The UK dropshipping suppliers and business
Starting a business in the UK can be a daunting task, but it doesn’t have to be. With the rise of e-commerce, dropshipping has become a popular business model for entrepreneurs looking to start an online store with minimal overhead costs. By outsourcing inventory management and shipping, business owners can focus on other aspects of their business, such as marketing and customer service.
If you’re considering starting a business in the UK, dropshipping might be the perfect solution for you, as it allows entrepreneurs to run an online store without having to handle inventory or shipping. However, finding reliable suppliers can be a challenge, especially for those based in the UK.
Therefore in this update, we’ll take a closer look at dropshipping in the UK, the legal and profitable aspects of it, and the best dropshipping suppliers you can work with.
What is Dropshipping, and How Does It Work in the UK?
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third-party supplier and has it shipped directly to the customer. As a result, the merchant never handles the product.
In the UK, dropshipping works similarly to other countries. Entrepreneurs set up an online store, list the products they want to sell, and partner with a dropshipping supplier to fulfill their orders.
What Are Dropshipping Suppliers?
Dropshipping suppliers are companies that offer products and services to dropshippers. These companies usually have a catalog of products that entrepreneurs can choose from, and they handle the inventory and shipping for the entrepreneur. By working with a dropshipping supplier, entrepreneurs can offer a wide range of products without worrying about inventory.
Dropshipping to UK
Is Dropshipping Legal in the UK?
Dropshipping is legal in the UK. There are no specific laws that prohibit dropshipping, but entrepreneurs need to comply with UK consumer laws and other regulations. Entrepreneurs need to make sure that they’re honest with their customers about their products and services, as misleading consumers is illegal in the UK.
Is Dropshipping Profitable in the UK?
Dropshipping can be profitable in the UK, but it depends on several factors, such as the products you sell, your marketing strategy, and your customer service. Entrepreneurs need to find the right niche, understand local shopping habits, and build a strong brand to succeed.
What are the Best Dropshipping Products UK?
The UK has its own unique shopping habits, and entrepreneurs need to understand them to choose the best products to sell. Some of the most popular products for dropshipping in the UK include clothing, beauty products, gadgets, and home decor.
- Clothing: According to the latest data available from Statista, the UK apparel market is projected to grow by 3.46% annually from 2023 to 2027, creating a market revenue of US$85.08 billion in 2023. The local market for fashion is set to experience a steady growth trajectory over the next few years. Specifically, a Compound Annual Growth Rate (CAGR) of 8.28% is anticipated in the upcoming years, leading to an estimated market volume of US$78.15 billion by the end of 2027.
This indicates a positive outlook for the industry, with continued expansion and increasing demand anticipated in the foreseeable future.
- Beauty products: Based on Mintel’s analysis in 2023, 78% of UK adults bought beauty or personal care products in the past 12 months. The beauty industry in the UK is expected to experience robust growth in the next five years, with industry experts forecasting a Compound Annual Growth Rate (CAGR) of 2.17% annually based on Statista’s report. This steady expansion is projected to result in a market volume of US$2.69 billion by 2027, indicating a significant boost in revenue for the industry.
In terms of online shopping, the COVID-19 pandemic has accelerated the shift towards e-commerce, with many consumers purchasing beauty products online. In 2023, online sales of beauty products will be account for 44.2% of the total revenue of beauty products in the UK, and it is expected to continue to grow in the future.
- Gadgets: As reported by Statista, the consumer electronics and appliances market in the UK generated £15.4 billion in revenue in 2020. The market for electronic gadgets in the UK is forecasted to have consistent expansion in the coming years. In the following years, the Compound Annual Growth Rate (CAGR) is predicted to be 5.15%, according to industry experts, which is expected to drive the industry to a projected market volume of US$39.15 billion by 2027.
This suggests that the demand for electronic gadgets in the UK will remain strong as consumers increasingly rely on technology to stay connected, informed, and entertained. With innovations and advancements constantly emerging in the electronic gadget sector, the UK market is poised for continued expansion in the years ahead.
