Dropshipping Trends of 2023 and Our Predictions

Dropshipping as a fulfilment method has swiftly gained popularity and notoriety over the last few years. According to statistics, the dropshipping market size was expected to pass $200 billion dollars by 2023, and is expected to reach as high as $500 billion by 2027.

People are visiting online stores more than ever, even as more stores reopen and we return to pre-Covid in-person shopping experiences. Retailers have noticed this trend too, which is why it is a preferred fulfilment method for about 33 per cent of online stores.

Even big brick-and-mortar brands like Bunnings, Myer and Target have embraced dropshipping as part of their fulfilment strategy, allowing them to expand their inventory and offer more products to their customers throughout the year.

While there is no single reason for dropshipping’s high growth rate, there have been certain trends that have shaped the ecommerce landscape and made dropshipping an appealing option for new investors. If you're interested in opening your own online business or even if you already are an online store owner, the team at Dropshipzone have compiled a list of 2023 Dropshipping trends and predictions to help aid in your ecommerce success.

The growth of social commerce

Social commerce is thriving thanks to the success of social media. The typical social media user spends roughly 15 per cent of their waking life on their favourite social platforms, and there were approximately 4.74 billion social media users worldwide in October 2022, equating to roughly 59.3 per cent of the global population. Year on year social media usage rises about 4.2 per cent, adding roughly 190 million users (Source: Datareportal).

With statistics like these, it’s no wonder that social media has infiltrated almost every part of ecommerce. According to the Shopify Commerce Trends 2023 Report, Gen Z now uses social media to research brands more often than search engines, and social networks have become the second most popular method to search for products to purchase. 

Social media marketing is nothing new. Both ad reach and ad spending have been dramatically rising and show no signs of slowing, even as brands are branching out to interact with users in other ways, such as through digital social experiences. However, social media platforms are not just vehicles for marketing, they have become their own storefronts. Gen Z and millennials are highly likely to have made at least one purchase via a social media channel. 

As dropshipping is a largely online-only experience, dropshippers are in the perfect position to take advantage of the social commerce boon, which is why so many dropshipping companies have developed a strong social media presence.

Supply chain disruptions and the push for free shipping

While the logistics challenges of Covid-19 may be over, issues of supply and demand continue to affect all businesses thanks to ongoing energy and raw materials shortages, the increasing cost of shipping, and political instability.

According to the Shopify Future of Commerce Report 2022, shipping container costs launched from $2,000 in 2019 to $10,000 in October 2021, even up to as high as $25,000 for express delivery services. Merchants had to get creative and make strategic changes to their supply chains to reduce the impact of shipping delays, including decentralised fulfilment and data-driven optimised routing (you can read more about optimising your fulfilment process on our blog).

While customers may have initially been understanding of supply chain issues, the latest reports suggest customer expectations are rising even though supply chains have yet to recover, if they ever will.

According to the Shopify Future of Commerce Trend Report 2022, free shipping promotion continues to have a significant impact on purchasing for 75 per cent of global customers, and 84 per cent of online shoppers put additional items in their cart to qualify for free shipping. Fast and free shipping is becoming the new standard for consumers while retailers struggle to meet demand.

Dropshipping has luckily been able to circumvent some of these issues thanks to the flexibility of the model. Dropshipping retailers don’t have to worry about holding inventory, and they can diversify their product sourcing by partnering with several suppliers.

However, shipping remains a hot-button issue. It is common that a dropshipping supplier would be based internationally. This results in the shipping process being slow and expensive. Depending on the business strategy, a dropshipper might not have a say in shipping at all, relying on their dropshipping supplier and their couriers. But all is not lost for brands with slow shipping - customers are still happy to buy from brands with long shipping times as long as they are open and transparent about the wait, have an easy-to-understand returns policy and provide a personalised and pleasant shopping experience.  If you're looking to sell online through a dropshipping business it would be worth your while to find dropshipping suppliers who are local, like Dropshipzone.

Omnichannel capabilities

Over Covid-19 lockdowns, click-and-collect shopping (also sometimes called BOPIS - buy online, pick up in-store) became an incredibly popular method of shopping that has only continued to rise even as restrictions ease. In addition, smartphones are becoming a key way for people to shop online. At least half of all web traffic coming into 2023 comes from a mobile device, with 21 per cent of device users accessing a retail shopping app multiple times a day and 35 per cent accessing them once a week. 

