All the Dropshipping Statistics Your eCommerce Business Needs to Know 2023

dropshipping statistics for ecommerce

List of eCommerce dropshipping statistics upto April 2023.

Dropshipping is becoming increasingly popular as eCommerce grows. It allows businesses to minimize costs and maximize profits.

Customers can engage more with your brand through dropshipping due to lower inventory costs, faster delivery times, and reduced shipping costs.

As such, it is important to understand the dropshipping statistics relevant to 2023, such as the volume of orders, average order value, and customer retention rates.

We have compiled 70+ top statistics for your review about how dropshipping works.

Ultimate list of eCommerce dropshipping statistics

General dropshipping statistics

Let’s take a look at some dropshipping statistics in the overall industry. These include dropshipping market size, how many dropshippers are there in the US and information indicative to how many dropshippers are there in the world.

  1. The dropshipping market is rapidly growing despite economic challenges and is expected to reach a value of $568.7 billion with a CAGR of 31% by 2026. (Research and Markets)
  2. The global dropshipping market is growing rapidly and is expected to reach $243.42 billion in 2023, with increasing popularity due to its ease of setup and operation compared to traditional inventory-based businesses. (Statista)
  3. The dropshipping market is projected to continue its growth with a forecasted market size of $301.11 billion in 2024 and $372.47 billion in 2025 due to the ease of setup and the increasing popularity of ecommerce. (Statista)
  4. The dropshipping market will continue to grow, reaching a market size of $476.1 billion by 2026 due to its convenience and accessibility for businesses, manufacturers, and fulfillment partners. (Statista)
  5. The dropshipping market is expected to surpass $500 billion, which could happen as soon as 2027. (Statista)
  6. The dropshipping market is expected to experience robust growth from 2023 to 2028, with a predicted value of USD 1036.2 billion by the end of the period. (Expert market research)
  7. The simplicity of starting a dropshipping business, which eliminates the need to manage inventory and fulfillment, has significantly contributed to the market’s growth. Additionally, ecommerce platforms and marketplaces have made it even easier to set up a dropshipping business. (Oberlo)
  8. The Indian ecommerce market was valued at USD 38.5 billion in 2017 and is expected to reach USD 200 billion by 2026 at a CAGR of 51%, indicating the significant growth potential of the Indian ecommerce sector and, consequently, the dropshipping market. (Market data forecast)
  9. Companies are utilizing AI in dropshipping strategies for improved customer personalization and automation, as seen with the introduction of Sellika by AliDropship in 2022. (Business Research Company)
  10. There are approximately 26 million ecommerce sites worldwide, which has more than doubled since 2021 due to the pandemic, with the US having 9.5 million ecommerce sites. Shopify is the leading ecommerce site-building technology with a more than 15% market share. (BuiltWith Web Technology Usage Report)

Dropshipping statistics: Markets and products

By tracking dropshipping markets and products, businesses can understand which products are in demand and which market to focus on. Here are some insights from dropshipping market analysis:

