Dropshipping Statistics & Trends To Know In 2024
Statistics can show us what has happened with dropshipping and where the experts estimate it's going.
We’ve used statistics to try new tools and fulfillment options and optimize our store.
If you’re not sure if dropshipping is right for you, we can look at the dropshipping facts. This can help us decide.
Let’s get into it.
13 Dropshipping Statistics
- Dropshipping is expected to continue growing by 22.8% per year between 2023 and 2030.
- 23% Of The Top 1 Million E-Commerce Sites Use Shopify
- The fashion segment is expected to have the highest compound annual growth rate in the dropshipping market at 24.8% from 2023 to 2030.
- Asia Pacific is the largest dropshipping market, with a 33.92% market share in 2022.
- 96% of shoppers said a positive delivery experience would encourage them to shop with the same retailer again.
- Dropshipping profit margins are usually between 10 and 25%.
- 84% of online sellers find that establishing a relationship with a dropship supplier is crucial to success.
- Around 27% of online retailers have adopted dropshipping as their primary method of order fulfillment.
- Suppliers like dropshipping since they make an average of 18.33% more in profit when selling to dropshippers than when selling the same products on their own online shops.
- The dropshipping success rate is estimated to be around 10 to 20%.
- In 2023, smartphones accounted for over 70% of all retail website visits worldwide.
- 22% to 33% of online retailers dropship on Amazon for additional income.
- Dropshipping stores that have at least one social media account generate 32% more revenue.
1. Dropshipping is expected to continue growing by 22.8% per year between 2023 and 2030. [1]
The global dropshipping market was valued at 221.3 billion USD in 2022.
It is projected to reach a value of 931.9 billion USD by 2030 at a CAGR (Compound Annual Growth Rate) of 22.8% between 2023 and 2030.
This growth suggests interest and sales are increasing. This is thought to be due to a growing preference for online shopping and customers being able to access products from all over the world easily.
In 2020, 2.37 billion people shopped online. It is expected that in 2024, 2.71 billion people will make purchases online [2].
2. 23% Of The Top 1 Million E-Commerce Sites Use Shopify. [3]
Built With monitors the top one million e-commerce stores and the technology they use.
As of the 14th of January 2024, 23% of the top-performing stores currently use Shopify.
This is closely followed by WooCommerce, which is a plugin for WordPress users. 15% of the top e-commerce stores are built on WordPress and use WooCommerce to enable them to sell online.
44% of the stores use other technology. These include OpenCart, Squarespace, BigCommerce, Magento, and Wix.
3. The fashion segment is expected to have the highest compound annual growth rate in the dropshipping market at 24.8% from 2023 to 2030. [4]
Fashion had the biggest market share for dropshipping worldwide in 2022. It is also estimated to attain the highest compound annual growth rate of 24.8% between 2023 and 2030.
This is thought to be down to rapid globalization and changes in consumer spending behavior.
If you’re interested in dropshipping clothes, we have an article on the top fashion suppliers from which you can source your products.
4. Asia Pacific is the largest dropshipping market, with a 33.92% market share in 2022. [5]
North America is currently the second-largest dropshipping market and is expected to see the most growth. It is expected to expand at a compound annual growth rate of almost 23.5%
It is estimated that AI is expected to drive the North American market as dropshippers can automate aspects of their stores.
5. 96% of shoppers said a positive delivery experience would encourage them to shop with the same retailer again. [6]
Research tells us that 96% of shoppers would return to an online store if they had a positive delivery.
Studies also showed that you have a higher chance (60-70%) of converting an existing customer compared to a new one (5-20%) [7].
A 20-30% customer return rate is optimal [8], according to Alex Schultz, Chief Marketing Officer and VP of Analytics for Facebook.
Therefore, when you find a new customer, it’s important to try to keep them.
6. Dropshipping profit margins are usually between 10 and 25%. [9]
Research shows that the average profit margin is between 10% and 25%.
But we aim for a 20-25% profit margin.
Let’s look at other e-commerce options and traditional commerce to compare.
- Amazon Sellers [10] - Jungle Scout found that more than half of Amazon sellers have a profit margin of over 15%. And 19% had a profit margin of over 26%.
- E-Commerce Stores [11] - The average gross margin for online retail businesses was 42.78% in 2023. However, the net margin average was 0.64%.
- Grocery Stores [12] - Grocery stores are known for low margins. The margins are usually between 1-3%, depending on the stores and products. They can get by with the low margins due to the high volume of consistent sales.
- Convenience Stores [13] - Convenience stores have a profit margin of between 5-10%. The margin depends on the number of stores. They make more profit than grocery stores as they usually charge higher prices.
