Dropshipping has changed how businesses sell things online and helps people start businesses all around the world. Many online stores, about 3 out of every 10, use dropshipping, showing how important it has become.
If you want to do well in dropshipping, it’s important to know the latest information about how it’s doing, like numbers and trends.
Actually, 33% of businesses like using dropshipping, so if you’re interested in starting an online store, it could be a good choice. In this guide, we’ll cover everything about dropshipping statistics in 2024.
Table of Contents
We’ll talk about how much the dropshipping business is growing around the world and what people are buying.
Let’s explore the top dropshipping statistics, and trends in 2024 together, so you can be successful too.
What is Dropshipping?
Dropshipping is a business model that lets ecommerce retailers sell products without buying or storing inventory. Suppliers ship items directly to customers on behalf of the online store.
This model demands little upfront investment or experience, making it popular among entrepreneurs worldwide, especially since the 2020 pandemic boosted ecommerce growth.
Dropshipping Statistics for 2024
All the dropshipping statistics provided here are taken from credible research:
1. Dropshipping Industry Statistics (Market)
The global dropshipping market is set to reach a whopping $301.11 billion in 2024. This big number shows that there’s a lot of potential for dropshippers who understand how the market works.
2. E-commerce Growth
It is projected that approximately 39% of all retail sales worldwide will come from e-commerce in 2024.
This demonstrates the growing trend of online shopping by consumers. This creates a great opportunity for dropshipping businesses.
3. Mobile Commerce
By 2024, it’s said that about 60% of all e-commerce sales will come from mobile phone users. This means it’s really important for your dropshipping store to work well on mobile phones, not just on computers.
4. Asia’s Leading Role
Asia Pacific is leading the way in dropshipping, with the biggest share of the market. It’s expected to keep growing fast.
With a predicted growth rate of 37.7% by 2031. This means there are lots of opportunities for dropshippers in this region.
5. Fashion Dominance
Fashion is one of the most popular categories for dropshipping, with a predicted growth rate of 35.6% by 2031.
By 2024, the fashion market in dropshipping is expected to be worth $746.80 billion.
6. Beauty & Personal Care Growth
The Beauty & Personal Care sector in dropshipping is also growing quickly and is expected to be worth $645.78 billion in 2024.
This shows that there’s a big demand for cosmetics and skincare products online.
7. Online Shopping Trends
Many online shoppers want fast delivery options, with 30% of them hoping for free shipping and their parcel to arrive within two days.
Additionally, online buyers expect fast shipping when they shop online. Most shoppers start their product search journey online, showing how important online shopping has become.
8. Popular Dropshipping Apps
Dsers is the most downloaded dropshipping app, with 185K installs. CJdropshipping and Zendrop are also popular, with 71K and 31K installs respectively.
9. Store Creation Trends
In the first quarter of 2023, 175K dropshipping stores were created, showing that dropshipping is still a popular choice for many entrepreneurs.
Around 27% of all dropshipping stores were created in 2022, and about 45% were created before 2021.
10. Surge in B2B Ecommerce
The 2024 B2B Market and Customer Experience Report shows that online sales on B2B ecommerce sites, log-in portals, and marketplaces increased by 17% in 2023.
This increase reflects the combined ecommerce sales of manufacturers, distributors, wholesalers, and retailers primarily selling to businesses.
11. Language Choices
Most dropshipping shops, around 74.2%, use English. Some also use Portuguese (12%) and French (4.5%).
12. Making Money
Dropshipping businesses typically earn profits of 15% to 20%. To increase earnings, focus on pricing and running your business efficiently.
Try upselling and cross-selling to boost sales on your website and make more profit.
13. Profitability Margin of Dropshipping
Dropshipping businesses typically earn a profit margin of 15–20%. To calculate your profit margin, consider all costs involved, such as dropshipping services, shipping, taxes, ecommerce platform fees, website hosting, and marketing expenses.
When setting prices on your online store, factor in these costs to ensure profitability. Remember, with dropshipping, you’re outsourcing tasks like fulfillment and shipping to a third party, and these services are part of your expenses, not just the product cost.
14. Manufacturer Involvement
Companies that employ dropshipping typically experience an increase in earnings of 18.33% compared to those that do not utilize.
15. Supplier Challenges
Finding the right supplier is a big issue for 84% of online retailers who use dropshipping. When selecting a third-party supplier for your fulfillment needs, thorough research is essential.
- Assess the company’s history and market experience.
- Evaluate pricing, shipping rates, and delivery times.
- Review customer feedback and testimonials.
- Request sample orders to assess product quality.
- Determine if the supplier offers customization services to differentiate your offerings from competitors.
You can forget about all these hassles and choose Blinkstore as your trusted partner. It is the best print on demand company in India.
16. Success Rates
The most successful dropshippers achieve success rates of 10% to 20%. This shows the importance of careful planning and execution.
17. Market Expansion
The dropshipping market is rapidly growing, with a yearly growth rate of 24.39% from 2020 to 2026. Also, 25% of the market’s revenue comes from the Asia Pacific region.
The dropshipping market is driven by the electronics niche. The e-commerce market share of the United States is predicted to reach 16.4% in 2023.
18. Market Growth and Regional Trends
The global dropshipping market is on the rise, projected to surge at an impressive Compound Annual Growth Rate (CAGR) of 24.39% from 2020 to 2026.
This means a significant boost in opportunities within the dropshipping arena.
19. Leading Regions
Asia Pacific emerges as a frontrunner, contributing a substantial 25% of the dropshipping market’s total revenue. This underscores the burgeoning e-commerce landscape and potential in this region.
20. Regional Growth Highlights
China’s dropshipping market is poised for dominance, projected to soar with a CAGR of 29.3% by 2027, reaching a staggering $136.7 billion.
