The 8 best countries for your dropshipping business
The popularity of ecommerce platforms like Shopify has made dropshipping a very alluring enterprise for many ambitious company owners.
It involves the sale of goods that the company does not have in stock. Instead, the buyer receives the goods directly from the third-party source.
It is simple to start a business because there is no need to invest in inventory or warehouse space because you don't need to store the things yourself and simply purchase them from the provider as needed.
Due to the extremely competitive nature of the industry created by the low entry barriers, dropshipping entrepreneurs must have a well-thought-out business plan.
Selecting the nations to focus on will be one of the most crucial aspects of this.
What qualifies a region as a good or poor dropshipping target?
When dropshipping internationally, choosing the correct countries to target and exclude is essential for your success. But how do you choose which nations to focus on?
The best nations to target will increase your chances of making a sale, while the countries you should avoid targeting are unlikely to generate any cash for you. What then are the criteria for a good dropshipping country?
ePacket shipping or better available
A suitable market to target must first have access to a quicker delivery option like ePacket.
You must deliver your goods to consumers on time if you want to succeed in the long run. Therefore, check that the delivery times for the nations you are aiming for are reasonable.
High GDP per capita
GDP per capita is a statistic that gauges the typical annual income of a person in a nation. Since more money may be spent, there is a strong correlation between average disposable income and GDP per capita (online).
Since they are accustomed to cheaper costs in their own country and your items will frequently be too pricey for them, targeting nations with low GDP per capita may frequently result in low conversion rates. The nations with the highest GDP per capita are thus the best candidates for dropshipping.
To ensure that the typical individual will have enough money to buy your items, try to target nations with GDP per capita of at least $30,000.
High use of social networks
When dropshipping, it's probable that you're using social media to promote your shop.
The majority of people use social media sites like Facebook, Instagram, and Twitter when social network penetration is strong in a nation. By doing this, you can reach as many people as you can!
Even while this isn't the most crucial need, it's a good idea to target populous nations, particularly if you're just targeting a handful.
You will have more prospective consumers by focusing on nations with sizable populations, which translates to more growth potential. However, that isn't the only benefit. Since you will have more individuals to show your advertisement to, the likelihood of market saturation or ad weariness occurring is also reduced.
The 8 best countries for your dropshipping business
The United States
It should not be surprising that the US is the top country for dropshipping given that it has the largest economy in the world and is home to ecommerce giants like Amazon and eBay.
In terms of market size, the US stands out from the rest of the world: data from dropshipping platform Oberlo reveals that more than 50% of their entire international sales originate in the US.
The American e-commerce market, however, is already largely saturated. As a result, dropshipping companies who wish to compete in this industry will have to invest a lot of money in a clever sales and marketing plan.
The United Kingdom
The second-best nation for dropshippers is the United Kingdom. The UK is another excellent option, with the largest e-commerce industry in Europe, with revenues of £693 billion in 2019.
Furthermore, a sizable and rapidly expanding portion of the UK e-commerce business is accounted for by the fashion sector, one of the most well-liked industries for dropshipping. The UK's fashion ecommerce business generated about $33.5 billion in total sales in 2020, and Statista projects that figure to rise to $49.5 billion by 2025.
The Australian dropshipping market is expanding steadily, and there is still a lot of space for expansion in the e-commerce sector as well. By 2025, it is expected that Australia's e-commerce sector will generate about $35 billion in revenue, making it a prime location for dropshipping business expansion.
Australia is an English-speaking nation, much like the US and the UK, therefore there won't be any significant linguistic or cultural obstacles to marketing in English there.
Sweden may be a small country in terms of population, but it makes up for it in terms of the purchasing power of its people because it is known for its high standard of living. Unsurprisingly, a disproportionately large portion of dropshipping sales are made in Sweden.
Furthermore, according to WEF data, Sweden has among of the highest levels of competency in English as a second language, so most people will be able to understand commercials, headlines, and product descriptions written in English.
Facebook is by far the most popular social media network worldwide, making it the obvious choice for dropshipping advertisements. Since over 90% of Canadians are expected to use social media by 2026, the fact that 72% of the country's population now utilizes it is quite advantageous for dropshipping companies looking to expand there.
Given that it has a thriving, rapidly expanding ecommerce business, is English-speaking, safe, and is home to a number of the same big payment providers as the UK, US, and Australia, Canada also has many of the same benefits as those three countries.
If you're looking to capitalize on dropshipping chances in Denmark, know that people there like shopping online. Benefits are enormous if you can provide them with a carefully managed niche.
Denmark's GDP in 2020 was 60,494 US dollars, which indicates that the country has a very high per capita income. As a result, you may anticipate succeeding in this market for furniture, home furnishings, and apparel.
Switzerland may be a small nation, but it has an unmatched level of living and economic stability. With a $94,696 per capita income, this nation's e-commerce business is anticipated to expand in the future.
Even now, the country's buying power is extremely impressive, and a survey indicated that by 2026, 26% of Swiss people will be doing their shopping online.
French people are renowned for their taste in apparel, accessories, and home furnishings. The advantages for your dropshipping business might be outstanding if you can select some elegant items.
In 2022, it is anticipated that France's per capita income would be $43,400. Sell primarily items related to fashion, home decor, and culture.
Belgium, Bulgaria, Croatia, Czech Republic, Estonia, Finland, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Norway, Poland, Portugal, Romania, Slovakia, and Slovenia are some more nations in which you can invest.