An omnichannel approach gives consumers more places to purchase from, which means more flexibility and ultimately more money in your pocket. Providing an omnichannel experience is about more than just providing multiple avenues for selling, but providing a cohesive shopping experience across all of them. This means creating a seamless shopping experience between your physical stores, online stores, and social media. This is achieved in many ways - combining your inventory, linking within social media ads, and creating personalised multi-channel content to build your brand awareness.

Having a dedicated omnichannel strategy will only become more effective as platforms like Tiktok and Instagram grow in popularity and business on the metaverse becomes commonplace, as predicted by 75 per cent of global business decision-makers (according to the Shopify Future of Ecommerce Report 2023). Dropshipping is an ideal business model for an omnichannel strategy, especially if you’re using a platform like Dropshipzone where your inventory data is centralised, you’re exposed to a wide range of suppliers and target markets, and you can build your omnichannel strategy with easy to use tools, support and advice.

The 5 top products for your dropshipping business

If you are looking to diversify your online product offering then you might be wondering what products to sell. Do you focus on pet supplies? Or maybe you're looking to focus on baby products. Whilst we always recommend doing your own market research, we've also given you a cheat sheet. Below we've compiled a list of trending and top dropshipping products to sell in 2023.

Clothing

Clothing and fashion was - and continues to be - an incredibly popular niche. It has high competition but also the potential for high profits. Everyone needs clothing, whether they’re looking for luxury sleepwear, specialised sportswear, or plus-size pieces. Trending products in this category included shapewear, tracksuits, quick-dry running shorts, swimsuits, leggings and kimonos. Buyers were excited to get outside and start their fitness journeys after being stuck indoors for so long, but equally craving an affordable night in with their favourite sweats and cosy gowns.

There are several barriers to online shopping for clothes. Fashion-conscious buyers are hesitant to buy products they haven’t tried on themselves, both for sizing reasons and aesthetics. Consumers in general are hesitant to spend large amounts on shipping, especially when there is a high risk of return. As time goes on, these barriers are coming down - augmented reality makes it easy for consumers to see themselves in their favourite clothes, and brands that offer free shipping and/or easy returns processes have thrived.

Consumers have also been openly vocal about their frustrations with brick-and-mortar clothing stores, with the biggest complaints being a lack of options for plus-size buyers, lack of inventory upon arrival, and issues with sustainability. Dropshipping clothes has filled these niches and more, and it’s predicted that annual fashion revenue from ecommerce will only go higher.

Fitness products

Work is just one thing that has gone remote over the last few years. Interest in the fitness niche has increased steadily with around 1.8 million 25-35 year-olds using gyms, fitness clubs and sports and leisure centres in 2022. Aside from lockdowns, the convenience of doing things from home is irresistible to many people.

Whether you’re a 9-5 worker who doesn't have time or energy to get to a gym, or a stay-at-home parent juggling household responsibilities with wellness, home fitness products are appealing thanks to their flexibility and ease of use. Trending products in this niche include yoga mats and accessories, training bags, pull-up bars, resistance bands, adjustable dumbbells, blocks and rollers. Many of these bestsellers are accessible to all fitness levels, and are easy to use and store. 

Home and Garden

Home renovation was already reaching a peak in 2019, but with Aussies spending more time at home than ever the number of Aussies choosing to renovate and decorate their home has skyrocketed. This is partially due to increased time at home during lockdowns, but it is also the result of increased disposable income earnings and the growth of social media marketing, specifically influencers who partner with home decor brands. There is also a growing interest in home renovation shows such as The Block, inspiring homeowners to create the house of their dreams even with limited budgets. 

This was further compounded by an increased interest in home DIY, with the Australian Bureau of Statistics showing spending on home hardware, gardening and building supplies peaked at $2.12 billion in May 2020. Homeowners were more likely to turn down jobs from tradies (either due to lack of funds or lack of access thanks to lockdowns) and solve problems themselves.

