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What’s the best country to dropship to in 2022? Entrepreneurs often ask this question to expand their business into new markets.
The world of eCommerce is constantly changing with new countries and platforms emerging as top destinations for dropshipping entrepreneurs. So which countries should you target in 2022? Here we listed 12+ best countries to dropship to in 2022!
Why should you start a dropshipping business?
Dropshipping eCommerce business offers a number of advantages, including:
Low Startup Costs:
Unlike traditional brick-and-mortar businesses, which require expensive inventory and real estate investments, dropshipping businesses have meager startup costs. Dropshipping businesses can be started with a bit of money.
Reduced Risk:
When you dropship products, you essentially act as a middleman between the supplier and the customer. It eliminates the need for inventory storage, reduces your risk of product obsolescence, and eliminates the need to invest in shipping and storage infrastructure.
Increased Scalability:
A successful dropshipping business can be easily expanded by adding more products to your catalog and targeting new markets. It can be much more difficult and expensive to scale a traditional business.
Location Independence:
Dropshipping businesses can be run from anywhere globally with an internet connection. It’s the perfect solution for entrepreneurs who want the freedom to work from home or travel while running their businesses.
Dropshipping is so famous for several reasons, as we listed above. So, it should be on your radar if you’re looking to start a business in 2022.
Dropshipping to the Best Countries: How To Choose?
When choosing the best dropshipping countries, there are a few factors you need to consider:
The size of the market:
You want to choose a country with a large population to reach as many potential customers as possible.
The level of economic development:
A developed economy means that more people with disposable income can purchase items from your store.
Per capita GDP is high:
A high per capita GDP means that the average person in the country has a lot of money to spend, making it a lucrative market for your business.
The level of technological development:
You have to choose a country with a high level of technological development so that you can take advantage of all the latest eCommerce trends.
Quick shipping is available:
You’ll want to choose a country where you can offer quick shipping times so that you can meet the needs of your customers.
The eCommerce infrastructure:
You need to make sure that the country you’re targeting has a developed eCommerce infrastructure so that you can easily set up your business and start selling.
Intensive use of social networks:
You’ll want to target a country where people are intensively using social networks to help you reach more potential customers.
Ecommerce market revenue:
Additionally, you’ll have to consider the size of the eCommerce market in the country you’re targeting. The larger the market, the more potential customers you have to reach.
Now that you know what to look for let’s look at the 12+ best countries to dropship to in 2022!
To bring a new product to the market, you need to first check if the market is ready for your product or not. The same applies to the dropshipping business model. Picking the right country to dropship makes a substantial difference in the success of your dropshipping business.
Now, the question is how to determine which dropshipping countries to target for your dropshipping business? We have sort-listed the top countries in the world where the demand for dropshipping products is relatively higher.
Top countries to target for your dropshipping business
1. United States
Did you know that the USA has the largest consumer market in the world? With a GDP of $68,310 (2021 est.) and a population of 333,193,717, this place can bring the best opportunities for your dropshipping business. With high average disposable income and the availability of fulfillment centers, the USA is the most appreciated market for a dropshipping business. Be it clothing, jewelry, fashion items, or furniture, whatever you are planning to sell, this market has an opportunity for you.
2. United Kingdom
The UK is the second-best country for dropshippers. Its current GDP is expected to reach 41100.00 USD by the end of 2021. In addition, with a population of 68,288,604, the market can offer the best opportunities for dropshippers. If you are targeting the UK, you can also take it a step forward by focusing on Ireland.
3. Australia
The Australian dropshipping market is growing consistently and there is significant room for growth in the ecommerce market too. With a GDP of 6100.00 USD and an approximately 25 million population, it is one of those countries that you should not miss while dropshipping. Fashion items are the most popular niches when it comes to dropshipping in Australia.
4. Sweden
The per capita income of Sweden is expected to reach $58,100 by the end of 2021. In 2020, the country’s ecommerce market made it to $11,728m and it is expected to rise further this year. With such a huge ecommerce market, Sweden is considered the favorite of dropshippers.
5. Denmark
If you are interested in unlocking dropshipping opportunities in Denmark, let us tell you the Danish population loves to shop online. If you can offer a curated niche for them, the benefits are huge. In 2020, the GDP of Denmark was 60,494 US dollars, which means the per capita income is incredible here. Hence, you can expect to capture this market for furniture, home decor, as well as fashion aparallels.
6. France
French people are known for their liking of fashion, clothing, and décor. If you can curate some classy products, the benefits for your dropshipping business can be remarkable. The per capita income of France is expected to reach $43,400 in 2022. Focus on selling fashion, décor, and cultural products.
7. Best countries to dropship to: Switzerland
The Swiss Confederation is a small country in Central Europe, nestled between France, Italy, Austria, and Germany. It has approximately 8 million people, and the average GDP per capita at purchasing power parity is 0.46%. Switzerland is considered a wealthy country. According to a recent study, 26% of the Swiss populace will shop online by 2026. A study found that spending power in the country is relatively high even right now.
Advantages of dropshipping in Switzerland:
- Very high average income.
- Low population density makes it easier to reach customers.
- The country is politically and economically stable.
Disadvantages of dropshipping in Switzerland:
- High shipping costs.
