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It’s not easy to keep up with some of the latest trends and dropshipping statistics. This is because things are bound to change in the dropshipping industry as years go by. However, we can all agree that data is the secret weapon. You can not only verify but also ascertain different strategies and ideas using data. Without it, you are left to do guesswork and you don’t want to tread on that unconventional path.
Don’t fret. I’ve done the legwork for you! In this article, I curated 2023 dropshipping statistics in the eCommerce business for you. I invested my time uncovering some of the most recent dropshipping statistics seeing that there are lots of statistics from previous years flying around the internet.
First things first. According to research, the dropshipping industry is valued at around $550 billion which registers a 28.8% CAGR before 2025. Save for that, there are many different statistics that might pick your curiosity especially if you are looking to learn the status of eCommerce stores.
I accompanied the figures with detailed explanation on the statistics because I don’t want you to get bored looking at the numbers. Keep scrolling to find out more about the latest dropshipping statistics.
Dropshipping and eCommerce Statistics
For starters, dropshipping is typically an eCommerce model of doing business except you’d be selling dropshipping products that are not in your store. Instead, dropshippers take orders then send them to the suppliers or manufacturers who carry out the order fulfilment on your behalf. It’s almost like a partnership with the supplier.
In the dropshipping business, your task is almost limited to being a middleman. Dropshippers choose target market, high-quality product ideas, shipped orders, shipping costs, customer service and market research among others.
Wholesale or dropshipping suppliers, on the other hand, are tasked to handle most of the work that comes dropshipping. They work on things like international shipments, shipping products and inventory costs among others. This means that the state of a dropshipping is equally affected by the eCommerce state. In this case, skimming through the statistics is a good place to start.
Here’s an overview of the latest dropshipping statistics:
1. Global Digital Buyers Were Estimated at 2.05 billion as at 2020
The success of a dropshipper is usually tied to the number of people willing to buy online. According to research conducted in 2014, there was an estimate of 1.32 billion online buyers and the number kept sky rocketing as the years went by. The estimated figure in 2018 was 1.79 billion and 2.05 billion in 2020.
The research done recently shows that the number is expected to reach a high of 2.14 billion by the end of 2021.
From the metrics above, you can see that international eCommerce chain is at an all time rise with no reductions whatsoever. This means that the number of online shoppers is expected to maintain the upward spiral for the longest time. You should also know that more people are learning about online shopping and are more than willing to give it a try.
2. Dropshipping Sales Account for 16.1% of Retail Sales All Over the World as of 2020
The value of global retail sales -physical and online store is estimated at $26.074 trillion. Pay attention to the word “global” as it typically means all over the world. The number includes some of the biggest physical retail companies like Walmart. Currently, eCommerce owns an estimate of about 16.1% of retail sales globally.
Statistics present a rough estimate of 2.05 billion online buyers. This means that the figure accounts for 16.1% of retail sales all over the world which is a significant increase from that of 2017 as it stood at 10.4%. Consequently, the 16.1% global retail sales tend to represent about $4.206 trillion dollars while the total retail sales are $26.074 trillion dollars.
Deducing from the figures above, it’s safe to say that the eCommerce industry is literally booming. And that includes the dropshipping industry as well. In 2017, 23% of global sales were fulfilled using the dropshipping business model, and that is a rough estimate of about $85 billion dollars annually.
You can prove all this from the dropshipping statistics. As earlier mentioned, online sales were valued at $85 billion dollar which about 23% of the retail sales. This number will keep spiraling to an upward tune since more businesses are opting for the dropshipping model owing to the high net profit and conversion rate.
The eCommerce industry, on the other hand, is growing by about 17% or thereabout annually which translates to significant growth for dropshipping.
3. More than 20% of Online Retailers Adopted Dropshipping
This dropshipping statistic is almost similar to that of the eCommerce sales account for retail sales worldwide. Most online retailers prefer using the dropshipping business model since it’s made things a lot easier. You can’t say their reasons are far-fetched because it saves them the hassle that comes with inventories and global consumer base.
Dropshipping business model is not only useful for dropshippers but also manufacturers and suppliers alike owing to the significant increase in revenue. A new statistic shows that, dropshipping is the most preferred fulfilment for more than 30% of eCommerce stores. The percentage is slightly higher than the previously recorded dropshipping fulfilment that stood at 27%.
