#EUMarkets #DropshippingSuccess #BusinessInsights #ECommerceJourney
I am an E-commerce professional with a four-year track record, primarily focused on fashion sales within the EU markets. Closing my fourth year, I am pleased to share that our revenue has reached $7 million. It is important to note that I mention revenue rather than profits to underscore the varied experiences and challenges encountered throughout this period. While I am not yet a millionaire, I am committed to the continued growth of my business.
Acknowledging that dropshipping may not be universally favored, I maintain that when executed correctly, it provides invaluable business insights. Our approach to dropshipping has allowed us to refine our business acumen significantly. Notably, we have achieved swift delivery times, with some countries experiencing delivery within five days. Over the past two years, we have cultivated partnerships with diverse manufacturers in China, prioritizing the delivery of high-quality products to our customers.
Addressing common challenges associated with selling clothes from China, such as sizing issues, we have established partnerships with warehouses across multiple countries. This network allows customers to easily return goods, without incurring high fees typically associated with many dropshippers. Our warehouse management system efficiently handles returns, ensuring a seamless process for customers and allowing us to reship returned items to fulfill new orders.
Our journey has been marked by trial and error, leading to the establishment of efficient processes and partnerships. I understand that some may view dropshipping unfavorably; however, it remains a lucrative business model, especially for beginners. The multifaceted nature of dropshipping has equipped me with valuable skills spanning advertising, store management, team building, customer service and many more. Essential competencies for pursuing various business ventures beyond the dropshipping realm.
I appreciate the opportunity to share insights from my E-commerce journey and remain dedicated to continuous improvement and success.
While this post isn’t about me, I wanted to provide some background and learn about your experiences in the EU markets. Please feel free to share your insights, tips, and tricks. Here’s what my team and I have observed in the past year while dropshipping in the EU markets.
## NL & BE Market
### 1 – Highest daily revenue:
– Our potential level: 15.000 EURO combined in two 7.5k stores. Daily potential of at least 35K Euro, my favorite.
### 2 – ROAS / AD performance:
Moderate to good, 2.4 – 2.8 ROAS on BIG scale, low level 3+ Possible. Good ROAS + High absolute spend.
### 3 – Customer Behavior:
Most relaxed customers in EUROPE! With good customer support, you should not have any problems with disputes. Very women-focused in our case, don’t know why.
### 4 – Payment methods needed:
Musts are Ideal and bancontact (Bancontact for Flemish region Belgium), credit cards are nice to have and unfortunately you should consider Klarna as well, Increases the CR but not a must for 100K Revenue a month.
### 5 – Special facts about the country:
It is my favorite one, very good payments with low fees, relaxed customers and good scale level, perfect to start in EUROPE, no cash flow issues, you can make easy 100k a month here in revenue.
### 6 – Products and prices:
Very fashion-focused, not so shoe-focused, very woman-focused, price level 5% over USA.
**PRO TIP 1:**
Always google the weather of the country for the upcoming week to decide which products you test, huge differences in temperatures between these countries.
**PRO TIP 2:**
Use mollie for IDEAL and BANCONTACT, lowest fees and next-day payout!
## German Market
### 1 – Highest daily revenue:
Our potential level: 24.000 EURO combined in three stores 3x8k. Daily potential of at least 100K EURO, this market is HUGEEE.
### 2 – ROAS / add performance:
Moderate to good, 2.3 – 2.8 ROAS on a big scale, low level 3+ possible. Good ROAS + High absolute ad spend! Very similar to NL.
### 3 – Customer behavior:
Very unrelaxed customers, especially regarding PayPal, you really need to have top-tier customer service.
### 4 – Payments methods needed:
Musts are credit card and either PayPal or Klarna, best practice is both, but tbh we only go for PayPal, because the CR doesn’t increase and Klarna is shit, Sofort is also nice to have.
### 5 – Special facts about the country:
In terms of entry points and potential Germany should definitely be your place to start! You can start with PayPal and Credit card, you have a big audience and still not the biggest competition! If you come from USA DS go into this market!
### 6 – Products and prices:
Very shoe-focused, in my opinion, the best male audience in EUROPE, price level 5% over USA.
**PRO TIP 3:**
Never use skip cart in Germany and use moderate discounts, Germans are very very suspicious! I would also recommend you change your store or name every 2-3 months, even if you do top-tier service.
**PRO TIP 4:**
If you want to keep it easy, do a male store in Germany, PayPal cc, and sofort! Very relaxed CS, and you don’t need Klarna in any way.
## Scandinavian Markets
Scandinavia (Sweden, Norway, Finland, Denmark) I put them together because they are very similar in terms of behavior:
### 1 – Highest daily revenue:
Our potential level Sweden was 20k EURO, Norway 6K, Finland 10K, and Denmark 5K.
### 2 – ROAS/ ad performance:
Finland, Denmark, and Norway moderate to good, 2.3 – 2.8 ROAS on a big scale, low level 3+ Possible. Sweden has definitely the highest overall ROAS, 3+ is very likely even for scaled numbers, on low scale 4 – 5 ROAS is very possible!
### 3 – Customer behavior:
Very requesting customers and in my eyes, the hardest to keep your dispute rate low! Klarna and Credit card cases (they can even open a cc case in their banking app) can be opened with ease and I have the feeling that they are somehow negatively influenced.
### 4 – Payment methods needed:
If you would have asked me in 2021 I would say that they will be the next big thing, you only needed a Credit Card and had an awesome ROAS! But yeah unfortunately it changed, Klarna is a must for all four countries! In Denmark, you could try to do PayPal and Credit card instead.
### 5 – Special facts about the countries:
Be aware! In my opinion, this is definitely advanced! Don’t get too excited about the low entry risk and very good ROAS! Klarna is a headache!!
### 6 – Products and prices:
Very fashion and female-focused – price level 5 – 15% over USA.
**PRO TIP 5:**
Get your business running in Germany and or the Netherlands, and if you have a process, move to these countries! If you know products have good quality and you want to make an easy 10k profit a month, go into Sweden, keep your ad spend to a maximum of 500 euros…
**PRO TIP 6:**
Never ever use Klarna via Stripe or Mollie for DS! They will screw you! You will lose literally every case because they don’t have any insights into your store or into the relevant order and its documentation. We lost 80k in profit on that last year!
Yes, Klarna through Klarna or best case through Shopify payments is the way to go!
## France, Italy, Poland, Spain, UK
TBH we never really crushed it there, France had some 2/3k days. I am sure France has a bigger potential but maybe we haven’t found the strategy yet!
PS – If you liked these kinds of personal breakdowns, consider my weekly newsletter where I share my personal EU dropshipping insights in a 5-minute read. [Read here](https://www.dsrenaissance.com)
This is a very thorough explanation of a well thought out ecommerce plan. I have always wondered what the inside of this looks like. This is a very transparent look behind the curtain. Thank you.
Is there any particular reason you chose the EU over North America for DS? Any plans to expand your products to the US?