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The Overall Growth Rate of China's Dropshipping Industry

Views: 391     Author: Site Editor     Publish Time: 2021-01-12      Origin: Site

In the late 1980s, a Japanese company selling magnetic health care mattresses launched MLM business in China without any official business license, thus opening the prelude to the development of Chinese dropshipping marketing industry. In 1990, a Chinese mainland company officially registered as a dropshipping company. It was formally incorporated into the category of business administration, marking the dropshipping business officially enter Chinese market.


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However, due to the lack of definition of dropshipping business for sale and pyramid selling, a large number of illegal pyramid selling companies have sprung up. In April 1998, the State Council promulgated the circular on banning pyramid selling activities to comprehensively rectify the whole pyramid scheme.


The increasing maturity of Chinese laws and regulations and the government's supervision of shipping business guaranteed the healthy development of dropshipping suppliers in China. However, the overall operation situation is still unsatisfactory because of the reputation, application for permission and so on. According to the data of the world dropshipping market research institute, the total number of dropshipping companies reached about 211.8 billion yuan in 2017.


In general, the development of dropshipping market in China is still faced with many problems. In the future, we need to solve the problems of reputation, application for permission, establishment of service outlets, payment restriction and approved product categories one by one in order to realize the sustainable and healthy development of dropship selling industry.


According to the statistical data released by forward looking idustry research institute, the market scale of Chinese dropshipping industry has reached 220.55 billion yuan. It is said that the market scale will be close to 250 billion yuan in 2019. It is also predicated that the market scale of Chinese dropshipping industry will exceed 300 billion yuan in 2023, reaching 311.7 billion yuan.

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The Chinese government's attitude towards the dropshipping industry has changed from the initial opening to the later tightening policy, from the total prohibition to the gradual opening up. It not only takes the foreign dropshipping companies as the platform, but also creates a dropship for sale model with Chinese characteristics, which shows that the dropshipping selling industry is not completely out of the way.


With the deeper adjustment of Chinese economic structure and the gradual relaxation of regional operation of dropshipping business, the overall growth rate of Chinese direct sales industry will improve in the future. Therefore, the future development of dropshipping is still bright.

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