With rapid growth in technology and especially the way e-commerce is being carried out, there are literally no boundaries. Options are endless.
But you are still wondering if you can dropship to other countries?
Definitely, you can dropship to any country that exists on the map.
But should you target every country in the world?
Absolutely not as you will end up spending all your money on ads without seeing your first sale!
Most probably you want to know if you can dropship to countries other than the most competitive USA! Of course, yes and that should be your strategy as well to start with.
If you look at the data on no. of dropshipped orders from US vs World, you will be surprised to see that all the orders combined from rest of the countries in the world is quite close to orders alone from the US.
This is a very good sign for anyone getting into dropshipping in 2020 or further as you need not just sell to the competitive and saturated US market, but can target rest of the world. This is a lucrative opportunity for any new dropshipper.
Considering the amount of people getting into dropshipping almost every single day, the most popular destination for dropshipping USA is getting fiercely competitive. This is the no.1 reason for sky rocketing Ad costs too when you target audience in the States.
This is not to say that you cannot sell to people in the USA, but to look out for other better options where the competition is less yet there is a demand for products.
When I started, I had a good number of orders coming from Australia & Canada as well which helped me pivot my targeting to these other countries.
Although the options are limitless and most of the Youtube gurus preach that you should be targeting all the ePacket countries or may be the entire world even! I don't recommend going this broad.
Btw, What's ePacket!
ePacket is a shipping service offered by merchants in China/Hong Kong and this is the most commonly used shipping option by dropshippers across the world.
As of October 2020, below are the countries supported by the ePacket shipping service:
- Great Britain
- Hong Kong
- New Zealand
- Saudi Arabia
- South Korea
- United Kingdom
- United States
Few reasons why I don't recommend targeting all the Epacket countries:
- Wasted Ad Costs
- Conversion Rates
- High Ad Budgets
- Product Market Fit
- Wasted Ad Costs
If you try to go very broad like all the ePacket countries or even more covering more than 100 million people on any of the advertising platform, you just don't have control over it as the ad might show up in countries where the conversion rates are too low or even the product might not be needed there at all due to the weather conditions there.
Or your product might be available in local store in that country or even there might be a better established online marketplace there which you aren't aware of. Although we see the options are huge, it's good to stick with a few number of countries you know will relate well with the product you are selling.
2. Conversion Rates
This is the most important metric for any store. How many conversions can you get out of every 100 visitors to your store will make or break your dropshipping store.
I've spent hours researching potential countries that are worth targeting other than USA and also gathered valuable conversion rate metrics for those countries below. I tested these countries on some of my own stores and did see a good number of conversions especially from Norway & Australia.
I consider anything above 3% to be a good conversion rate as they are the ones that can get you some healthy profits with less ad costs.
I wouldn't suggest going with the ones below 3% conversion rate as it's not worth your time & money.
The ones highlighted below are worth trying for your dropshipping stores:
I've gathered the conversion rates for these countries from an Oberlo case study as they have the most accurate data being a prime hub to dropshipping suppliers.
Make sure you target only English speaking population in these countries or else you'll be wasting your ad budgets assuming your ads and store are in English.
Trying these less popular countries for dropshipping will give an edge over other dropshippers who are only going after the USA audience that is getting saturated.
In case you are interested to try more countries, you can target other countries as well in the list but make sure you don't go after countries that have less than 2% conversion rate to avoid losing money. The conversion rate gives you an idea of how well people are likely to order online from that country.
Another factor to consider is the shipping time. You might find a country above that has a better delivery time compared to the USA that would delight your customers.
3. High Ad Budgets
Obviously if your audience are too big, ad platforms will eat your money in no time without getting any sales or clicks even which is a pain.
Especially when you are starting out as a dropshipper, you might have limited budgets somewhere around 100 or 200$ which needs to be spent very carefully. If you take a single wrong step in your Ad strategy, you might end up losing all your money without seeing your 1st dropshipping order.
I highly recommend to learn some basic marketing skills before you start investing your money into Ads. This is the most important skill for any dropshipper that decides your success in this crazy dropshipping world.
4. Product Market Fit
Another important factor to weigh in is the Product/Market fit. Your product might not be appealing to audience in every country. For example, if you are selling some winter gloves, you cannot target a country where the climate is hot. It just doesn't work.
It's important you do the initial Product/Market Fit research to see which countries would suit the product you are selling.
Dropshipping is all about testing till you find your successful audience. You might want to target the high converting countries above to start with and see which are bringing you the best results and go from there.
Once you identify the countries that are bringing you sales, you can scale your ads targeting those ones and increase your sales.
Things to consider before you target a new country for dropshipping:
- Make sure the product is relevant to the audience in that country.
- Check if there are any existing stores selling the same product to that audience so that you can outrank them with your Ad creative and copy.
- Check local laws for example if that product is legal in that country. Different countries have different classification of restricted products and it's worth checking before investing any money.
- Check with your supplier if they can ship to the country you are interested in and you want to know the shipping time and cost as well to see if the margins can work out including any additional shipping costs.
- Target only English speaking population to ensure your ad gets the highest chance of conversion.
Also, there are many people asking almost every year and every month if Dropshipping is Dead?
No way at all. Dropshipping will not die. It's just that the way entrepreneurs dropship changes every few months.
I believe this is common with any business. Something that worked last year might not work this year. For example, few years ago people use to wait for their products to arrive in 10-15 days as well.
But in 2020, with Amazon Prime and few other smart shipping partners offering even same day delivery, it is tough to keep customers waiting for long times and it just doesn't work anymore.
Every aspect of dropshipping business is evolving and will evolve as we go. You just need to stay on top of the trends to sustain in dropshipping.
All the very best. Let me know how you get on with dropshipping to other countries.