  1. China’s dropshipping market is expected to achieve a CAGR of 30.1% by 2027, while Canada and Japan are also noteworthy markets. Germany is one of the fastest-growing regions in Europe. (Research and Markets)
  2. The Asia Pacific region contributes to approximately 25% of the total revenue generated in the dropshipping industry worldwide. This can be attributed to the increasing adoption of smartphones and easy internet accessibility in the region, which has led to the growth of online retailers. (Grandview Research)
  3. In 2022, the US dropshipping market was estimated to be worth USD 17.57 billion, projected to increase to USD 19.25 billion in 2023. By 2030, the market is expected to reach USD 31.94 billion, growing at a CAGR of 7.75%. (Research and Markets)
  4. Toys, hobby, and DIY items are gaining significant revenue in certain regions of the dropshipping market, particularly in the US, Canada, Japan, China, and Europe, which are expected to drive around 21% CAGR for these segments, reaching a projected $95.3 billion by 2027. (Research and Markets)
  5. Electronics account for about 30% of the dropshipping market in North America, which is expected to grow significantly as cross-border ecommerce gains popularity and online shopping becomes more commonplace. (Market Data Forecast)
  6. The global print-on-demand market is expected to reach $39.4 billion by 2030, with customers adding their own designs to clothing and other items before they are shipped via a third-party company. (Grandview Research)
  7. In 2022, the fashion industry generated a global revenue of $1.53 trillion, and it is expected to reach almost $2 trillion by 2027. (Statista)
  8. According to fashion experts, professional and playful attire, kitsch patterns, and cargo pants are expected to trend throughout 2023. (Statista)
  9. Smartphones are one of the most extensively utilized devices globally, with an estimated 7,690 million people projected to use them in 2027. (Statista)
  10. The market for smartphone accessories is expected to grow to $413.2 billion by 2030, indicating that opening a phone accessories store can be a lucrative and sustainable venture. (Next Move Strategy Consulting)
  11. In 2022, the global baby care products market was valued at approximately $91.76 billion, and it is predicted to grow to $164.5 billion by 2030. (Precedence Research)
  12. In 2022, the pet care market was estimated to be worth $280 billion and is expected to grow 7% annually from 2023 to 2032. (Global Market Insights)
  13. The online furniture market is expected to experience a significant growth of $112.67 billion from 2022 to 2026, with an annual growth rate of 16.79% globally. (Research and Markets)
  14. In 2023, curved furniture featuring bold colors and ambient lighting is expected to gain popularity and replace trends such as rattan and fast furniture. (Insider)
  15. With an expected increase in value from $557.7 billion in 2022 to $818.87 billion by 2026, the home goods market is set to grow rapidly. (Research and Markets)
  16. The worldwide revenue of the beauty industry is expected to reach $131 billion by 2026, representing a notable growth from $80.74 billion in 2021. (Statista)

Dropshipping platform statistics 

Dropshipping platforms provide businesses with a low-cost way to sell products online. They allow businesses to set up an online store without holding and managing inventory. They also provide real-time analytics so businesses can track their online stores’ performance.

Statistics show that dropshipping platforms are growing rapidly in popularity and that the average order value and gross merchandise value for these platforms are increasing year-on-year. Here are some insights from the dropshipping market research:

  1. Oberlo was an industry leader with a 31.9% market share and has been shut down. Printful is the second highest stakeholder in the dropshipping market, with around 25% of the market share, and is known to be one of the most effective tools for dropshippers and online stores. (Similarweb)
  2. Oberlo was a popular dropshipping service extension offered by Shopify, and stores using it sourced over 80% of their products from Oberlo. However, Shopify announced in 2022 that it is shutting Oberlo, leaving room for other dropshipping extensions for ecommerce businesses to explore. (Ecommerce News)
  3. There are several other dropshipping services in the global market besides Oberlo and Printful, including Customcat, Teelaunch, Spocket, Dsers, and Spod, with market shares ranging from 1.2% to 6.3%. These services offer solutions to help businesses set up and run their dropshipping operations. (Grandview Research)
  4. Shopify is the top platform for dropshipping, with the majority of stores being from the US (62.8%), followed by Canada (8%) and Australia (7.4%). (JungleScout)
  5. AliDropship, a well-known dropshipping plugin for WordPress, enables users to ship products from AliExpress effortlessly and occasionally from the United States. (G2)
  6. 86% of dropshippers who use AliDropship prefer to open niche stores, while only 14% opt for a more general store. This is despite not worrying about storage issues, as niche stores allow dropshippers to focus on a specific audience, product, or category, improving their chances of success. (AliDropship)
  7. On AliDropship, just 14% of dropshippers are owners of general stores.  (AliDropship)
  8. 18.5% of dropshippers on AliDropship sell gadgets, devices, and accessories.  (AliDropship)
  9. The countries with the highest demand for AliDropship’s custom store package are the United States, the United Kingdom, Canada, Malaysia, and Australia.  (AliDropship)
  10. currently has over 5 million active sellers. (Amazon)
  11. Amazon’s revenue is being influenced by third-party sellers (including dropshippers). (JungleScout)
  12. The number of sellers on Amazon is increasing by almost 3,718 new sellers per day every year. (JungleScout)
  13. Third-party sellers account for approximately 50% of all sales made on the Amazon marketplace. (JungleScout)
  14. Around 34% of products sold on Amazon are fulfilled by third-party sellers who are dropshippers that list their products on the marketplace. (JungleScout)
  15. On Amazon, certain small and midsize businesses in the U.S. are selling over 4,000 items every minute. (JungleScout)
  16. A dedicated Amazon dropshipper can earn between $1,000 and $50,000 monthly. However, competition is fierce on Amazon, and profits can be initially low, so many dropshippers quit early. But with patience and persistence, Amazon dropshippers can grow their business and earn significant profits. (JungleScout)
  17. Most eBay sellers are dropshippers who purchase items from AliExpress and Amazon and then resell them at a markup on the eBay platform. (Oberlo)
  18. On average, the top 10% of eBay dropshippers earn a monthly profit of $7,731, which translates to an annual profit of $92,772. (Oberlo)
  19. The top 10% of eBay dropshippers have an average profit of $3.64 per sale. (Oberlo)
  20. 25% of eBay dropshippers generate over $1,000 in profit per month. (Oberlo)
  21. On average, eBay dropshippers profit $2.67 for each order they fulfill.
  22. On average, eBay dropshippers earn $693 per month in cashback profits. (Oberlo)
  23. On average, an eBay dropshipper handles 969 orders per month, but the top 10% of eBay dropshippers manage 4,759 orders per month. (Oberlo)
  24. The profit margin for eBay dropshipping is around 6%, which is much lower than the average profit margin of 30-40% for other ecommerce businesses. (Oberlo)
  25. On average, eBay dropshippers incur higher costs due to eBay and PayPal fees, with an average expenditure of $1078 and $479, respectively. (Oberlo)

Latest dropshipping trends

Here’s taking a look at some of the dropshipping statistics that have been derived from the latest studies and surveys of the industry.

