Is it possible to establish a dropshipping business in Germany? Well, we’ve witnessed the growing popularity of dropshipping in other regions of the world, like the USA, the UK, and Australia. To replicate this success, dropshipping in Germany is a promising venture to enter into.
Thus, this article will pave the way for our dropshipping in Germany venture. Get ready; we’ll learn all there is to know about how to jumpstart our dropshipping business in Germany.
Why Start A Dropshipping Business In Germany?
eCommerce plays an integral role in Germany’s retail industry. Thus, establishing a dropshipping business in Germany is worth it.
In fact, the eCommerce revenue in Germany reached about 73 billion euros in 2020. And, forecasts expect that this market value will continue to increase in the years to come. Therefore, starting our online stores in Germany can bring massive profits to our business.
That’s why, there’s no better time to begin dropshipping in Germany than now.
The Advantages & Disadvantages Of Dropshipping In Germany
To decide if starting a dropshipping business in Germany is a good idea, we must consider both the benefits and drawbacks. So, here are the advantages and disadvantages of dropshipping in Germany:
Advantages
- Low start-up cost
- Low-risk & high-reward
- Scalability
- Automate everything
- Work with multiple suppliers
- Flexibility
- Diverse product selection
Notably, dropshipping in Germany is a low-risk and high-reward business model that lets us enjoy massive profits. With dropshipping, we can enjoy full automation benefits and partner with different platforms. Above all, dropshipping in Germany is highly scalable and flexible, allowing us to reach bigger markets.
Disadvantages
- Competition
- Lack of control over the supply chain
- Inconsistent policies depending on sources
On the downside, there is competition within the eCommerce industry in Germany. In addition, we don’t have control over stocks and policies, since our suppliers handle the inventory and fulfillment of orders. To manage these drawbacks, we can work with multiple suppliers and optimize a stock monitoring tool.
All in all, the benefits of dropshipping in Germany outweigh its disadvantages. As such, entering into this eCommerce market is a worthwhile decision.
Is It Legal To Dropship In Germany?
In Germany, dropshipping is a legal business model, as long as we comply with eCommerce regulations. To ensure that our dropshipping business is operated legally, it is essential to familiarize ourselves with the following areas:
Primarily, we need to understand the tax obligations as dropshippers and ensure that we are paying the required taxes, such as the VAT. For goods or services sold to consumers in Germany, we will need to charge VAT at the applicable rate.
Meanwhile, anyone commercially active in Germany is considered a seller and must register as a business in the region. Moreover, dropshipping legal products is crucial in maintaining the legality of our business operations. With that said, we must avoid selling intellectual property-protected, hazardous, age-restricted, and similar products.
Ultimately, dropshipping in Germany can be a simple and successful venture as long as we fulfill all our legal obligations.
13 Best Dropshipping Suppliers In Germany
We need reliable suppliers for the success of our dropshipping Germany business. Remember that our suppliers are our business partners, so the service we receive from them is what we extend to our customers. On that note, we have compiled a list of the top 13 dropshipping suppliers to work with:
Interestingly, most of the suppliers on the list are AutoDS-supported platforms. Therefore, we can enjoy dropshipping automation, a faster and easier way to run our dropshipping business in Germany. Now, let’s proceed with the features these suppliers offer to dropshippers.
1. Costway
To kick off the best dropshipping in Germany suppliers’ list, we have Costway. As one of the biggest eCommerce retailers in Europe, Costway provides these key benefits:
- Premium items
- Competitive pricing
- Flexible shipping arrangements
- Trustworthy customer support
- AutoDS-supported platform
Costway is known for its premium products, with over 8,000 self-branded items available in 10 different categories. Despite offering high-quality products, Costway still maintains competitive prices. Therefore, we can set high-profit margins on products we source from this supplier.
Additionally, Costway offers free standard shipping on all items. Plus, we can extend the platform’s 30-day return and refund policy to our customers. Undeniably, Costway’s commitment to customer support leads to buyers’ confidence in our business.
