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How to Start a Dropshipping Store in Europe (2023 Guide)

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How to Start a Dropshipping Store in Europe (2023 Guide)

Dropshipping is an online business model where the retailer does not have a physical store. They do not store the products themselves, but rather order them from the supplier, who ships the product directly to the customer.

It may seem like a scary prospect to those who have never done it before.

After all, you're giving up ownership of your inventory and revenue streams. But with the right mindset and plan, it can be a great way to start your own business.

In fact, there are thousands of dropshippers making money every day. If you're ready to get started, you've come to the right place.

This article will teach you everything you need to know about starting a dropshipping store in Europe.

In the list below, we've summarized the top five things to know about starting a dropshipping store in Europe:

•      Be aware of Europe's three main advantages. There are many great countries to target, competition is not as fierce as in the US, and the e-commerce market is growing.
•      Try to find a dropshipping supplier from Europe. This will shorten your delivery times!
•      Set up local “Europe-specific” payment methods. Some European countries use their own payment options. For example, GiropayiDEAL is also very popular in GermanyVery popular in the Netherlands.
•      Targeting a specific market may be an excellent option. For example, you can create a German store targeting only German customers if you know the language.
•      Register for One Stop Shop. This will allow you to easily comply with your VAT tax obligations when operating an online store in Europe.



How to start dropshipping in Europe? (8 steps)

Are you ready to start a dropshipping store in Europe?

In the next section, we highlight the eight key steps on how to start a dropshipping store in Europe:


Step 1. Choose between a general, specialty, or single product store


One of the first things you need to decide when starting a dropshipping business in Europe is choosing the type of store.
There are three types of dropshipping stores: general, specialty, and single-product stores.


Example of a dropshipping store for a single product ( SaveSealer)

In general, we recommend starting with either a specialty store or a single product store. This is because the pros and cons of these stores generally outweigh those of a general store.

In short, creating a long-term dropshipping store with a niche store or a single product store will be easier!

Step 2. Choose the right products to sell online

If you're just starting out in dropshipping, you may find it difficult to decide what you want to sell.

However, this is not a decision that should be overlooked. Your product, along with your supplier and marketing strategy, is one of the most important aspects that will determine the success of your store.

It is common to see that some items are relatively easy to sell while other items are somewhat difficult to sell.

“Easy” products are also called “winners” and often have some characteristics in common, as you can see here:


So, try to think about these characteristics when looking for products to sell!

Tip: Finding a winning product is much easier using the product finder tool. Some great tools are Sell The Trend ، وNiche Scraper, and Thieve.co.


Step 3. Identify your ideal target audience

After you've decided which products you'll sell, it's time to start defining your target audience.

Your target audience is the specific group of people that your marketing campaigns target. These people often have similar interests or hobbies or are similar in age or gender. In short, you expect them to have the highest chances of purchasing your product!


The most common ways to define your target audience are to develop a buyer persona, analyze the benefits of your product, or simply test different audiences to find the one that performs best.

Step 4. Find a dropshipping supplier (in Europe)

The next step is to find a dropshipping supplier for your dropshipping store.
This is the company that will stock your product and send it to your customer once you get the order:


When looking for a supplier for your store, make sure you know how to spot a good dropshipping supplier. In short, it's all about the following:

Step 5. Choose your preferred e-commerce platform

Your e-commerce platform is the foundation on which you will build your online store. Choosing a platform that is easy to use, has excellent features, and has good reviews will definitely help your dropshipping store succeed

The best e-commerce platform depends on your goals and preferences. For example, do you want to build the platform specifically for dropshippersOr are you looking to start with the cheapest platform available?

Step 6. Design a brand for your dropshipping store

Once you've registered with an e-commerce platform, it's time to start designing and branding your store.

Make sure you put some effort into this. Don't give visitors the impression that your entire store was created in just two days!

Take your time to get some great product photos, craft an irresistible product description, and design a beautiful logo. While creating a dropshipping store, it's a good idea to take some inspiration from some of the best players in the industry.


Step 7. Set up your international and European payment gateways

The next step is to set up your payment gateways.
A payment gateway allows a customer to purchase something from your online store. It handles all the financial transactions for an online store.


When starting a dropshipping store in Europe, remember to research popular payment methods in the countries you will be targeting and set them up for your store!

Once you've completed this step, you can start focusing on getting your first few orders!

Step 8. Promote your store through social media and content marketing

That being said, now is the time to attract some visitors and take your first orders!

The process of promoting your store is called marketing. Without it, your customers simply won't be able to find your store.

There are several ways you can market your dropshipping store. Here are brief guidelines on which marketing method is right for you:

6 Tips for Starting a Dropshipping Store in Europe

To succeed with dropshipping in Europe, you'll need to make sure you have everything you need in place.

Setting up a dropshipping store isn't as complicated as it may seem, but it's definitely something you want to plan for.

Here are some of the best tips you should take into consideration when setting up your store in Europe:



1. Use an e-commerce platform that supports your European business


As we mentioned before, choosing an e-commerce platform is an essential step while starting a dropshipping store in Europe

There are many e-commerce platforms you can choose from, so choosing the best one can be difficult.