Finally, we saw an upwards trend of Aussies becoming interested in their backyard, possibly as part of the increasing public awareness of sustainability. Around 90 per cent of Australian homes feature a backyard, and most people tried to make the most of the great outdoors over lockdowns. In fact, in the 2020 Pandemic Gardening Survey by Sustain, 20 per cent of respondents said they couldn’t have made it through the pandemic without their garden. Herb and vegetable plant sales shot up 27 per cent among panic-buying toilet paper and hand sanitiser, and there was a $200 million increase in revenue between 2019-2020. Products like hanging pot plants, grow lights, sprinkler systems and solar-powered lights sold well in this category, and it’s predicted to grow even further.

Wellness

With health and wellness influencers trending at the speed of light, it’s no surprise that the wellness industry was worth $1.5 trillion globally in 2020 with a predicted growth rate of 5-10 per cent. Health and wellness were considered a top priority for many over the Covid-19 crisis, and coupled with increased purchasing power, the potential for dropshipping wellness products skyrocketed. From gratitude journals to aromatherapy devices, there’s almost nothing that wasn’t trending in wellness for 2022, with influencers and personalised shopping experiences leading the way.

Jewellery

Jewellery consistently pops up in the top trending lists for dropshipping products in 2022. It is small, affordable and easy to ship, making it great for suppliers, retailers and consumers alike. With an average industry growth rate of 2.1 per cent, it has shown itself to be a profitable and sustainable choice for new businesses.

We also saw a renewed interest in non-traditional piercings such as the septum, helix, nose and lips, as well as stacked piercings, which then increased demand for affordable, unique, personalised pieces. Jewellery also offers the opportunity for high markups, leading to larger profits for retailers. With endless suppliers and opportunities to specialise, it’s no wonder that jewellery has been a high-performing category for everyone across the supply chain.

8 top trending niches for your dropshipping store in 2023

Now we’ve looked back on the year before, let’s look to the future. We at Dropshipzone have poured over the data to bring you this list of trending niches in 2023, so you can get a head start on the competition. 

Clothing

It’s no surprise that this giant of industry has remained consistent even through times of economic downturn. As we said - everyone needs clothing, and as more people start buying their fashion online, the demand is only going to rise. There are a wide variety of niches you can choose from within the clothing category, from footwear to men’s fashion, all of which are rich in suppliers around the world.

Print-on-demand services are also in high demand, allowing you to sell not only customised fashion but matching merchandise, so your customers can fully immerse themselves in your brand with personalised products they love.

You should also consider the sustainable clothing niche and choose suppliers carefully, as more customers than ever are conscious of their environmental impact and the exploitation of workers in the fashion industry.

You’ll also need to consider sizing differences across countries - familiarise yourself with international sizes to avoid complaints and returns. Keep in mind that fashion is a highly competitive market, so you will have to work to differentiate your brand and products from the competition. Build a brand that is trustworthy, reliable and dialled into current issues consumers care about, and you’ll be set. 

Home and Garden

We’ve already discussed how home trends have been on the rise in recent years, and it’s only projected to continue. The market is expected to grow at a rate of 3.43 per cent in Australia, and the furniture market as a whole is dominating as a multi-billion dollar industry, with a global value of $557 billion USD. Statistics suggest that a third of Australian homeowners are interested in renovating in the next 5 years, with an average spending of $80,000. Take advantage of those numbers for yourself and invest in dropshipping home decor, furniture, and gardening accessories.

The home is an extension of your personality, and many consumers are looking for affordable ways to express themselves through their home decor, often choosing to redecorate within shorter and shorter time periods. Millennials are not just more likely to redecorate their homes, but they are more likely to seek bespoke decor and minimalist, multifunctional furniture.

We’ve also seen homeowners create more spaces dedicated to specific activities, with a 79 per cent increase in internet searches for home bars, a 77 per cent increase in built-in wardrobes, and a 66 per cent increase in outdoor decks. As for gardening, in line with increased interest in houseplants and environmentally friendly homes, you’ll see an uptick in demand for garden beds, accessories such as grow lights and lawn care tools, and unique plant pots.

Baby and Kids

Did you know that babies typically go up a clothing size every ten weeks? That’s a lot of clothes that a growing family needs to buy! Not to mention all the toys, baby-proofing tools and kid-sized furniture that children go through in the process of growing up.

