A lot of dropshippers hit a roadblock early on in their journey while trying to figure out which target market is the best to focus their attention on. It’s a daunting task that can feel impossible to make a decision on without some vital information and statistics.
After conducting thorough research and analysis, we have compiled a list of the 48 countries that are the best for dropshipping in 2022. We have created an easy list and crunched some numbers for your better understanding.
So, let’s dive in.
What are the Best Countries to Target for Drophipping?
Listed below are 48 countries that will provide you with the best opportunities for dropshipping. The list is compiled on the basis of four parameters that will determine access, cost and hence, profitability.
|No||Country||Country Code||Free Duty Value||Duty & Tax Rate||Service Rate|
Why these are the Best Countries to Dropship in 2022?
Here are the four reasons that we have used to list these countries as our top options for dropshipping.
1. Fast Line
We are sure that you’d agree that shipping is one of the most important, and often challenging, aspects of dropshipping. This is why we decided to only consider countries that are accessible by Fast Line from China.
Fast Line is a shipping service that provides merchant with an expedited shipping option. It’s important to note that Chinese logistics and Shipping services do not offer Fast Line to several countries yet. These 48 are your best bets.
2. It has the Max Duty Free Value for each country
Each country has a max Free Duty order value for which, you will not have to pay any duties or taxes on the products that you are shipping.
USA for instance, caps this at $800 while the UK caps it at $178. Many European countries like Ireland, Greece and Denmark to name a few have this set at zero. So, even if you are shipping one single item, duty will be applicable.
Being aware of this helps you to price your products competitively and not have to worry about additional charges when your products reach the destination country.
3. Duty and Tax Rate
Many countries levy duty regardless of the order value. However, this duty is often a percentage of the order value and not a fixed amount. This means that as the price of the product increases, so does the duty payable on it.
Australia for instance, levies a 10% duty, but Brazil levies a whopping 60%. Once again, it is important to know this information because it will impact pricing and help you to maximize your margin.
4. Service Rate
From July 21, the IOSS or International One Stop Shop electronic portal was created to help VAT international shipments. However, there are many dropshippers who operate without an IOSS number.
The Chinese Shipping/Logistics company that you use will levy a service rate if you do not have a valid IOSS number. This usually will be paid to your dropshipping agent or private supplier. The final column in the table shows you the country and the service rate that they levy for each one. This will be in addition to the Duty and Tax rate, mind you.
So, if you are shipping to Hungary, a 27% duty and a 2% service fee will apply
It’s easy to overlook these tiny factors that may seem inconsequential from a dropshipping perspective. However, they can have a massive impact on your profit margin and overall revenue if you aren’t careful.
It is always better to be aware of these things so that you can plan accordingly and maximize the potential of your dropshipping business.