4. Suppliers Earn More Profit Selling to Dropshippers Than from Their eCommerce Stores
Shipping products to customers is one of the biggest challenges that manufacturers have to deal with when trying to sell online. Retailers and eCommerce stores also share in the same shipping agony especially those with consumer bases in third world countries.
You need to market both your store and products to get some orders when selling online. You also need to fulfil the orders once you receive them. At the end of the day, you’ll come to the realization that you’ve spent more on order fulfilment and marketing the products. That’s why most business owners are warming up to the dropshipping idea of doing business.
Instead of finding sales, business owners look for dropshippers to work with them to generate more sales and increase the profit margins. In such cases, dropshippers generate orders then send it to them directly. In so doing, you’ll be getting the job done on your behalf free of charge.
Manufacturers, on the other hand, don’t need to sell the products to a wholesaler especially those that usually need a huge cut back. Many suppliers and businesses prefer cutting the chain by simply selling to dropshippers directly without handling the marketing aspect of it.
Dropshippers collect orders and do the marketing on your behalf and you are only left with the order fulfilment part. For the most part, manufacturers and suppliers usually have very little marketing expenses. However, the profit margins are higher when selling through dropshipping as compared to selling via online stores.
Dropshippers are also not left out of the equation.
5. Dropshippers Earn More Profit Than Business Owners Who Keep Their Own Inventory
Most suppliers can attest to dropshipping business model generating more profit. According to dropshipping statistics, dropshippers usually earn more profit as compared to those who opt to keep their own stock inventory. This means that your profit margins can significantly increase when you choose to dropship your own inventories instead of fulfilling product orders from your online store and incurring inventory costs.
The above information explains the importance of using dropshipping for your eCommerce business. Choosing to go the opposite direction by getting the inventories on your own means that you would be subjected to more expenses.
6. 84% of Online Retailers Say the Biggest Dropshipping Challenge is Finding a Trustworthy Supplier to Meet Your Demands
By now, you already know that a supplier plays a significant role when it comes to the success of your eCommerce business. That’s why you need to find a reliable and trustworthy supplier after choosing a specific niche.
A great supplier should grow with you as the dropshipping business scales to greater heights. The supplier should be able to meet the demand of the orders regardless of the number as your inventories also grow.
When looking to delve into the dropshipping business, it’s also important to find a supplier that can comfortably support smaller orders. This means taking your time and doing in-depth research to find the right supplier.
7. More than 50% of Online Shoppers will Buy from Competitors Offering More Shipping Options
You should also put the above factor into consideration when looking for a supplier. A good supplier should have flexible shipping options for their consumers. Online shoppers usually expect more in terms of flexibility when shopping online. This only means that they would not hesitate to shift their loyalty to a different online store as long as it caters to their needs.
You are bound to get more customers if you offer flexible and multiple shipping and payment options. However, you can only achieve this if the supplier offers flexible shipping and payment options. So, save for choosing a suitable dropshipping supplier, it’s also important that they offer more shipping options. Plus, the supplier should also be able to scale with you as the business grows because that means fulfilling more orders.
TikTok Dropshipping Statistics
Initially, TikTok was known as Musical.ly in 2014. However, it changed to TikTok after its acquisition in 2017. TikTok gained popularity over the years in a short while. It outperformed different social media platforms including Facebook, YouTube, Instagram and Snapchat in monthly downloads in 2018.
Currently, TikTok has subscribers to the tune of billions and it’s still growing since the number of active users is on the rise with each passing month. TikTok has been downloaded more than 200 million times in the United States alone.
Going by the statistics, a huge percentage of TikTok subscribers in the US are 20 years and above. Most people thought otherwise. Generally, people tend to assume that the app is dominated by young people 18 years and below.
According to recent research, TikTok is one of the most loved apps to ever exist. The report shows that TikTok users usually watch it more than an hour a day. Finally, there’s a publication that announced in their news column most TikTok subscribers watch the app an average of 89 times watch time per day.
This shows that TikTok is a green zone for dropshippers especially those looking for different social media platforms to run ad campaigns for their products.
AliDropship Dropshipping Statistics
AliDropship makes dropshipping from AliExpress a lot easier since it’s a popular WordPress dropshipping plugin. You can also dropship in the US with ease. It saves you the hassle of placing dropshipping orders manually.