It can be daunting thinking about the exponentially growing costs of raising a child on top of regular parental concerns - how can I keep my home safe for a child? How do I know what products are safe? Am I giving them enough enrichment? Those are just some of the reasons that baby and kids products are going to have a popular year. 

Baby products have always been an evergreen niche, with parents always seeking the best for their little loved ones. They want to know they can go online and find a product from a reputable company that will suit their needs without hassle. They’re also wanting gadgets that save them time, money and hassle, whether that’s an easy-to-carry diaper bag, a baby stroller or some multi-functional kids' furniture.

Some parents are also looking to their favourite influencers and are seeking products that solve their problems and look aesthetically pleasing while doing it. Baby and kids products not only provide these solutions, but they are emotionally charged, and parents tend to buy more than one product at a time while shopping for them. They are a perfect dropshipping niche for 2023 and beyond. 

Sport and fitness

Fitness products have shown steady growth over the last few years and that trend is expected to continue, with seasonal peaks around summer and the New Year. You can use fitness dropshipping for both high-ticket items, such as treadmills and elliptical trainers, or focus on smaller accessories such as dumbbells, resistance bands and health trackers. You can also branch out into the B2B space, supplying gyms and fitness centres instead of, or parallel with, your B2C audience.

Some fitness products have the added benefit of fulfilling two niches - fitness and wellness. Combine yoga accessories with aromatherapy, spa treatments, or other wellness activities to provide an all-inclusive health and wellness brand.

Beauty

Over 1,000 beauty influencers are thought to be operating across Youtube and Instagram, while Tiktok has the highest average engagement rate and 7.52 per cent, as well as the highest average follower count of 767,651 compared to other platforms (431,310 for Instagram and 417,134 for Youtube). It is a great time to be a beauty influencer, which means it’s an even better time to be selling beauty products.

Makeup accessories such as blenders, brushes, eyelash curlers and compact mirrors are perfect for on-the-go beauty, while makeup like concealers, mascaras and eyeshadows are ideal for a night on the town.

As for your marketing, keep in mind the vast majority of followers will be women (82 per cent) and between the ages of 25-35 (49 per cent). As with fitness, you can blend beauty and wellness together by providing the makeup for the beginning of the night and the spa treatments and skin aftercare for the end. 

Technology

Consumers love good gadgets. They also love products that can seamlessly integrate into their lifestyles. Bluetooth speakers, wireless headphones, smart fitness trackers, portable speakers and more - all set to be incredibly popular products in the New Year. Other gadgets that will be popular include accessories for phones, from the humble screen protector to the full influencer recording setup - Bluetooth selfie sticks, tripods, ring lights, and everything a budding content creator needs to get their brand up and running.

Consumers also love technology that keeps them safe without breaking the bank - products like security cameras, dashcams, drones and wildlife cameras have all experienced growth within the last year. Finally, novelty gadgets like tactical wallets, mug warmers, cable organisers, desktop vacuums and other small pieces are set to soar in popularity as they are not only perfect for small gifts for consumers but also easy for dropshippers and suppliers to manufacture, retail and ship.

Wellness

Modern-day consumers are deeply invested in wellness, with 79 per cent of consumers believing in its importance and 42 per cent viewing it as a top priority. It’s very clear that this niche will be sticking around for the foreseeable future. There are plenty of ways to sell wellness products: you can specialise in products like gratitude journals and planners to give your target audience a sense of control in their lives.

You can market spa treatments and beauty products for a fun night with friends and family, or for individual self-care. You can tap into a more esoteric market with crystals, tarot cards, candles or reiki supplies. Choose products that allow your target market to escape the hustle and bustle of everyday life and enjoy a relaxing day at home.

Sustainability

Sustainable materials and practices are increasingly entering the public consciousness and will remain a hot-button topic in 2023. 81 per cent of consumers globally expect businesses to be environmentally conscious in their advertising and marketing, while 45 per cent of consumers’ primary purchasing motivators are companies with a reputation for being environmentally responsible.

It can be as simple as offering sustainable packaging, which 86 per cent of consumers under 45 are willing to pay more for, or you can offer products made from recycled, sustainable or biodegradable materials. Products made from bamboo are running hot off the manufacturing line thanks to its rapid growth and regeneration rate as well as its material benefits: it produces soft, breathable fabrics and fashionable, sturdy furniture.