2. DHGate
Our next top dropshipping Germany supplier is DHgate. This wholesale platform offers our business these advantages:
- Comprehensive product selection
- Low-cost items
- Domestic warehouses
- Fast worldwide shipping
- Integrates with AutoDS
Primarily, DHGate provides a comprehensive selection of over 20 million products in various categories. As a reputable Chinese supplier, DHGate offers wholesale prices, enabling us to source at lower costs. As a result, we can maximize our profit potential.
Moreover, this wholesale platform houses around 16 domestic distribution centers all over the world, including Germany. With these local warehouses, we can quickly deliver customer orders that will lead to greater satisfaction.
3. eBay
Yet another retail giant when dropshipping in Germany is eBay. As such, eBay extends the following perks to our dropshipping stores:
- Wide product catalog
- High selling standards
- Exceptional customer support
- Quick shipping options
- Connects with the AutoDS platform
As a renowned dropshipping supplier, eBay provides a wide product catalog under various niches. The company is known for maintaining high standards for its sellers, encouraging them to provide excellent service to clients. This commitment to customer satisfaction is beneficial for both sellers and buyers.
Besides that, eBay has a feedback system that helps sellers find the right suppliers for their stores, as well as tracking metrics to assist with transactions. Finally, eBay offers fast shipping in various regions, including Germany. Hence, making it easier for dropshippers to reach customers quickly through domestic shipping.
4. Amazon
Following our list of the top dropshipping suppliers in Germany is Amazon. As one of the biggest names in the retail industry, Amazon benefits our business in the following ways:
- Extensive product choices
- Top-quality items
- Quick shipping times
- Outstanding customer support
- AutoDS-supported supplier
Notably, Amazon has an extensive selection of products that meet a wide range of consumer needs. Typically, product quality is consistently high. The company also has a “Best Sellers” section, highlighting popular and in-demand products.
In addition, Amazon is known for its fast shipping times, and subscribing to Amazon Prime can even provide same-day delivery in some locations. This quick shipping is made possible by domestic warehouses in Germany. Lastly, Amazon’s customer support is outstanding, with open communication lines available 24/7 to assist clients.
5. AliExpress
Undoubtedly, AliExpress is a huge sourcing platform when dropshipping in Germany. This dropshipping supplier lets us stay ahead of the competition with these features:
- Wide array of products
- Low-cost pricing
- AliExpress dropship center
- Several delivery options
- Integration with AutoDS
AliExpress is a popular retail platform that offers a wide array of trending products. With over 100 million items available, we can score great finds at competitive prices.
Also, AliExpress has a dropship center that helps online sellers find successful products through product analysis. In addition, AliExpress paves the way for faster delivery of orders through several shipping options. As a result, we can attain high customer satisfaction through the timely delivery of packages.
6. Banggood
Next, Banggood is a Chinese retail platform that provides many benefits to our dropshipping Germany business. With that said, here are the top-notch features that Banggood provides:
- Best-selling products
- High-profit margin
- Exclusive membership perks
- AutoDS-supported platform
Interestingly, Banggood is a dropshipping-friendly supplier that offers a large selection of products, with over 250,000 items available. This supplier carefully selects and tests its products to ensure quality. Aside from that, these items are also offered at competitive prices, which can lead to higher profit margins.
By sourcing from Banggood, we will offer top-quality products that set our business apart from other online stores. Moreover, Banggood offers exclusive membership perks, including the ability to extend discounts and cashback to buyers.
7. CJDropshipping
Our next in-demand dropshipping Germany supplier is CJDropshipping. As a wholesale platform, here are the advantages we can enjoy from working with this supplier:
- Endless product ideas
- Sourcing services
- Branding solutions
- Print-on-demand feature
- AutoDS-supported supplier
As a dropshipping-friendly platform, CJDropshipping provides only high-quality and popular products to dropship. It also provides sourcing services to clients, allowing us to request products not readily available on the platform.