Which platform suits you best depends on a few things.

For example, do you have the budget to spend on a platform with more features? Or are you looking for a platform with the best search engine optimization ( SEO) performance?) Because you want to actually market your store?



2. Find a dropshipping supplier with European warehouse

Finding a dropshipping supplier is another essential step when starting a dropshipping store in Europe, so it's a good idea to focus on it!

You'll need to find a reliable manufacturer that can provide the products you need at a price that suits you.

One of our best tips when it comes to suppliers is to look for a local supplier first.

Therefore, when starting a dropshipping business in Europe, it would be great if you could find a supplier that offers a European warehouse.


The main advantage of dropshipping with suppliers outside China is speed of delivery.

If you are dropshipping with a supplier from China, the product often has to travel halfway across the world to reach the customer. As a result, shipping times can range from 7 to 60 days.

By using a supplier located in the same country as your customer, you will be able to reduce shipping time to just a few days.


3. Identify and view the most common local payment methods



When starting a dropshipping store in Europe, you should consider your customers' preferred payment methods.

If you don't offer these things, they may leave, and you may lose sales!

You receive payments from your customers through so-called payment gateways.

These third-party companies make sure that all funds move from your client's account to your own account safely and smoothly.

Most of you will be familiar with international payment gateways such as PayPalOr credit cards.

However, some European countries also have their own “national” payment system for online purchases.

And if you are going to target those countries, offering these payment gateways is important!

Here are some basic local payment gateways for the most popular European countries:

•      Germany: Sofort/Giropay
•      France: Cartes Bankers
• Norway      : VIPPS
•      Spain: Bizum
•      Denmark: MobilePay/ Klarna
•      Netherlands: Ideal


As an additional payment tip, we'd like to tell you about Juni.

 


June (juni.co)It is a fintech solution designed for digital entrepreneurs operating in the UK, Europe and Norway.

Using JuniYou can connect your own ad networks ( Google Ads, and FB ads, etc.), and payment gateways ( PayPal، وStripe, etc.), and bank accounts in one place.

Benefit?

You'll be able to track ROI across all your business activities and improve cash flow!


If you manage multiple Shopify stores, the JuniIt makes creating this financial overview easy with Shopify integration.

Just follow the steps below to activate it:

One of the most important advantages of Juniis that you can get up to 1% cash back on all eligible card spending. This may not seem like a lot, but when you scale your business, it can really add up!
Other benefits include:

•      Virtual cards. With JuniYou can create as many virtual cards as you need in GBP, USD and EUR.
•      Get savings relevant to your business. For example, as a Juni customerYou can get a 20% discount on the Loox Shopify appOr 15% discount on the BeProfit Shopify app.

So, what does all this cost?

I tried Juni's companyEliminate as many fees as possible, as you can see on their pricing page.
As a result, you can register, get insights and create IBAN accountsAnd create all Juni cardsThe virtualization you need for free!

The only thing that's not free is on Juni's pricing pageIt is a foreign currency account transfer fee, which can cost up to 0.25% of the transferred amount.

4. Be prepared for the costs of setting up a dropshipping store in Europe

While one of the benefits of dropshipping is lower startup costs, starting a dropshipping business in Europe is not something you can do for free.

You will need to reserve a budget for investment.

For example, your domain is one of the first things you'll have to buy.
 
Next, you'll need to pay for your e-commerce platform. Most people choose  Shopify, which costs $39 per month for the Basic plan after the 3-day free trial ends + $1 per month payment for the first three months.
You may also need to pay for some dropshipping apps that add some additional functionality to your store. However, if you choose the right apps, they can all be free.

Next, you may need to pay your shipping supplier. Some European dropshipping suppliers (such as  CJdropshipping) are free, while others (such as  Spocket) is paid and often costs around $29 per month.

Once you start dropshipping, marketing can be one of your highest costs. Some people need a marketing budget of $250 before they see any success, while others need $1,000 to $2,000 or more.

5. Register on the EU Single Window ( OSS) .)

If you want to set up a dropshipping store in Europe, you'll likely be targeting multiple European countries.

In the past, once your dropshipping store exceeded a certain threshold (revenue), you would have to register for VAT in all countries where your buyers resided.

You will then have to pay the appropriate amount of VAT to each of these countries, which is an enormous amount of administrative work.

In 2021, this changed with the introduction of the One Stop Shop, a general reform of the EU VAT registration and payment system.

It is designed to make it easier for online sellers and shipping companies to meet their VAT obligations.

Now, you can register for One Stop ShopIn one country and submit one VAT report where you pay all the VAT you owe. The authorities then redistribute the correct amounts to tax offices in other European countries.
You can register at One Stop ShopThrough the tax authority in your country of residence.


Unfortunately, the introduction of the new VAT system has also had a negative impact on distribution companies.
Before One Stop ShopThere was an exemption from VAT for the import of goods not exceeding 22 euros. However, this exemption has now been removed to give local European stores an equal competitive view against online stores that import products from countries such as China.
This means that all goods imported into the EU are now subject to VAT.

