How to Start a Dropshipping Store in Europe (2024 Guide)

In this comprehensive guide, learn the step-by-step process to launch a successful dropshipping business in Europe in 2024. Discover essential strategies and insights tailored to the European market for aspiring entrepreneurs.

Dropshipping in Europe: 5 Essential Things to Know

Embarking on a dropshipping venture in Europe holds tremendous potential, given the burgeoning ecommerce landscape across the continent. If you're eyeing the European market for your dropshipping store, understanding its dynamics is crucial. Here, we delve deeper into five essential aspects you should be mindful of when starting a dropshipping business in Europe.

1. Capitalize on Europe's Advantages

Europe boasts three primary advantages for dropshipping businesses:

Multitude of Target Countries:

Europe comprises diverse markets, each with its distinct characteristics and preferences. This diversity offers numerous opportunities for niche-specific targeting.

Lower Competition:

Compared to the saturated US market, Europe provides a less competitive environment, making it more conducive for newcomers in the dropshipping domain.

Growing Ecommerce Market:

The European ecommerce sector is burgeoning, showcasing steady growth and a rising trend of online shopping.

2. Partner with European Suppliers

Shortening delivery times is a game-changer in dropshipping. Collaborating with European suppliers can significantly reduce shipping durations and enhance customer satisfaction. Seek out reliable suppliers within Europe, ensuring swift and efficient order fulfillment.

3. Incorporate Europe-Specific Payment Methods

Diverse countries in Europe favor local payment options. Adapting to these preferences is crucial for seamless transactions. Incorporate country-specific payment gateways like Giropay in Germany or iDEAL in The Netherlands to accommodate customers' preferred payment modes.

4. Tailor Your Store to Target Specific Markets

Considering language and cultural differences, targeting a specific market within Europe can yield significant advantages. For instance, crafting a German-language store targeting customers in Germany can establish a more intimate connection with local buyers.

5. Register for One Stop Shop (OSS)

Operating an ecommerce store in Europe entails compliance with VAT obligations. Streamline this process by registering for the One Stop Shop scheme. This simplifies VAT tax compliance, ensuring smooth operations and legal adherence.

How do you start dropshipping in Europe? (8 steps)

Step 1. Decide between a General, Niche, or One-Product Store

General Store:

A general store offers a wide array of products, targeting a broad audience. It requires more extensive marketing efforts and a diverse product range to attract customers.

Niche Store:

Niche stores focus on specific product categories, catering to a particular audience. Choosing a niche allows for more focused marketing, easier audience targeting, and potentially higher conversion rates.

One-Product Store:

This type of store specializes in selling a single item or a closely related line of products. The strategy emphasizes the unique selling proposition (USP) of the product, making it an attractive option for specific customer segments.

Step 2. Pick Out the Right Products to Sell Online

Research and Analysis:

Conduct thorough market research to identify trending products, potential demand, and competitors. Consider factors like product uniqueness, market saturation, and profit margins.

Product Selection Criteria:

Choose products that align with your chosen store type. Focus on quality, uniqueness, reasonable pricing, and the ability to meet customer needs or solve problems.

Step 3. Define Your Ideal Target Audience

Market Segmentation:

Segment your audience based on demographics, interests, behaviors, and location. Understand their pain points and preferences to tailor your offerings and marketing messages effectively.

Buyer Personas:

Develop detailed buyer personas representing your ideal customers. This helps in crafting personalized marketing strategies and product offerings that resonate with your audience.

Step 4. Find a Dropshipping Supplier (in Europe)

Finding a reliable supplier is crucial for a successful dropshipping business. Consider suppliers based in Europe to reduce shipping times and offer quicker deliveries to your European customers. Look for suppliers that offer competitive pricing, quality products, and excellent shipping services. Research thoroughly and consider reaching out to potential suppliers to discuss terms and services.

Oneclick online service has established its warehouses in Europe for the convenience of your work, so that you don't have to worry about starting a dropshipping business. Just contact us after choosing your product, and after driving the prototype and being satisfied with the product, you can start your business and then Receive the product as soon as possible from the first order (This feature distinguishes us from other competitors)

Step 5. Pick Your Preferred Ecommerce Platform

Selecting the right ecommerce platform is essential for your business's success. Choose a platform that aligns with your business goals, budget, and technical expertise. Popular platforms like Shopify, WooCommerce, or BigCommerce offer user-friendly interfaces, customizable designs, and robust features to manage your store efficiently.

