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.
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.
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.
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.