The preference for dropshipping as a business model has increased in recent years.
While this digital business approach is popular worldwide, the trends that influence it continue to shift.
Where will dropshipping be this year and the years after? The latest Dropshipping statistics can answer this question (and more).
In this article, we look at the latest trends, insights, and data on dropshipping.
We’ll dive into dropshipping industry statistics, dropshipping market size, dropshipping success rate numbers, and more.
General Dropshipping Statistics
Here are some general dropshipping statistics you should know.
Dropshipping’s Market Value
The global dropshipping market will likely surpass $372.47 billion by 2025, significantly higher than the $225.99 billion it had in 2022.
What industry is dropshipping? It’s generally part of the bigger e-commerce industry worth $16.6 trillion as of 2022.
The earning potential through dropshipping will continue to increase until 2025. More businesses will shift to dropshipping as a business model, and more new businesses will adopt this model from day zero.
Moreover, many consumers will continue to buy from dropshipping stores in the coming years.
Dropshipping as a Business and Fulfillment Model
How many online stores opt to use dropshipping as a business model? Recent dropshipping chart figures indicate a share of around 30% of online stores.
Dropshipping is a low-barrier-to-entry way to build an ecommerce store that could bring in significant profits.
Online shopping trends show that online shoppers are more than okay with the model, indicating strong adoption on both ends of the shopping spectrum.
Dropshipping’s Continued Growth
How many people dropship? As a business model, dropshipping continues to grow in popularity amongst aspiring and existing online entrepreneurs.
Search interest has grown by 50% year-over-year, indicating that people are curious about dropshipping and want to learn how to start or grow a dropshipping store.
Dropshipping Success Rate
Following a dropshipping model seems easy enough for anyone, but it doesn’t mean all dropshipping stores will succeed.
What is the success rate of dropshipping? Success rates of dropshipping stores are generally hard to measure, but figures seem to be around the 10 to 20% mark.
To increase your chances of success, I recommend learning from the best dropshipping courses.
Some courses will teach you how to start a dropshipping business, while others dive into deeper topics, such as finding more low-competition, high-demand products and learning advanced dropshipping marketing techniques.
Dropshipping as a Percentage of Online Sales
How many products are sold through a dropshipping store? Recent studies show that the figure is approximately 23% of all ecommerce sales, meaning 23 out of 100 online products are through dropshipping services and stores.
The Challenges of Finding a Suitable Dropshipping Supplier
While retail sales of dropshipping products have increased, one prevailing challenge for dropshippers is finding a suitable dropshipping supplier.
84% of ecommerce retailers say that finding a good supplier is the biggest obstacle to starting a dropshipping business.
That’s not to say that there aren’t many dropshipping suppliers available. Some challenges to dropshipping supplier research include finding one with good profit margins, reliability, shipping speed, and product depth.
Here are some dropshipping stats on the profits of dropshipping companies.
A Dropshipping Store Can Reach 50% More Profitability.
Are dropshipping businesses still profitable in 2023? Should online stores start shifting to this model, considering the premium suppliers might charge?
Despite dropshipping suppliers charging more than direct wholesalers, a dropshipping model can increase an online shop’s profitability due to cost cuts in storage and fulfillment, lower startup capital, and lower workforce costs.
Dropshipping Stores Have 10 to 30% Profit Margins.
10% to 30% is a healthy profit margin for any online business and can help anyone earn a sustainable income with very little maintenance work.
10 to 20% of Dropshippers Become Profitable in Their First Year.
As more dropshippers attain profitability within their first year of operation, more people will want to start a dropshipping business in the coming years.
Many other business models take longer to become profitable. The shorter period to reach profitability also means existing dropshipping businesses will probably start more dropshipping sites in different niches.
The Number of Dropshipping Stores
Look at these dropshipping trends and statistics on the number of dropshipping stores.
27% of All Current Dropshipping Stores Have Been Created in 2022.
