While the USA is a prime target for dropshipping due to its size and spending power, the competition can lead to higher advertising costs.
Despite this, the US market remains a strong option. However, dropshipping’s online nature allows for global reach, letting you operate from anywhere and target any country.
Considering other markets is advisable, and I’ve analyzed key factors to help you identify alternative countries for your dropshipping business. This approach broadens your potential customer base while potentially reducing competition and advertising expenses.
Why Would You Want to Dropship to Other Countries?
You may have heard many dropshippers talk about the big 4 countries for dropshipping, which consist of the US, the UK, Australia and Canada. On top of this, most dropshippers don’t even bother selling outside of the US which kind of makes sense when you look at the amount of money spent on eCommerce by country.
The main reasons you may want to consider dropshipping to other countries are:
- Less competition
- Cheaper ad costs
- Gaps in the market
- More money for you
If you’re a complete beginner and you’re having trouble finding an uncompetitive niche or product to dropship in the US, dropshipping outside of the US may be your best option. I have a simple and effective method of helping you to locate gaps in the market you can exploit.
I also have an article on whether dropshipping outside the USA is actually worth it.
How to Find the Best Countries to Sell to?
Use the Similar Web Chrome extension when visiting a store’s website. This tool provides valuable data, including the geographical sources of a website’s traffic.
It shows the percentage of visitors from each country, offering insights into where the store is likely focusing its advertising efforts. This information is especially useful for tailoring your business strategies.
For example, check out this screenshot from Similar Web from a successful store called Cat Genie.
This store attracts over 80k monthly visitors, mainly selling high-ticket items and earning significantly, with 84% of traffic from the US and 2% from France. This indicates potential in other markets for similar products.
Focusing beyond the US can reveal less competitive markets with lower advertising costs. Similar Web also reveals traffic sources, showing 88% from Facebook and the rest from Pinterest, providing a blueprint for market strategies in different regions.
This means you can still sell this product in the USA if you want but you could focus on other traffic sources. You could focus on Google ads, TikTok ads, YouTube ads, Instagram ads and the list goes.
This way you’ll be marketing the ad to people who may not have seen the product yet.
Cheapest Country for Facebook Advertising
In early stages of a dropshipping store, advertising, particularly Facebook Ads, is key. Although the popularity of platforms may shift, Facebook Ads is a primary choice.
The table provided uses Facebook Ads data from 2020 to illustrate ad costs, which can vary daily and depend on numerous factors. It includes CPC (Cost Per Click) and CPM (Cost Per Mille), indicating costs for clicks and every 1000 ad impressions, respectively. Optimizing ads is crucial for cost-effectiveness.
Additionally, targeting countries with high social media usage might enhance ad effectiveness, a factor often overlooked.
| Country | Avg. CPC Facebook Ads | Avg. CPM Facebook Ads |
|---|---|---|
| USA | $1.09 | $0.22 |
| UK | $0.79 | $0.16 |
| Australia | $1.08 | $0.24 |
| Canada | $0.73 | $0.16 |
| New Zealand | $0.76 | $0.16 |
| India | $0.25 | $0.13 |
| France | $0.44 | $0.10 |
| Germany | $0.59 | $0.11 |
| Brazil | $0.22 | $0.04 |
| South Africa | $0.75 | $0.25 |
| Italy | $0.29 | $0.06 |
| Switzerland | $0.89 | $0.16 |
| Denmark | $0.72 | $0.17 |
| South Korea | $0.35 | $0.11 |
| Sweden | $0.70 | $0.16 |
| Vietnam | $0.09 | $0.01 |
| Israel | $0.66 | $0.33 |
| Thailand | $0.14 | $0.03 |
| Mexico | $0.14 | $0.04 |
| Turkey | $0.15 | $0.03 |
| Malaysia | $0.19 | $0.05 |
| Netherlands | $1.25 | $0.32 |
| Singapore | $0.68 | $0.12 |
| Belgium | $0.40 | $0.07 |
| Spain | $0.54 | $0.05 |
| UAE | $0.40 | $0.10 |
| Portugal | $0.19 | $0.04 |
| Philippines | $0.11 | $0.02 |
| Austria | $0.32 | $0.11 |
| Russia | $1.02 | $0.40 |
| Poland | $0.24 | $0.07 |
| Japan | $1.32 | $0.38 |
Which Countries Are the Most Profitable to Dropship to?
