Unveiling Dropshipping: 36 Key Statistics to Know in 2023

In the rapidly evolving world of e-commerce, one business model that has seen significant growth and popularity is dropshipping. This strategy allows entrepreneurs to operate online stores without the need to maintain inventory, providing a low-barrier entry into the bustling e-commerce market.

This blog will delve deep into the dropshipping industry, exploring a comprehensive array of data from the global market size, regional influences, and sector-specific trends. We’ll scrutinize the performance of dropshipping on e-commerce giants such as Amazon, eBay, and Shopify, assessing their impact on the dropshipping landscape.

Furthermore, we’ll shed light on the profitability of dropshipping businesses, shedding light on the potential challenges and rewards for aspiring drop shippers. Whether you’re a seasoned drop shipper or an aspiring e-commerce entrepreneur, this in-depth analysis offers many insights to help you navigate the dynamic dropshipping market. Let’s dive in!

In this statistical summary, you’ll learn:

 ● Global Dropshipping Market

 ● Dropshipping on Amazon

 ● Dropshipping on eBay

 ● Dropshipping on Shopify

 ● The Status of Dropshippers

So, without further ado, I have for you here a roundup of the most newsworthy and stunning statistics about this dropshipping.

let’s start:

Dropshipping Market Statistics (Editors Picks)

1. Global dropshipping market size and growth: The global dropshipping market is expected to reach USD 225.99 billion in 2022, growing at 23.4% from 2023 to 2030.

2. Market Size in 2023 and Revenue Forecast in 2030: The dropshipping market in 2023 is approximately US$287.36 billion and is expected to increase to US$1.25379 trillion by 2030.

3. Major categories of the dropshipping market: Major categories of the dropshipping market include toys, hobby & DIY, consumer electronics, food & non-personal care, electronics & media, and fashion.

4. Electronics and media dominance in direct sales: By 2022, the electronics sector will account for over 19.15% of the market, growing at an annual rate of 19.1%, and is expected to reach $376.5 billion by 2030.

5. Growth of direct sales in the fashion industry: Due to globalization and changing consumer behavior, the direct sales market in the fashion industry is expected to grow at an annual rate of 24.8% from 2023 to 2030.

6. North America’s position in the dropshipping market: In 2022, North America is expected to hold the largest share of the dropshipping market, with over 35.72%, mainly due to changing consumer buying behavior and growth in mobile e-commerce. Increase.

7. Rise of Asia-Pacific in Dropshipping Market: With the rise of online shopping platforms, Asia-Pacific is expected to account for 33.92% of the market share in 2022 and continue to grow from 2023 to 2030.

8. North America is the second largest social commerce market. North America is its second-largest social commerce market and is expected to grow at a CAGR of 23.5% during the forecast period.

9. US dropshipping market growth: By 2022, the US dropshipping market is expected to be worth $80.5 billion.

10. China’s estimated dropshipping market size: By 2030, China’s dropshipping market is expected to reach USD 399.6 billion, with a compound annual growth rate of 29.8% from 2022 to 2030.

11. The future of dropshipping in each country: From 2022 to 2030, the dropshipping market in Japan, Canada, and Germany is expected to grow by 15.2%, 18.8%, and 16.9%, respectively.

Amazon Dropshipping Statistics:

1. Dropshippers’ Monthly Income on Amazon: Amazon drop shippers earn between $1,000-50,000 per month.

2. Internet Retailers Using Dropshipping on Amazon: Between 22%-33% of internet retailers use dropshipping for Amazon orders.

3. Number of Active Sellers on Amazon: There are over 5 million active sellers on Amazon.

4. Amazon’s Site Visits in May 2023: Amazon recorded 2.3 billion visits in May 2023.

5. Third-Party Market Sales on Amazon: Third parties made up 59% of all sales in Q4 2022.

6. Dropshippers’ Contribution to Amazon Sales: 34% of Amazon sales come from drop-shippers listing products on the site.

eBay Dropshipping Statistics:

1. Top eBay Dropshippers’ Profits: The top 10% of eBay drop shippers make a monthly profit of $7,731, equivalent to $92,772 annually.