  1. You have only 15 seconds to grab visitors’ attention on your dropshipping site, so make sure your online store offers a wonderful shopping experience, and your marketing strategies are top-notch. (CrazyEgg)
  2. Approximately 20% of online sales are fulfilled through dropshipping, while the majority (77%) are not fulfilled through dropshipping and are driven by industry giants with their own fulfillment infrastructure. (Ware2Go)
  3. Dropshipping stores with at least one social media account generate 32% higher revenue, making it crucial for businesses to focus on their online presence and marketing strategies. (Forbes)
  4. Approximately 33% of online stores use the dropshipping fulfillment model, indicating its growing popularity in the ecommerce industry due to its ease of setup and convenience. (Ware2Go)
  5. Dropshipping can boost a manufacturer’s earnings by 18.33%, making it a profitable option for businesses that use it as a fulfillment model while also being great for manufacturers who provide dropshipping services. (Ware2Go)
  6. 66% of online shoppers prefer buying from companies that offer multiple shipping options. Around two-thirds would opt for a competitor over a retailer that lacks such flexibility, making it essential for dropshippers to provide various shipping methods and, if feasible, free shipping. (Ware2Go)
  7. Despite the easing of pandemic restrictions, 51% of online shoppers are still doing more shopping online, and over half of them plan to continue doing so even after the pandemic ends. Additionally, 29% of people now do all of their shopping online, and 49% will continue to do most of their shopping online post-pandemic, while 43% have subscribed to new services during the pandemic, and 88% plan to keep them. (Ware2Go)
  8. Sustainability has become a critical factor for customers in purchasing decisions, with 88% of shoppers indicating it’s somewhat important. The pandemic has further increased the importance of sustainability for 66% of customers, and the top sustainable practices include recycled packaging (64%), eco-friendly shipping (41%), and “green” brands (30%), making it essential for dropshippers to emphasize these practices in their marketing strategies. (McKinsey)
  9. Millennials are the largest group of online shoppers in the US, accounting for 20.2% of all online buyers, and those younger than 35 represent 38.4% of the total. The following age groups of online buyers in the US are aged 35-44 (17.2%), 45-54 (15.5%), 55-64 (14.6%), and over 65 (14.4%). (Statista)
  10. Hidden shipping costs are the top reason for cart abandonment, with 63% of customers citing it as the main issue. Other reasons include non-working discount codes (46%), lengthy shipping times (36%), having to re-enter card data (30%), and re-entering shipping information (25%), according to dropshipping statistics. (Oberlo)
  11. Dropshipping accounts for around 23% of all online sales, indicating its growing popularity in the ecommerce market due to the ease of setting up a dropshipping store and access to companies that provide dropshipping fulfillment services. (Ware2Go)
  12. Dropshipping can help ecommerce retailers earn 50% more than those relying on onsite inventory by avoiding inventory and warehousing costs and shipping and handling expenses, making it a profitable option for businesses. (Ware2Go)
  13. Offering multiple shipping options is important for dropshipping businesses as 66% of online shoppers prefer buying from companies that provide this service, ensuring customer satisfaction and loyalty. (Ware2Go)
  14. The biggest challenge 84% of ecommerce dropshipping retailers face is finding a reliable supplier. It is important to provide quality products, efficient shipping, and secure packaging for customer satisfaction and loyalty. (Ware2Go)
  15. Dropshipping has an average success rate of 10-20%. While the first year can be challenging, persevering through this difficult period can lead to a higher chance of success for dropshipping businesses. (Shopify)
  16. Dropshippers typically earn a profit of around 20-30% per sale, which can result in yearly earnings of $100,000 or more. The average monthly income for dropshipping ranges from $1,000 to $5,000, with the remaining revenue going towards marketing, website hosting, purchasing products from manufacturers, and other expenses. (Ware2Go)
  17. Online reviews are highly trusted by consumers, with people relying on them 12 times more than brand product descriptions. Online reviews play a vital role in providing customers with authentic information about the products or services they are interested in, increasing their confidence in purchasing. (BrightLocal)
  18. Over 40% of online shoppers expect a two-day shipping option, indicating the importance of fast and efficient shipping times for dropshipping businesses to meet customer expectations and remain competitive in the ecommerce market. (Ware2Go)
  19. 51% of online shoppers continue to shop more online, even as pandemic restrictions ease, indicating a sustained increase in ecommerce growth and an opportunity for dropshipping businesses to expand. (Ware2Go)
  20. Last year, dropshipping fulfilled approximately 23% of online sales, which amounted to $85.1 billion. As more businesses adopt dropshipping, the revenue generated from this fulfillment method is expected to exceed $300 billion in the coming years. (Grandview Research)
  21. The popularity of dropshipping as a fulfillment model is projected to increase alongside the ecommerce industry, which is expected to grow by 17% every year. As more businesses adopt dropshipping, there is ample opportunity for up-and-coming dropshipping companies to expand and succeed. (Grandview Research)
  22. eCommerce and dropshipping profits have grown at a 7% year-on-year rate for the past decade, amounting to over $4 billion in profits. Dropshipping has become an essential part of the ecommerce industry, with businesses using it being almost 50% more profitable than those using traditional fulfillment methods. (Grandview Research)
  23. Dropshipping is generally considered more profitable than affiliate marketing, with dropshippers typically earning 20-30% per sale compared to the 3-10% earned through affiliate marketing. However, there are exceptions to this rule, such as in the case of digital products like online courses and SaaS, where affiliate marketing profits can range from 10% to 50%. (Hostinger

To sum up

Online retail entrepreneurs can start e-commerce using dropshipping as an advanced business model. The dropshipping market may have limited statistics, but it has been gaining popularity as a profitable business model.

The resources and reports suggest that the dropshipping industry could hold significant potential for online retailers looking to expand their customer base. Dropshipping will likely be a major player as the e-commerce market continues to evolve and grow.

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