Many of today’s dropshipping stores haven’t been around long, showing that more and more people join the dropshipping race every year.
This trend indicates that dropshipping’s popularity is still rising, which means competition will only get stronger in the coming years.
Differentiation will be crucial to creating an outstanding dropshipping store.
Consider branded dropshipping, reliable customer service, and serving niche markets to set your business apart.
Roughly 45% of Dropshipping Stores Started in 2021 or Earlier.
Close to half of dropshipping stores are only a few years old.
It’s hard to tell if an older online store has more edge than newer ones, but there seems to be a growing number of new stores that skyrocket in profitability despite being a new entrant.
175,000 Dropshipping Stores Launched in the First Quarter of 2023.
How many dropshippers are there every year? It’s hard to tell for sure. At the abovementioned rate, the ecommerce industry could see up to 700,000 new dropshipping stores starting every year.
That isn’t accounting for the compound annual growth rate as dropshipping becomes more popular worldwide.
Dropshipping in North America
Here’s a look at the dropshipping market in North America.
The North American Dropshipping Market Will Reach a CAGR of 23.5% by 2030.
Dropshippers in North America see bright futures ahead, with more and more online shoppers spending money on dropshipping stores. This trend will likely continue until 2030 and beyond.
30% of the North American Dropshipping Market Consists of Electronics.
Electronics seems to be a popular category for dropshipping in North America. This growing success trumps popular dropshipping niches like hobbies, DIY, and personal care.
This category includes smartphones, tablets, laptops, wearables, and electronics accessories. The market will most likely grow with more technological advancement.
Dropshipping Interest in the United States Grew 156% Between 2022 and 2023.
A growing interest generally points to brighter futures ahead, which seems to be the case in the US as interest grew from 2022 to 2023.
A growing interest strongly indicates openness to adopting this form of business as the norm for many years.
80.9% of the Top 1% of Dropshipping Stores Sell in the US.
The top 1% of the most profitable dropshipping stores still sell to the US market. Next on the list by a moonshot was Canada with 5.2% and the UK with 4.1%.
North America’s Dropshipping Market Share is over 35.72%.
North America dominated the global dropshipping market in 2022 because of the region’s strong ecommerce infrastructure, fast internet, and high online shopping adoption.
Starting a dropshipping business that targets this region still seems to be one of the most popular strategies. However, it will also likely get more competitive in the coming years.
Dropshipping in Europe
Take a look at these figures around dropshipping in Europe.
Germany’s Dropshipping Market Has a CAGR of 16.9%.
Germany is set to be the fastest-growing dropshipping market in Europe. Jumping on the bandwagon and targeting that country might be a good strategy to reach a European audience in the coming years.
Dropshipping in the Asia Pacific Region
Here are some statistics on dropshipping in the Asia Pacific Region.
The Asia Pacific Makes Up 25% of Dropshipping Market Revenues.
The Asia Pacific brings in approximately one-fourth of all dropshipping revenue.
This is most likely because of the region’s increasing connectivity and smartphone usage.
China’s Dropshipping Market Will Grow by 29.3% CAGR by 2027.
China has been a force in the dropshipping market. Much of this must be due to China’s growing influence as a dropshipping supplier hub.
It also helps that China has one of the largest populations in the world and a growing economy that gives more people disposable income for online shopping.
Dropshipping in Other Regions
Here are some dropshipping statistics from other regions of the globe.
Africa Was the Least Popular Dropshipping Market in 2022.
This is likely because of the lack of internet access and more difficult delivery logistics in the region compared to more advanced places like the US and Europe.
Brazil’s Dropshipping Market Share is 11.9%.
Brazil is the second most popular country for a dropshipping store, right behind the US. This should be a good market to target if you plan to start a dropshipping store soon.
These dropshipping niche statistics will help you understand what niches you could try for your dropshipping store.
The Food and Personal Care Products Niche Will Have a CAGR of 30% from 2019 to 2025.