2. Profit of eBay Dropshippers: One in four eBay drop shippers makes more than $1,000 in monthly profit.

3. Average Profit per Sale and Monthly Earnings: The average profit per sale for an eBay drop shipper is $2.67, with an average monthly profit exceeding $2500.

4. Order Processing Rates: The average eBay drop shipper processes 969 monthly orders, while the top 10% process 4,759 orders.

5. Profit Margin Comparison: eBay dropshipping offers a 6% profit margin, compared to the eCommerce average of 30-40%.

6. eBay and PayPal Fees: eBay drops shippers spending an average of $1,078 on eBay fees and $479 on PayPal payments.

Shopify Statistics:

1. Shopify’s Market Share in the US: Shopify has the largest market share of eCommerce platforms in the US, with 29% of online businesses using it.

2. Number of Online Stores using Shopify: As of May 2023, about 2.8 million online stores in the US use Shopify.

3. Global Reach of Shopify: Shopify powers over 1 million businesses in over 175 countries.

4. Average Revenue per Customer on Shopify: The average Shopify store generates $92 per customer, with the top 20% generating over $202 per customer.

5. Shopify’s Market Share in Dropshipping: Shopify is the third most popular dropshipping platform, with a market share of 11.80%.

6. Usage of Dropshipping Products on Shopify: As of April 2021, 12.82% of Shopify stores use at least one dropshipping product.

7. Clothing Stores and Print-on-demand Services on Shopify: Of the 2,080,392 Shopify stores tracked, 256,163 (12%) are clothing stores, with services like Printify simplifying the process of starting a custom merchandise business.

8. Most Expensive Popular Product Type on Shopify: Paintings are Shopify’s most popular product type, with an average price of $219, more than double the next most popular product type. The top five most popular products in terms of expenditure on Shopify are paintings ($219), jackets ($91), watches ($87), shoes ($61), and handbags ($60).

General Dropshipping Statistics:

1. Success Rate of Dropshipping Businesses: Only about 10%-20% of dropshipping businesses are booming.

2. Profit Comparison Between Dropshippers and Traditional Retailers: Dropshippers earn 50% more profit than businesses maintaining their own inventory.

3. Profitability in the First Year of Dropshipping: Only 10% of drop shippers are profitable in their first year.

4. High-Quality Suppliers as a Major Obstacle: 84% of eCommerce retailers cite finding high-quality suppliers as the biggest hurdle to starting a dropshipping business.

5. Profit of Manufacturers Participating in Dropshipping: Manufacturers participating in dropshipping have 18.33% higher profits than traditional channels.

Global Dropshipping Market

How fast is dropshipping growing?

According to a survey conducted by Grand View Research, the global dropshipping market is expected to reach a size of 225.99 billion dollars in 2022, followed by a compound annual growth rate (CAGR) of 23.4% from 2023 to 2030. This forecast underscores the strong potential and dynamism of the global dropshipping market.

The projected growth of the dropshipping market can be attributed to its lower barriers to entry and reduced overhead costs compared to traditional retail models. These attractive characteristics of dropshipping are paving the way for it to become a preferred business model, thereby driving its growth.

How big is the dropshipping market in 2023?

A survey conducted by Grand View Research indicates significant growth in the global dropshipping market. It’s projected that the market size will rise to approximately USD 287.36 billion in 2023 and then exponentially increase to an estimated revenue of about USD 1,253.79 billion by 2030.

This anticipated growth points towards vast opportunities for businesses and entrepreneurs within the dropshipping market. Furthermore, the projected increase in market size reflects the expanding consumer preference for online shopping, demonstrating the ongoing digital transformation of the retail sector.

Which segment accounted for the largest dropshipping market share?

According to Grand View Research, the electronics and media sector dominates the dropshipping market. The electronics segment alone is anticipated to constitute more than 19.15% of the market share in 2022. Furthermore, this sector is projected to grow annually at 19.1%, reaching an estimated value of US$376.5 billion by 2030.