- Home decor: In 2022, home decor products continue to be a popular choice for UK shoppers. Retail Gazette’s report shows that sales of home decor and furniture grew by 38.1% year-on-year in 2021. The Home Decor segment in the UK is expected to experience steady expansion over the next several years. By 2023, the segment’s revenue is projected to reach US$4.45 billion, with an annual estimated Compound Annual Growth Rate (CAGR) of 1.52% between 2023 and 2027.
These findings suggest a positive outlook for the industry, with sustained demand for home decor products and continued interest in home styling trends driving growth.
How to Start a Dropshipping Business UK?
Launching a dropshipping business in the UK can provide a gateway to eCommerce without the costly overheads of traditional retail. With the following comprehensive steps, you can establish your own dropshipping business in the UK:
- Choose a Niche: Careful consideration should be given to selecting a niche that appeals to your interest or experience to identify your target audience and their requirements.
- Research the Market: A thorough market study should be carried out to determine the demand for the chosen niche in the UK. Analyzing competitors’ products, pricing, and marketing strategies is an effective approach.
- Find a Reliable Supplier: Sourcing a dependable supplier who can provide high-quality products at competitive prices is crucial. Online platforms such as AliExpress, HyperSKU, and Avasam can assist in locating dropshipping service providers in the UK.
- Create an Online Store: Use eCommerce platforms such as Shopify, WooCommerce, or BigCommerce to establish a website that showcases your products. The website should be designed to complement your brand’s image and enable straightforward navigation.
- Set up Payment and Shipping: Providing reliable and convenient payment and shipping methods on your website is essential. Popular payment gateways such as PayPal, Stripe, and others that are prevalent in the UK should be considered. For shipping, select a carrier that provides reliable and affordable shipping options.
- Develop a Marketing Plan: A comprehensive marketing strategy using various marketing channels such as social media, SEO, and email marketing is essential to attract the target audience.
- Test Your Products: Before launching the store, it is vital to test the product’s quality, packaging, and shipping time by ordering samples from the supplier. This approach enables the identification of any shortcomings and ensures that customers receive an exceptional experience.
- Launch Your Store: Once confident with the product’s quality, the store can be launched. The website should be optimized for conversion, and the checkout process should be user-friendly.
- Monitor and Optimize: Regular monitoring and optimization of the store’s performance are crucial. Analyzing sales data assists in identifying areas of improvement, enabling the marketing strategy to be adjusted accordingly.
Tax and Business Obligations for Dropshipping in the UK
For individuals considering starting a dropshipping business in the UK, it is imperative to be cognizant of the applicable taxes and obligations. The following are specific taxes and obligations that may be encountered:
- Value Added Tax (VAT): A VAT-registered business must impose VAT on sales to UK customers. The current standard rate is 20%; however, certain products and services are eligible for reduced rates. If you want to know more details about VAT, please check our video about VAT.
- Import Duty: Import duty may need to be paid if products are imported from outside the EU. The amount of import duty is determined by the type of goods being imported and their value.
- Income Tax and National Insurance: Business owners must pay income tax on any profits earned. If self-employed, National Insurance contributions may also need to be paid.
- Business Rates: Non-domestic property taxes may need to be paid if there is a physical office or warehouse. The amount of tax is determined by the rateable value of the property.
- Data Protection: Complying with the UK’s data protection laws is required if personal data is collected and stored from customers. This includes acquiring consent to use data and ensuring that it is handled securely.
- Distance Selling Regulations: Distance Selling Regulations must be followed if goods are sold online. These regulations cover topics like delivery times, cancellation periods, and refunds.
- Environmental Obligations: Additional obligations may need to be met if goods sold are subject to environmental regulations, such as electrical products or batteries.
Before starting a dropshipping business in the UK, understanding these taxes and obligations is essential. Consider engaging a tax advisor or accountant to ensure compliance with all applicable regulations if needed.
Wholesale Dropshipping UK
The rise of e-commerce has led to the emergence of various business models, one of which is wholesale dropshipping. where retailers purchase products in bulk from wholesalers at discounted prices, and then have those products shipped directly to customers on their behalf. This allows retailers to start an e-commerce business without needing to invest in inventory or manage fulfillment, as those aspects are taken care of by the wholesaler.
