Drop Shipping Statistics


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Steve Goldstein
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Drop Shipping Statistics 2023: Facts about Drop Shipping outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Drop Shipping, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will Drop Shipping Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

Please read the page carefully and don’t miss any words.

On this page, you’ll learn about the following:

Top Drop Shipping Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 42 Drop Shipping Statistics on this page 🙂

Drop Shipping “Latest” Statistics

  • By 2027, the B2C e-commerce market will be worth $6.2 trillion, according to Grand View Research.[1]
  • Over 2.14 billion people regularly shop online.[1]
  • E-commerce platforms will soon be used by billions of people worldwide, according to Statista.[1]
  • Real-life product reviews have a 12 times higher level of customer confidence than “official” product descriptions.[1]
  • Grand View Research’s report indicates that the dropshipping industry will reach $557.9 billion by 2025, growing at a CAGR of 28.8 percent over the forecast period.[2]
  • According to another Statista study, the global dropshipping market is expected to reach $196.78 billion in 2022 and $476.1 billion by 2026.[2]
  • Top drop shippers on the internet claim that only 10% to 20% of dropshipping businesses are successful.[2]
  • Dropshipping is now used by approximately 27% of online retailers as their primary method of fulfilling customer orders.[2]
  • When they sell to drop shippers, suppliers earn 18.33% more money than when they sell through their own online stores.[2]
  • The global dropshipping market for fashion and apparel products was valued at $43.9 billion in 2020, according to a Technavio report, and it is anticipated to expand at a CAGR (Compound Annual Growth Rate) of 12.8% between 2020 and 2025.[2]
  • The global dropshipping market for a home and garden products was valued at $29.9 billion in 2020, according to a ResearchAndMarkets report. From 2020 to 2028, the market is expected to expand at a CAGR of 12.3%.[2]
  • 61% of B2B retailers plan to make their eCommerce platform a top technology budget priority in the coming year, according to a report.[2]
  • In 2021, retail e-commerce sales are expected to reach approximately $4.9 trillion worldwide, according to Statista.[2]
  • With e-commerce sales of $2,779.31 billion in 2021, China is the largest market.[2]
  • E-commerce was responsible for 19.6% of all retail sales worldwide in 2021.[2]
  • Over 2.14 billion people worldwide are expected to want to buy goods and services online in 2021, according to a Statista forecast of the number of digital buyers from 2014 to 2021.[2]
  • BigCommerce’s most recent e-commerce statistics show that online stores with at least one social media account (Facebook or Twitter) typically generate 32% more sales than those that do not.[2]
  • Dropshipping was used to fulfill approximately $85.1 billion, or 23%, of online sales in 2017.[3]
  • The fulfillment model used by nearly 33% of online stores is dropshipping.[3]
  • Dropshipping as a fulfillment model is anticipated to continue growing alongside eCommerce, which is growing by approximately 17% annually.[3]
  • Dropshipping is used by Amazon, too: In 2011, drop shippers were used to fulfilling 34 percent of Amazon sales, and that percentage has only increased since then.[3]
  • A typical bulk purchase by a traditional retailer only accounts for about 13 percent of what the supplier would prefer to sell.[3]
  • Because they are not as dependent on retailers’ inventory space, manufacturers who participate in dropshipping are 18.33% more profitable than manufacturers who rely on conventional channels.[3]
  • Dropshipping can potentially make eCommerce stores 50 percent more money than stores that deal with an onsite inventory.[3]
  • Oberlo is the leading dropshipping platform with a 31.5% market share, followed by Printful at 26%, and the number of Shopify dropshipping stores has increased from 5.16 percent to 12.82 percent of all Shopify stores.[4]
  • Clothing accounts for 20.8% of dropshipped products.[4]
  • The United States has the most Shopify stores, accounting for 62.8 percent of all Shopify stores.[4]
  • 12.82% of Shopify stores will use at least one dropshipping product as of April 2021, and 7.10% of all Shopify stores will purchase products from a dropshipping service.[4]
  • The global dropshipping market was worth USD 102.2 billion in 2018.[5]
  • By 2027, the dropshipping industry is predicted to be worth $500 billion.[5]
  • Drop shipping is used by approximately 27% of online retailers.[5]
  • Businesses that dropship products make 50 percent more money than sellers who keep an online inventory.[5]
  • Dropshipping was responsible for 23% of all online sales worldwide in 2017.[5]
  • From 2020 to 2026, the dropshipping market is anticipated to experience an average annual growth rate of 24%.[5]
  • Drop shipping is used by approximately 27% of online retailers.[5]
  • According to Torchbankz, dropshipping businesses make 50 percent more money than sellers who keep an online inventory.[5]
  • According to Shift4shop, dropshipping was responsible for 23% of all global online sales in 2017. Dropshipping is used by nearly 33% of online stores.[5]
  • In the United States alone, retail e-commerce is worth $220 billion and expanding at a rate of nearly 17% annually.[6]
  • Drop shipping is now used by 22-33% of online retailers as their primary method of order fulfillment.[6]
  • Drop shipping accounted for 34% of Amazon.com’s 2011 product sales in 2012, according to the e-commerce giant.[6]
  • Establishing a relationship with a drop ship supplier or wholesaler is regarded by 84% of online sellers as the most significant obstacle to starting an online business.[6]
  • When compared to a manufacturer that sells through conventional channels, a manufacturer that drops ships earns 18.33% more on average.[6]