The prominence of the electronics and media sector in the dropshipping market can be attributed to the global consumer demand for these products. The advent of e-commerce platforms has significantly simplified the purchase of electronics, leading to increased online sales in this sector. This trend underscores the digital shift in consumer behavior and the potential for continued growth in this segment of the dropshipping market.

Growth of the Fashion Sector in Dropshipping

The fashion sector’s dropshipping market is predicted to experience a robust annual growth rate of 24.8% from 2023 to 2030. This forecast signifies the fashion industry’s immense potential within dropshipping, catalyzed by rapid globalization and shifts in consumer behavior.

These changes in consumer behavior encompass a significant move towards online shopping and an increasing demand for fast fashion, both amplifying the growth of the dropshipping market in the fashion industry. As these trends continue, the sector is expected to thrive globally.

North America’s Position in the Dropshipping Market

According to Grand View Research projections, North America is set to dominate the dropshipping market with a significant share of over 35.72% in 2022.

This dominance underscores the region’s robust e-commerce infrastructure and high internet penetration. Additionally, it reflects a population that is not only comfortable with online purchases but has embraced them as a standard method of shopping. These factors collectively contribute to North America’s leading position in the global dropshipping market.

The Emergence of Asia-Pacific in the Dropshipping Market

The Asia-Pacific region is projected to account for 33.92% of the dropshipping market share in 2022, as per the recent surge in online shopping platforms.

This growth in market share is a testament to the burgeoning e-commerce sector in the Asia-Pacific region. Key contributing factors include:

• Increased internet penetration.
• The proliferation of online shopping platforms.
• The rise of a more affluent middle class.

These trends collectively highlight the region’s growing significance in global drop shipping.

Growth of the US Dropshipping Market

The US dropshipping market is forecasted to reach an impressive $ 80.5 billion by 2022. 

This significant estimation underlines the abundant opportunities for drop shippers within this region. The primary contributing factors for this growth can be attributed to the high internet and smartphone penetration rates and the comfort level of consumers with online shopping. These elements together showcase the promising potential of the US dropshipping market.

 North America is the second-largest social commerce market

As the second-largest global social commerce market, the North American region is set for impressive growth. Expected to expand at a Compound Annual Growth Rate (CAGR) of nearly 23.5% during the forecast period, this acceleration is primarily driven by high social media usage, tech-savvy consumers, and an ever-evolving retail sector. The prominence of social media influencers and a shift towards online shopping further bolster this growth, painting a promising future for social commerce in North America.

China’s Projected Dropshipping Market Size

By 2030, China’s dropshipping market is projected to reach a staggering US$399.6 billion, with a compound annual growth rate (CAGR) of 29.8% from 2022 to 2030. 

This substantial growth underscores the rapid digitization of retail in China and the vast consumer market within the country. The high CAGR indicates a bright future for drop shippers targeting or operating within the Chinese market. It illustrates the transformative power of digital commerce and the opportunities it presents in the world’s most populous nation.

The Future of Dropshipping in Various Countries

Other countries are also seeing impressive growth in their dropshipping markets. Japan’sdropshipping market, backed by its sophisticated e-commerce industry, is forecasted to grow at a CAGR of 15.2%. Meanwhile, Canada, influenced by a robust e-commerce infrastructure and growing digital economy, is expected to achieve a CAGR of 18.8%. Germany, too, shows promising growth with a predicted CAGR of 16.9%, buoyed by its advanced logistics networks and high internet penetration.

These figures emphasize the global nature of dropshipping, a market that continues to expand and diversify across different regions. The rise in dropshipping aligns with the general shift towards e-commerce, reinforcing its position as a sustainable and profitable business model in the digital age.

Dropshipping on Amazon

How much do Amazon dropshippers make?

Amazon dropshippers typically report a monthly income ranging from $1,000 to $50,000, highlighting the potential profitability of the dropshipping model on this e-commerce platform. 