In addition, CJDropshipping offers branding solutions to help us build our business reputation. Likewise, its print-on-demand feature means we can import unique products to our stores. These excellent tools can help our business establish a strong name in Germany.
8. Wayfair
Highlighting the furniture and home goods niche, Wayfair is another dropshipping supplier we can work with. This retail platform extends these worthwhile perks to its clients:
- Top-notch product range
- Flexible delivery arrangements
- MYWAY program
- Diverse payment options
- AutoDS-connected supplier
With over 15 million home improvement products from 11,000 global suppliers, Wayfair is a sought-after dropshipping supplier. The platform features high-quality, durable products for home improvement. Besides that, Wayfair provides flexible delivery arrangements, fulfilling German customer demands as quickly as possible.
Meanwhile, the platform has the MYWAY program that gives users instant access to thousands of exclusive items. Furthermore, Wayfair offers a variety of payment options, including major credit cards, Apple Pay, PayPal, and wire transfer.
9. VidaXL
VidaXL is a retail company showcasing the home niche. Subsequently, here are the key reasons to start working with VidaXL as our dropshipping Germany supplier:
- Top-caliber home goods
- Competitive prices
- Free shipping
- 24/7 deals online
- AutoDS integration
VidaXL provides us with a vast selection of top-caliber home goods for the German market. Additionally, this supplier is dedicated to providing high-quality products at affordable prices. Similarly, VidaXL is constantly expanding its product selection and aims to offer the most competitive prices in dropshipping.
On the other hand, VidaXL has free shipping on most products. On top of that, this platform has 24/7 deals available and offers auctions on the site for users to find great deals.
10. Shirt-King
Remarkably, Shirt-King is a home-grown dropshipping Germany supplier showcasing textile production. Now, let’s explore other features of this retail supplier:
- Unique product line
- Print-on-demand services
- Commitment to sustainability
- Speedy shipping times
Shirt-King focuses on a unique product line, producing textile-related goods. In line with that, the company welcomes customized designs through its print-on-demand services.
Aside from that, this German supplier is known for its commitment to sustainability. In fact, most of its clothing items are made of cotton, and the inks used are water-based. On top of that, Shirt-King delivers customer orders in two to five days within Europe.
11. Gallay
Another German retail supplier to start working with is Gallay. This company offers these main features for our dropshipping Germany business:
- Niche-specific product catalog
- Top-quality items
- Wide selection of jewelry pieces
- Up-to-date inventory
For dropshippers who want to venture into the jewelry niche, Gallay is the perfect supplier. This platform offers a top-quality selection of gold jewelry, silver pieces, decorative stones, and more. We can dropship thousands of jewelry pieces from this supplier, serving every customer’s needs.
Moreover, Gallay constantly updates its inventory with the latest trends. So, we should always be on the lookout for new and innovative jewelry pieces that our customers will love.
12. Manolya Electronics
Joining the list of Germany-based suppliers is Manolya Electronics. To know more about what this dropshipping Germany supplier has to offer, here are its key features:
- Exclusive items
- Wholesale benefits
- Integrates with renowned brands
- On-point customer support
As a niche platform, this supplier provides a great catalog of electronic products. Being a wholesale supplier, Manolya Electronics offers these items at reasonable prices, allowing us to set higher profit margins. Plus, the company lets us access exclusive appliances to dropship.
Furthermore, Manolya Electronics integrates with renowned brands in the electronic industry. Finally, this supplier’s excellent customer service, which can be accessed through email or phone, enhances the customer shopping experience.
13. Atixo
On to our last dropshipping Germany supplier, we have Atixo. This Germany-based retailer extends the following key features to dropshippers:
- Exceptional fashion range
- Same-day shipping
- Dropshipping-supported
- Flexible payment terms
Exceptionally, Atixo ventures into the clothing and fashion niche. As such, we can dropship many items, including lingerie, costumes, and more. Plus, a same-day shipping option is available when customers settle their orders before two in the afternoon.