Are you looking for a fast-growing dropshipping niche? Food and personal care seem to be at the forefront, with tremendous growth foreseen for the next few years.
Clothing Is One of the Most Popular Dropshipping Products.
Fashion is one of the strongest dropshipping segments. It currently has the biggest market share as a category in dropshipping. Up to 16% of all products drop shipped through Shopify were clothes.
26% of the Top 1% of Dropshipping Stores Sold Apparel.
Selling custom and white-labeled clothes through dropshipping is a highly streamlined system, which is fairly easy to replicate across the board.
Unsurprisingly, a quarter of the most successful dropshipping stores sell apparel through their stores.
One-Fourth of the Top 1% of Dropshipping Stores Sold Between 250 and 999 Products.
Quantity seems to be the name of the game to become one of the most successful dropshipping stores. Most profitable online stores seem to take a “keep expanding product offerings” approach.
27.2% of Dropshipping Stores Had Less Than 10 Products.
Many stores have stopped expanding their product offerings. So, if you were to grow your product list to ten or more, you’d have a large chance of becoming a more profitable dropshipping business.
85% of the Top 1% of Dropshipping Stores Sold a Product Above $100.
High-priced items don’t always mean lower dropshipping sales. You could generate more net revenue with more expensive products with the right targeting.
Dropshipping Fees, Payments, and Shipping Times
Here are some statistics about dropshipping fees, payments, and shipping times.
42% of Shoppers Expect a Two-day Shipping Option.
Online shoppers want faster shipping, so choosing dropshipping suppliers should be crucial
63% of Buyers Abandon Carts Due to Hidden Shipping Costs.
Transparency is key when charging customers. It’s better to be upfront with shipping costs or absorb them as part of your variable expenses when selling products via dropshipping.
49.4% of Consumers Say Free Delivery Is the Most Important Online Purchase Driver.
Free shipping is a highly crucial sales promotion strategy. Almost half of consumers consider it to be the biggest online purchase driver. Hence, your store should probably have a free shipping offer.
If shipping costs are too high for you to keep your offers profitable, consider providing shipping for bulk orders.
What are the most commonly used dropshipping apps? Here are some statistics.
The 3 Most Installed Dropshipping Apps are DSers, DJdropshipping, and Zendrop.
DSers and Zendrop are for multi-store management across e-commerce platforms like Shopify, WooCommerce, and Wix. CJDropshipping is a popular dropshipping supplier.
Only 7% of Dropshipping Use Upselling or Cross-Selling Apps
Many dropshipping stores are leaving money on the table by not cross-selling or upselling products in their store.
You can use these apps to extend the customer lifetime value or increase your revenue per cart.
8. 35% of Dropshipping Stores Install TikTok Pixel.
TikTok is becoming one of the most popular marketing apps for dropshippers. This shows in the number of people installing TikTok Pixel, an app that connects your TikTok events and analytics with your store.
Dropshipping and Marketing
Review the best marketing strategies by reflecting on these dropshipping marketing statistics.
32% of Dropshipping Stores Planned To Incorporate Pinterest Into Their Marketing Strategy.
The Pinterest tag is one of the most important aspects of a Pinterest marketing strategy.
34% of Dropshipping Stores Use an Email Marketing App.
Dropshipping Stores With Social Media Channels Get More Sales.
Studies show that a dropshipping store with a business model should have a social media presence.
A dropshipping store with at least one social media channel gets an average of 32% more sales.
Dropshipping on Amazon
Where is Amazon dropshipping going to be in the next few years? Here’s a look at some important statistics:
Amazon Dropshipper Earnings
Since Amazon is the biggest recommence platform, many dropshippers naturally flock there to reach potential customers already shopping online.
Amazon third-party sellers who use dropshipping have some of the most profitable online businesses. Earning your own dropshipping business on Amazon can bring in $1,000 and $50,000 monthly in revenue.