Refillable and reusable products such as silicone straws, grocery bags, reusable coffee pods and beeswax food wraps are also trending as consumers lean away from single-use products and packaging. Establishing sustainable practices early in your business, no matter where along the supply chain, is crucial for long-term success as consumers become more eco-conscious, with 72 per cent of people across the world showing concert that climate change will personally harm them in their lifetime, and 80 per cent willing to make changes in their lifestyle to reduce its effects.

Top 5 dropship products to add to your online store in 2023

Mattresses

One of the best high ticket items to dropship, mattresses are in high demand because, like clothing, everyone needs a mattress. You can’t sleep without one - the couch won’t always cut it and a bed frame is just that, a frame without a cushion. For a proper night’s sleep, you need a proper mattress that is comfortable and suited to your body type and sleep style.

Not only that, but Australians are becoming increasingly concerned with the state of their sleep. Estimates suggest 4 in every 10 Australians regularly experiences inadequate sleep, which can have a trickle-down effect on other aspects of their lives including increased risk of certain health conditions such as obesity and type 2 diabetes.

While shipping can be the most expensive (and awkward) part of buying a mattress, there are many kinds of mattresses that can be shipped rolled and vacuum packed, giving consumers the extra pleasure of a dramatic unboxing when they finally unroll and inflate their mattresses.

Aromatherapy devices

Everyone loves a good scent, and you can dropship almost anything related to smells through Dropshipzone. Candles, incense and incense burners, perfumed reeds, ionizers, ultrasonic diffusers and wax melts are all perfect solutions to subtly scent your home, whether you need a solution for restless sleep or you just want to freshen up your stale air. They are also a trending item in the wellness category, especially as consumers look for more unique, economically friendly and family-safe designs to match their existing decor.

E-scooters and bikes

From February 1st 2022, Melbourne joined 626 cities in 53 countries across the globe trialling the use of electric scooter (or e-scooter) rental services. These devices are considered part of a new generation of “micromobile” transport devices that are taking cities worldwide by storm. An easy and affordable travel solution, e-scooters and bikes not only help commuters get around gridlock traffic, but they help to reduce carbon emissions, improve air quality, and make transport more accessible.

They are also a great alternative for commuters still concerned about riding public transport post-pandemic. While road rules and public policy have yet to fully embrace this trend (though e-bike rules remain largely the same as regular bike rules - check your state legislation for more information), that hasn’t stopped consumers from purchasing e-scooters for their private residences and e-bikes for an easier commute. 

Water bottles and fitness shakers

There are several reasons why water bottles will be a trending hot item in 2023. For starters, it takes 3 litres of water and 250ml of oil to produce a single litre of water, and Australians send almost 15 billion plastic bottles to landfill every year. That’s already a strong environmental incentive in line with current sustainability trends.

We also have increased concerns with hydration in both children and adults - consumers are looking for water bottles that encourage drinking water through fun, creative and unique designs. For fitness enthusiasts, we also have fitness shakers - these double as a water bottle and a way to mix protein shakes for pre- and post-workout boosts. This comes off the back of data that the protein shake market is going to grow annually by 7.23 per cent between 2023-2027. 

Phone cases

Another profitable niche, phone cases are all the rage among smartphone users. 45 per cent of cell phone owners are likely to damage their phone over its lifetime, and the average amount of time a phone owner has from purchase before breaking their phone is just 10 weeks. With so many ways users can damage their phones, consumers are looking for every possible solution to keep them safe. Waterproof cases, drop-proof cases, and cases built for exercise are all highly sought-after items, especially if they have a high level of customisation, creativity, or versatility.

2023 Predictions Based on Dropshipzone Sales Data

At Dropshipzone we’re prepared to put our money where our mouths are, so on top of collecting the most current trends from experts around the world, we are making these predictions for the coming year in dropshipping based on our own sales data. 

Products that support DIY, including small tools and appliances

Size doesn’t always matter, especially when it comes to DIY. Sometimes you need a circular saw to get the job done, other times you need a small-scale screwdriver with exchangeable bits. Some popular tools for dropshipping include phone repair and replacement sets, folding and telescopic ladders, solar outdoor lights, smart power sockets, extension cords and portable batteries. If it’s a tool that can support your DIY dreams, it’s a tool that is trending on Dropshipzone.