Also Read

How Useful is Drop Shipping

One of the main advantages of drop shipping is the convenience it offers to online retailers. By eliminating the need to hold inventory, businesses can free up valuable space and resources that can be allocated to other aspects of the business. This can lead to cost savings and increased efficiency, allowing retailers to focus on marketing, customer service, and growing their online presence.

Furthermore, drop shipping can also reduce the risk associated with holding excess inventory. With drop shipping, retailers can quickly adjust their product offerings based on demand, without having to worry about the costs of owning and storing excess stock. This flexibility can be particularly advantageous for businesses in fast-paced industries where trends and demands can change rapidly.

In addition, drop shipping can provide retailers with access to a wider range of products and suppliers. By partnering with multiple suppliers, retailers can offer a diverse selection of products to their customers without the need to establish relationships with each individual supplier. This can help businesses stay competitive in crowded markets and attract a broader range of customers.

On the other hand, drop shipping does come with its own set of challenges and limitations. One of the main drawbacks is the lack of control over the shipping process. Since the products are being shipped directly from the supplier to the customer, retailers have limited visibility and control over the shipping and delivery process. This can potentially lead to delays, damaged goods, or unsatisfied customers, which can harm the reputation of a business.

Additionally, because retailers do not physically handle the products they are selling, there can be issues with product quality and consistency. Without being able to inspect the products themselves, retailers may run the risk of selling low-quality or counterfeit goods, which can damage their reputation and erode customer trust.

Despite these challenges, drop shipping can still be a valuable tool for online retailers looking to streamline their operations and expand their product offerings. By carefully selecting reputable suppliers and establishing a strong relationship with them, retailers can mitigate many of the risks associated with drop shipping and create a successful business model.

In conclusion, drop shipping is a useful approach for online retailers looking to enhance their operations and grow their businesses. By leveraging the benefits of drop shipping, retailers can reduce costs, increase efficiency, and expand their product offerings to attract a wider range of customers. However, it is essential for retailers to carefully navigate the challenges and limitations associated with drop shipping to ensure a positive experience for both themselves and their customers.

Reference

  1. alidropship – https://alidropship.com/starting-an-online-store-with-dropshipping/
  2. appscenic – https://appscenic.com/dropshipping-and-ecommerce-key-statistics/
  3. shift4shop – https://blog.shift4shop.com/can-dropshipping-be-profitable-check-these-key-statistics
  4. shopgram – https://blog.shopgram.io/key-statistics-of-shopify-june-2021/
  5. woosuite – https://woosuite.com/stats/dropshipping/
  6. americommerce – https://www.americommerce.com/the-numbers-behind-drop-shipping

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