AliDropship helps place the orders with the supplier automatically on AliExpress anytime you receive an order. It’s basically one of the most important things that dropshippers need. If you are sourcing for data or looking for dropshipping statistics then AliDropship is your best bet since it’s a trusted source. Here are AliDropship statistics that are quite handy.
Let’s get right into it. Shall we?
More than 80% of Dropshippers Registered on AliDropship Like Niche Stores
Just like any other business, sticking to a particular niche is equally important. Doing everything and being a generalist in business is an idea that is rarely welcome. As a rule of thumb, business owners are supposed to choose a niche and deal with it accordingly, going beyond and above.
When it comes to dropshipping, 86% of dropshippers using AliDropship usually opt for a niche store as opposed to a general one. This means that only 14% of dropshippers are in the general niche.
The Gadgets, Accessories and Devices Niche Features 18.5% Dropshippers on AliDropship
The devices and gadget niche are the most crowded among the many different niches that dropshippers invest in. Your guess is as good as mine. It’s because most millennials and youth like changing their electronic devices frequently to keep up with the latest trends. Millennials rush to get new gadgets and mobile phones as soon as they are launched.
The baby and children products niche is equally crowded coming at a distant second after the devices and gadget niche. Most toy merchandize usually sell out fast owing to the large consumer base just like devices and gadgets. It goes without saying that some niches are quite lucrative than others but they are quite competitive.
The idea is to go for a profitable niche and you can do that by analyzing the dropshipping statistics. Here’s an overview of some of the most popular niches to choose from if you are looking to delve into the dropshipping business.
Countries That Buy AliDropship Customized Store
These statistics are only based on AliDropship and the top five countries that buy their custom store. You can interpret these countries as where the more people are getting into the dropshipping business. Let’s dive right in!
- United States
- United Kingdom
India also features on the top ten countries that buy AliDropship custom store package. However, most of them usually go for AliDropship plugins.
Let’s look at the dropshipping statistics of Amazon
Amazon Dropshipping Statistics
Amazon is typically the biggest eCommerce marketplace generating more than $200 billion in terms of revenue. It has a significant number of dropshippers that buy and sell products in their platform as it offers different business models.
We obtained the following statistics from Amazon. I hope it helps you get an insight of the dropshipping model and the online retail world at large.
There Are More Than 5 million Sellers on Amazon
Amazon is the largest eCommerce marketplace and that’s why it has more sellers estimated at around 3.3 million in 2018. The number of sellers surpassed 5 million as of 2021 and it’s still on the rise. You can tell how much dropshippers and third-party sellers are influencing the Amazon revenue from the figures above.
According to dropshipping statistics, Amazon is experiencing an upward spiral in its members with about 3500 sellers joining every day. You should reconsider if you think the dropshipping industry is overcrowded because it’s not only profitable but also fast-growing.
More Than Half of the Sales on Amazon Are Generated from Dropshippers and Third-Party Sellers
Shocking, isn’t it? But yes! More than 50% of the sales on Amazon marketplace usually come from third-party sellers. That means that the dropshipping business is not going anywhere anytime soon. However, that doesn’t necessarily mean that all sellers on Amazon are dropshippers but more than half of them are.
50% sales generated on Amazon from third-party sellers in 2019 accounted for $140 000 dollars.
34% of Amazon Sellers are Dropshippers
Most sales on Amazon are usually fulfilled by dropshippers that posted their dropshipping products on the platform. According to Amazon dropshipping statistics, more than half of their total sales are usually from third-party sellers and most of them are dropshippers.
In 2019, the 34% of the sales was valued at an estimate of $95 billion dollars.
On Average, Medium-Sized and Small Businesses in the US Sell 3000 Items and Above Per Minute
Some of these statistics are too good to be true but rest assured, they are not far-fetched. According to 2019 dropshipping statistics, it’s believed that small and medium sized businesses in the United States usually sell more than 3000 items on Amazon pre minute. Numbers never lie. This shows how lucrative eCommerce business is.
The number of items sold per minute is more than what an average individual-owned online store can sell even in a day. Also, eCommerce grows as the years go by including the sales revenue especially from the dropshipping business model. If this information doesn’t excite you as a dropshipper then I don’t know what will.
eBay is also worth mentioning when it comes to the eCommerce business. Let’s explore eBay dropshipping statistics as well.
eBay Dropshipping Statistics
eBay is one of the most popular eCommerce stores that help facilitate dropshipping owing to its B2C and C2C business model. Most eBay sellers are dropshippers and they get their products from Amazon and AliExpress then sell them at a relatively high price on eBay. This means that eBay dropshipping statistics could also be a true reflection of the state of dropshipping and trends.
