Dropshipping Guide: How to Start a Legal & Profitable Dropshipping Business in Europe 2026

E-commerce continues to surge worldwide as consumers spend more online than ever. Launching an online business has also become a necessary path for more and more brands. 

The popularity of dropshipping as an online business model stands out. This online business model requires no physical stores or inventory and has generated significant income for many people—even those with no prior business experience.

The European e-commerce market is more attractive than ever, thanks to consumers' high purchasing power, widespread online shopping habits, and a diverse population. A dropshipping business in Europe can be especially profitable when focusing on high-quality, customized products tailored to specific niche markets.

Recently, SHEIN has attracted regulatory attention in the European market due to its children's toys and some imported goods, sparking widespread discussion among cross-border e-commerce sellers. 

Wondering how to legally and safely start a dropshipping business in Europe in 2026? You’ve come to the right place. This ultimate guide walks you through everything you need to know to succeed in the European market.

What is Dropshipping? 

Dropshipping is a retail fulfillment model for an online business. It allows dropshippers to sell products online without any inventory. Instead of stocking goods, dropshippers partner with third-party suppliers who manage warehousing, packaging, and shipping directly to customers. 

No need to handle the products makes it ideal for new entrepreneurs with limited startup capital. It reduces upfront costs and frees up time and resources that can be invested into store growth, advertising, and marketing.

It is simple to start and requires no formal training or technical skills. Select an appropriate niche based on market research and analysis. Then choose a platform to set up an online store and find reliable suppliers for your niche. This industry has evolved since its rise to become the top choice for many starting their own business. You can find many tools and resources to help you start or further improve your dropshipping business.

Is Dropshipping Profitable in Europe?

Ever wondered whether dropshipping in Europe is truly profitable? With strong consumer spending and highly diverse markets, the opportunities are real. European e-commerce continues to grow rapidly, with billions spent online every year. So how can dropshippers tap into this expanding market and turn opportunity into profit? Let’s break it down.

1. Larger Share of Online Shopping

The pandemic reshaped global customers' shopping habits to a certain extent. Besides, new online marketplaces like SHEIN and TEMU bring brand-new shopping experiences at low prices. Europe has also witnessed rapid growth in the e-commerce market, with more people shopping online than ever before. With a 66% increase between 2019 and 2021, e-commerce sales in Europe are expected to reach $745 billion by the end of 2024. 

Judging from recent data, such growth momentum has not ceased.  Recent estimates indicate that the European e-commerce market will continue its rapid growth, with revenues projected to reach nearly $900 billion by 2028.

2. Diverse Niche Selections

Europe, though geographically compact, stands as one of the world's most significant economic and cultural hubs. Its rich cultural diversity gives dropshippers a unique advantage, allowing them to target specific niches and tailor their marketing strategies more effectively.

What do Europeans buy most online? 

According to the European Central Database (ECDB), Fashion dominates with 21.6% of market revenue. When considering sub-categories, Consumer Electronics (14%) and Apparel (12.7%) hold prominent positions. In 2023, clothing and footwear emerged as the most popular product categories for cross-border e-commerce in Europe, with 60% of respondents to a large-scale survey reporting that they frequently purchase these items from international online stores.

Other top sub-categories for online shopping in Europe include Media, Furniture, Food, Personal Care, and Tools & Construction Supplies, with market shares ranging from 4.5% to 6.3%.

3. High Demand for Premium Products

Compared with general products, premium niche products are always more attractive for European customers. In many European countries, especially in Western and Northern Europe, people have high disposable incomes, enabling them to spend more on quality or high-end products.

European consumers often prioritize quality over quantity. They value craftsmanship, durability, brand loyalty, and perceived value, which drives demand for premium products. In major markets such as Germany, France, and Italy, consumers tend to favor brands that align with their values, which is why eco-friendly brands have gained significant popularity in recent years.

4. Flexible Trade Policies

The favorable trade policies in Europe significantly ease the expansion of dropshipping businesses across multiple countries. The European Union (EU) operates as a single market, supported by favorable trade frameworks that allow dropshippers to sell across member states with minimal barriers. 

Additionally, Europe's efficient and well-connected logistics infrastructure ensures fast shipping and reliable delivery times--which will undoubtedly increase customer satisfaction. With these advantages, Europe offers ideal conditions for dropshipping stores to reach a broad customer base and thrive in a competitive market.

5 Tips for Starting a Dropshipping Store in Europe

Starting a dropshipping store in Europe can be highly profitable, but success requires careful planning and smart strategies. Here are five essential tips to help you set up your store, reach customers effectively, and maximize your chances of long-term growth.