The UK has witnessed significant growth in the dropshipping market in recent years, with more and more entrepreneurs opting for this business model. The attraction lies in the fact that it provides an opportunity for individuals to start their own online businesses without the need for a physical store or significant investment in inventory. The market is diverse, with a wide range of products available across various niches. Major online marketplaces like Amazon, eBay, and Etsy offer dropshipping services, and there are also numerous niche suppliers offering unique products and specialized services.
One of the key advantages of wholesale dropshipping is the ability to offer a wide range of products without the need for a large inventory. This allows retailers to test new products and niches without risking significant capital. However, the market can be highly competitive, and retailers need to be mindful of pricing, marketing, and customer service to differentiate themselves from the competition.
As mentioned above, entrepreneurs seeking to enter the dropshipping market should carefully plan and research their business model, including identifying a profitable niche, finding reliable suppliers, and devising a robust marketing strategy. Ongoing management is also crucial for success, which entails monitoring sales and inventory levels, maintaining customer satisfaction, and adapting to changes in the market. The market is diverse, and competition is high, but with the right approach, individuals can establish successful businesses in this space.
The Best Dropshipping Companies UK
Now that you understand dropshipping in the UK, let’s take a closer look at the best dropshipping suppliers in the country. Below we’ll introduce the top dropshipping suppliers in the UK, their niche, services, prices, and pros and cons.
HyperSKU
HyperSKU is a China-based dropshipping supplier that specializes in electronics, gadgets, and accessories.
Niche: HyperSKU’s niche is in providing e-commerce businesses with a streamlined and cost-effective way to manage their supply chain, order fulfillment, and handling high-ticket products such as furniture and more.
Pros: No upfront fees. Global address validation offers branding service, wide product range, competitive pricing, and fast speed that allows the company to ship goods to the UK in 4-10 days.
Cons: Might have MOQ for custom orders. Price quotes upon request.
AW Dropship
AW Dropship is a UK-based supplier that offers a wide range of products.
Niche: AW Dropship’s niche includes home and garden, toys and games, and health and beauty products. They offer a range of services, including product sourcing, order processing, and returns handling.
Pros: Wide product range and competitive pricing.
Cons: Customer support could be improved.
SaleHoo
SaleHoo is a popular dropshipping platform that connects sellers with suppliers. They have a directory of over 8,000 verified suppliers, including those in the UK.
Niche: SaleHoo’s niche includes electronics, clothing, and beauty products. They offer a range of services, including product sourcing, market research, and training.
Pros: Large selection of verified suppliers, exceptional customer support, and a 60-day money-back guarantee.
Cons: No free trial and requires a higher yearly fee, limited branding opportunities, and doesn’t serve countries outside the US, UK, and Australia.
eSources
eSources is another platform that connects sellers with suppliers. They have a directory of over 1.5 million products from verified suppliers in the UK and worldwide.
Niche: eSources’ niche includes electronics, fashion, and home and garden products. They offer various services, including product sourcing, market research, and training.
Pros: Large product selection and a free membership option.
Cons: Premium membership can be expensive.
Syncee
Syncee is a dropshipping automation tool that allows sellers to import products and manage orders from multiple suppliers.
Niche: Syncee’s niche includes fashion, beauty, and home decor products. Their service includes product catalog management, order processing, and shipment tracking.
Pros: Having a user-friendly interface and a large selection of suppliers.
Cons: Relatively expensive pricing for small businesses.
AliExpress
AliExpress is a well-known Chinese marketplace that offers a wide range of products at low prices.
Niche: Aliexpress has a large selection of suppliers and products in various niches, including electronics, fashion, and home goods. Their service includes order processing and shipment tracking.
Pros: Lower prices and a large selection of products.
Cons: Reputation issues, long shipping times, and the possibility of counterfeit products.
CJ Dropshipping
CJ Dropshipping is a Chinese dropshipping platform that allows businesses to source and sell products from China without having to handle inventory or shipping themselves.
Niche: CJ Dropshipping offers a range of products in various niches, including electronics, beauty, and toys. Their service includes product sourcing, order processing, and shipment tracking.
Pros: Low prices and a large selection of products. No fee pricing model, and offers reasonable prices for smaller dropshipping companies.
