Dropshipping Europe is arguably one of the most profitable and interesting markets in the ecommerce landscape – the market is firmly on the rise. There are numerous countries with different consumer habits, high internet connectivity, high literacy levels, and a high level of disposable income. If you are an aspiring entrepreneur or investor, this is a marketplace worth exploring. Consider this article as your stepping stone to one of the most lucrative business models in our current technological age. But first, what is dropshipping?
Simply defined dropshipping is the retail process of selling goods to customers without keeping a physical stock. Items are bought from a third party (supplier) and shipped directly to the customer. The dropshipper acts as a mediating merchant to facilitate the demand and supply of a product.
Benefits of Dropshipping
Dropshipping in Europe has numerous benefits. Based on the testimonials of the thousands of active dropshippers, you don’t need a background in e-commerce to build a successful business. Pirn, an AliDropship client from Estonia stated that he progressed from reading a random article on dropshipping (such as this) to earning over $10,000 per month from his e-store (see figure 1 below).
Figure 1. A Google Analytics chart of Pirn, a Dropshipper from Estonia
In an interview conducted by AliDropship, a group of young dropshipping entrepreneurs (represented by David Puchyr) shared their success story and summarized the advantages of dropshipping into three main points.
- You don’t need employees or a warehouse to fulfill orders. You can work from the comfort of your sofa without worrying about logistics and overhead costs.
- Minimal to zero cash flow limitations. You basically buy goods from suppliers by using the customer’s funds (Imagine making $10,000 from $0.00 starting capital).
- The possibilities are nearly endless – you can import millions of products from AliExpress without physically handling them.
Although dropshipping in Europe sounds lucrative, it has its hurdles such as competition, difficult customers, and scammers– as with all business models. One of the main challenges all veteran and beginners encounter revolves around finding the right suppliers to complement your investment (i.e. offers products within your niche, stable, dedicated, and reliable). This is where a credible marketplace such as AliExpress comes into the picture.
- Standout from other Dropshippers
Based on first-hand experience and industry testimonials, your competitive edge should not be grounded on the price – the trick to a successful dropshipping business lies in an effective marketing strategy. Veteran dropshippers recommend focusing on marketing channels with a proven return on investment (ROI) such as:
- Organic search results
- Google Brand Ads, Google Shopping, and Google Dynamic Search Ads
- Facebook Remarketing and Facebook Ads
- Retargeting channels like RTB House and Criteo
- Find an Ideal Supplier
Finding the right supplier is make-or-break decision. This is why we recommend AliExpress, which is a popular dropshipping and wholesale platform that acts as the bridge between suppliers/products and dropshippers. The platform makes it easy to find millions of products within your niche (over 40 niche categories) without worrying about shipping and inventory. AliExpress dropshipping is low risk, easy, and simple for e-commerce entrepreneurs. In addition to using an established marketplace such as AliExpress, we have compiled a few tips to help you avoid ‘supplier headaches.’
- Always assess the supplier’s feedback ratings. Avoid scammers by buying from suppliers with a high feedback rating ($95 or more).
- Is the supplier responsive? This includes their response time and ability to solve arising issues.
- Look for the AliExpress premium shopping option (i.e. ePacket delivery). Delivery is fast (14 business days) and convenient (tracking code).
- Establish your Brand
Finally, it is essential to provide outstanding customer service, and building a standout brand. Always respond to your customers in time and avoid suppliers that do not align with your marketing campaign. Always deliver what you promise in your advertisements!
Dropshipping in Europe is a lucrative business model that can significantly and rapidly improve your status quo. The venture requires a minimal amount of starting capital, you don’t need to worry about logistics, and you have access to hundreds of product niches/customers – what more could you ask for? However, it highly advisable to use proven and well-established marketplaces to source your suppliers. Happy investing; the future is in your hands!