Best countries to dropship to: Scandinavian Countries
Scandinavia refers to Denmark, Norway, and Sweden in the local lexicon is a great place to dropship products because of the high quality of life and strong economies in these countries. Scandinavia has a total population of over 26 million people, making it an excellent market for your products. The Scandinavian economies are some of the strongest globally, with Norway ranking in the top ten on the World Bank’s “ease of doing business” rankings. Sweden is not far behind, ranking tenth. So, this makes them the top emerging eCommerce countries of online business expansion.
All three countries have a high quality of life, with Sweden and Denmark ranking first and second globally, respectively. In addition, all three countries are members of the European Union, making it easy to do business in Scandinavia.
Advantages of dropshipping in Scandinavia:
- High quality of life and strong economies.
- Easy to do business in Scandinavia.
Disadvantages of dropshipping in Scandinavia:
- Possible language barriers.
- High shipping costs to deliver products.
10. Best countries to dropship to: Brazil
Brazil is the fifth largest country globally, with a population of over 215 million people. It has a strong economy and is a member of the BRICS group of countries (Brazil, Russia, India, China, and South Africa), some of the fastest-growing economies globally. Brazil is also home to many online shoppers, with over 43 million people buying items online.
Advantages of dropshipping in Brazil:
- Large population and a strong economy with a rapidly growing eCommerce market.
- Huge population with 43 million online shoppers.
- Brazil has a 48% share of online purchases made on mobile.
- Projected revenue that’s expected to reach $5.4 trillion by 2022 with limited competition – making it an ideal market for those looking into dropshipping businesses!
Disadvantages of dropshipping in Brazil
- It is expensive to ship products.
11. Best countries to dropship to: Spain
Spain’s eCommerce market is one of the highest potential markets in Europe. It has a population exceeding 46 million people. An average gross domestic product ( GDP) per capita at purchasing power parity ranks fourth out right behind France, Germany, or Great Britain but just third when compared internationally.
This makes it one giant sponge for any company seeking success on this side of the European sea!
Advantages of dropshipping in Spain
- The Spanish eCommerce market is increasing.
- The country’s eCommerce market revenue is expected to reach 296 billion U.S. dollars by 2025.
- There’s a high penetration of internet and mobile phone users in Spain.
Disadvantages of dropshipping in Spain:
- 9% of the Brazilian population speaks Portuguese as their primary language. You may need to hire a bilingual customer service representative.
12. Best countries to dropship to: Italy
Italy is a country in Southern Europe. It has over 59.10 million people and an average GDP per capita at purchasing power parity that ranks eighth out of all the countries in the European Union. Italy also has a very high Internet penetration rate, with over 83% of the population accessing the internet.
Advantages of dropshipping in Italy:
- High quality of life.
- A large population with a strong economy.
- Targeting Italian online shoppers is easy due to increased Internet penetration.
Disadvantages of dropshipping in Italy:
- Higher Fulfillment Costs
13. Best countries to dropship to: The United Arab Emirates
The United Arab Emirates is a country booming in recent years. It’s located in the Southeast of the Arabian Peninsula, where many oil reserves can be found, and it boasts some beautiful beaches!
With an average GDP per capita ranking first out of all countries around this region…the UAE also leads high rates of Internet penetration, with over 98% population having access to browse any time they want.
Advantages of dropshipping in UAE:
- Strong economy.
- Internet penetration is high.
Disadvantages of dropshipping in UAE:
- Language barriers.
- The population is low compared to other countries. (10 million)
14. Best countries to dropship to: Israel
Israel is a country that has been around for more than 50 years. Located in the Middle East, it’s home to over 9 million people and an economy with high GDP per capita rankings at purchasing power parity – 2nd out of all countries within this region!
A significant portion also has access to broadband internet, which ranks among some highest rates worldwide (over 97%). After the United States it has the second-highest number of startup companies worldwide.
Advantages of dropshipping in Israel:
- Spending per capita on e-commerce is high.
- Ecommerce revenue grew 30.1% over the last year.
- High startup density.
Disadvantages of dropshipping in Israel:
- The population is not as much as in other countries.
Q: Why 2022 is the time to expand globally?
Answer: Yes, dropshipping is possible worldwide in 2022.
Those new to eCommerce should consider dropshipping as a business model. Setup and management are easy, and there is no significant initial investment. Dropshipping business can also be run on a part-time basis.
As you consider expanding your business abroad, the main thing you need to consider is the tax and legal implications.
Different countries have varying tax laws, which can be overwhelming for entrepreneurs. If you’re unsure about how your business may be affected by specific overseas taxation, speak to an expert!
Another thing to consider is the currency your business will operate in. If you’re dropshipping products from a foreign supplier, you’ll need to make sure your prices are quoted in the supplier’s currency; otherwise, you could run into some severe exchange rate issues.
Conclusion
There it is!
You should now have enough information to decide to which countries you are going to target with your dropshipping ads!
When making that decision, remember to keep the characteristics in mind that I’ve told you about. They determine if a country is good to target or should be avoided!
But you shouldn’t just think about the country itself.
For example, another thing to consider is your supplier. Does he or she ship to the countries you have to chosen to sell to, and if he does, what will the delivery time be?
To conclude, there is much to learn about dropshipping. Keep in mind that this isn’t a get rich quick scheme, but a real business.
