Just as the physical location of a business is important, so is the target country for a dropshipper. Dropshippers need a ready market for their business. If a ready market is located, it will save the dropshipper lots of advertising costs and increase return on marketing ROI. Although the market for different products may vary with location, some general aspects will indicate if a country is a good target for dropshipping or not.
What are the top countries for dropshipping? We look at these aspects in detail below.
Contents
- Part 1: 10 Things to Consider When Choosing Dropshipping Countries
- Part 2: 6 Best Countries to Target for Dropshipping
- Part 3: 4 Best Untapped Countries for Dropshipping
- Part 4: Bonus Tip: Avoid Dropshipping to These Countries
- Part 5: Conclusion
10 Things to Consider When Choosing Dropshipping Countries
1. Large PopulationAll things being equal, a large population equals a large market potential for the sale of certain products the population sees as important. Which country is best for dropshipping? Speaking of the best dropshipping countries, a large population in itself is not as important as understanding the primary needs of the population. Culture often determines to a large extent what members of a population value so much that they can commit their hard-earned money to purchase products that align with their culture. For instance, dropshipping food products that are considered taboo in a country spells doom for a business. A perfect example is targeting the U.S, U.K, or Saudi Arabia for the sale of canned dog meat! Switzerland and China would have been more appropriate dropshipping countries for such a product.
Apart from food taboo, technological advancement also affects what products a population would appreciate. For instance, a smarter MP3 player would appeal more to a more technologically advanced population like Japan and most Western countries. This may not be so in less technologically advanced countries.
2. Location
By virtue of location, the demand for certain products is automatically set. Russia is known to have one of the coldest temperatures in the world. It makes sense to target Russia for heavy clothing and new technology in household heating equipment. Germany also makes use of distillers from many other countries due to the love of local brands of spirits. If you are dropshipping distillers, Germany must be a part of your target market.
Your target market should give you strong indications that there is great potential for patronage. As such, you may need to focus on some more promising markets and delay less promising ones.
3. Transportation & Delivery
Getting your products to the consumer goes beyond just the shipping logistics of the supplier. Customs laws in the customer's country can either hamper or ease the delivery of your products. It is good to start dropshipping by targeting countries that have favorable custom regulations and an efficient transport system. This will help build your store's reputation for prompt delivery on orders.
It is also important to know if your products are banned or discouraged for import by the recipient's country. The intricacies that surround controversial products may affect the delivery of such products to clients.
ePacket delivery is making delivery of China products faster and cheaper for dropshippers. ePacket supports many countries with a few exceptions which include India. With ePacket delivery, dropshippers will be able to use a more efficient and cost-effective shipping method to deliver products to customers across different countries.
4. Your Dropshipping Niche
E-commerce business is generally believed to be more successful as narrowing in on a specific niche. A niche sets a cap on the range of products your store offers. It lets your customers know what likely product they can get from you. Building a niche gives you a brand. The location has a say on what niche is profitable. It is much cheaper and easier to change the target location than to change your niche. Hence, if you are dropshipping adult fitness equipment, you may go for developed countries that have a high population of aged people. This increases your business chances of getting orders.
5. Social Media Penetration
The impact of social media marketing cannot be overemphasized today and its potentials for tomorrow is bright. Countries that have lots of people who use major social media accounts tend to be more receptive to social media marketing. For example, the U.S.A and India are among the top ten countries with the highest number of social media users in the world.
It comes as no surprise that lots of social media ads target these countries. Social media marketing giants like Facebook and Twitter have tools that dropshippers can use to target potential customers across various countries with their product adverts. From reliable social media statistics, dropshippers can identify the best countries for dropshipping their products.
6. Competition
The e-commerce space is plagued with a very stiff competition across almost every niche. However, some spheres of e-commerce are more competitive than others. Competition for a product is generally higher where suppliers of such products are located. For instance, targeting China to dropship electronics is quite laughable because suppliers like Aliexpress dominate the market.
