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Dropshipping has been trending for several years. It has its roots in the US but has spread fast to Europe.
Many who tried themselves out in this business are rather earning big or failing hard!
But what makes this difference, and which path is the right route to success, still seems hard to predict. This is due to the different market behavior.
In this post, we’ll review a special region, the top TIER country, Germany.
Here you can find answers to burning questions like who is the No. 1 dropshipping supplier in Germany, which dropshipping countries to avoid, and all about dropshipping Germany tax.
As a bonus, we’ve prepared some tips on starting a dropshipping business and running a successful one. Keep reading, and discover what can separate and elevate you from the competition.
It’s not something to think about; it’s something to act on!
We’ll let these numbers assure you.
Germany’s GDP grew to $978,769 million in the first quarter of 2019. In 2019, eCommerce in Germany is forecasted to be worth $58.8 billion. The clothing, electronics, and media sectors had the greatest market expenditure in Germany in 2018.
And these numbers just continued to grow, especially during the pandemic, due to an increase in online shopping.
The global dropshipping market is projected to grow to $196.78 billion by 2022, up 23.7 percent from 2021.
Dropshipping is the easiest way to source products for your online store. You don’t have to worry about huge upfront capital to start a business, no warehouses, or a large workforce to manage; it’s enough to have a laptop and a stable internet connection for start.
You probably wonder where’s the catch because everything seems too simple. And be sure that there is one.
The main problem is finding a reliable supplier. The one who will:
If your supplier doesn't check the whole list, that can get you out of business.
And here is how:
There are also other things that can cause problems, but they are easy to solve on the go if you’ve got yourself a good supplier.
As promised, we'll review dropshipping suppliers in Germany. After thorough analysis, eComZone undoubtedly won the race, since it offers the best terms.
Compared to some other German suppliers (Vimando AG, Printful, Printsome, Griffati, and others), eComZone is not a single niche-oriented. It offers over 1000 products from different niches and adds new products daily to its catalog.
Regarding subscriptions and the number of products imported to your store, eComZone doesn't have any restrictions - contrary to Spocket, which restricted the number of available products depending on the subscription model.
Also, when it comes to transaction fees, some suppliers, like 01supply, have them at a high starting rate, decreasing with having a more expensive subscription model, which is not a case with eComZone .
With VidaXL and BigBuy being market leaders, it's hard to get a human support operator. Also, BigBuy doesn't offer a COD payment option, and they charge their services, unlike eComZone, that's completely service-free.
eComZone is a company based in Central Europe. It functions as an importer, distributor, wholesaler, and drop shipper and does not act as an intermediary.
eComZone is a great supplier for anyone looking to sell products in Germany. With over 1000 different products in stock and new products added daily, there is no shortage of options.
eComZone also offers easy integration with online stores, with product catalogs available in XML or CSV files. Prices are also very flexible, with no minimum advertised price.
Delivery is fast and reliable, with shipping costs based on the delivery country. And finally, eComZone offers the ability to sell in all EU countries with no customs charges.
It’s a great option for those looking for high-profit margins on their products. With wholesale pricing on all products, you can easily make a large profit.
eComZone offers 24/7 customer support with live support available during Central European Time. They also have a simple return process and a low return/refund rate. Finally, they offer various payment options, including cash-on-delivery.
Cash-on-delivery is a great option for those who want to feel safer about their purchase.
Unlike their competitors, eComZone managed to check the whole list and, therefore, rank among the best dropshipping suppliers - Germany, if not the very best.
The most important thing is how to sell those products. We believe that you can figure out the technical part by yourself, so we will focus on advertising, mostly on visual product presentation.
Before you develop a successful dropshipping business, you must first identify your target audience. Even if you're selling an everyday item like soap, you won't succeed by trying to reach 'everyone.' Since no content will appeal to every target group equally, you will waste your cash on ineffective advertisements.
So, consider your ideal customers when developing your marketing strategy. When you know who your perfect customers are, you can create your buyer persona. A buyer persona is a fictional character that represents your ideal customer.
Once you know who you're speaking to, you can proceed with text and creatives for advertisement.
After reviewing the dropshipping suppliers in Germany, we noticed that eComZone offers the highest quality creatives and videos.
These high-quality creatives and videos increase the chances of conversion by up to 37%.
Boost them with converting copy, and you can increase these numbers even more. Make sure to test everything; no idea is for waste. You may be surprised when you see what your target audience accepts best.
One thing where your choice of dropshipping supplier plays a huge role, even in the marketing phase, is reviews and ratings. They boost your credibility and form trust with the customer. A dropshipping supplier that delivers items a few months after ordering is a no-go for a credible shop.
When choosing the best dropshipping suppliers in Germany, the fast delivery and, therefore, good customer reviews were a thumbs up for eComZone.
These are the countries to avoid.
The list is made by collecting data on eCommerce spend (percentage of salary spent on eCommerce purchases) in each country.
Still, once you reach your goal country - Germany, it's good to know that you can easily expand to Austria and Switzerland.
We find that the best way to provide valuable information for you is by giving you answers to your questions.
1. Dropshipping Germany tax?
Dropshipping entrepreneurs are entitled to an income tax allowance of 9,984 euros in 2022. Taxes are only charged on the excess amounts; therefore, it is crucial to include all types of income in this category.
For example, if you still draw a regular salary, your taxable income will also include the revenue generated from your online shop.
2. Can I do dropshipping in Germany?
You can operate a risk-free dropshipping business in Germany without holding inventory or shipping products. This allows you to focus on growing your business through marketing, relationship building, and customer service, all of which require time.
3. Is dropshipping legal in Germany?
Yes, it's 100% legal.
The act of dropshipping is subject to the same regulations as shopping in any other online store, whether the trader is located in another EU country or focuses his business activities on the German market.
4. Do you need permission to dropship?
The quick reply is no. You don't legally have to establish an LLC to sell online. If you're new to eCommerce, you should focus on getting your first few customers rather than issues like licenses.
5. Is dropshipping profitable in Germany?
Dropshipping in Germany (and anywhere else in the world) is still extremely profitable as long as you choose a highly targeted niche and provide outstanding customer service!
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