Cons: Long shipping times and lack of better deals and options for bulk orders.
Baumhaus
Baumhaus is a UK-based dropshipping supplier that specializes in home furniture and decor.
Niche: They offer a range of products, including bookcases, coffee tables, and dining tables. Their service includes inventory management, order processing, and shipment tracking.
Pros: Large selection of high-quality furniture and fast shipping times within the UK.
Cons: Baumhaus’ products can be expensive, and their selection is limited to home decor.
Wholesale Deals
Wholesale Deals is a UK-based platform that offers a range of products from verified suppliers.
Niche: Their niche includes electronics, fashion, and beauty products. They offer a range of services including product sourcing, market research, and training.
Pros: Large selection of products and a low membership fee.
Cons: Limited customization and premium membership can be expensive
The Wholesaler
The Wholesaler is a UK-based platform that offers a range of products from verified suppliers.
Niche: The Wholesaler’s niche includes home and garden, toys, and clothing. They offer a range of services including product sourcing, market research, and training.
Pros: Large selection of products and a free membership option.
Cons: Higher fees to obtain premium membership.
Clothes2order
Clothes2order is a UK-based dropshipping supplier that specializes in customizable apparel such as t-shirts, hoodies, and workwear. They offer competitive pricing with discounts available for bulk orders.
Niche: Apparel, custom clothing, and merchandise for businesses and individuals
Pros: High-quality printing, fast turnaround times, and a wide selection of customizable items.
Cons: Customization options may not be as extensive as other suppliers.
Avasam
Avasam is a UK-based supplier that offers a range of products from verified suppliers.
Niche: Avasam has various niches including fashion, home, and electronics. Their pricing model is based on a commission structure, meaning that entrepreneurs only pay for products when they are sold.
Pros: Wide selection of products, real-time communication with suppliers, and no upfront costs.
Cons: Limited supplier network and requires a monthly subscription fee.
Tips to Find the Best Dropshipping Suppliers UK
When looking for dropshipping suppliers in the UK, there are various methods to find the right supplier for your business. By following the tips below, you can locate reputable suppliers with a proven track record and build long-term partnerships with them.
- Research Online: Utilize supplier directories such as SaleHoo and Worldwide Brands to search for verified suppliers with good reviews and ratings from other customers. This will help you identify reputable suppliers with a proven track record.
- Attend Trade Shows: Attending trade shows or exhibitions that feature suppliers from the UK can provide an excellent opportunity to meet potential suppliers face-to-face. This will allow you to ask them questions about their products and services, and build relationships.
- Check Forums & Reviews: Check online forums and social media groups related to your niche to see if any members have recommended any suppliers they have worked with in the past. This can be a great resource for finding trustworthy suppliers.
- Request Samples: Before committing to a supplier, it’s essential to request samples of their products. This will help you to ensure their quality meets your expectations and avoid any surprises or disappointments down the road.
- Don’t Overlook Fees and Hidden Costs: While a legitimate supplier won’t charge fees for doing business with them, they may charge fees for order processing or custom packaging. Be sure to calculate all the expected costs in advance to avoid any surprises and maximize your profits.
- Intergrate Dropshipping Automation to Your Online Store: Managing vast inventories can be challenging and time-consuming, even with the help of virtual assistants or partners. Look for suppliers that support integrations with modern eCommerce platforms and automation software that can help scale your business as it grows.
- Check with Business Associations: Contact business associations, such as the British Chamber of Commerce, to seek recommendations from suppliers in your niche. These associations often have a directory of verified suppliers and can provide valuable insights and recommendations.
These strategies will help you discover the most excellent dropshipping suppliers in the UK and establish a dependable network of suppliers that will aid in expanding your business.
Final Words
Dropshipping can be a great way for entrepreneurs to start an online business without the need for inventory. There are many dropshipping suppliers in the UK, each with its own niche, service offerings, and pricing. By considering these factors, entrepreneurs can find the best supplier for their business needs. Overall, HyperSKU is a great option for those looking for a supplier with competitive pricing and high-quality dropshipping services. Follow the link to learn more about their services and start your dropshipping journey today.