The market for electronics in the United States and Canada is relatively less competitive when compared with China. Be sure to identify countries where the competition for the products you dropship is quite minimal.
7. Lifestyles
Lifestyles of a population can be determined by culture, population, and technological advancement. Generally speaking, countries with higher GDPs have more population of people who can afford to live affluent lifestyles. These countries are the ones to target when dropshipping classy or luxurious items. For instance, France, U.K, and the USA have an excellent market for jewelry, antiques, crafts, and some other luxurious items.
8. Pricing
It is not new to notice that the price of a product in a particular country is slightly different from its price in another country. One major reason for price variation is shipping fees. Depending on the proximity of the customer's country, it may cost less to ship from the supplier's warehouse in one country to another.
Another reason for price variation is competition. Some dropshippers deliberately reduce the price of some items to gain more customers. While this may work in some cases, it is not always the best. You need to look at the market, determine your pricing strategy, and stick to what works for your business.
9. Average Order Volume
Some dropshiping sites have order location trackers that can give detailed reports on numbers of orders received from a particular country for a product. This tool is very important for dropshippers to assess. You can compare the average order volume on your products over three to six months. What are the best-selling products in each month? What country has the highest order average for each month? Are there trends that can explain why high average order countries are performing?
The answers to the questions above will give the dropshipper valuable insights on which countries to target more. Top countries with the highest average order volume for dropshipping products are U.S.A and Britain. These two countries combined offer great potentials for dropshippers.
10. Other Demographic Factors
Factors such as age distribution, gender affiliation, and average family size are also key metrics to consider when targeting countries for dropshipping. For instance, dropshipping kids' toys makes more sense when you target countries with a high population of under-12s like the U.S, UK, and India. More countries are officially recognizing LGBT rights. If the products you dropship appeal more to LGBT persons, you want to be sure that your target country has favorable policies on LGBT rights.
6 Best Countries to Target for Dropshipping
There is a correlation between the economic advancement of a country and the type of products that are held in high esteem there. Generally, more advanced countries can afford to spend more on luxury and self-gratification items since the basic needs of food and shelter have been mainly taken care of.
Developing countries spend more on basic survival needs. Hence, the difference between the two major markets. There are hard and fast rules on both sides as every country has its fear share of the affluent and non-affluent citizens. GDP per capita indicates its prosperity and may be used to determine the best countries to dropship to.
1. The USA
Estimated population: 327 million
GDP per capita: $59.500
There is no denying that the United States ranks 1st place among top dropshipping countries. The sheer population size of the United States of America is an intriguing business function. Add to the fact that most Americans hold the idea of a global world and that of freedom of expression, lots of opportunities abound. The average family in the U.S can afford to spend up to $18,000 every year. Americans love to spend on themselves, their homes, and their loved ones. Toys, household items, beauty, and gift items are listed among hot-selling products niche in the U.S.A.
2. The United Kingdom
Estimated population: 66 million
GDP per capita: $40,000
The United Kingdom is home to a lot of races in the world. Britons love to dress nicely. Their fashion industry is one of the biggest globally. It would be great to consider the UK if you are dropshipping fashion items. Last year, online sales statistics indicate the United Kingdom ranked top on the list of online buyers in Europe. The U.K accounted for about one-third of the total online sale in Europe. Post-Brexit UK even offers more opportunities as the U.K gets unrestricted freedom to trade globally.
Don't miss the UK if you are considering the top countries for dropshipping.
3. Canada
Estimated population: 37 million
GDP per capita: $45,000
Owing to its warm acceptance of multiple cultures, Canada is one of the best countries to target for dropshipping 2020 - 2021 regardless of your niche. Cultural diversity means more opportunities for different businesses to thrive. Canada imports a huge volume of various products to keep its population's needs met. Canadians are known for spending on high-tech products, fashion, books, and arts. Securing a sizeable share of the Canadian market can help most dropshippers land their dream income.