North America, which includes the US and Canada, is predicted to grow at rates of 21.6% and 19%, respectively, between 2020 and 2027. With an estimated growth rate of 20.3%, Germany leads the continent of Europe.
21. Product Categories and Regional Trends
In North America, electronics hold the crown, capturing 30% of the dropshipping market share.
Specifically, the US e-commerce market is anticipated to claim a significant 16.4% share by 2023, indicating ample potential for dropshipping businesses targeting US consumers.
22. Dropshipping Trend Keeps Growing
Dropshipping remains a popular trend in 2024, reflecting increased interest in starting online businesses. Ecommerce platforms facilitate easy integration of dropshipping into online stores.
This model enables selling products without inventory, reducing costs and streamlining operations for business owners.
23. TikTok Getting Popular for Online Shopping
TikTok is gaining popularity in online shopping. While its digital buyer base isn’t as large as Facebook’s or Instagram’s, TikTok has become the fastest-growing online shopping platform since launching TikTok Shop in 2023.
Adult TikTok users spend an average of 54 minutes per day on the platform, surpassing the 33 minutes spent on Instagram. Additionally, 68% of Gen Z adults in the US are willing to make purchases through TikTok.
24. Online Retailers Trying Out Dropshipping
Currently, about 27% of online retailers use dropshipping as their primary method for fulfilling customer orders. As a result, manufacturers and suppliers are seeing increased revenue from dropshipping partnerships.
It’s no wonder that more online retailers are interested in trying dropshipping, given its proven profitability and success.
25. Social Media Might be a Game Changer
BigCommerce recently released ecommerce statistics that show an average 32% increase in sales for online stores with social media channels.
This data highlights the importance of including social media. Such as Facebook or Twitter to your marketing strategy. Having at least one social media channel is crucial for maximizing your marketing impact and increasing sales.
Dropshipping Success: Practical Strategies for Growth
Elevate your dropshipping with these actionable insights:
1. Customer-Centric Approach
Put your customers first by ensuring seamless transactions, responsive communication, and hassle-free returns.
2. Harness the Power of Data
Leverage analytics tools to gain valuable insights into customer behavior and campaign effectiveness, guiding your strategic decisions.
3. The Reality of Success Rates
Achieving success in dropshipping relies on three critical factors: niche selection, strong supplier relationships, and mastery of marketing techniques.
4. Adaptability
Stay ahead of the curve by embracing change in the dynamic dropshipping landscape. Keep an eye on emerging trends and industry shifts to maintain your competitive edge.
Future Trends in Dropshipping
Consider these future dropshipping trends:
1. Social Commerce Dominates
Stores with active social media presence experience a significant 32% revenue boost, highlighting the importance of platforms like Facebook and Instagram in driving sales.
2. Mobile-First Strategy
With mobile devices driving over 70% of website visits, prioritizing a seamless mobile experience is essential for success.
3. Advertising Insights
Utilize paid advertising channels such as Facebook Ads and Google Ads to expand your reach and enhance brand awareness.
4. Operational Excellence
Master inventory management fundamentals and collaborate with efficient dropshipping suppliers to ensure prompt order fulfillment and customer satisfaction.
Dropshipping with Blinkstore
Blinkstore lets artists, influencers, businesses, and individuals start their dropshipping for free. They also get a free online store, shipping features, and a mockup generator.
Using Blinkstore, you can print your own designs on products and sell them to customers, keeping your profits. It’s a top dropshipping choice in India, especially with the booming print-on-demand market.
Start Your Dropshipping Business with Blinkstore now!
Why you should start a dropshipping business now?
- Low Startup Costs: Dropshipping boasts low startup costs, offering minimal initial investment requirements in contrast to conventional retail models.
- Wide Product Selection: With dropshipping, you can sell a wide range of products without the need to hold inventory. This allows you to test different dropshipping niches and adapt to changing market trends easily.
- Scalability: Dropshipping businesses can quickly scale up as demand grows, as you don’t need to worry about production or inventory constraints.
- Access to Global Markets: Dropshipping enables you to reach customers worldwide without the need for physical stores or international distribution networks.
- Low Risk: Since you only purchase products after you’ve made a sale, there’s minimal risk of unsold inventory or wasted investment.
Conclusion
Launching an online store with minimal upfront investment – is undeniable. But true success goes far deeper than just statistics.
It’s about crafting a strategic plan, executing it flawlessly, and relentlessly focusing on one key ingredient: value for your customers.
In this dynamic and fast-growing market, the right mindset and approach are the keys to unlocking your dropshipping potential.
FAQs on Dropshipping Statistics
Some frequently asked questions about Dropshipping Statistics.
How fast is the dropshipping market growing?
The dropshipping market is booming. It’s projected to reach $85.1 billion by 2026 according to Grand View Research.
How many people are dropshipping?
Approximately 27% of retailers utilize dropshipping for order fulfillment.
What’s the dropshipping failure rate?
Estimates vary (10%-50%), but success depends on factors like niche, marketing, and execution.
What percentage of dropshippers are successful?
While there’s no precise statistic, industry experts suggest that approximately 10-20% of dropshipping businesses achieve success. However, with dedication and effective strategies, dropshipping can indeed be a profitable venture.
Who’s the richest dropshipper?
Alex Ikonn and Mimi are successful entrepreneurs known for their various business ventures, including dropshipping. However, it’s essential to note that determining the wealthiest dropshippers can be subjective and challenging due to the private nature of their financial information.
Why do dropshippers fail?
Common reasons include:
– Lack of research and planning
– Poor marketing strategies
– Low-quality products or unreliable suppliers
– Ignoring customer service
– Unrealistic expectations (dropshipping requires effort!)