Since Atixo supports dropshipping, the company gives us access to premium photos and promotional materials we can use in our stores. Meanwhile, German customers can enjoy flexible payment terms, extending up to cash on delivery arrangements within Germany.
How To Start A Dropshipping Business In Germany
Building a successful dropshipping business is beyond just sourcing trending products. Thus, let’s review the seven essential steps to start dropshipping in Germany:
- Product Research: Finding Best Sellers In Germany
- Select A Dropshipping Supplier In Germany
- Set Up Your Online Dropshipping Store
- Import Dropshipping Products To Your Store
- Promote Your Dropshipping Business In Germany
- Fulfill Your Customer Orders
- Provide Excellent Customer Support
Let’s get into it!
1. Product Research: Finding Best Sellers In Germany
To successfully start dropshipping in Germany, we need to find the best sellers in the region. To do this, we must carry out comprehensive product research. In essence, product research allows us to understand the current trends and market needs.
On that note, here are efficient ways to find top sellers in Germany:
- AutoDS Winning Products Hub
- AutoDS product-finding blog
- AutoDS best-sellers YouTube playlist
- Search Supplier’s Best-Seller Sections
- Spy On Your German Competition
- Analyze Social Media Trends
- Analyze Dropshipping Ads
- Google Trends For German Market
- Google Lens
Let’s talk about one of the most effective product research methods: the AutoDS Winning Products Hub. With this innovative tool, we can access target audiences’ statistics, ad engagements, supplier links, and more. This tool allows us to import trending products to our online stores with a click of a button.
Plus, the AutoDS product research spreadsheet can help us collect and narrow down the trending items on our list. We can analyze the products that can give us the highest profit potential.
We can also search our suppliers’ websites to see the most frequent purchases and chart-topping sales. Another way to find best-sellers is by spying on our German competitors to uncover what products and strategies work best for them. We can use various spy tools to gain more insights on our competition. Additionally, analyzing social media trends can give us insights into what products can generate the highest sales.
Moreover, the analysis of dropshipping ads lets us access engagement rates, which means we’ll know which items can give us maximum sales conversions. On the other hand, Google Trends analyzes customers’ activities and provides insights into popular keyword searches. Meanwhile, Google Lens is an image recognition technology that allows us to uncover the suppliers, behind products by using their images.
2. Select A Dropshipping Supplier In Germany
Earlier, we explored the best dropshipping suppliers in Germany. From a wide selection of top-sourcing platforms, how can we choose the best ones for our business? To help us decide, here are the factors we should consider when choosing a reliable supplier:
- Clear & practical return, shipping, and payment policies
- Domestic warehouse in Germany
- Fast shipping times
- Wide product range
- High-quality & affordable products
- Positive reviews
- Excellent customer service
It’s important that our dropshipping suppliers meet these requirements. That way, we can ensure quality products and top-tier services, which we extend to our customers.
Ultimately, working with multiple suppliers can benefit our dropshipping business. By sourcing from different suppliers, we can ensure a steady inventory flow and competitive pricing.
3. Set Up Your Online Dropshipping Store
The next step when establishing our dropshipping Germany business is to set up our online stores. To do so, we must create a store with a dependable selling channel. A selling channel is a platform where we connect with customers and offer them our items.
Generally, selling channels can be online marketplaces or eCommerce websites. In particular, online marketplaces are platforms with an existing audience base. On the other hand, eCommerce websites enable us to establish our stores from scratch, allowing us to build a strong brand.
So, here are excellent selling platforms for our dropshipping Germany business:
- eBay
- Shopify
- Wix
- WooCommerce
In the following sections, we’ll discuss the features of these selling platforms.
eBay
Key Features
- Large customer base
- Built-in seller tools
- Flexible selling options
- Feedback and rating system
- Huge market competition
eBay is one of the most widely utilized marketplaces in dropshipping. The platform has free organic traffic and supports a vast database of dropshipping products. Despite having tight competition, eBay Germany enables us to integrate with other platforms to optimize our business.
