How dropshipping became popular

In 2019, the global dropshipping market was valued at $162.44 billion. It’s projected that the industry’s value will reach a whopping $591.77 billion by 2027. How did we get here?

Technically, dropshipping goes back to the 60s when you could order things from a mail catalog. You chose a product you liked, made a call, and you’d have it delivered from a warehouse straight to your door.

But let’s talk about what has happened since the internet came into play.

Amazon and eBay

In the 2000s, Amazon and eBay made it possible for people like you to sell online. Both Amazon and eBay allow dropshipping. They take dropshipping fees, though. For example, Amazon takes between 10% to 15% of your profits. However, Amazon allows you to get in front of over 300 million active users with high purchase intent.

AliExpress

Fast-forward 10 more years, AliExpress happened and enabled anyone in the world to buy products directly from Chinese manufacturers.

The launch of AliExpress massively influenced the dropshipping industry because:

The language barrier was gone.

The buying process became easier and cheaper.

Shopify

With the rise of Shopify, people were able to create online stores in just a few steps. Other marketing automation apps in the Shopify App Store allowed merchants to make their lives even easier. For example, SEO apps for Shopify can help you rank on a search engine like Google.

Nihaojewelry

Speaking of Nihaojewelry This is a recently popular dropshipping, with ultra-low purchase price and almost zero cost of opening a store online is popular in the United States and Latin America.

Dropshipping really kicked off with Shopify!