Lots of people are showing interest in the Dropshipping model, which has become a surging trend. This dropshipping growth encourages new entrepreneurs to start their own businesses and succeed in the competitive e-commerce environment.
In this blog guide, we explore dropshipping growth, market trends, and success rates using the top key dropshipping statistics for 2024.
What is Dropshipping?
Dropshipping is a retail fulfillment method in which a store sells products without owning or handling Inventory, packing, or shipping.
When a customer places an order, the merchant forwards it to a third-party supplier, who ships the product directly to the customer.
The merchant pays the supplier for the product at a discounted price and keeps the difference as profit.
Top 10 Key Dropshipping Statistics and Growth Trends in India
If you are new to dropshipping and not sure if this business is right for you, we can explore dropshipping statistics, facts, and growth trends. This can definitely help you decide and better understand the dropshipping model.
1. The Dropshipping Market in India is expected to grow by $5 billion
Indian dropshipping market size is estimated at around $1 billion and is expected to grow at a CAGR of 25% in the next 5-7 years. This will make the market size worth $5 billion by 2028.
With the rise of social media platforms and increased use of smartphones, millions of people have started to prefer online shopping.
2. The growth of the Indian e-commerce industry is estimated to reach $300 billion.
Source: IBEF
According to the India Brand Equity Foundation (IBEF), the Indian e-commerce industry is projected to reach US$300 billion by 2030.
Indian E-commerce growth demonstrates that entrepreneurs have a more significant opportunity to start dropshipping businesses.
3. The revenue of Apparel and Fashion segments in India
The fashion and apparel industry is a thriving market in India. This high demand for dropshipping products can be highly profitable.
Apparel Market Revenue in India
Source: Statista Market Insights
The revenue of the Apparel market in India is projected to reach ₹8.76tn in 2024. It is expected to grow annually by 4.23% (CAGR 2024-2028).
Also, Women’s Apparel holds the largest share, with a market volume of ₹4.24tn in 2024.
Fashion Market Revenue in India
Source: Statista Market Insights
The revenue in the Fashion Market is projected to reach ₹1,219.00bn in 2024. It is expected to show an annual growth rate (CAGR 2024-2029) of 11.11%, resulting in a projected market volume of ₹2,064.00bn by 2029.
With increasing awareness, apparel and fashion markets are in high demand for sustainable products.
👉Let’s check out our guide to learn about profitable dropshipping products, from apparel to home accessories.
4. World’s Largest Dropshipping market
Source: Grand View Research
The global dropshipping market is projected to achieve a 23.4% annual growth rate (CAGR) from 2024 to 2030. The Asia Pacific region holds the largest market share at 33.92% and is expected to continue growing.
5. Primary Method of Order Fulfillment
27% of the retailers have chosen dropshipping as their primary fulfillment method. In India, Third-party logistics providers are anticipated to manage approximately 17 billion shipments within the next seven years.
6. Social media platforms are popular for Online Shopping.
67.5% of all internet users in India use at least one social media platform, such as Facebook or Instagram. 77% of Small businesses use social media to connect with customers and make sales. Also, in India, 90% of users follow at least one shopping brand on social media.
7. The dropshipping success rate in India
The Estimated Dropshipping success rate in India is between 10% to 20%. This success rate will differ based on product selection, effective marketing strategies, and reliable dropshipping suppliers.
8. The retail market in India is projected to reach US$ 2 trillion.
The retail market in India is expected to reach US$ 2 trillion by 2032. Additionally, the e-retail market in India is projected to exceed US$ 160 billion by 2028. The E-commerce market in India, primarily driven by beauty and personal care (BPC), is anticipated to achieve a gross merchandise value (GMV) of US$ 4-5 billion by 2025.
9. Average Dropshipping Income in India
According to a survey by SaleHoo, the average dropshipping income in India is around $500-$1000 per month. It is a good starting point for anyone interested in dropshipping and wants to know how much they can expect to earn.
In their first year of business, successful dropshippers can earn up to $100,000 in dropshipping compensation.
10. Dropshipping Interest Over Time
Source: Google Trends
According to these dropshipping industry statistics, the dropshipping market is still growing, and it generates a lot of interest from online consumers. So, starting a dropshipping business in 2024 is still a great idea.