Pet supplies

Everyone loves their pets, especially in Australia. We have one of the highest pet ownership rates in the world, with a whopping estimated 28.7 million pets across 62 per cent of Australian households. The market value is $3.2 million in Australia alone. While it was predicted that pet supply sales would drop over the pandemic, they actually skyrocketed as more pet owners were locked indoors, had increased disposal income, and showed increased interest in not only pet adoption but pet welfare.

As we learn more about how to care for our furry friends and seek out more unique pet products, this niche is expected to grow. Products like electronic, automatic feeders and treat dispensers, unique and stylish cat trees, luxurious pet beds, furniture protectors and novelty products like training buttons (as popularised by Tiktok) are all set to take off in the coming year. Find all of these products and more on Dropshipzone from a variety of brands including Floofi, i.Pet and Paw Mate.

90s nostalgia

After a couple of years of turmoil, it’s no surprise consumers want to go back to a simpler time that reminds them of childhood. This is great for brands, as nostalgia has been shown to have a positive effect on brand loyalty, trust and attachment. It can be very comforting to engage with the past in a world where everything is going wrong. Nostalgia romanticises and applies an almost magical quality to brands and products, making them ideal gifts for Gen Z consumers craving escapism. Products such as lava lamps, vinyl turntables, retro-style appliances and 90s-style clothes are all going to be hot items with eager buyers in 2023.

Novelty games

Do you love games? Board games, drinking games, bachelor/bachelorette games, puzzles and more are all becoming popular ways to spend leisure time with family and friends. They have a rich history, with games such as Backgammon going back up to 5,000 years, and an even richer future with a wider variety of games and brands than ever joining the industry. The board game market was projected to reach $77.15 million in 2022 and is expected to show an annual growth rate of 7.81 per cent between 2022-2026. This includes games that are digitally downloaded, such as paid apps or apps with in-app purchases.

You’ll be impressed by Dropshipzone’s huge range of games - we stock popular and trending titles such as Monopoly, Cards Against Humanity, Muffin Time and Catan, games from pop culture icons such as Friends, The Office, Harry Potter and Marvel, and novelty party games like beer pong, drinking darts and spin the bottle. We even stock items to support existing games consoles and computers, like gamer-inspired furniture, retro keyboards, switch controller docks and chargers.

Smart tech and gadgets

As we integrate more technology into our lives, consumers are always on the lookout for those new gadgets to make their lives easier. For every new gadget, we need a new charger or accessory. Power outlet adaptors, HDMI hub managers, charging docks and wall chargers are all in demand as we start using more technology in our home and office spaces. Wireless technology in general is gaining traction, with a huge demand for portable wireless speakers, headphones, charging stations, mice and keyboards.

The fitness industry is embracing smart devices that track your fitness journey - this can be as small as an individual smartwatch, or as large as smart gym equipment (such as the Pelaton). App integration is huge, with consumers excited to control every aspect of their home from their phone, whether they’re turning on a light or checking their home air quality in real time. All of these gadgets and more are available to you through Dropshipzone.

Summary

When considering what to dropship this year, take a look at current consumer trends, market research and product research. You can use market research tools such as google trends and salehoo market research lab to determine what niche product or winning product to add to your ecommerce space. You’ll also want to consider whether your business is suited to high-ticket items or smaller items with higher profit margins. For more information on choosing your ideal dropshipping niche, visit our blog Our Top Tips to Find Trending Dropshipping Products in 2023.

No matter what great niche your choose, Dropshipzone can get you started. As Australia’s leading B2B marketplace, we provide excellent support and a wide range of products and services for suppliers and retailers alike. Personalised customer service, daily deals, an easy-to-use self-serve portal and mobile app, fast delivery and excellent tech integration are just some of the great features you’ll enjoy when you use our platform. We have thousands of products available to you instantly, and we’re constantly adding new suppliers and SKUs to expand your business. 

With 2023 looking to be a profitable year to start your business, the sky’s the limit when you shop and sell with Dropshipzone.