Selecting countries for dropshipping involves more than just low ad costs and high social media use. English proficiency is crucial if you only speak English, despite the availability of translation apps.
Additionally, understanding a country’s GDP helps gauge disposable income, influencing what products to sell.
High-value items may be a tough sell in lower GDP countries like India, Brazil, or South Africa. These factors combined help in making informed decisions about where to dropship effectively.
| Country | Population (2023) | English Proficiency | GDP per Capita (2022) |
|---|---|---|---|
| USA | 340 million | Very High | $75,269 |
| UK | 67.5 million | Very High | $45,485 |
| Australia | 26.5 million | Very High | $64,003 |
| Canada | 38.5 million | Very High | $55,646 |
| New Zealand | 5.5 million | Very High | $47,680 |
| France | 65 million | High | $43,061 |
| Germany | 83.5 million | Very High | $48,845 |
| Italy | 59 million | Moderate | $34,053 |
| Switzerland | 9 million | High | $92,410 |
| Denmark | 6 million | Very High | $67,220 |
| South Korea | 52 million | Moderate | $32,138 |
| Sweden | 10.5 million | Very High | $55,543 |
| Israel | 9.5 million | Very High | $57,758 |
| Spain | 47.5 million | Moderate | $29,385 |
| Netherlands | 17.5 million | Very High | $56,429 |
| Singapore | 6 million | Very High | $78,115 |
| Belgium | 11.5 million | Very High | $49,640 |
| Austria | 9 million | Very High | $52,732 |
| Russia | 144.5 million | Moderate | $15,482 |
| Japan | 123 million | Low | $34,135 |
| Malaysia | 34.5 million | High | $11,972 |
| Turkey | 86 million | Low | $10,616 |
| South Africa | 60.5 million | Very High | $6,776 |
| UAE | 9.5 million | Low | $53,758 |
| Portugal | 10.5 million | Very High | $24,530 |
| Poland | 41 million | High | $17,266 |
Which AliExpress Shipping Carriers Ship to Other Countries?
For dropshipping from China, commonly used shipping options are ePacket and AliExpress Standard Shipping, offering a balance of speed and cost.
If these aren’t available, relying on domestic suppliers may be necessary. DHL, though faster, is costlier and suited for higher-priced items.
Conversely, Cainiao, as a budget choice, has very low or free rates but longer shipping times, potentially affecting customer satisfaction and repeat business.
For a complete guide to the shipping times from AliExpress, I suggest you read my article as I provide estimated shipping times to multiple countries with multiple shipping companies.
| Country | AliExpress Standard Shipping | DHL | Cainiao |
|---|---|---|---|
| USA | ✔ | ✔ | ✔ |
| UK | ✔ | ✔ | ✔ |
| Australia | ✔ | ✔ | ✔ |
| Canada | ✔ | ✔ | ✔ |
| New Zealand | ✔ | ✔ | ✔ |
| India | ✔ | ✔ | ✔ |
| France | ✔ | ✔ | ✔ |
| Germany | ✔ | ✔ | ✔ |
| Brazil | ✔ | ✔ | ✔ |
| South Africa | X | ✔ | ✔ |
| Italy | ✔ | ✔ | ✔ |
| Switzerland | ✔ | ✔ | ✔ |
| Denmark | ✔ | ✔ | ✔ |
| South Korea | ✔ | ✔ | ✔ |
| Sweden | ✔ | ✔ | ✔ |
| Vietnam | ✔ | ✔ | ✔ |
| Israel | ✔ | ✔ | ✔ |
| Thailand | ✔ | ✔ | ✔ |
| Mexico | ✔ | ✔ | ✔ |
| Turkey | ✔ | ✔ | ✔ |
| Malaysia | ✔ | ✔ | ✔ |
| Netherlands | ✔ | ✔ | ✔ |
| Singapore | ✔ | ✔ | ✔ |
| Belgium | ✔ | ✔ | ✔ |
| Spain | ✔ | ✔ | ✔ |
| UAE | ✔ | ✔ | ✔ |
| Portugal | ✔ | ✔ | ✔ |
| Philippines | ✔ | ✔ | ✔ |
| Austria | ✔ | ✔ | ✔ |
| Russia | ✔ | ✔ | ✔ |
| Poland | ✔ | ✔ | ✔ |
| Japan | ✔ | ✔ | ✔ |
Which Countries Offer the Best Payment Processor Options?
