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Most people would think the golden ticket for dropshipping would be the American market? With a population of over 320 million people, the largest economy in the world with a GDP of over $29.5 million then it stands to reason it might be the way forwards in terms of dropshipping.
However, have you been considered directing your business into the EU but don’t know enough about it and you may be wondering if it’s profitable? this article we’re going to cover some of the key takeaways in setting up your E-commerce store in the lucrative European market.
Before we start to drill down into detail about how to get a market share of Europe’s Dropshipping opportunities, let’s start by looking at the short answer on how to make your new E-commerce store stand out amongst the crowd.
How do I make EU dropshipping successful? In order to have a successful European Dropshipping business, choose local warehouses and aim to deliver timely. Ensure you understand the local market, speak to your customers in their own language, get advice from local tax experts and make sure your product listings reflect the chosen country.
Now we’ve looked at the short answer as to a number of ways to get the most out of your new European entrepreneurial adventure, let’s start first by taking a look at why it’s a great time to begin your store project in the EU.
Why is it a good time to turn to EU dropshipping
As everybody is aware, the American dropshipping market is becoming more and more saturated by the day. According to experts, there is currently a huge half a million Shopify E-commerce sites in the USA with a significant number of those employing a dropshipping method to put yourself in an overstocked ring with, in order to successfully compete with.
So why is it that the American market is becoming more difficult to get started in? Keep reading to find out.
Why is the U.S drop shipping market becoming harder to crack?
The overstocked US market could not bring you the dropshipping success you’re looking for as it’s often the first port of call for any new dropshipping entrepreneurs.
So why might the odds be stacked against you when competing in the US, the prime target for dropshipping. Let’s take a look.
- US consumer traffic is becoming more and more expensive
- No matter the great niche you choose, there is tons of competition from those already in the dropshipping arena
- With so many different stores competing for the same product, it can easily slip into a price war.
So how do you stand out from the crowd with such strong competition and what has Europe got to offer? Let’s take a look
Why is Europe a great place for dropshipping
If we take a look at what Europe has to offer in terms of its GDP we can see its over $19 trillion dollars and is the second-largest in the world with a population of over 500 million, which even outstrips the USA in terms of population to persuade with your great dropshipping product! Not to mention the fact GDP in the EU has increased for 6 years in a row.
So it stands to reason with these figures that these countries below are a great place to get started offering huge potential.
So now we understand that competition is certainly a contender when deciding to dropship in the EU, rather than the states, let’s see if there are any other benefits.
Utilize your language & culture advantages
If your native language is not English, setting up shop in Europe can be a great opportunity for you and your dropshipping business. Language barriers can cause difficulties when you’re dealing with customers online.
Having a natural understanding of the language and the culture will set you ahead of the competition curve and may bring you better returns than if you decide to operate from the US where English is mainly spoken.
Local culture can vary widely across Europe, for instance, the French are far less likely to buy faucet shower heads to shower their pets in the kitchen sink than US consumers, for example.
So having a good understanding of the culture you are developing your dropshipping business will help you market successfully with the right products.
So now we’ve whet your appetite for setting up shop in Europe, let’s start by taking a look at probably one of the most important things to get right when you’re in a bid to claim a slice of European E-commerce and undoubtedly before you start any dropshipping project, which is to choose a warehouse.
Search for a Quicker Shipping Solution for Europe
If you can offer express shipping to customers (we are talking about 5-day delivery), that would be a great advantages.
Don’t forget that if you have chosen a superstar unique niche, then your customers will be happy to wait. However, shorter lead times will always be a bonus to your customers and lead to a steady stream of happy customers lining up to shop at your store.
If you are able to offer a turn around time of 5 to 7 days you will rise above the ranks of other stores which are importing from further afield.
So now we’ve seen some basics of how to get your dropshipping business off to a great start, let’s take a look at some important factors to make sure you find a little thought to before you begin your great new European E-Commerce enterprise!
“If you are able to offer a turn around time of 5 to 7 days you will rise
above the ranks of other stores which are importing from further afield.”
Things to be mindful of when dropshipping in Europe
Understand local business
Getting familiar with the culture and business world from the country you want to set up your business is crucial. A good example of this is that Germany has a very high return rate on dropshipped goods, especially for products related to fashion. So if you do decide to start your new business in Germany, make sure you’re fully prepared to deal with returned products.
So is tax different in EU countries? Let’s find out.
It’s no secret that the way Europe taxes on goods and how tax is applied for importing can be quite complicated. It may be necessary to set up an LLC (Limited Liability Company) to deal with any worldwide taxation you might be liable for.
Do make it top of your list to get some advice on these important areas from a tax company or a licensed account before you start stocking your new European store!
Check your product details
It stands to reason to make sure you check your product listings thoroughly before you add them to your online inventory.
Make sure your products are the right fit your chosen country in terms of:
- General product details
- Power cords and plugs
- Customer service
Don’t forget that your customers may well be in a totally different time zone to you, so make sure you are mindful of that. For instance, your customers will expect you to be available during their country’s normal waking hours.
Dropshipping In EU countries has such a huge potential, maybe it’s your turn to discover the potential for yourself as you explore what Europe has to offer.
And HyperSKU is here, ready to work with entrepreneurs! As a dropshipping agency, HyperSKU help dropshippers source products from China and ship them to EU countries with express shipping. It only takes 3 business days in some occasions!
If you have any questions about any of the topics above get in touch and we’ll be happy to help.