7. 84% of online sellers find that establishing a relationship with a dropship supplier is crucial to success. Gogo Dropship
Gogo Dropship found that 84% of sellers found that forming a relationship with a supplier is crucial to success.
Therefore, finding a reliable supplier is vital.
If you want more information on what to consider when you choose a dropshipping supplier, check out this article. It covers everything to consider, along with where to find a reliable supplier.
8. Around 27% of online retailers have adopted dropshipping as their primary method of order fulfillment. [14]
Dropshipping is a popular fulfillment method as it doesn’t require suppliers to hold stock. This means you don’t need to invest in stock and only pay for items once your customer pays you.
You, therefore, don’t need to manage your cash flow in the same way as traditional e-commerce, which allows you to launch new products and scale your business quickly.
So, it makes sense that more retailers are using dropshipping as their primary fulfillment method.
9. Suppliers like dropshipping since they make an average of 18.33% more in profit when selling to dropshippers than when selling the same products on their own online shops. The Journal of the Operational Research Society
As a dropshipper, you repurchase from the same supplier every time you receive an order.
If a supplier sells their products to dropshippers, they don’t need to run ads, handle a large volume of customer service queries, or maintain an online store.
Studies show that selling to dropshippers can increase their profit by over 18% compared to running their own store.
10. The dropshipping success rate is estimated to be around 10 to 20%. [15]
This is not an official statistic, as there is no exact data for the dropshipping success rate.
However, based on e-commerce store data, small business data, and our own experience, we estimate that the dropshipping success rate is between 10-20%.
If you do the research, have the knowledge, and use the right product research tools, your chances of success increase considerably.
If you want more information on the dropshipping success rate, we have an article that includes information on why dropshippers fail, success stories, and how to increase your chances of success.
11. In 2023, smartphones accounted for over 70% of all retail website visits worldwide. [16]
Your dropshipping store needs to be mobile optimized, as 74% of online store visits are made on mobile.
The remainder of the traffic is made up of desktop and tablet users. Desktops have a 24% traffic share and tablets have a 2% traffic share.
Slightly more people use a desktop to confirm their orders, with a 35% share. Smartphones still make up the majority, with a 63% share.
Every page of your website should work and be formatted for mobile and desktop.
Switching between mobile and desktop should be seamless for customers as a positive user experience can help increase sales.
12. 22% to 33% of online retailers dropship on Amazon for additional income. [17]
Amazon is the world's largest online retailer and internet company, as measured by revenue and market share [18]. It is trusted by over 310 million active users globally [19].
If you already sell online, it makes sense to add the products to Amazon. It will increase your reach and visibility, which can help boost your sales.
If you’re interested in selling on Amazon, we have an article on how to find winning products for Amazon.
13. Dropshipping stores that have at least one social media account generate 32% more revenue. BigCommerce
TikTok, Instagram, and Facebook are where your customers are.
43% of buyers learn about new products through social media [20].
A BigCommerce study showed that having a social media account for your brand can increase your revenue by around 32%. However, the study has since been removed.
You can use social media to increase your brand’s visibility, build a brand reputation, and engage with customers.
You can also use social media to sell your products. Research shows that 68% of consumers made at least one purchase directly from social media in 2021 [21].
Frequently Asked Questions
What Is the Success Rate of Dropshipping?
The success rate is estimated to be 10-20%. However, there are no official figures or statistics to confirm the success rate.
How Many Dropshippers Fail?
Based on the success rate of 10-20%, we estimate that 80-90% of dropshippers fail.
However, a study showed that small business owners who had tried and failed are more likely to succeed the second time around, so don’t let that stop you from trying.
What Is the Growth Rate of Dropshipping?
Dropshipping is expected to grow at a compound annual growth rate (CAGR) of 22.8% between 2023 and 2030.
Is Dropshipping Oversaturated Now?
There are tons of dropshipping stores, and many people try dropshipping, which can make it feel oversaturated.
However, if you choose the right product and know how to advertise your products, there is still huge potential for success.
Is There Dropshipping Millionaires?
Yes, there are several sellers who have created multimillion-dollar dropshipping stores.
Check out our article on 20 successful one-product Shopify stores. We detail the revenue each store makes and what we can learn from them.
How Many Dropshippers Are There in the World?
It’s impossible to know exactly how many dropshippers there are worldwide. There are an estimated 24 million e-commerce stores worldwide, and it is estimated that many of these are dropshipping websites [22].
Final Thoughts
Hopefully, the article has given you some solid data on dropshipping and helped you decide if it is the right e-commerce business for you.
If you want to get started and find some winning products to sell, check out Dropship’s 7-day free trial.
