Global Dropshipping Market Analysis, Drivers, Restraints, Opportunities, Threats, Trends, Applications, and Growth Forecast to 2029
“Global Dropshipping Market” is an upcoming report by MarketResearch.biz. Segmentation of the global dropshipping market allows for deeper understanding and assessment, to decisively analyze and study the target market. Besides revenues for segments, global, regional, and country-wise, market revenue segmentation is presented for clear flow, readability, and understanding. The analysis is conducted using expert opinions and inputs, as well as thorough primary and secondary research efforts to determine various aspects of the dropshipping market. The global dropshipping market report is segmented on the basis of product, and regions and countries.
Dropshipping is a supply chain management system, in which the retailer does not keep goods in stock, but instead transfers orders received from customers and shipment details directly to a manufacturer, retailer, or wholesaler. The manufacturer or retailer then ships the goods directly to the customer. A rapidly growing e-Commerce industry and expanding consumer base of online shoppers is resulting in growing need for dropshipping services.
The advent of smartphones has revolutionized the way consumers shop, and development and introduction of numerous apps is making the overall online shopping experience both convenient and easy for consumers. Another factor contributing to growth of the global dropshipping market is increase in consumer disposable income. Revenue from the global dropshipping market is expected to register a relatively high CAGR over the forecast period. Players in the e-Commerce sector are investing significantly in increasing consumer base and visibility, as well as offering a broader range of products on a single platform owing to the sector becoming increasingly competitive in the recent past and entrance of newer players in the market.
Conventional distribution channels require retailers to invest substantially in inventory management. However, due to the increasing reach of e-commerce platforms, retailers are currently choosing dropshipping services as a means of reducing capital expenditure on inventory management/purchase. A broader product portfolio and lesser overhead costs enable further reach and larger target audiences.
Payment security is a key concern in the e-Commerce sector as it entails placing online orders and conducting transactions online. Unauthorized/fraudulent transactions, security breaches, and cyberattacks are among some of the key factors expected to hamper growth of this market.
In terms of product, the market is segmented into toys, hobby & Do it Yourself (DIY), furniture & appliances, food & personal care, electronics & media, and fashion. The electronics segment accounted for majority revenue share in 2018 due to technological advancements and development and launch of more advanced and smart electronic products and devices.
The fashion segment is projected to register positive growth over the foreseeable future due to evolving consumer spending patterns and behavior and rapid globalization. Increasing consumer preference for multiple brands on a single platform and for branded products is expected to positively impact revenue growth of the fashion segment over the coming years.
The food & personal care segment is expected to register a high CAGR over the forecast period owing to an increase in consumer spending on skincare and cosmetics products, perfumes, and other personal care products. Expenditure on domestically-available or locally-manufactured furniture has been increasing, and shift in preference towards luxury furniture offered in international markets by major players are among other factors expected to support revenue share growth of the furniture & appliances segment.
The Asia Pacific market accounted for significantly high revenue share in the global dropshipping market in 2019. This growth can be attributed to increasing number of players in the e-Commerce sector in countries in the region offering dropshipping services.
The market in North America is also projected to register significant growth over the coming years due to evolving consumer spending patterns and behavior and favorable trends in the market currently.
Global Market Segmentation:
Global market segmentation, by product:
- Toys, Hobby, & Do it Yourself (DIY)
- Furniture & Appliances
- Food & Personal Care
- Electronics & Media
Global market segmentation, by region:
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- Doba Inc.
- SaleHoo Group Limited
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