When targeting a new market for dropshipping, it’s essential to ensure the availability of preferred payment processors. Shopify Payments, Stripe, and PayPal are popular among dropshippers.
As of this article’s writing, Shopify Payments supports 23 countries, with potential future expansions. It’s advisable to avoid dropshipping to countries that don’t accept Shopify Payments if you plan to use it.
Stripe and PayPal are widely used, with PayPal available in more countries. Each has different fees and services, making it important to check their availability in your target country.
| Country | Shopify Payments | Stripe | Paypal |
|---|---|---|---|
| USA | ✔ | ✔ | ✔ |
| UK | ✔ | ✔ | ✔ |
| Australia | ✔ | ✔ | ✔ |
| Canada | ✔ | ✔ | ✔ |
| New Zealand | ✔ | ✔ | ✔ |
| India | X | ✔ | ✔ |
| France | X | ✔ | ✔ |
| Germany | ✔ | ✔ | ✔ |
| Brazil | X | ✔ | ✔ |
| South Africa | X | X | ✔ |
| Italy | ✔ | ✔ | ✔ |
| Switzerland | X | ✔ | ✔ |
| Denmark | ✔ | ✔ | ✔ |
| South Korea | X | X | ✔ |
| Sweden | ✔ | ✔ | ✔ |
| Vietnam | X | X | ✔ |
| Israel | X | X | ✔ |
| Thailand | X | X | ✔ |
| Mexico | X | ✔ | ✔ |
| Turkey | X | X | ✔ |
| Malaysia | X | ✔ | ✔ |
| Netherlands | ✔ | ✔ | ✔ |
| Singapore | ✔ | ✔ | ✔ |
| Belgium | ✔ | ✔ | ✔ |
| Spain | ✔ | ✔ | ✔ |
| UAE | X | ✔ | ✔ |
| Portugal | X | ✔ | ✔ |
| Philippines | X | X | ✔ |
| Austria | ✔ | ✔ | ✔ |
| Russia | X | X | ✔ |
| Poland | X | ✔ | ✔ |
| Japan | X | ✔ | ✔ |
Which Countries Have the Highest Number of Online Fraud Cases?
This is one thing many drop shippers may not have considered. In some countries, the risk of you being scammed is greatly increased.
There are always things you can do to reduce the chances of this happening, however, it might be easier to just avoid these countries altogether.
According to bscholary, these are the top 10 countries in the world for the most online fraudsters/scammers.
- Pakistan
- Brazil
- South Africa
- Romania
- Venezuela
- Indonesia
- Nigeria
- India
- China
- Philippines
This list is in no particular order. If you want to dropship to these countries, make sure you do your due diligence and take all the necessary precautions.
Conclusion – The Best and Worst Countries for Dropshipping!
The best country for dropshipping varies depending on several factors. For large-scale, branded stores aiming for high revenue, the US is an ideal choice due to its vast online spending population, efficient shipping, and fulfillment resources. However, the optimal country depends on specific business goals and considerations.
If you plan on dropshipping to the US from abroad, check out my article; “Dropshipping to the US from outside the USA.“
When it comes to breaking into the US market, you need to think outside the box and come up with a unique idea in order to stand out.
The other 4 main options for dropshipping after the US are the UK, Australia, Canada and New Zealand. They are similar to the US on a smaller scale and are all reasonably competitive.
To successfully dropship in markets outside the US, niche targeting might be less intensive. European countries like France, Germany, Switzerland, Austria, and Scandinavian nations, with their large populations, high English proficiency, and strong GDPs, are underexplored by US dropshippers and present opportunities.
However, countries like India, Mexico, South Africa, Thailand, Turkey, Israel, and Brazil are less ideal for China-based dropshipping due to shipping challenges. These markets, however, are growing online and can be tapped into with domestic suppliers. Focusing on English-speaking countries simplifies customer service.
The key is to research products successful in the US and test them in selected markets, adapting your approach based on performance.
