Would you like to start dropshipping in the Netherlands? Dropshipping throughout Europe is now more accessible than ever, thanks to e-commerce platforms like WooCommerce. With easy-to-set-up and manage plugins, you can sell your dropshipping products in the Netherlands. But before diving in, make sure to read this dropshipping Netherlands guide and develop a well-thought-out strategy.
Is dropshipping legal in the Netherlands?
You will be happy to know that dropshipping is legal in the Netherlands.
Dropshipping is a service where you simply help connect customers with products and suppliers; there is nothing illegitimate about it. However, there are some important things to keep in mind to ensure you are in line with all local legislation.
As with all other business models, you will need to, of course, pay taxes and register your company. If you are a Dutch business paying VAT, you must register with the Dutch Tax and Customers Administration. On the other hand, if you are a foreign organization with no permanent organization in the Netherlands, you do not need a Commerical Registration.
As a general rule, certain products are best avoided when dropshipping, as you can inadvertently become involved in illegal trade. For example, never dropship knockoffs, fake brand products, or copyrighted items. Other items to be avoided include any weapons such as knives, hunting equipment, etc. Avoiding copyrighted or trademarked products can be challenging, but if you successfully sell these items, you could face legal action from the company in question down the road.
One essential step to prevent yourself from getting into hot water and avoiding any potential legal issues down the road is to ensure you are meeting the dropshipping requirements of suppliers such as eBay.
To ensure that you are running your dropshipping business in a completely above-board and legal manner, take time to research what is involved in setting up a dropshipping in Netherlands business and all paperwork required for registering and paying taxes. As well as doing your homework on local laws, once you start making a profit from dropshipping in the Netherlands, speak with a certified tax professional. Explain your business model, as they can help you structure your business in the best way possible from a tax perspective.
Why dropshipping in the Netherlands?
The Netherlands is a great place to start a dropshipping business, with easy access to a strong internet connection and all major payment options available. Remember also that you are not restricted to the local market but to customers worldwide.
With one of the highest standards of living in the world, the Netherlands offers an ideal market to start an eCommerce Store. As a local resident, you will have a significant advantage with insights into what are the local trends and needs of potential customers and find the ideal products to sell through your dropshipping store.
The Netherlands’ geographical position means marketing and promoting your dropshipping business to your neighbours, including Belgium, Denmark, and France, which is also a smart business move. Last on the list, but not least, is Germany, for which we have prepared a guide on how to start dropshipping in Germany.
Once you have gained some experience and are confident that you will profit from dropshipping in the Netherlands and Europe, why not consider even further markets, such as the United States?
How do you start dropshipping in the Netherlands?
Starting a successful dropshipping business is not achieved overnight. But by following the step-by-step process outlined below, you can become a dropshipper and set yourself up right from the beginning.
1. Choose a niche idea
When it comes to choosing what to dropship, take your time. Choosing the right business model and niche idea will be key to your success as a dropshipper. The general product types to choose from include:
- Hobbies and collectibles
- sports and outdoor
- clothes and accessories
- home gadgets and decor
- tech devices, gadgets, and accessories
When choosing which category you would like your dropshipping business to focus on, it is a good idea to be as niche as possible. Rather than just selling all types of products related to hobbies and collectibles, you can focus on more specific items, such as eco-friendly yoga equipment. Try to take into account what you will enjoy selling.
However, do not make this your primary consideration. What will sell well for the biggest margin is the number one factor when choosing a niche; in fact, to make your job easier, we have prepared a list of the best niches that are also profitable for dropshipping.
Your budget is also one of the most significant factors when choosing a business idea. Technically you could start a dropshipping business with just a few hundred euros. However, realistically you will need a relatively good budget, and most experienced dropshippers recommend starting with around €2,000, which is completely dedicated to testing a product out and finding the winning idea.
2. Complete a competitive analysis
You might be sure that you have a genius and unique idea for your dropshipping business but never be overly confident, especially when you are just a beginner. Carrying out an extensive competitive analysis to see what works well and is selling for others is a vital step not to be missed.
Avoid the most competitive products, such as jewelry and accessories. Instead, try to establish through your analysis where there is a potential gap in the market, something that solves a real-world problem.
3. Create an identity
Don’t just be a general store that sells lots of random products, have a very clear brand identity. You will need a domain name that is easy to remember, uncomplicated, and can be used across all your platforms, including any social media connected with your store. Although, setting up your online store with excellent branding, including logos, consistent text, coloring, and brand voice, will take more time and effort. In the long run, customers are more likely to spend money with a legitimate store and recognizable branding.
4. Create your eCommerce store
In the past, most people would have either preferred or needed to outsource building an online store. However, nowadays, creating your eCommerce shop yourself is extremely straightforward with platforms like WooCommerce. You can choose between both free and paid plugins, depending on the point you are at with setting up your store.
If you want to know more take a look at best ecommerce platforms for dropshipping stores.
5. Find reliable suppliers
After you have put all that time and effort into setting up your brand and eCommerce store, you will want to find reliable and reputable suppliers next. Problems with deliveries and damaged goods will impact your business’s reputation. It can not be overstated that the success or failure of your dropshipping business depends a lot on which suppliers you choose to work with.
6. Import products with Woosa plugins
As mentioned above, WooCommerce offers a great dropshipping plugin for WordPress. There are a variety of plugins to choose from with Woosa, each designed to benefit your Netherlands dropshipping store differently.
7. Optimize SEO on your dropshipping store
The eCommerce world is massively competitive, and your ranking on search engines is another important factor not to be overlooked. SEO or search engine optimization has become key for all businesses wanting to position themselves in the best way online. Thankfully you don’t need to be an advertising or marketing expert to understand and utilize SEO. With WordPress and similar platforms, you can easily improve your site’s SEO. Check out these simple steps to improving the SEO of your dropshipping website.
8. Take advantage of advertisements
Okay, so you have your well-designed and optimized dropshipping store up and running. Now you need the right people to see it and start shopping. To reach your target audience, you will need to invest a percentage of your budget toward advertising.
Dropshipping in the Netherlands is feasible if you want to set up your own legal eCommerce business. However, in order to be successful, utilize the best tools, including the WooCommerce plugins, and follow the steps outlined above.
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