How to start a dropshipping business in the UK 

In this post, we will be discussing how to start a dropshipping business in the UK. Dropshipping is a business model that has become increasingly popular over the years.

The UK, in particular, has seen increased interest due to the country’s high e-commerce spending, population, and GDP per capita. But before you can go ahead with your dropshipping adventure, you need to know your options for eCommerce platforms, dropshipping suppliers, and more.

What works for a particular region might not work for another. That is why it is important to understand how the dropshipping business of any region you are in.

Today, we will be sharing information about how to start a dropshipping business in the UK. You will get to see why dropshipping is worth it in the UK and a step-by-step guide that can put you through.

What is Dropshipping?

Dropshipping is a business model that involves selling products online without having them in stock. (Meaning: you don’t hold any inventory yourself)

How?

Once a customer places an order from your dropshipping store, you will forward the order details to a dropshipping supplier, who will then ship the product(s) directly to your customer. Any money that is left over in this process is yours to keep! With drop shipping, you can sell products on your website or an online marketplace, such as Amazon, eBay, or Facebook Marketplace.

Dropshipping often involves buying cheap goods from Chinese suppliers and selling them for a higher price to an American or European audience, but it is also possible to dropship with local suppliers. For instance, suppliers that are located in the UK!

Why should you start a dropshipping business in the UK?

1. Great logistics. To improve the shipping time and avoid delays.
2. A high GDP per capita. So you can target an audience with a disposable income.
3. A large population. To avoid running into scaling issues with your dropshipping store.
4. A high social media penetration. To make sure you will be able to reach your audience using an online marketing method.

Dropshipping in such a “perfect country” would be a piece of cake, as you will have easy access to a target audience with a high budget.

In short, these criteria make a country’s eCommerce market flourish.

So, is the United Kingdom a good country for dropshipping?

The United Kingdom is a country that comes very close to a “perfect dropshipping country.” First of all, it features a highly developed eCommerce market and a GDP per capita of $40.3k.

However, the best thing is that the UK has an eCommerce spend per capita of $4,201, which is the highest in the whole world! This is great for UK eCommerce business owners, as all this money flows to them.

So, what else is great about the eCommerce market in the UK?

Well, it isn’t saturated yet. In 2020, the UK’s eCommerce market was expected to grow by almost 11%.

In the end, we can conclude that you should do dropshipping in the UK!

How to begin a successful dropshipping store in the UK

Starting a successful dropshipping store is not as simple as it may sound. Many factors come into play when it comes to building a profitable dropshipping store. Just think about things like a business plan, order processing system, and marketing strategy.

Many of you will have times when you will feel like it’s better to quit. However, remember that this is just part of the process. Try to evaluate and, if necessary, adjust your plan, and you will see that brighter times will come!

When starting a dropshipping store in the UK, one of the first things you may have to do is decide if you want to go with a niche store or a general store. If you would like to start a niche store but have difficulties picking a niche, you will find 25 great niche ideas here. Also, if this will be your first online store, try to avoid these ten niches.

Prefer to go with a general store? Then you can take a look at how to start one here.

Regardless of your store type, here are the main steps you will have to take to start a dropshipping store in the UK:

• Find a product and supplier
• Create and set up your dropshipping store on an eCommerce platform
• Start doing online marketing to attract visitors
• Continuously optimize your store to become (more) profitable

While the overall process may be similar for a lot of countries, there are a couple of tips we can give you specifically for starting a dropshipping store in the UK. For instance, you should take a look at the list of the best dropshipping suppliers in the UK.

 

A step-by-step guide to starting a dropshipping service in the UK

Try to use one of the best eCommerce platforms for businesses in the UK

Your e-commerce platform will be the base of your dropshipping store. It is a platform that allows you to design, build, and manage your online store. This includes tasks like designing your product page, modifying your product description, managing your orders, and much more.

You will genuinely benefit from choosing a great eCommerce platform, as it will be a lot more straightforward to manage your dropshipping store. A great eCommerce platform should offer the right features, be easy to use, and provide excellent customer support. Three brilliant choices of eCommerce platforms for businesses in the UK are Shopify, BigCommerce, and WooCommerce.

 

Use one of the best UK dropshipping suppliers

Once your platform is chosen, you will need to select a dropshipping supplier to ship the products to your customers. You could opt for the “traditional” option and go for a Chinese dropshipping supplier. However, our tip is to take a look at dropshipping suppliers based in the UK. That way, you may have to pay a bit more to buy the products, but they will be delivered to your customers much faster!

 

Know that you must set up a company before you start dropshipping in the UK

Before you start a dropshipping business, you will need to have the right dropshipping mindset. This means that you should know a couple of things before you start taking action. One of those things is knowing that you are building a real business and not a “make quick money store.”

In that way, dropshipping is like starting any other eCommerce store; it is a real business. Your goal will be to sell as many products as possible to maximize your profits. And so, once you have hit a certain revenue number, you will have to set up a company.