However, it’s important to note that this income range is broad and can be influenced by various factors. These include the chosen product niche, the degree of market saturation, and the efficacy of the individual drop shipper’s marketing strategies. Hence, while the dropshipping model on Amazon offers promising prospects, it also necessitates strategic planning and execution for optimal success.

Internet Retailers Using Dropshipping on Amazon

Between 22% and 33% of internet retailers reportedly use dropshipping to fulfill Amazon orders. 

This notable percentage indicates the popularity of the dropshipping business model among online retailers, particularly for its benefits, such as simplified inventory management and reduced risk. However, it’s worth noting that with such a substantial portion of sellers adopting this model, competition within the dropshipping space on Amazon is intense. Therefore, strategic differentiation and effective marketing become crucial for success.

Number of Active Sellers on Amazon

With over 5 million active sellers on Amazon’s marketplace, it is evident that the platform is highly competitive.

For dropshippers, this implies the need for strategic planning and execution to succeed in such a crowded marketplace. Identifying unique product niches and implementing effective marketing strategies become crucial to differentiate themselves from millions of other sellers and gain a competitive edge.

Amazon’s Site Visits in May 2023

With “2.3 billion visits to Amazon in May 2023,” the platform demonstrates its extensive reach and influence in e-commerce.

This high traffic volume underscores the enormous potential customer base accessible to drop shippers operating on Amazon. It signifies the opportunity for considerable exposure and potentially high sales volumes, enhancing the appeal of dropshipping on this platform.

Here are the traffic source details for Amazon.com:

Third-Party Market Sales on Amazon

In the fourth quarter of 2022, third parties accounted for a substantial 59% of all sales in the market.

This majority share underscores the critical role that third-party sellers, including dropshippers, play in the Amazon marketplace. Their significant contribution to sales volume highlights their importance in propelling Amazon’s growth and enriching the overall e-commerce ecosystem.

Dropshippers’ Contribution to Amazon Sales

With dropshippers making up 34% of Amazon’s sales, the importance and effectiveness of the dropshipping model on the platform are clear.

This substantial figure emphasizes the viability of dropshipping on Amazon and indicates the trust customers place in purchasing from dropshippers on this platform. Therefore, it’s clear that when done effectively, dropshipping can be a successful strategy for e-commerce sales on Amazon.

Dropshipping on eBay

Top eBay Dropshippers’ Profits:

“The top 10% of eBay Dropshippers generated an impressive monthly profit of $7,731, which equates to an annual income of $92,772.”

This data suggests that dropshipping can be quite profitable on eBay for those adept at sourcing desirable products and pricing them effectively. However, the fact that this profit level is only achieved by the top 10% highlights the importance of skills and experience in maximizing profits in this competitive space.

Profit of eBay Dropshippers

With 1 in 4 eBay dropshippers reporting more than $1,000 per month in profit, there’s evident potential for earnings in this business model.

This substantial figure emphasizes the viability of dropshipping on Amazon. It indicates the trust customers place in purchasing from drop-shippers on this platform. Therefore, it’s clear that when done effectively, dropshipping can be a successful strategy for e-commerce sales on Amazon.

Average Profit per Sale and Monthly Earnings

With an average profit per sale of $2.67 and monthly profits exceeding $2,500, eBay drop shippers demonstrate how consistent, modest profit transactions can accumulate substantial earnings.

These numbers illustrate the concept of volume-based profit, a common strategy in dropshipping. Despite the seemingly small profit margins per sale, managing a high volume of such transactions can lead to significant overall profits. This highlights the importance of efficient operations and strategic pricing in the dropshipping business on eBay.

Order Processing Rates

With the average eBay drop shipper processing 969 orders per month and the top 10% handling 4,759 charges, it becomes clear that operating a successful dropshipping business involves managing a high volume of transactions.

This data underscores the need for efficient systems and potentially automated tools to handle order fulfillment demands successfully. Ensuring a smooth and timely process is crucial to maintain customer satisfaction and driving repeat business, underpinning the operational requirements of a thriving dropshipping venture.

