How Does Dropshipping Work?
Are you targeting the booming UK e-commerce market but struggling to seek supplies and handle inventory? Then you will be interested in dropshipping.
Dropshipping is an e-commerce model. You don't need to own inventory, all you have to do is choose and promote dropshipping products, and run your store. Product production, packing, and shipment will be handled by your dropshipping supplier.
Is Dropshipping Profitable in the UK?
According to the Office for National Statistics, e-commerce revenue in the U.K. reached £693 billion in 2019, up significantly from the previous year. There are plenty of opportunities to start with an e-commerce business in the UK! Dropshipping is now chosen by around 27% of online retailers, according to E-DSS.org. Dropshippers make roughly 50% more money than sellers who keep their inventory.
If you want to dropship in the UK, finding high-quality dropshipping suppliers is the most crucial thing for you! The following article will provide you with the best 12 UK dropshipping suppliers, and you will know how to find a reliable dropshipping supplier.
Increase your dropshipping profitability by 200%!
They Guarantee Satisfactory Service
If you don't want your business to crash due to negative client feedback, make sure that the services of the dropshipping supplier meet the following requirements:
💁 Their shipping service is fast and cheap. You should choose a supplier with warehouses in the UK or surrounding European countries. This can enhance shipping speed and lower costs.
💁 They offer 24/7 after-sales support. The supplier must respond quickly when the product needs to be returned or repaired.
💁 Their reputation is good. A good reputation indicates that the supplier is trustworthy and efficient. Customer reviews may tell you a lot about a dropshipping supplier's reputation.
They Respond to Your Questions Promptly
Dropshippers always ignore the importance of communicating effectively with the UK dropshipping suppliers.
Imagine this: if your consumers place an urgent order with you, but your supplier takes a long time to answer, then you're likely to lose a significant customer. In addition, effective communication can guarantee the supplier handle product maintenance, returns, and exchanges timely.
These questions will help you figure out if a supplier can communicate effectively with you:
💡 Is his language/country the same as yours?
💡 Can he always quickly understand and answer your questions?
💡 Can he speak clearly and logically？
💡 Is he friendly and sincere?
They Provide Profitable Products
Before cooperating with a supplier, you need to consider whether its products will produce money for you. The following questions may help you determine whether a product is lucrative：
🔎 Is this product promising? FindNiche can make it simple to identify the best UK dropshipping suppliers of niche products. FindNiche is the #1 niche finder that can recommend dropshipping niche products.
🔎 Can you make a decent profit after deducting expenses? Shipping, product fees, per-order fees, and other costs will be charged by dropshipping suppliers. If you generate a good profit after removing these costs, you can cooperate with the supplier.
🔎 Is this dropshipping company cutting-edge and high-tech? This indicates that the supplier can offer high-quality goods for a long time, which is beneficial for you!
🔎 Do they give samples? With the samples, you can check product quality, shipping time, and after-sales service of the supplier. And you can test the supplier's reliability.
They Don't Sell to The Public
If the suppliers sell to the public, they may be your potential competitors. This will lead to a bad impact on your business.
In addition, here are some things a reputable dropshipping supplier will not do:
❌ Lack of contact information. A dropshipping supplier who does not provide basic information such as a phone number, address, or email address is most likely a phoney.
❌ Charge inexplicable fees. Dropshipping suppliers will only charge a per-order fee. It is not reasonable to charge a monthly or membership fee. There is one exception, wholesaler directories or one-stop dropshipping platforms that charge a fee for the cost of operating.
❌ Refuse to provide samples. You must request samples from a dropshipping supplier before working with them. Suppliers who refuse to supply samples, regardless of the reason, are suspect.
✅ A large selection of products. Almost any product category is available.
✅ Affordable. Many AliExpress items are created in China, so they are cheap and of good quality.
✅ Easy synchronization. You can swiftly add AliExpress products to your store by Oberlo.
❌ Intense competition. Multiple sellers will resell a product on AliExpress, resulting in a intense competition.
✅ Automatically fulfill orders. You can link your store to CJ Dropshipping products. It can be synced to your CJ. account automatically when a consumer places an order in your store.
✅ Easy payment. CJ Dropshipping accepts 8 payment methods from over 200 countries, including Paypal, wire transfer, paysion, etc.
✅ Personalized service. If the product you desire is not available on CJ, you can ask them to order it for you, which will be handled within 48 hours.
✅ Free automated tools. Banggood's automated tools include the AliExpress API, eBay API, and Banggood API systems, all of them are available for free. This makes it easy to list products and keep track of the inventory.
✅ Good discount. They provide a 5% – 20% discount on dropshipping products,
❌ Only supports PayPal payments. As a result, you need to open an account with PayPal.
💷Basic service: It's free for you to access all premium suppliers
💷Premium service: You can access all listed supplier and wholesaler details.