4. Germany
Estimated population: 83 million
GDP per capita: $44,500
Germans have shown they are big spender when it comes to high-quality fashion. Last year, shoes and apparel online sales in Germany were worth more than $18 billion.
It is no surprise most shoes and apparel suppliers have German translations of their websites. Germans love branded apparel. They may not spend as big as the U.S and U.K on apparel but they offer lower competition and pay higher on products from trusted brands.
Undoubtedly, the enormous consumption makes Germany among the best countries to target for dropshipping 2020 - 2021.
5. U.A.E.
Estimated population: 10 million
GDP per capita: $40,700
The U.A.E has been a long-time business hub for importers even before dropshipping became popular. They are apparel spenders. They also top the list of patrons of luxury items. There are some restrictions on women's apparel in the U.A.E. If you are targeting the U.A.E for apparel dropshipping, get an understanding of the clothing legislation. Germany is one of the best countries to dropship to 2020 - 2021.
6. France
Estimated population: 67 million
GDP per capita: $48,000
France has one of the highest GDP in Europe. It is a top spender in the apparel industry. You should consider integrating a translator that supports the French language on your website if you are targeting the French market.
The Ultimate Business Tip: Work with the Top Dropshipping Suppliers
If you want to target these countries for dropshipping, you should choose a dropshipping supplier with warehouses in the US, UK, EU for fast delivery, provide high-quality products and great services. SaleYee.com will be a great choice for you, as it has over 630,000+ US/UK local warehouses, and it also offers dropshipping products from the new German warehouse.
The delivery normally takes 2 - 7 days, and you can enjoy up to 3 months after-sales period. Selected based on big data product research, SaleYee's products are flying off the shelves. Registered users can enjoy free product recommendations, free membership, bigger discounts than elsewhere, distribution authorization of branded products, and more!
With 24/7 dedicated customer support teams, SaleYee.com will be your excellent business partner to dominate more market share!
4 Best Untapped Countries for Dropshipping
Our list of untapped dropshipping countries contains countries you may never hold in high esteem but are making a few dropshippers rich. They are mostly made up of developing countries.
1. Norway
This European country boasts of a population of about 5.2 million. It has a relatively higher population of young people. It also attracts lots of international students globally. If you dropship items that are fancied by teens and young adults, Norway can be a great target.
2. India
India is one of the most populous single countries in Asia having a population of about 1.3 billion people. It is driven by IT and medicine. If you dropship computer games, health and fitness products, India is a great market to consider.
3. Malaysia
Malaysia is an Asian giant with a GDP of $313.6 billion and a population of about 31.6 million. Malaysians spend on their homes and themselves. Household items and apparels are some promising niches for the Malaysian market.
4. South Africa
South Africa is the giant of the African economy having a GDP of 349.4 billion and a population of about 57 million. One of the most sought-after products is consumer electronics. South Africa is a good place to start if you are considering an African market.
Bonus Tip: Avoid Dropshipping to These Countries
There are also some dropshipping countries to avoid due to their poor reputation with most dropshippers and some other e-commerce businesses. Below are some of them.
1. Pakistan
Pakistan has a faulty reputation in the e-commerce world. Some payment processors do not allow Pakistanis to use their services. Apart from prevalent online frauds, low-quality traffic also hinders dropshipping business in Pakistan.
2. Indonesia
Indonesia also has a high reputation for internet fraud and poor customer satisfaction. You will save your business from negative reviews, chargeback fees, and the possibility of fraud if you steer clear of this market until the conditions improve.
3. China
China is majorly a manufacturing company. There is virtually any product you can think of in the Chinese market. The presence of giants like Aliexpress, Chinabrands, and other leading e-commerce websites may likely hinder a dropshipper's effort to succeed.
Conclusion
Finding a great market for your products is a top priority. As competition gets stiffer in your present market, looking out for new markets may be the difference between winning or losing in the dropshipping business.
Which countries to target for dropshipping? Now, you've got all of the best countries for dropshipping 2021.