Step 6. Design and Brand Your Dropshipping Store

Your store's design and branding significantly impact customer perception and engagement. Create a visually appealing and user-friendly website that reflects your brand identity. Customize your store's theme, incorporate high-quality images, and craft compelling product descriptions. Develop a unique brand voice and message that resonates with your target audience.

Consider the user experience, mobile responsiveness, and easy navigation while designing your store. Consistent branding across your website, logo, packaging, and marketing materials establishes trust and credibility with customers.

Step 7. Set Up Your International and European Payment Gateways

Choosing the right payment gateways is crucial for a successful dropshipping business in Europe. Consider offering multiple payment options that cater to your diverse customer base. Popular international payment gateways like PayPal, Stripe, or Square are widely used and trusted. Additionally, include region-specific gateways such as Klarna, Giropay, or iDEAL, depending on your target European markets.

Ensure that your payment gateways comply with European regulations, particularly regarding data privacy and security (such as GDPR compliance).

Step 8. Promote Your Store with Social Media and Content Marketing

Effective promotion through social media and content marketing is essential to reach your target audience and drive traffic to your dropshipping store.

Social Media Marketing:

Choose Relevant Platforms: Select social media platforms where your target audience is most active. For instance, Instagram and Pinterest work well for visually appealing products, while LinkedIn or Twitter might be better for B2B products.

Create Engaging Content:

Share high-quality images, videos, and engaging captions showcasing your products. Use influencer marketing or collaborate with influencers to expand your reach. Run Paid Campaigns: Utilize paid advertising options on platforms like Facebook Ads or Instagram Ads to target specific demographics.

Content Marketing:

Start a Blog: Create blog posts related to your niche, offering valuable information or insights. Optimize content for SEO to attract organic traffic.

Email Marketing:

Build an email list and send newsletters featuring promotions, product launches, or engaging content. Video Content: Use YouTube or other video-sharing platforms to create product tutorials, reviews, or behind-the-scenes content. Consistency, engagement, and understanding your audience's preferences are key to successful social media and content marketing strategies.

6 Tips for Starting a Dropshipping Store in Europe

1. Use an Ecommerce Platform Catering to European Business Needs

Selecting the right ecommerce platform is crucial. Opt for platforms like Shopify, WooCommerce, or Magento that offer features tailored to the European market. Look for functionalities such as multi-language support, tax handling capabilities compliant with EU regulations, and integration with European payment gateways.

2. Find a Dropshipping Supplier with a European Warehouse

Reducing shipping times and costs is vital for customer satisfaction. Seek suppliers with warehouses in Europe. This step significantly shortens delivery times, positively impacting customer experience and allowing you to compete more effectively in the market.

Reduced Shipping Times: Suppliers with warehouses in Europe offer quicker shipping times compared to those located outside the region. This proximity allows for faster order processing and delivery to customers within Europe, reducing shipping times significantly.

Lower Shipping Costs: Local or regional suppliers often offer more cost-effective shipping rates within Europe. By utilizing suppliers with warehouses in Europe, you can potentially reduce shipping expenses compared to sourcing products from distant locations, contributing to increased profit margins.

Enhanced Customer Experience: Faster shipping times contribute to an improved overall customer experience. Quicker delivery positively impacts customer satisfaction, fostering loyalty and increasing the likelihood of repeat purchases.

Competitive Edge: Having access to products stocked in European warehouses enables you to compete more effectively in the market. Reduced shipping times allow you to offer competitive delivery options, which can be a significant selling point for customers.

Inventory Management: Suppliers with European warehouses provide better control over inventory management. It allows for easier restocking, fewer supply chain disruptions, and better control over product availability.

In essence, aligning with a dropshipping supplier that operates a European warehouse can substantially improve your business's operational efficiency, customer satisfaction, and competitiveness in the European market.

3. Determine and Offer Popular Local Payment Methods

Europe has diverse payment preferences across different countries. Research and integrate region-specific payment methods like iDEAL in the Netherlands, Sofort in Germany, or Bancontact in Belgium. This improves customer convenience and trust, leading to higher conversions.

However, some European countries also have their own ‘national' payment system for online purchases. And if you will be targeting those countries, offering those payment gateways is important!