Shopify
Key Features
- Fully customizable
- No selling limits
- Scalable
- Your domain, your business
- No organic traffic
Next, we have Shopify, a popular customizable eCommerce website. With this selling channel, we can customize our stores according to our business’ identity. Although there is no organic traffic on Shopify, we can invest in effective marketing to make our business known in the market.
Wix
Key Features
- Customizable online stores
- Shipping and tax management
- Analytics and reporting
- Unique domain
- Lacks organic traffic
Just like Shopify, Wix is a customizable website that helps us create distinct branding. However, the platform has no organic traffic. Nevertheless, many promotional methods are available on Wix that will help us stay ahead of the competition.
WooCommerce
Key Features
- Flexibility in design
- Diverse payment options
- Scalability
- Large community support
- Complexity in setting up stores
Finally, WooCommerce is an eCommerce plug-in that integrates with WordPress. As such, we can enjoy the flexibility of designing our dropshipping stores distinctively. To further enjoy full customization, there are free and paid extensions that connect with WooCommerce to optimize dropshipping processes.
After we gain experience with one selling channel, we can expand our business by opening multiple dropshipping stores. For instance, we can manage different stores on eBay and Shopify to maximize our audience reach.
4. Import Dropshipping Products To Your Store
Once we have trending products and reliable platforms, the next step is to import products. For our dropshipping Germany business, AutoDS provides four automatic importing methods:
- One-Click Importer
- Single Product Uploader
- Multiple Product IDs/URLs
- Bulk Importer
Now, let’s demonstrate the one-click importer method.
One-Click Importer
To automatically import products with just one click, we need to install the AutoDS Helper Chrome Extension. When installed, search for a product on the supplier’s website and click the ‘Import to AutoDS’ button on the product page. This will transfer the product information to the ‘Drafts’ section of AutoDS.
Conversely, manually importing a product requires copying and pasting the product information one by one. Therefore, we need to go back and forth from our supplier’s website to our selling channel to do this. This process can be tedious when dealing with a comprehensive list of products, so the automatic means is more efficient.
Once the automatic transfer is complete, the product will be available in the ‘Drafts’ section and ready for optimization. To optimize the product, edit its title, description, tags, and other necessary details.
Optimization helps to assign relevant keywords to the item. Thus, improving its ranking in customer searches and presenting the product professionally in our dropshipping stores.
After optimizing the product, click the ‘Save’ button on the AutoDS drafts page to apply the changes. To make the product available in your selling channel, click the ‘Save & Import’ button. Once imported, the product will be available under the ‘Products’ page on the AutoDS platform.
When manually updating our products’ information, we need to access our selling channel and revise the data individually. When using automation software, we can just edit the item details on AutoDS, and the changes automatically reflect on our online stores.
Once the product import is done, customers can start viewing and purchasing the product. Therefore, leading us to our first dropshipping sale.
5. Promote Your Dropshipping Business In Germany
Continuously promoting our business, even after we start making sales, is crucial for the success of dropshipping in Germany. As such, marketing helps to reach a wider audience and build a unique brand in the market. Remember that this is especially important in a competitive market like Germany.
Here are some effective selling channels with their respective marketing strategies for our dropshipping business:
Shopify/Wix/WooCommerce
- PPC ads
- Email marketing
- Influencer marketing
- Blog
- Social media posts (go viral on platforms like TikTok)
eBay
- Promoted Listings Advanced
- Promoted Listings Standard
- Volume Discounts
- Sales Events
- Send Offers
Certainly, using the proper advertising techniques can help to drive sales. Thus, contributing to the success of our Germany dropshipping venture.
6. Fulfill Your Customer Orders
Ultimately, the right promotions will drive significant sales to our stores. Subsequently, order fulfillment in our dropshipping Germany business must be done in a timely manner. To serve customer demands, we can do manual or automatic fulfillment.
