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Drop Shipping Global Market Report 2022: Ukraine-Russia War Impact

Drop Shipping Global Market Report 2022: Ukraine-Russia War Impact

  • November 2022
  • 175 pages
  • ID: 6368540
  • Format: PDF
  • The Business Research Company


Table of Contents

Major players in the drop shipping market are AliDropship(Sunshine Ecommerce Technologies LLC), Doba Inc, SaleHoo Group Limited, Shopify Inc, Winx, Sunrise wholesale merchandise LLC, Megagoods Inc, Dropshipzone, Inventory Source, Printify Inc, Drop Ship Direct Inc , Onlinestorebiz LLC , Dropified LLC, Cymbio, and Spocket Inc.

The global drop shipping market is expected to grow from $150.88 billion in 2021 to $192.31 billion in 2022 at a compound annual growth rate (CAGR) of 27.46%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, effecting manyevery markets across the globe. The drop shipping market is expected to grow to $568.74 billion in 2026 at a compound annual growth rate (CAGR) of 31.14%

The drop shipping market consists of sales of drop shipping services by entities (organizations, sole traders, and partnerships) that are used to fulfil or distribute an order without maintaining an inventory. Drop shipping refers to an order fulfilment process where a brand or store does not stock the goods it sells but instead buys the item from a third party, such as a wholesaler or manufacturer and ships the product directly to the buyer.

The main drop shipping products include toys, hobby and DIY, furniture and appliances, electronics and media, food and personal care and fashion.Toys, hobby and DIY refer to the fulfilment of toys, hobby and DIY product orders without stocking the products in a warehouse.

The different types of drop shipping include business extensions, print on demand, creation of the product and product reselling. The drop shipping organization sizes include large enterprises and SMEs.

North America was the largest region in the drop shipping market in 2021.Asia Pacific is expected to be the fastest-growing region in the forecast period.

The regions covered in drop shipping market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The growth of the e-commerce industry is expected to drive the drop shipping market.E-commerce refers to the purchase and sale of goods and services online or over the internet using phones, computers, laptops, and tablets.

Drop shipping offers the e-commerce industry numerous benefits by eliminating the maintenance of inventory or physical stock, which further decreases warehouse and labor costs.The e-commerce industry has grown exponentially during a pandemic due to the limited movement and at-home restrictions.

According to the US Department of Commerce Retail Indicator Division, a US-based department concerned with commerce and economic growth, Quarterly Retail e-commerce Sales Q4 2021 report, in 2021, US e-commerce sales accounted for $870 billion, which has increased by 14.2% over 2020 and 50.5% over 2019. Therefore, the growth of the e-commerce industry drives the drop shipping market.

Integration of artificial intelligence (AI) in the drop shipping business is a key trend in the market.Major companies are integrating AI technology into the existing platforms.

AI technology offers benefits such as personalization, automation of the process, analyzing data, and eliminating unwanted data.For instance, in 2021, AliDropship, a US-based subsidiary of Ali express for the drop shipping business, introduced Sellika, a new AI product description generator to automate product descriptions.

This plugin assists in editing product descriptions, editing colors, and category descriptions, and offers a stop word list for titles.

In June 2021, Wix, an Israel-based software company that builds websites, acquired Modalyst for an undisclosed amount.Through this acquisition, Wix store owners can connect their online store to an established network of thousands of suppliers, manufacturers, and wholesalers, giving them access to products ranging from name brands to trending items to independent labels.

Modalyst INC is a US-based software company offering drop shipping and e-commerce platforms.

The countries covered in the drop shipping market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The drop shipping market research report is one of a series of new reports that provides drop shipping market statistics, including drop shipping industry global market size, regional shares, competitors with a drop shipping market share, detailed drop shipping market segments, market trends and opportunities, and any further data you may need to thrive in the drop shipping industry. This drop shipping market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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