New hopes came into the dropshipping market because of Covid-19, given the vast number of businesses coming into play. But is it going to be the same? There has been an astounding number of new businesses setting up dropshipping platforms and starting efficient businesses. If you’re wondering where the market will lead to this year, then stay tuned, we have compiled a list of all the important things you need to know when it comes to the dropshipping market this year.
What Is The Ecommerce Market Size?
Before getting started on the dropshipping market, let us take a look at what the eCommerce market size is. Rest assured, the number and percentage of the eCommerce market keep increasing over time. Currently, you will find the eCommerce market size to be approximately $5 trillion. Isn’t that something? Ecommerce has taken the world by storm and there is no slowing down this process. Here, we will discuss the eCommerce market size before diving into all about dropshipping.
There are currently way too many eCommerce businesses on the rise. However, some critics predict that there might be a stall in growth with the arrival of the vaccine. Since the presence of the pandemic restricted physical markets, with relief through the vaccine, things might get back into shape with physical businesses running effectively.
This year was substantially important for the eCommerce sector. However, this the new year starts, there is no saying how exactly it might go. But many predict through eCommerce market research that eCommerce business will continue to thrive given the convenience they offer to everyone involved.
What Is The Dropshipping Market Size?
One of the most important things to consider when it comes to dropshipping is the market size it entails. As the pandemic went into full flow, there was an increase in the number of dropshipping platforms that were established around the world. This has more to do with the fact that it offered more convenience to people around the world. But does this hold for the years moving forward as well? Let’s take a look at the trends and the market size of the dropshipping businesses.
Currently, you will find that the dropshipping market size accumulated to about a reasonable number in billions. It is expected to go up to USD 557.9 by 2025. This is one of the most astounding things to know about. Dropshipping has a large market share in the industry. While the eCommerce market size is far greater than this, the dropship market surely is a major part of the overall industry.
The major part of this industry is run by small-scale and medium-scale businesses. While specific large businesses are operating in the industry as well, the medium-scaled ones take the lead overall. Some of the most renowned businesses include Oberlo, SaleHoo, AliDropship, and many more. You will find their names in the news quite often. These are all prominent dropshipping businesses.
How To Do Market Research For Dropshipping
Next, we will talk about how to do dropshipping market research. If you wish to set up a business, then is the dropshipping market saturated? Let’s find out all of these details below.
When it comes to market research for dropshipping, you will need to take a look at a few things. This all relates to data and how you implement the data you come across. Keep in mind that there are different steps included when it comes to collecting the data. This is known as market research for your business.
Collecting Primary Data
One of the first things that you will have to do when it comes to market research is figuring out primary data for the industry. You can do this using different methods applied in the industry to get firsthand data. If you’re looking to go into niche markets for dropshipping, then you should start with particular markets you’re interested in, and get their data. Different tools are required to collect this data, and we will get into this soon.
Collecting Secondary Data
The second type of data you collect for your market research is through other sources. These sources already exist in the world and you will not have to worry about making efforts to collect them yourself. You will only have to look through the data available for different markets and use it for your benefit.
Tools For Data Collection
Now, collecting both of these data requires tools. For primary data, you will have to conduct surveys to figure out more details about the sector you wish to start your dropshipping business in. More than that, you will also need to rely on current market data available. You can collect efficient data through questionnaires, observations, surveys, reports, magazines, and much more. Each of these will prove to be vital for conducting a dropship market research.
5 Best Dropshipping Market
Now, you might want to know which markets take the lead when it comes to the dropship market. Without knowing anything about these things, you can already guess that the China eCommerce market will surely cut here. Below is a list of the best dropshipping markets currently available to you.
· China
· United States
· United Kingdom
· Japan
· Germany
As you can see, China and the United States are the best markets for dropshipping businesses. With high online sales, a large number of these accumulate to dropshipping businesses.
These are the top five markets that you should think about operating in as they offer you the best results. There is also more demand for these eCommerce dropshipping platforms as they offer relatively broader goods. Amongst these, China holds many important market players, such as AliExpress, SaleYee.com, and many more.
Wrapping up
All in all, you will see that dropshipping is surely going to increase in the future as there is more need for convenient shopping than ever before. It has proven to be a great way to operate, and will surely see steady growth over the years.
