Global Dropshipping Market: Overview
Because of the growing popularity of online shopping and the growing tendency of cross-border e-commerce trade, the global dropshipping market is expected to develop significantly. As a result, the surge in demand for dropshipping services is mostly affected by the e-commerce industry's expansion. Dropshipping is the practice of selling things through online storefronts where the retailer does not maintain a stock of goods. Instead, the retailer sends the customer's purchase and shipping information to a wholesaler or manufacturer, who then sends the goods straight to the consumer.
Smartphones have transformed online shopping by providing a plethora of mobile applications that make the process simple and comfortable for customers. Rapidly increasing penetration of smartphone, combined with rising consumer disposable income, is likely to boost the e-commerce market and, as a result, the demand for dropshipping services is anticipated to rise. The number of customers who choose to buy online has resulted in a significant rise in investments by the major companies in the e-commerce sector.
Transparency market research offers a comprehensive understanding of the global dropshipping market through this report. It offers well-researched data on various facets of the market to offer valuable business input for profit generation.
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Global Dropshipping Market: Notable Developments
RakADX, U Suck, Direct Dropship UK, UFM Men's Underwear, Direct Dropship UK, HomeSnob, ZFI Inc. and ALLNET, and were amongst the new dropship providers revealed by Inventory Source in August 2020.
The noted players that are operational in the global dropshipping market are Oberlo, SaleHoo Group Limited, Doba, Inc., and AliDropship.
Global Dropshipping Market: Key Trends
Below-mentioned market trends and opportunities mark the global dropshipping market:
Increasing Penetration of E-commerce Platforms to Support Growth of the Market
Traditional distribution methods necessitate significant inventory management efforts on the part of merchants. However, as e-commerce platforms become more widely used, merchants are turning to dropshipping services to save money on inventory purchases and maintenance. Furthermore, the inclination of retailers towards dropshipping has risen as a result of lower capital inputs in logistics and inventory. Because of the growing trend of cross-border e-commerce trade and increasing preference for online shopping, the global dropshipping market is expected to develop significantly. As a result, the expansion of the e-commerce business has had a significant impact on demand for dropshipping services. Other aspects expected to drive expansion of the global dropshopping market are a diverse range of product selection and lower overhead expenses.
On the other hand, development of the global dropshopping market is expected to be hampered by illegal transactions or fraudulent. Because dropshipping is mostly based on online transactions, payment security is one of the most pressing problems in the sector. Payment gateways are vulnerable to cyberattacks and security breaches, thereby posing a threat to the industry. To minimize loss of goods, damage, and late deliveries, dropshipping services need a proper delivery infrastructure. As a result, difficulties in product shipping and logistics os likely to limit expansion of the global dropshipping market in the years to come.
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Global Dropshipping Market: Geographical Analysis
In 2018, the Asia Pacific region is likely to account for a significant portion of total sales in the global dropshipping market. The rising number of e-commerce firms in the region is attributed with the increasing demand for dropshipping services, resulting in the development of the regional market. The proliferation of internet access through the use of smartphones is credited with the rise of online merchants throughout the Asia Pacific area. Due to changing consumer behavior and market trends like voice-enabled virtual assistants and chatbots and mobile e-commerce, the North America market is projected to develop significantly over the forecast period, from 2021 to 2031. In addition to that, advantages such as ease of ordering and returns are luring customers to various online shopping platforms.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.