Dropshipping requires the right target location to be successful. You must choose the right countries to dropship to. Otherwise, you will incur more losses instead.
Some countries are more attractive than others to dropship because of several factors.
This article examines how to identify the right markets and which ones would best benefit your store in 2021.
Factors to consider (dropshipping locations)
Places with above-average incomes are the best countries to dropship to. You can measure this with GDP per capita rates.
Countries with higher GDP indicate that the average person has higher purchasing power and can buy your products.
On the other hand, countries with low GDP indicate that the average person has less disposable income to buy from your store. The products may appear too expensive for them, leading to low conversion rates.
Social media penetration
Since dropshipping is online, most of your marketing activity will be on social media. It, therefore, makes sense to focus on countries where many people use social media.
It is easy to get such data and know where social media is in high usage and which platforms dominate there. Usually, platforms like Facebook, Instagram, Twitter, and Snapchat would be your primary focus.
A large social media population could indicate a high reach for your dropshipping marketing messages.
A country with a large population is a good target for your dropshipping store. It means there are more potential customers for your products. You then have higher chances of scaling your store.
Additionally, targeting countries with high populations reduce the occurrence of ad fatigue. This is because there are more people to show your ad to.
Language could be an essential factor to consider when targeting a particular country. It helps to target countries with a higher percentage of English-speaking people. Doing this will save you extra costs of translating your entire site to a foreign language.
Occasionally, it is still possible for buyers to purchase from sites in foreign languages. However, this is not always the case. Translating every word and product description can be frustrating. So, you will end up with fewer conversions.
You want to target countries with less intense competition. High competition can be useful in that it indicates that a market is profitable.
However, heavy competition can limit the growth of your store. Your ads will not be as effective, and you will get fewer sales and revenues. It also forces you to occasionally compete on price to keep up, which can affect your profits.
It helps to consider the logistics situation of any country you want to dropship to. You must look into the carrier services in that country and see if they are favorable. Otherwise, you might end up with many dissatisfied customers when their orders take too long, even if it isn’t your fault.
Furthermore, look into the customs regulations of the country. Some countries have more stringent customs policies. These may cause more complications when shipping products to your customers.
10 best countries to dropship to in 2021
The above factors considered, here are some of the best countries to dropship to outside the US.
The UK is a country you cannot ignore when expanding your dropshipping store. It is one of the most developed eCommerce markets in Europe.
With a population of over 67 million people, many of whom are on social media, there is a large potential market for your products. Also, the high GDP shows a higher ability to buy your products. They also seem to spend more per transaction (ARPT), making it an excellent group to target.
Like the US, dropshipping to the UK is more favorable because of the reliable postal services.
Fashion is the most popular online niche. Not to say you can’t sell another product. However, if you’re into clothing, you’ll probably benefit more.
UK customers have high-quality expectations so ensure that your customers can provide these.
Australia is still also one of the best places to dropship to. Like the UK, fashion makes up the largest part of their eCommerce sector. The county has an advanced eCommerce market, with over 86% of people being internet users.
Additionally, their relatively high GDP is a good indicator of higher purchasing power. This means they can buy products from your dropshipping store.
The biggest challenge with dropshipping to Australia is shipping. So, to be competitive, you must try to get the most cost-effective shipping options.
|$46,194||37.5 million||$1,144||Electronics & Media|
Canada is the 8th largest eCommerce market in the world, with a market of over 28 million customers. Consumers mainly buy electronics and media products like games.
The GDP of $46,194 shows a higher ability to purchase. Also, many products in Canada are imported, even from the US. All these factors indicate that it is a ripe market to dropship to.
|$46,563||83 million||$1,401||Clothing and Accessories|
Among the top online markets in the world, Germany comes fifth. Data indicates that fashion drives most online purchases, which must be good news if you are dropshipping clothing.
The country has an internet penetration rate of 82% and generates over 60 billion Euros in eCommerce sales. The average revenue per transaction in Germany is $1401, so it can be quite profitable to sell your products there.
When dropshipping to Germany, product quality must be the top priority for you.
|$41,760||67 million||$1,175||Clothing and Accessories|
France is another ideal European country to dropship to. With a relatively large population of 67 million people and GDP of $41,760, there is a wide market for your products in France.
It is 6th on the list of largest eCommerce markets. So, many French people are accustomed to shopping online. Fashion takes the largest share of eCommerce sales.
However, you must consider that the fashion industry in France is quite developed. So, your store would face steep competition. A good strategy would be to offer variety and unique products to induce more purchases.
|Population||10 million||6 million||5 million|
In Europe, Scandinavian territories are some of the best countries to dropship to. These countries have relatively higher standards of living than most parts of the world. As such, they have high per capita GDPs.
All these factors indicate that prices of goods are generally high, and people are used to it. Therefore, it provides the chance to price your goods higher and thus earn higher revenues and profits.
Additionally, these countries have high English-speaking populations. So, the language barrier will not be a problem for you.
United Arab Emirates (UAE)
|$43,103||10 million||$856||Clothing and Accessories|
The UAE is another large eCommerce market for fashion items. The country has the highest eCommerce penetration rate at over 99%, so most people are on social media and are accustomed to doing things online. As such, the eCommerce industry in the UAE is expected to grow by over 23% by 2022.
The buyers also have high purchasing power. So, you will have the assurance of making sales and profit. Key to note is that people in the UAE have a keen interest in luxury products. It thus helps to sell more high-end items to this market.
|$43,592||10 million||$856||Clothing and Accessories|
Israelis spend more on average on eCommerce purchases, making it a ripe market for dropshipping.
They are also more technologically advanced and equipped with higher purchasing power. This makes Israelis more willing and able to buy things online.
The downside of dropshipping to Israel is the smaller population of 9 million. However, this still works to your advantage. Your advertising will have a higher reach and probably higher conversions.
The Netherlands is one country with a fast-growing eCommerce market. It is expected to hit over $22,185million by 2024.
People are willing to spend more on online purchases, especially fashion. With a GDP per capita of about $52,367, they also have higher purchasing power.
These factors make the Netherlands a ripe market for dropshipping.
Belgium is one of the low competition locations to target for dropshipping. There are still fewer eCommerce platforms targeting Belgium. Yet, they have high purchasing power and internet penetration.
Therefore, if you are looking for new locations to expand to, Belgium works for a start. Like most countries, fashion makes up most of the eCommerce sales.
Ensure to source your products from reliable suppliers and have a variety of products of good quality. Also, keep the price optimal to drive higher conversion rates.
There are many promising countries to dropship to outside the US if you are looking to expand your store. Factors like population size, spending power, and internet penetration are critical when making such choices.
Also, whichever location you choose, a reliable dropshipping company like Wholesale2B helps. It provides you with great products and shipping options to make your processes as simple as possible.