The dropshipping model (known as "一件代发" in Chinese) began gaining widespread adoption around 2016. This was when major e-commerce platforms like Alibaba officially supported the practice after years of informal industry adoption.

The year 2016 marked a pivotal moment for dropshipping's mainstream acceptance due to three key industry developments. First, Alibaba's 1688 platform – China's largest wholesale marketplace – formally integrated dropshipping functionality after observing years of underground transactions among merchants. Before 2015, most platforms explicitly prohibited dropshipping, but market forces made enforcement impossible as sellers increasingly embraced the model's advantages. Second, the global e-commerce boom created perfect conditions for dropshipping's expansion. Cross-border e-commerce sellers particularly benefited from overseas warehouse solutions that enabled single-item international shipments. Third, technological advancements in logistics and inventory management systems finally made small-quantity, on-demand fulfillment economically viable for suppliers.

Industry reports show the dropshipping market grew over 300% between 2016-2020 in China. The model's appeal lies in its low barriers to entry – requiring minimal capital, inventory space, or logistics infrastructure. New entrepreneurs could launch stores with just a computer and product images from suppliers. Major logistics providers subsequently developed specialized dropshipping services, with warehouse networks optimizing for single-unit order processing. Today, leading Chinese logistics companies operate dedicated dropshipping fulfillment centers in key e-commerce hubs like Guangzhou, Yiwu, and Shenzhen, handling millions of daily shipments for online sellers. The model's evolution continues as AI-powered inventory systems now enable real-time stock synchronization between suppliers and retailers.