Profit Margin Comparison

While eBay dropshipping offers a profit margin of 6%, other eCommerce platforms typically average around 30-40%.

EBay’s relatively lower profit margin could be attributed to factors such as the platform’s competitive environment, fee structure, or potentially higher customer acquisition costs. This emphasizes the need for strategic product selection and effective marketing to optimize profitability on eBay’s dropshipping platform. Despite the lower margins, a high sales volume can still lead to substantial overall profits.

eBay and PayPal Fees

On average, eBay drop shippers incur expenses of $ 1,078 on eBay fees and $479 on PayPal costs. 

These fees constitute a significant portion of a drop shipper’s operating costs, impacting their net profit. Therefore, it’s crucial for individuals considering the dropshipping business model on eBay to factor in these expenses when calculating potential profitability. Understanding and accounting for all costs associated with the business, including these platform fees, is an essential part of successful financial planning in dropshipping.

Dropshipping on Shopify

Shopify’s Market Share in the US

With 28% of online businesses in the US using Shopify, the platform holds the largest market share among eCommerce platforms in the country.

This dominant position underscores Shopify’s appeal to online businesses, including drop shippers. Its user-friendly interface and a wide range of features tailored for online commerce make it a go-to choice for many entrepreneurs. Shopify’s prevalence speaks to its efficiency and effectiveness in facilitating online business operations.

Here are the top 10 US e-commerce platforms:

Number of Online Stores using Shopify

As of May 2023, around 2.8 million online stores across diverse industries, from cooking and fitness to comics and fashion, utilize Shopify as their e-commerce platform in the United States.

This underscores the versatility and adaptability of Shopify, capable of catering to many sectors with varied business needs. With such a large and diverse user base, Shopify faces the unique challenge of accommodating various requirements. However, this also allows the platform to expand and refine its services to meet these needs.

Global Reach of Shopify

Headquartered in Ottawa, Canada, Shopify is a truly global platform, powering over a million businesses across over 175 countries. It is trusted by various brands, from up-and-coming names like Allbirds and Gymshark to established giants like PepsiCo and Staples.

This international reach and the trust placed by major brands underscore Shopify’s credibility and versatility as an e-commerce platform. It demonstrates Shopify’s capacity to cater to the diverse needs of small and large businesses, offering robust and flexible solutions to facilitate online commerce worldwide.

Average Revenue per Customer on Shopify

The average Shopify store generates $92 in revenue per customer, according to Littledata. In contrast, the top 20% of Shopify stores create more than double that amount, with $202 or more per customer. On the other hand, the bottom 20% of stores see this number reduce to $42 or less.

These statistics underscore the varying levels of profitability on the Shopify platform. They highlight the potential for high revenue but also demonstrate a significant disparity in earnings among different stores. Various factors, including product selection, pricing strategy, and marketing effectiveness likely influence success on Shopify. Therefore, strategic planning and execution are crucial to optimizing revenue in a Shopify store.

Shopify’s Market Share in Dropshipping

Shopify holds an 11.80% market share, making it the third most popular platform among drop shippers. 

While Shopify leads in the general eCommerce platform market, it’s ranking among dropshippers suggests that other platforms may offer features or pricing models that are more tailored to the needs of dropshipping businesses. Entrepreneurs must consider their business models and requirements when choosing an eCommerce platform.

Usage of Dropshipping Products on Shopify

As of April 2021, 12.82% of Shopify stores use at least one dropshipping product, while 7.10% leverage dropshipping services.

This data reveals a substantial utilization of dropshipping strategies among Shopify users, even though it’s not the prevalent business model on the platform. Implementing a dropshipping model can offer benefits such as reduced overheads associated with inventory management and shipping logistics, making it an appealing strategy for certain businesses.

Clothing Stores and Print-on-demand Services on Shopify

Of the 2,080,392 Shopify stores monitored by Shopgram, 256,163 (approximately 12%) are dedicated to clothing. The easy accessibility of print-on-demand services like Printify simplifies the process for anyone to kick-start their custom merchandise business.

