Dropshipping - Demand And Trends

 Dropshipping is a type of retail fulfillment method for online stores, where retailers sell products to customers, then pass on the sales order to a third-party supplier, who then ships the order directly to customers on behalf of the retailer. In addition, there is a fast-growing trend of online middlemen that keeps change between wholesale and retail price and cost extra money. 

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The concept of dropshipping is typically attributed to the business model which mostly involves retailers working with other retailers, or working with players up the hierarchy. It is an order fulfillment method where a business doesn’t keep the products it sells in stock. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders. Nowadays, consumers prefer online shopping, as a considerable number of websites are available to choose products from.

Key Market Players - 

Printify, Sunrise Wholesale Merchandise LLC, Shopify Inc., SaleHoo Group Limited, Alidropship, Megagoods Inc., Inventory Source, Doba Inc., Wholesale2b, Modalyst Inc., Cin7 Orderhive Inc.

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The factors such as growth in e-commerce industry, rise in international trade, increase in demand for fast delivery of packages supplement the growth of the dropshipping market. However, security concerns regarding online payments and lack of control in shipping are the factors expected to hamper the growth of the dropshipping industry. In addition, rise in adoption of smartphone and 5G technology and consumer inclination toward online shopping creates market opportunities for the key players operating in the market.

KEY FINDINGS OF THE STUDY

  • By product, the beauty, health, personal, and household care segment dominated the global dropshipping market in terms of growth rate.

  • By destination, the international segment dominated the global dropshipping market in terms of growth rate.



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