North America Dropshipping Market

North America Dropshipping Market Size (2024 to 2029)

The dropshipping market in North America is expected to be worth USD 326.04 billion by 2029 from USD 117.11 billion in 2024, growing at a CAGR of 22.73% from 2024 to 2029.

Dropshipping is a supply chain management system in which a retailer does not keep products in stock, but instead sends orders and delivery details received from customers directly to the retailer, manufacturer, or wholesaler. The manufacturer or retailer then ships the merchandise directly to the customer. Dropshipping is a type of retail fulfillment model that does not require the store to maintain an inventory of products. Instead, by implementing the drop shipping method, the store purchases the item from a third party and ships it directly to the end user. Therefore, it is not necessary for the supplier to manage the product himself. It is also one of the ways to earn money online without investing or owning stocks. Dropshipping is implemented in numerous industries to provide different types of products, such as personal care, electronics, and toys. It also ensures a smooth delivery of goods to consumers.

North America Dropshipping Market Drivers

The North American dropshipping market is expected to show significant growth as online shopping preferences increase along with the growing trend of cross-border e-commerce.

With the rapidly growing e-commerce industry and the expanding consumer base of online shoppers, there is a growing demand for direct delivery services. The growing demand for consumer electronics is driving the growth of the North American Dropshipping market. The growing adoption of consumer electronics such as smartphones, tablets, and laptops in North America creates exciting new opportunities for a variety of ongoing technology developments. This has led to a higher prevalence of these devices in the North American economy. The introduction of advanced technologies has provided direct model providers with new opportunities to move from traditional business mode to online business mode. Dropshipping involves the sale of products through online stores where retailers do not have products in stock. Retailers send the customer's order and shipping details to the manufacturer or wholesaler and then ship the products directly to the customer. Therefore, the growing demand for direct delivery services is mainly influenced by the growth of the e-commerce industry. The advent of smartphones has revolutionized the way consumers shop, and the development and introduction of numerous applications have made it convenient and easy for consumers to carry out the overall shopping experience online. Traditional distribution channels require retailers to invest heavily in inventory management. However, with the increasing penetration of e-commerce platforms, retailers are opting for direct delivery services to reduce capital expenditures for purchasing/managing inventory.

Additionally, the reduction in capital investment in inventory and logistics has increased the demand for North American dropshipping between retailers.

Less overhead and a broad product portfolio are other factors expected to drive the North American dropshipping market growth. Another factor contributing to the growth of the North American dropshipping market is the increase in consumer disposable income. E-commerce players are investing heavily to increase their consumer base and visibility, and as the recent past has become increasingly competitive and new players appear in the North American dropshipping market, they are offering a wider range of products in a single platform. Smartphones have revolutionized online shopping with countless mobile apps to make it easier and more convenient for consumers to experiment. The growing popularity of smartphones with an increase in consumer disposable income contributes to the growth of the e-commerce market, driving the growth of the North American dropshipping market.

North America Dropshipping Market Restraints

Government regulations and regulations on product delivery and cybersecurity threats are hampering the growth of the North American dropshipping market.

Impact of COVID-19 on the North American Dropshipping Market

For COVID-19, North America, especially the United States, is hit hard. North America is one of the most important regions for the adoption and growth of new technologies due to its favorable government policies, its huge industrial base and its high purchasing power to promote innovation, especially in developed countries like the United States and Canada. Therefore, the impact on industrial growth is expected to have a negative impact on regional economic growth. The United States is one of the prominent markets for Dropshipping. The tremendous increase in the number of confirmed cases and the number of deaths reported in the country has affected these industries. Plant and business disruptions in the United States, Canada, and Mexico affect drop shipping adoption.

REPORT COVERAGE

This research report on the North American dropshipping market has been segmented and sub-segmented into the following categories.

North America Dropshipping Market Analysis By Product

• Hobbies and DIY
• Toys
• Electronics
• Media
• Food and Personal Care
• Furniture and Appliances
• Fashion

The electronics segment had the largest market share, accounting for more than 30.0% in 2020 due to the growing demand for electronic products. The e-commerce platform opens multiple avenues for selling electronics as customers can compare a wide product portfolio, take advantage of discounts, and request easy returns.

The fashion segment is expected to see promising growth in the dropshipping market during the forecast period due to rapid globalization and the changing behavior of consumer spending.  Increasing consumer preference for branded products and the availability of multiple brands on a common platform are expected to drive the fashion sector during the forecast period.

The food and personal care segment is expected to grow at a prominent CAGR during the foreseen period. Increasing consumer spending on skin care, perfume, cosmetics and other personal care products is expected to drive growth in the food and personal care sector. In addition, the increase in spending on household furniture products has influenced the demand for luxury furniture products, driving the growth of the furniture and household appliances sector.

North America Dropshipping Market Analysis By Region

• The United States
• Canada
• Rest of North America

The North American dropshipping market is expected to register significant growth in the coming years due to the evolution of consumer spending patterns and behaviors and the favorable trends in the current market. In countries such as Mexico and Canada, the growth potential of the consumer electronics industry is very high, where consumption is expected to increase as brand penetration increases. Mobile phone cases are considered a promising e-commerce niche because they are gaining traction at a rapid rate. With the growing demand for mobile accessories, consumer electronics is one of the product categories driving the Dropshipping business and attracting several startups in North America. Additionally, the growing e-commerce industry is expected to have a positive impact on the demand for dropshipping in North America.

KEY MARKET PLAYERS

Doba Inc., Alidropship. Com, Megagoods, Inc, Stock source, Orderhive, Printify, Inc., Modalyst, Inc., and Sunrise Wholesale Merchandise LLC are some of the major players in the North American dropshipping market.