The prevalence of clothing stores on Shopify signifies a strong interest in the fashion sector within the eCommerce landscape. Print-on-demand services, with their low barrier to entry, empower entrepreneurs to venture into custom merchandise creation with minimal initial investment. This flexibility makes it an attractive business model for aspiring retailers, further driving the growth and diversity of eCommerce platforms like Shopify.

Most Expensive Popular Product Type on Shopify

The most expensive popular product type on Shopify is painting, with the average price being $219. This is more than double the cost of the next most popular product type. The top five most popular product types, according to price, are paintings ($219), jackets ($91), watches ($87), shoes ($61), and handbags ($60).

These statistics underscore Shopify’s variety of product types and price points, highlighting its capability to cater to diverse customer preferences and needs. The relatively high average price of paintings suggests a thriving market for art on the platform. This could be an exciting niche for sellers looking to tap into higher-end product markets.

The Status of Dropshippers

What percent of dropshippers are successful?

You experienced dropshipping dealers from the Internet estimate that only 10%-20% of dropshipping businesses will succeed. This stat depends on what industry you are in.

The success rate of dropshipping businesses is relatively low, according to estimates. This can be due to various factors, including industry competition, supplier reliability, and marketing effectiveness. Entrepreneurs venturing into dropshipping should know and factor these challenges into their business strategies.

Profit Comparison Between Dropshippers and Traditional Retailers

While many suppliers have seen profit growth by adopting the dropshipping business model, statistics further indicate that drop shippers earn 50% more profit than those maintaining their inventory.

This underscores a key advantage of dropshipping — significantly lower overhead costs due to the absence of inventory management. Dropshippers can avoid storage, handling, and shipping costs by eliminating the need to stock products, increasing their profit margins. This comparison illustrates how the dropshipping model can lead to higher profitability than traditional retail models, further solidifying its appeal to entrepreneurs.

Profitability in the First Year of Dropshipping

Only 10% of drop shippers achieve profitability in their first year.

This statistic underscores the challenges associated with launching a successful dropshipping business. Despite the model’s lower overheads and flexibility, new entrants often need help identifying reliable suppliers, selecting profitable products, and effectively marketing their stores. As such, despite its potential advantages, the dropshipping model requires strategic planning, diligence, and patience, especially in the early stages.

What is the biggest challenge in dropshipping?

A large proportion of e-commerce retailers, approximately 84%, have identified that securing high-quality suppliers is the most significant barrier to initiating a dropshipping business.

This reflects the critical role suppliers play in the success of a dropshipping venture. The quality of suppliers directly impacts aspects such as the quality of the product, delivery times, and, ultimately, customer satisfaction. Therefore, finding trustworthy, high-quality suppliers is a substantial hurdle faced by many e-commerce retailers venturing into dropshipping. This insight emphasizes the need for thorough research and careful selection in the supplier sourcing process.

Profit of Manufacturers Participating in Dropshipping:

Manufacturers engaged in dropshipping see profits that are 18.33% higher than those relying on traditional channels, mainly because the limitations of retailer inventory space don’t bind them.

This illuminates the benefits of the dropshipping model for manufacturers. Through drop shipping, manufacturers are free of the physical inventory capacity of traditional retailers. Instead, they can directly reach a broader customer base and increase profitability. This indicates that the dropshipping model isn’t just advantageous for entrepreneurs and retailers and presents a profitable strategy for manufacturers.

This comprehensive analysis delves deep into the thriving world of drop shipping, exploring its expansive market across various platforms such as Amazon, eBay, and Shopify. We highlight vital statistics showcasing market size, future projections, and growth rates for several key regions, underlining North America and Asia-Pacific as dominant players. Furthermore, we provide insights into the popular product categories within the dropshipping market, the profitability of this business model, and the challenges e-commerce retailers face. With careful examination of data, this blog offers a detailed understanding of the dynamic dropshipping landscape, making it an essential read for entrepreneurs, online retailers, and business strategists.

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