Sellers on Amazon Using Dropshipping
Around 22 to 33% of online retailers adopted dropshipping for their Amazon side gig. This helps run a more streamlined ecommerce business operation.
Dropshipping on eBay
Here are some interesting eBay dropshipping statistics:
eBay Dropshipping Earnings
The Top 10% Dropshippers on eBay Earn an Average Dropshipping Income of About $7,731 Monthly.
eBay is one of the most promising channels for dropshipping, as the top tenth percentile takes home over $84,000 a year from their eBay dropshipping stores.
One-Fourth of eBay Dropshippers Make Over $1,000 Monthly.
Even just the first 25% of eBay dropshippers can still rake in four digits in sales monthly through the online marketplace.
eBay Dropshippers’ Orders
The Average eBay Dropshipper Will Handle Close to 1,000 Orders Monthly.
This shows that a dropshipping store will hit the volumes on eBay with the right product and strategy.
Miscellaneous Dropshipping Statistics
Take a look at these miscellaneous dropshipping statistics.
Dropshipping and Ecommerce Platforms
Among dropshippers, WooCommerce and Shopify are the most popular ecommerce platforms if you want your own ecommerce store.
You should consider WooCommerce or Shopify dropshipping to start a dropshipping website. However, the popularity of these platforms means you’ll face significant competition.
The Most Common Languages in Dropshipping
What language should your dropshipping store have? English is the common option. 74.2% of dropshipping stores are in English. Portuguese made up 12% of the language pie, and French followed with 4.%.
Dropshipping and Sustainability
If you’re looking for a good niche with a positive impact, consider starting a sustainable dropshipping store.
88% of shoppers believe sustainability is important when making purchasing decisions.
Dropshippers and AliDropship
If you’re using AliDropship, you should consider a niche store, given that 17. 86% of dropshippers using AliDropship opt for niche stores.
Is Dropshipping Still Worth It in 2023?
The statistics and figures above prove that dropshipping is still on the rise. Yes. It’s still a worthy venture if you want to earn extra income online.
However, the competition will only get fiercer as more people aspire to become dropshippers. So, you need to find a unique idea for your store and learn dropshipping marketing strategies that convert.
As dropshipping becomes more competitive, those that stand out will become the most successful stores.
Frequently Asked Questions (FAQs)
Is Dropshipping Still Profitable?
Yes. Dropshipping is still profitable, especially given how much it costs to start a dropshipping business.
You can even start a dropshipping store for free, but it will be harder to scale. I recommend setting aside a few hundred dollars for tools to automate your business and market your products to the right market.
What Makes a Dropshipping Business Profitable on Shopify?
Shopify is an ecommerce platform with various marketing tools to help you convert more visitors into customers. Some of those apps include:
Email marketing apps
Abandoned cart conversion apps
Upsell and cross-sell apps
Do Many Dropshipping Businesses Fail?
You should know what percent of dropshippers are successful, but how many fail? The number likely stands between 80% to 90% of dropshipping businesses.
Why Is Dropshipping’s Popularity Decreasing?
There could be some reasons why dropshipping isn’t as popular as it once was. Some might include high costs, slower shipping, and larger competition.
However, many dropshipping suppliers and companies are finding innovative ways to improve customer experiences. As dropshipping workflows improve, more customers could opt for this business model.
What Are Some Real Success Stories of Dropshipping?
There are tons of real success stories of dropshipping. Some of my favorite dropshippers to follow include:
Matt Clark and Jason Katzenback founded Amazing Selling Machine, an excellent online course.
Who is the richest dropshipper? Today, Andreas Koenig and Alexander Pecka are probably the most wealthy dropshippers, earning up to $10 million a year through dropshipping.
The Bottom Line
These are just some of the dropshipping diagram figures, statistics, and trends out there, but these are the ones you should know.
Dropshipping is undoubtedly rising, and more people will want to capitalize on this growth. If you plan to join this growing industry, the best time to start is now. Are you planning to start a dropshipping business soon?