You don’t have to invest money in inventory management until a customer orders your products.
You won’t get stuck with unsold stocks because the dropshipping supplier handles inventory.
Dropshippers can easily integrate their store on e-commerce platforms like Shopify and Woocommerce.
Future Trends of Dropshipping
Dropshipping has proven to be a successful online retail business. Many dropshipping companies are interested in starting their business with automated software. Here are some future trends in the dropshipping model.
- Incorporating blockchain technology allows drop shippers to easily detect scams and errors, thereby building confidence in dropshipping suppliers and businesses.
- Artificial intelligence can analyze customer behaviors and preferences based on browsing and purchase history.
- Machine Learning (ML) algorithms can identify unusual buying patterns, such as sudden large orders from new locations.
- Technologies like virtual reality (VR) and augmented reality (AR) will change how customers interact with the store and make shopping more engaging. They can also predict future market trends and improve products.
Is Dropshipping successful in India?
Source: oberlo
Yes, it is. But only when you know the dos and don’ts of the dropshipping business. The dropshipping market gained popularity as the internet grew and is expected to grow by 32% by 2026, with a net worth of about $128 billion. Dropshipping businesses often make a profit margin between 15% and 20%, though this varies by sector and product.
Things to know before starting a dropshipping business in India
Starting a dropshipping business is easy, but you need to have a plan for it. Starting a dropshipping business involves several key steps:
- Choose a profitable Niche: Pick a niche you’re passionate about and ensure there’s demand for the products.
- Market Research: Understand your target audience, competitors, and market trends.
- Create a Business Plan: Outline your goals, strategies, and financial projections.
- Find Reliable Suppliers: Research and select trustworthy suppliers for your products.
- Choose the Right E-commerce Platform: Select a platform like Shopify or WooCommerce for your online store.
- Set Up Your Online Store: Customize your store’s design, add products, and integrate payment gateways.
- Develop a Marketing Strategy: Use SEO, social media, and email marketing to promote your products.
👉 Launch your online business using Qikink dropshipping services. Qikink also provides seamless integration services with WooCommerce and Shopify to make your dropshipping business run smoothly.
Shopify Dropshipping
Sign up with Qikink and integrate your store with Shopify easily.
Check out the Shopify integration link that helps you integrate your Shopify store with Qikink.
WooCommerce Dropshipping
Integrating your WooCommerce store with Qikink is easy. You need to install the app and connect it with Qikink. Once your store is connected, we process all orders seamlessly.
Amazon Dropshipping
To start Amazon dropshipping, you have to create a Seller Central account. With Qikink, you can easily sell products without managing inventory.
👉 Check out our Amazon Dropshipping Guide to start your business with Qikink.
Here’s why you should look for a reliable dropshipping platform like Qikink
- Drop shippers should look out reliable suppliers offering a wide range of dropshipping products. Qikink offer India’s most extensive catalog of print-on-demand dropshipping products. We also dispatch orders within 2-3 working days
- We ship worldwide and deliver your product within 12 working days.
- Unlike other suppliers, there is no minimum order number for our personalized print on demand products.
- With our e-commerce integration, you can scale your POD Dropshipping business to the next level.
- At Qikink, we provide free custom branding service for your orders.
- Our delivery service enables you to offer COD options to your customers with no return fees which helps you increase your conversion rate and build trust.
👌 Ready to work with Qikink at peace of mind? Sign up with Qikink for free and start your profitable dropshipping business.
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Frequently Asked Questions
How much can you earn from dropshipping in India?
The average dropshipping income in India is around $500-$1000 per month. It is a good starting point for anyone interested in dropshipping and wants to know how much they can expect to earn.
How long does it take to start a dropshipping business?
The timeline for starting a dropshipping business can vary depending on various factors. Some entrepreneurs begin within 3 to 6 months if they have prior experience in operating an online store.
How to start a dropshipping clothing business?
You can start your dropshipping clothing business with Qikink. Qikink offers a wide variety of clothing, such as T-shirts, Hoodies, Sweatshirts, Crop tops, Kid’s clothes, Shorts, and joggers.
How to calculate dropshipping profit?
You can calculate dropshipping profits with Qikink’s Dropshipping profit margin calculator.
Content Writer, Blog Editor at Qikink