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

Germany: SOFORT / Giropay
France: Cartes Bancaires
Norway: VIPPS
Spain: Bizum
Denmark: MobilePay / Klarna
The Netherlands: iDEAL

4. Be Prepared for the Costs of Starting a Dropshipping Store in Europe

Consider initial investments in setting up your store, marketing expenses, product costs, and potential customs or VAT charges. Factor in operational costs like website development, marketing, and legal compliance to avoid financial surprises.

Starting a dropshipping business in Europe offers numerous advantages, yet it's essential to understand and plan for the associated costs. Here's a comprehensive breakdown of potential expenses:

Domain Name: Investing in a domain is among the initial steps. Consider platforms like Namecheap, offering cost-effective domain options, usually priced at less than $11 annually. This purchase includes free privacy protection, safeguarding your personal information.

Ecommerce Platform: Shopify is a popular choice among dropshippers, with its basic plan priced at $39 monthly after a free 3-day trial, plus a promotional offer of $1/month for the first three months.

Dropshipping Apps: Additional functionalities for your store may require paid dropshipping apps, adding to your expenses.

Dropshipping Supplier Costs: European dropshipping suppliers like CJdropshipping might be free, while others such as Spocket often cost around $29 monthly for enhanced services.

Marketing Budget: Marketing expenses vary widely. Some might start seeing success with a budget as low as $250, while others may require $1,000 to $2,000 or more for effective marketing campaigns.

Understanding these potential costs will help you prepare and create a realistic budget for launching and operating your dropshipping business in Europe. These investments play a pivotal role in establishing a solid foundation for your online store and its future growth in the European market.

5. Register for the European Union's One Stop Shop (OSS)

OSS simplifies Value-Added Tax (VAT) compliance for cross-border EU sales. Registering for OSS streamlines VAT payments, reducing administrative burdens and ensuring compliance with EU tax regulations.

Absolutely, navigating the VAT regulations in Europe is crucial for dropshippers targeting multiple countries within the continent. Previously, once your dropshipping business surpassed a specific revenue threshold, you were obligated to register for VAT in every country where your buyers were located. Managing and paying VAT to each of these countries involved an overwhelming amount of administrative effort.

However, a significant change occurred in 2021 with the introduction of the One Stop Shop (OSS) system, fundamentally transforming VAT registration and payment across the European Union. The aim was to simplify VAT obligations for online sellers and dropshippers.

Now, under OSS, you can register in one country and submit a consolidated VAT report, paying all your owed VAT through this single channel. Subsequently, the authorities distribute the appropriate amounts to the tax offices in other European countries.

However, the new system brought along a drawback for dropshippers. The previous VAT exemption for goods below 22 euros upon importation was eliminated. This change was intended to level the playing field between local European stores and online stores importing goods from non-EU countries, ensuring all imported goods into the EU are now subject to VAT.

6. Consider Starting a Dropshipping Store in a Local Language

Tailoring your store to a local audience can significantly boost engagement. Consider creating versions of your website in local languages to provide a more personalized shopping experience. This enhances customer trust and encourages conversions.

By implementing these strategic tips, aspiring dropshippers can navigate the European market more effectively, ensuring a smoother start to their dropshipping ventures.

3 Reasons why you should start dropshipping in Europe

Still in doubt about starting an online store in Europe?

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

1. Many Great Countries to Target in Europe:

Europe consists of diverse countries offering excellent conditions for dropshipping. Factors like fast shipping methods, high GDP per capita, social network penetration, and a large population make certain European nations ideal for targeting, such as Germany, France, Scandinavia (Norway, Sweden, Denmark), and Spain.

2. Less Fierce Competition in Europe:

In comparison to the US, the competition in Europe is less intense. Although the US offers favorable market conditions, the market saturation leads to stiff competition. Dropshipping in Europe, despite offering slightly different market dynamics, presents fewer competitors, creating opportunities for new businesses to thrive.

3. Growing Share of Online Shoppers in Europe:

The European ecommerce market is experiencing consistent growth year over year. Not just in prominent countries like Germany and France, but also in lesser-known markets like Greece and Poland, there's a substantial increase in the number of online shoppers. This growth signifies ample opportunities for new and existing dropshipping ventures to capitalize on expanding markets.

These three factors illustrate why starting a dropshipping business in Europe holds promise due to its diversity, lower competition, and burgeoning online consumer base.