- £20 a month
- £50 for 6 months
- £75 for 12 months
✅ A large number of UK suppliers. Whether you're looking for well-known eBay dropshipping suppliers UK or niche dropshipping suppliers, you'll find them here.
✅ Ensure the reliablity of suppliers. eSource verifies dropshipping company information to ensure you can find trustworthy suppliers.
❌ Simple function. There are no sales data, customer reviews, or other information available in eSource, only descriptions of dropshipping suppliers and dropshipping products are provided.
💷 Suppliers Database: You can access the largest UK dropshippers database.
- £30 a month
- £60 for 6 months
- £90 for 12 months
✅ High profit. You can buy wholesale and dropship products at 45% to 95% margins. What a fantastic profit!
✅ Rich industry experience. Wholesale Deals is one of the oldest wholesale directories in the UK. Its dependability has been validated by many customers.
❌ No integration. You must upload product information and update inventory manually to your store, which may take some time.
✅ Free Shipping. Shipping is free in most locations of the UK. However, distant locations such as Northern Ireland and the Channel Islands will be charged by weight.
✅ No MOQ. Even if you only require one item, it can be delivered.
✅ Ordering is simple. You just need to add items to the cart and check out, and GoDropship will handle the rest. You can upload orders in bulk if you have a significant quantity of them.
❌ Product launch is limited. There is simply a brief written and image introduction, making it difficult to learn more about the product.
💷 Free version: You can apply for a one-month free trial.
💷 Starter: £19.99+ VAT per month
💷 Advanced: £49.99+ VAT per month
💷 Business: £99.99+ VAT per month
💷 Guru: £149.99+ VAT per month
✅ One-stop service. Avasam's services cover every step of your sales process, making it simple to run your business.
✅ Automate business management. With a single click, Avasam may upload orders and synchronize product information to BigCommerce, Shopify, eBay, and other platforms.
❌ Expensive. You must give Avasam additional money as the order grows. If your profit margins are low, this platform is not for you.
💷 Free version: You can apply for a 14-day free trial.
💷 Starter: $24.99(£19.20) per month
💷 Pro: $49.99(£38.20) per month
✅ Branded Invoicing. To make your products more recognized, Spocket can apply your branding to product invoices.
✅ Excellent client service. Spocket provides 24/7 customer service to help you solve problems at any time. Spocket's personnel is quick to respond to questions and has a polite demeanour, according to Trustpilot's assessment.
❌ Charges a membership fee. Some premium products require a membership fee to dropship, which is not friendly to novice dropshippers.
You can use Printify for free. Or, you pay a monthly premium of 29 usd(£21.72), which gives you a 20% discount when purchasing products.
✅ E-commerce platform integration. Printify integrates with popular e-commerce platforms such as Shopify, Etsy, Wix, and others, allowing you to sell to millions of online buyers easily.
✅ Simple selling process. You just need to choose a decent product and send your design to a supplier, and he will customize and deliver the product to your customer.
❌ Few suppliers are not good. Although most people find great suppliers on Printify, some customers think that the suppliers are not reliable. So when you are looking for a supplier at Printify, carefully test their service, product quality and reputation before cooperating.
✅ Excellent customer service. TBTrade always delivers on time and guarantees good after-sales service.
✅ High quality products. TBTrade offers innovative, long-lasting products to ensure customer satisfactiont.
❌ Limited product selection. TBTrade has less items than huge placemarkets such as AliExpress.
- Telephone: 08444142350
- Email: email@example.com
- Address:The Granary Grange Farm Business Park, Woodhurst PE28 3BQ, UK
✅ Beautiful and unique products. Here you will find special products. Aromatherapy, toys, fashion, goth, and other interesting presents are available.
✅ Affordably priced. The products are reasonably priced, allowing you to make a great profit.
❌ Inability to supply the European Union. Puckator delivery is temporarily unavailable in the EU due to Covid-19 and Brexit. However, orders to the United Kingdom, Northern Ireland and EC countries (Switzerland, Norway, etc.) are unaffected.
- Email: firstname.lastname@example.org
- Opening Times: Monday - Friday
- Address: Lowman Works, East Taphouse, Cornwall PL14 4NQ, UK
✅ Decades of experience. This supplier ek wholesale has over 20 years of experience in the clothes supply industry, and it works efficiently and reliably.
✅ Allows your brand to be used. ek wholesale can personalize garments with your brand and design if your purchase quantity is significant enough.
❌ Approval is required. To become a member of ek wholesale dropshipping, you must first fill out a brief application form.
- Telephone: 0141-429-0165
- E-mail: email@example.com
- Opening Times: Monday - Friday: 9:30 am - 5:30 pm
- Address: 589 Lawmoor Street, Dixon Blazes Industrial Estate, Glasgow, G5 0TT
Find niche products to boost your business!