The manual fulfillment method limits us from maximizing the orders we can serve in a day. This is because we need to manually purchase the item from the supplier’s website and input the customer’s details individually.
To save us from this laborious task, we can utilize AutoDS’ Automatic Orders feature. Here, the system uses our buyer accounts, which are payment method preferences we’ve set up with our suppliers, to process orders and payments. Besides that, the platform gives access to real-time tracking updates, so customers know when to expect their orders.
All in all, automatic orders streamline our order fulfillment process. As a result, we save time and effort in running our dropshipping stores.
7. Provide Excellent Customer Support
While we attain success when dropshipping in Germany, our customers shouldn’t be left behind. Likewise, customers are integral foundations of our business, serving as our business partners.
Now, the question lies: How do we extend exceptional customer service to our clients? Worry not, as we present some proven ways to serve our German customers:
- Email support
- FAQ page
- Live chat
- Phone number
- Ticket submission
- Customer service management tool
When our buyers experience satisfactory service from us, they will return the favor with their loyalty. Ultimately, happy customers who repurchase from us help multiply our sales volumes.
Scale Your Dropshipping Business In Germany With Automation
Once we have established a functional dropshipping store; there is no reason to stop there. Instead, we can boost profits by expanding our dropshipping in Germany venture. To do this, we must automate our processes.
To that end, AutoDS is an all-in-one dropshipping automation solution that offers a variety of tools to help us grow our business. While we have already seen some of the useful automation features, here are more tools that we can use to gain a competitive advantage:
- Price/stock monitoring
- Product imports
- Complete order fulfillment
- Automatic price optimization
- Easy inventory management
- Automatic tracking updates
To maximize our dropshipping experience, AutoDS provides us with other insightful resources:
- Advanced image editor
- Business policy templates
- eBooks & dropshipping guides
- and so much more!
Ultimately, having the right tools is crucial to the success of our dropshipping business. Likewise, partnering with reliable platforms like AutoDS will help us take our online venture to the next level. Above all, automating our business is the most efficient way to scale our dropshipping stores in Germany and achieve significant profits.
Frequently Asked Questions
Is Dropshipping Allowed In Germany?
Yes, dropshipping in Germany is allowed. However, you need to fulfill tax obligations, consider business registration requirements, and offer legal products. Abiding by the eCommerce regulations in the region, you don’t have to worry about starting a dropshipping business in Germany.
Do I Have To Pay Taxes Dropshipping In Germany?
For dropshippers living in Germany, applicable income and trade tax obligations must be fulfilled. However, if you’re a non-resident who is simply dropshipping to German customers, you may not be required to pay taxes in Germany. You can consult accountants or business experts to understand your tax obligations better while dropshipping in the region.
Is Dropshipping In Germany Worth It?
The eCommerce industry in Germany is thriving. To illustrate, the eCommerce market value in Germany attained over 73 billion euros in 2020. With that said, dropshipping in Germany is a profitable venture to start.
How Do I Start Dropshipping In Germany?
To start dropshipping in Germany, you need to find trending products, work with reliable suppliers, and set up an online store. After such, you must continuously promote your business and offer superb customer support. On top of that, business automation is the key to dropshipping success to streamline our dropshipping tasks.
What Is The Best Dropshipping Supplier In Germany?
You can work with Costway, DHGate, eBay, Amazon, AliExpress, and more. These suppliers offer clear policies, have domestic warehouses, provide vast product selections, and other worthwhile benefits.
Conclusion
Great work! We are now prepared to launch our dropshipping Germany business. From setting up an online store to fulfilling customer orders, we are well on our way to achieving significant profits.
To gain a stronger competitive edge, we should take our business to the next level with dropshipping automation. Additionally, we should search for winning products and effective strategies to keep our business unique and lucrative.
It’s clear that the dropshipping industry in Europe is a promising opportunity for both new and experienced dropshippers. Therefore, let’s broaden our horizons with these helpful dropshipping guides:
