual rate of 7.56% from 2024 to 2028.
• By 2024, it is predicted to be worth USD 746.80 billion. Similarly, the Beauty & Personal Care market is set to reach USD 645.78 billion in 2024.
• The global dropshipping market for home and garden products is predicted to hit USD 130 billion worldwide.

By Industry

AliDropship Statistics

• Dropshipping Statistics in 2024 further report that almost 86% of AliDropship users run niche stores, focusing on specific products, while only 14% choose general stores.
• Top buyers of AliDropship stores are from the U.S., UK, Canada, Malaysia, Australia, and India.
• 5% of AliDropship sellers offer tech gadgets due to high demand.

eBay Dropshipping Statistics

• The top 10% of eBay dropshippers make USD 7,731 monthly, totaling USD 92,772 yearly.
• About 25% of eBay dropshippers earn more than $1,000 in profit each month.
• On average, eBay drop shippers earn USD 2.67 profit per order, but the top 10% make USD 3.64 per order.
• On eBay, the average drop shipper handles 969 orders monthly; the top 10% manages 4,759.
• An average eBay drop shipper pays USD 1,078 in eBay fees and USD 479 in PayPal.

Amazon Dropshipping Statistics

• Amazon has over 5 million active sellers, with 3,718 new ones joining daily, mostly third-party sellers like drop shippers.
• Half of Amazon’s sales come from third-party sellers, and 34% use dropshipping for orders.
• In the U.S., small and midsize businesses sell over 4,000 items every minute on Amazon.

e-Commerce Site Usage Statistics

(Reference: website-files.com)

• On January 14, 2024, 23% of top stores were successfully using Shopify for sales.
• 15% of leading online stores use WordPress with WooCommerce to manage and sell products.
• Meanwhile, other usage distribution shares are followed by Magento (8%), Shopify Plus (6%) and Presta Shop (4%).
• 44% of stores use platforms like OpenCart, Squarespace, BigCommerce, Magento, and Wix.

Online Shoppers Dropshipping Statistics

• By the end of 2024, online shoppers will increase to 2.71 billion, reaching 2.77 billion in 2025.
• Analysts expect that the number of online shoppers in the USA will reach 223 million in 2024.
• This is a small increase of 1.9% compared to the year before.
• Research shows that 38.4% of online shoppers in the United States are younger than 35.
• Only 14.4% of online shoppers are aged 65 or older.
• However, Statista predicts that by 2024, there will be 32.3 million digital buyers who are 45 years old or older.

Ecommerce Sales Statistics

(Reference: statista.com)

• Dropshipping Statistics in 2023 show that global retail e-commerce sales were about USD 6.169 billion, and they are expected to grow to USD 6.773 billion by the end of 2024.
• By 2025, e-commerce sales are predicted to increase by 39%, reaching around USD 7.385 billion.

B2B Seller Statistics

(Reference: appscenic.com)

• Dropshipping Statistics report that 61% of B2B retailers will prioritize eCommerce platforms in next year’s budget.
• Furthermore, other budget priorities of ecommerce technology shares are followed by digital marketing (58%), order and fulfilment (29%), content management (27%), customer service (26%), PIM of other data management (20%), New channels (20%), payment and security systems (17%), online marketplace management (12%), and other (5%).

Top 5 Dropshipping Niches Statistics

Print-on-demand business

• In the print-on-demand business, sellers offer customized items like t-shirts, mugs, and phone cases with unique designs chosen by customers.
• According to a report from Allied Market Research, the print-on-demand market will grow by 26.4% annually and could reach USD 64.3 billion by 2032.

Plus-size Clothing

• The plus-size clothing market is growing, with high demand and limited store options.
• Dropshipping offers convenience, niche branding, and loyal customers.
• It may reach USD 792 billion by 2028 (IMARC Group).

Winter Wear

• The winter wear niche offers practical clothing for cold weather, stylish designs, global market growth, chances to upsell, and loyal customers.
• The market may reach USD 340.5 billion by 2031.

Mobile Accessories

• Companies release new phone models yearly or less often as technology advances.
• Selling phone accessories online is profitable.
• According to Statista, the market is expected to reach USD 413.2 billion by 2028.

Office Supplies

• Office supplies are a great dropshipping niche as they attract a wide range of buyers like remote workers, businesses, and schools.
• Statista predicts the market will hit USD 270 billion by 2028.

Dropshipping Statistics by Cart Abandonment

(Reference: dropshipping.com)

• This year, online shoppers are expected to leave around USD 4.6 trillion worth of items in their carts without buying them.
• Skilled online retailers could recover about 60% of these abandoned sales, which means USD 2.75 trillion could still be made.
• Baymard’s research shows that 47% of customers quit purchases due to high extra costs like shipping.
• In addition, other reasons for cart abandonment are mandatory to create an account (25%), delivery was too slow (24%), not trusting sites with credit card information (19%), too long and complicated process (18%), couldn’t calculate total order cost up-front (17%), returns policy wasn’t satisfactory (16%), website error or crash (14%), not enough payment method was available (11%). Credit cards declined (6%).

Dropshipping Marketing Statistics by Social Media

• Dropshipping Statistics report that Facebook is still the top platform, with 3 billion monthly users.
• By 2024, social media users worldwide will reach 5.17 billion people.
• By 2024, over 10 million marketers will use Facebook, with 63.7% of Americans seeing its ads, earning USD 170.82 billion.
• TikTok and influencers are booming, with 68% of marketers planning bigger budgets next year.

By Email Marketing

• By 2024, email marketing will earn USD 12.33 billion, with 77% expecting higher email use.
• The best email marketing strategies are grouping subscribers (78%), personalising messages (72%), and using automated email tools (71%).

By SEO

• By the end of 2027, the SEO industry will valued at USD 99.4 billion.
• Around 93% of people start their online activities using a search engine.
• Google is the most popular search engine, with a global market share of about 85.55%.
• On mobile devices, the first organic search result gets 27.7% of all clicks, which is higher than the 19.3% it gets on desktops.
• Another interesting fact is that 88.28% of SEO professionals charge USD 150 or less per hour for their services.

Conclusion

Dropshipping is growing fast and offers a great chance for people to start an online business with low risk. It’s popular because it’s easy to set up and doesn’t need a lot of money upfront. With more people shopping online and using mobile devices, the industry will keep expanding. To succeed, focus on choosing the right products, building trust with customers, and offering good shipping options. Dropshipping is a smart way to earn money in today’s digital world.