You can derive some insights from these eBay statistics:
10% of Dropshippers on eBay Usually Make an Average of $7730 Profit Monthly Which Translates to $92 700 Annually
The best dropshippers on eBay make a significant amount of profit in a year. Putting into consideration that most dropshippers on eBay view the business as a side hustle. The sales revenue is quite reasonable and it’s a highly profitable venture.
A Good Number of eBay Dropshippers Usually Make More Than $1000 Profit Monthly
A number of eBay dropshippers make a good amount of profit monthly with more than 25% boasting of $1000 per month. That is a modest amount for a side hustle.
On Average, eBay Dropshippers Make $2.67 Profit Per Sale
According to eBay dropshipping statistics, dropshippers make a profit of $2.67 for every fulfilled sales order. On average, the top 10% eBay dropshippers make $3.64 profit for every sale. Consequently, the bottom 10% make a loss estimated at $2.53 on each sale.
On average, eBay dropshippers process 969 dropshipping orders monthly. That translates to a profit of about 2500 dollars monthly for a medium sized business. For the most part, that amount is fair considering it’s a side business.
The Number of Dropshipping Transactions on eBay Significantly Increased Between 2016 to 2018
Seeing the total number of dropshipping transactions on eBay increase by 146% between 2016 to 2018 is quite interesting. You can tell how profitable the dropshipping industry is by the number of transactions. The upward spiral is because dropshipping business model is nothing short of profitable which makes it more lucrative.
According to eBay Statistics, Dropshippers Make $693 Monthly on Average in Cashback Profit
Don’t worry, I’ll define what cashback is if you haven’t heard of it before. Proceed if you know the meaning.
Cashback typically means the credited amount anytime you buy anything using your credit card. It’s just like incentives that credit card companies offer so that you can continue using the card. When you make a purchase, the credit card company returns a certain percentage back to you either monthly or annually.
You get to use your credit card more often as a dropshipper when you make many orders frequently. This means more cashback from the credit card company. According to eBay statistics, the average amount dropshippers make monthly from cashback is estimated at $693. Not bad!
The Top 10% eBay Dropshippers Handle 4759 Orders Monthly and 969 Orders for Average Ones
The average eBay dropshipper processes 969 orders monthly. This means for every sale; they get an estimated amount of $2.67 amounting to $2587 profit per month. The average amount that the top 10% eBay dropshippers make is $12,706 monthly.
eBay Dropshippers Had More Sales in January as Compared to December
Most people always go on eBay towards the end of the festive season to find relatively cheap goods. That’s why eBay reported more sales in January 2019 than December 2018 with a 1% difference.
The Profit Margins on eBay Are Lower Than on Other eCommerce Platforms
When it comes to dropshipping, statistics show that the profit margins on eBay are much lower compared to other platforms. To be precise, eBay dropshipping offers a profit margin of 6% which is very low compared to the 30-40% on other eCommerce platforms. You might want to explore other options.
In addition, eBay dropshippers usually spend a lot more on PayPal and eBay fees which means extra expenses. The exact amount an average dropshipper on eBay can spend on fees is $1078 and $479 eBay and PayPal fees respectively.
However, that doesn’t necessarily relate to the state of dropshipping all over the world. eBay is among the many dropshipping platforms. You are free to explore other eCommerce dropshipping platforms that suit your needs not limited to increased profit margins.
Conclusion – Dropshipping is Highly Profitable
If you’ve gone through the statistics above you can affirm without an iota of doubt that dropshipping is not only lucrative but also highly profitable. You can also see what the dropshipping industry has in store since it’s still growing.
According to Grand view research, the dropshipping industry will keep thriving. Plus, the market size is not going down anytime soon which means it only goes up from here. However, if you are looking to venture into the dropshipping business, it would be best to do in-depth research on your desired niche. Niche is just as important as finding the right dropshipping supplier.
Remember, the supplier plays a huge role in the success of your dropshipping business. That means that the supplier should not only be reliable but also trustworthy and be able to scale with you as the business grows. I hope these dropshipping statistics will help you make an informed decision.
Dropshipping Infographic Statistics
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