Find Niche Products to Sell
According to many successful dropshipping sellers, the following tips will assist you in selecting the best dropshipping products.
Choose a category that appeals to you. You might be an electronics enthusiast or a plant specialist, so that is a good category for you. In this way, you can better understand what products your customers like.
Research products. It's essential to know the potential of products before selling them. You need to know adequate information about products such as the level of competition, the size of the market, etc. Based on comprehensive data, you are more likely to pick out profitable products. FindNiche provides a lot of data about Shopify and AliExpress dropshipping products, including product sales, ratings, collections, reviews... It can help you to find trendy and niche products.
Choose a Marketplace That Suits You
Amazon, eBay, Shopify, or Etsy, which marketplace should you sell on? These questions will assist you in determining the best marketplace for your business:
🛒 Is this marketplace expanding?
🛒 Is there a sizable market for your product?
🛒 Are there a lot of competitors?
🛒 Is it possible for you to outperform your competitors?
Having decided on the marketplace, now you need to open your store and run it. To simplify the operating process of your store, you can use tools to automate dropshipping, such as OBERLO for Shopify dropshipping, Dropified for AliExpress, and eBay dropshipping.
Working Closely with Your Suppliers
If you've identified a dropshipping supplier in the UK, build long-term, trusting relationships with it. In the meanwhile, reach a consensus with your dropshipping supplier: your shared goal is to provide excellent products and services to your clients. You may share the gains and take risks jointly if you have the same goal.
Having a reputable UK dropshipping supplier is lucky! The supplier will help you earn a lot of money in the UK market. Value your supplier!
Promote Your Dropshipping Store
In order to increase your store traffic, you should promote it to the public. The most cost-effective way is to promote on social media. You can become an influencer on Facebook or YouTube. For example, if you're a clothing dropshipper, you can share some apparel matching and selecting skills with others. In the meanwhile, you can gain fans and build industry authority, and some customers will come to buy your product.
In addition, advertisement is a good way to bring customers. If you want to advertise your store, you can use FindNiche's Ad Spy to spy on competitors' advertising strategies. FindNiche will tell you what advertising creatives and advertising channels are being used by your competing products. Learning from your competitors is the easiest way to do promotion.
How is Dropshipping Taxed in the UK?
As a UK dropshipper, you are subject to income tax and VAT, and customs duties if your goods are imported. There is a detailed explanation of the 3 taxes:
Income tax. It is the UK government tax on the money you earn. When your income is under £12,500, you don't pay tax, and when your income exceeds £12,500, you pay 20% to 40% tax on the excess.
Value-added tax. It is a consumption tax assessed on the value added to goods and services. The tax rate is 20%, while the reduced rate equals 5% (for some categories of goods). Some products are exempt from value-added tax.
Customs duty. It is zero on goods valued below £135. When your consignments cost more than £135, you should pay 2.5% or more.
Can I Start a Dropshipping Business in the UK from Another Country?
Yes, you can! Whether you are from the USA, Australia, or New Zealand, you can dropship in the UK. The premise is that you have to do market research about the products, brands, and advertisements that the UK people like.
FindNiche will help you filter out the top AliExpress and Shopify stores in the UK and track their popular products, marketing channels, and ranking changes.
If you want to sell unique products from your own country, you can filter products for your country at FindNiche, then you will see what your fellow countrymen are selling in the UK.
What Are the Most Profitable Dropshipping Niches in 2022?
According to data from Shopify Database of FindNiche for 2021, the most popular dropshipping products in the UK include the following categories:
- Office and school supplies
- Clothing, shoes and jewellery
- Home improvement
- Beauty and health
- Sports and entertainment
- Consumer electronics
- Mother and kids
- Toys and game
If these products are not suitable for you, you can monitor more niche and trending products for 2022 with FindNiche.
What Tools Can Help Dropshippers Enhance Business?
Do you want to simplify the dropshipping process, and grow your business? Then you can't miss these tools, which can solve most of your business growth problems.
Ecommerce website creating tools:
CoreCommerce, Shopify, WooCommerce
Product and market research tools:
Google Trends, SellerCenter, FindNiche, SourceLow
Is There Any Risk of Dropshipping？
The main risk of dropshipping is the lack of control over the supply chain. Because the goods are produced and delivered by dropshipping suppliers, you have no control over inventory, shipping, and product quality. Therefore, it is very important for you to strictly select reliable suppliers, which can help avoid a lot of losses.
Second, if you choose general products to sell, there are always many competitors. Therefore, you should know how to find profitable niches with low competition, which can reduce your competitive pressure and bring substantial profits.
Do I Need to Register a Company If I Dropship in the UK？
It is not necessary, however, if you want to dropship for a long time, you'd better register a business.
Registering a business can be beneficial for you to avoid dropshipping legal risks and expand your scale.
Besides, stores with companies are more likely to be trusted by consumers.