6. Consider creating a dropshipping store) in the local language



If you're thinking about starting a dropshipping store in Europe, you probably already live in Europe.
So, have you ever thought about starting dropshipping in your local language?
If you live in a country like Spain, do you think Spanish people would rather buy something from a Spanish online store or an English online store?

An online store at a local store is much more attractive, right?

So it is preferable to build a store in the local language, you get a competitive advantage against all the other dropshipping stores built in the English language.
It will increase the confidence of your site visitors and lead to more sales!

3 Reasons Why You Should Start Dropshipping in Europe

If you're wondering why you should start dropshipping in Europe, let's take a look at some of the benefits you get:

1. There are many great countries to target in Europe



First of all, it should not surprise you that Europe is a region, not a country.
This means there are a lot of different countries you can target.
Some of them are not perfect, but many European countries offer amazing market conditions for dropshipping stores.

When researching whether or not it is a good idea to target a specific country, it is important to consider the following:

•      If it provides fast shipping methods like ePacket.
•      If GDP per capita is high (which means the population earns a lot of money).
•      If it has a high social media reach (allowing you to reach your customers).
•      Finally, if it has a large population (preventing expansion problems later).

The best countries to target as a dropshipper score very well on these criteria, and a few of them are located in Europe!
For example, take a look at these countries:
•      Germany
•      France
•      Scandinavia (Norway, Sweden, Denmark)
•      Spain



2. Competition in Europe is less fierce compared to the United States



Another great thing about dropshipping in Europe is that the competition is less fierce compared to a country like the United States.
The United States is the largest consumer market in the world. Therefore, some people see it as the best country to target as a dropshipper.
Well, the US does offer some excellent market conditions for online stores, but the downside is strong competition.

Therefore, you will have to deal with much more competition compared to starting a dropshipping store in Europe.

It's like a balancing act. The US may offer slightly better overall market conditions, but competition will be much less intense in Europe, and that could be an advantage for you!

3. The share of online shoppers in Europe is growing

Last but not least, it doesn't seem like dropshipping is dead in Europe .
In fact, the e-commerce market in Europe is still growing at a healthy pace year after year:

 



Besides well-known European countries such as Germany and France, there are many “developing” countries whose e-commerce markets are currently growing at an amazing rate.

For example, Greece's e-commerce market grew by 77% in 2020, and Poland's e-commerce market grew by 34% in the same year ( source ).

Another question you may have is whether or not it is possible to start dropshipping from Europe.

That is, by selling products stored in European warehouses.
Since we've covered this question a bit, the answer is yes, you can!
You can use dropshipping suppliers in Europe to sell products stored in European warehouses to reduce shipping times!
Another option to start a dropshipping store from Europe is to sell European products to other countries. This happens a lot but it may be worth it if you find a local supplier who has a truly unique product.
It's called the reverse dropshipping model, and here's how it works:


Note that the image gives the US as an example, but it works the same way for Europe!
Reverse dropshipping is a relatively new online business model that literally mirrors the traditional dropshipping model.
It involves buying high-quality products from suppliers in Europe and selling them to wealthy people in China.

But as always, be aware of the downsides to this, such as higher costs of goods sold and shipping costs.



FAQ about dropshipping in Europe

Starting a successful dropshipping business in Europe is no easy feat, so we can imagine some questions are still running through your head!
So, we've created a FAQ section to try to answer them.

How does dropshipping work in Europe?

Dropshipping in Europe works the same way as dropshipping in any other region. You can choose to work with a Chinese supplier such as AliExpressOr a local (European) supplier like Spocket. Both can be great options!

Is dropshipping in Europe legal?

Yes, dropshipping is a legal business model in Europe. As a retailer, you are not obligated to have a product you sell in stock or in your possession.

However, remember that you must register your dropshipping store in your country of residence and comply with all laws related to consumers, online stores, and taxes.
It is best to get a clear view of these laws by consulting a specialist.

Is dropshipping in Europe profitable in 2023?

Yes, the region's healthy and growing e-commerce market makes dropshipping in Europe a profitable business.

However, profitability is never guaranteed! It is always possible to lose money when starting your own business.

How do you find customers when dropshipping in Europe?

You can find clients in Europe using different marketing strategies. Popular ads include Facebook adsAnd Google adsInfluential marketing.

Additionally, having a blog is another great way to find customers interested in your products and services.

Do you have to pay VAT when dropshipping in Europe?

After exceeding the €10,000 limit, all online stores in Europe are required to charge VAT in the customer's country of residence and remit it to foreign tax authorities. VAT can be paid through the EU Single Window.

What is the best dropshipping supplier in Europe?

In our opinion, the best dropshipping supplier in Europe is Spocket. However, BigBuyAnd BrandsgatewayThey are also worth mentioning!

How much money do you need to start dropshipping in Europe?

You've already learned a little about the expenses you can expect from a dropshipping company in Europe from our fourth tip.

In general, the costs of starting a dropshipping business are relatively low at first and increase as you scale your store. To start a dropshipping business in Europe, we recommend a starting budget of at least $300.

How to choose the best location for your dropshipping store in Europe?

We recommend choosing a dropshipping niche that interests you or sparks your passion.

 



 

 
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