Setting up your company as a sole trader will be the best option for most people in the UK. This is because a business registered as a sole trader will be easiest to manage in terms of accounting. You will need to register your company as a sole trader once you have earned more than £1,000 in a tax year. Once you are registered as a sole trader, you will need to:

• • keep records of your business’s revenue and costs
  • send a Self Assessment tax return every year
  • pay Income Tax on your profits and Class 2 and Class 4 National Insurance

 

Offer your customers the most popular payment gateways in the UK

Another important tip that will increase your dropshipping store’s revenue is to offer your customers their preferred payment options. Therefore, you should know which payment methods are the most popular in the UK before setting up your payment gateways.

 

Know how much it costs to start a dropshipping business in the UK

Starting a dropshipping business in the UK is not something you do for free. You will need to reserve a budget that you can invest in your dropshipping business. One of the first things you will have to buy is your domain. Luckily, a domain is not that expensive. For less than $11 per year, you can have your professional .com domain! (Which you can then use as a custom email address as well.)

Next up, you will need to pay for your eCommerce platform. Most people choose Shopify, which costs $29 per month for the basic plan after your free 3-day trial + pay $1/month for the first 3 months has ended. You may also need to pay for some dropshipping apps that add some extra functionalities to your store.

However, if you choose the right apps, they may very well all be free. Then, you may need to pay for your dropshipping supplier. Some UK dropshipping suppliers are free, while others can be paid in some cases and can cost you $29 per month.

Once you have started dropshipping, marketing could be one of your highest costs. Some people will need a marketing budget of $250 before they see any success, while others will need $1,000-$2,000, or even more.

What you need to start a dropshipping business in the UK

Set up a business bank account.

Another benefit of setting up a business is that you can then open a business bank account. This allows you to keep your finances completely separate which is a great way to organize yourself and keep your finances separate from your business finances. When the end of the year comes around, you’ll be very pleased you made this decision!

Deciding on your niche market.

Don’t fall for the trap of becoming a generalist store. Your key differentiator (especially when setting up a dropshipping business) is adding value to a defined niche market.

Those entrepreneurs who achieve true life-changing results from the dropshipping business model are those who complete their research to determine a viable niche market, then first check for adequate demand so that they know they will succeed in that market before even taking their first step.

Checking you have enough suppliers.

Dropshipping is a fantastic business model. It’s extremely low risk, requires very little upfront capital, and is the perfect model for first-time entrepreneurs looking to build a lifestyle business.

But knowing that you have enough suppliers to build a successful business around is key to succeeding in dropshipping.

Pick the wrong niche market, and you could be limiting your future growth potential due to the lack of available suppliers to work with.

Following a proven method for the UK market.

Many first-time entrepreneurs follow the guidance of YouTube e-commerce “gurus”, many of whom can often be seen flaunting their expensive sports cars and mansions. However, when their teachings are applied to the UK market, UK business owners can be in for a nasty shock as they do not see results due to the core differences between the UK and the US market.

If you’re serious about starting your UK dropshipping business and you wish to learn more then watch our dropshipping training and cut down your learning time so you can get your business from zero to profitable, replace your income and free up your time as quickly as possible.

 

FAQs about dropshipping in the UK

Here are some of the most frequently asked questions about dropshipping in the UK:

What is dropshipping?

Dropshipping is a business model that involves selling products online without having them in stock. Once a customer places an order from your dropshipping store, you will forward the order details to a dropshipping supplier, who will then ship the product(s) directly to your customer

Is dropshipping legal in the UK?

Yes, dropshipping is a legal business model in the UK. As a retailer, you aren’t obliged to have a product you sell in stock or possession.

Does dropshipping work in the UK?

Yes, dropshipping works and is profitable in the UK. The country offers great logistics, an English-speaking audience, a large population of 67.9 million, and the world’s highest eCommerce spend per capita of $4,201.Due to these excellent market conditions, anyone can work on their profitable dropshipping store in the UK!

What products can I dropship?

Here are the most important aspects you need to take into account when deciding on which products to dropship:

• Products that have the “wow” factor: this means you need to look for unique, amazing products, the ones that will just make your customers say: Wow! I want that!
• Products that are hard to find in your area: find the ones that are not normally in a retail store or your area. That’s when a customer is willing to pay more for shipping and is willing to wait a bit longer for an order.
• Product with good profit margins: Before deciding on which product to dropship just make sure you check it has a profit margin high enough that covers the cost of goods and advertising.
• Products that solve a problem: One of the most important qualities of a great dropshipping product is to solve a problem. People will always choose products that can make their life better and easier.
• Products with no advertising restrictions: you also need to find a product you can advertise about, as this will probably bring you the most customers. So, check Google and Facebook terms and ad policies, for example, before making any decision.

Also, read what to consider before choosing your products

Final thoughts on how to start a dropshipping business in the UK

I have been able to share a detailed guide on how to start a dropshipping business in the UK. It is not just enough to start, ensure to start with a good first impression. The moment customers enjoy your services and process, they will leave good reviews for you. That will in turn attract other potential customers.

Therefore, if you are in the UK and wondering what business to venture into, start a dropshipping business!

Also read how to start a dropshipping business in the US