1. Stick to One Niche or Product

In Europe’s highly competitive dropshipping market, focusing on a single niche helps you address specific customer needs and distinguish your brand. Differentiation can also be achieved by offering unique, personalized products. Enhancing creativity, product customization, and quality is strongly advised to cultivate a stable customer base. 

Here are some niches for inspiration:

• Pet Supplies
• Mom and Baby Supplies
• Makeup Beauty Supplies
• Home Decor
• Outdoor Gear

2. Work with a Reliable EU Dropshipping Supplier

To succeed in dropshipping in Europe, efficient shipping and delivery are crucial. Partnering with local dropshipping suppliers can significantly reduce delivery times, ensuring a better customer experience. 

However, if you require a broader range of products and cost-effective customization options, SourcinBox is an excellent alternative. It helps dropshippers source high-quality products directly from Chinese manufacturers and ship them to the end customers in EU countries, balancing affordability with efficiency while meeting your business needs.

3. Brand Your Dropshipping Business

Shoppers in Europe are more selective of what lies behind the products, opting for brands they trust and align with their values. Today, brands are going beyond the value of the product to the value of the brand. 

Branding your dropshipping business can differentiate you from competitors and enhance customer loyalty. A strong brand not only enables premium pricing but also fosters sustainable growth in Europe’s competitive landscape.

4. Provide Local Payment Methods

Safe and smooth payments in your store can create a better shopping experience for your customers and increase the turnover rate accordingly.

Some European countries are more familiar with their own 'national' payment systems for online purchasing. Here are some local payment methods for most European countries for reference. You could add appropriate ones for the target audience:

• Germany: SOFORT
• France: Cartes Bancaires
• Norway: VIPPS
• Spain: Bizum
• Denmark: MobilePay / Klarna
• The Netherlands: iDEAL

Meanwhile, international options, such as PayPal, credit/debit cards, bank transfers, and BNPL services, remain widely used across the continent. Therefore, when you build a dropshipping store targeting Europe, it’s wise to support multiple payment methods (local and global) to accommodate different consumer preferences.

5. Register for the Import One-Stop Shop (IOSS)

For dropshippers sourcing products from non-EU suppliers and selling them to EU customers, understanding VAT obligations is crucial. The European Union introduced the Import One-Stop Shop (IOSS) scheme in July 2021 to simplify VAT compliance. 

More recently (November 2025), the EU agreed to abolish the €150 customs‑duty exemption for all goods imported from non‑EU countries. Starting as early as 2026 (interim solution) — and fully once the new customs data platform is operational (circa 2028) — even low‑value parcels (≤ €150) will be subject to customs duties. 

In practice, we recommend that you register with IOSS, display tax-inclusive prices at checkout, factor future customs duties into your product pricing, and consider EU-based warehousing or fulfillment solutions to reduce customs-related issues.

Important Update for 2026:

The EU has announced plans to abolish the €150 customs-duty exemption for low-value goods imported from non-EU countries. This means even small parcels may be subject to customs duties in the coming years, significantly impacting pricing and fulfillment strategies for dropshippers.

To learn how the new EU small-parcel tax works and how to prepare, read our detailed guide here: How the EU €3 Customs Duty Affects Cross-Border Ecommerce and Dropshipping.

7 Best Suppliers for Dropshipping in Europe

It's crucial to find reliable suppliers who provide the products you need at reasonable prices. Some dropshippers still prefer sourcing from overseas suppliers to reduce product costs, even if shipping takes longer. Whichever option you choose, the goal remains the same: build strong brand value and maximize your profit margins.

We've listed the 7 best dropshipping suppliers in Europe below. Hopefully, this helps you choose the right partner based on your business needs and budget.

1. SourcinBox

SourcinBox is a professional sourcing agent with years of experience in dropshipping fulfillment services.  It maintains long-standing partnerships with numerous Chinese manufacturers and supplies premium products to dropshippers in Germany, the United Kingdom, and many other countries around the world.

Features:

• Fast Processing & Shipping: SourcinBox partners with multiple well-known shipping companies to provide fast and reliable global delivery. Additionally, its warehouse operates year-round, ensuring efficient parcel handling and timely deliveries.

• Real-time Order Tracking: As soon as your orders are shipped, SourcinBox provides real-time tracking updates, syncing directly with your store and automatically notifying customers via email.

• Competitive Pricing: SourcinBox sources directly from manufacturers, offering wholesale pricing on large amounts of products. Shipping costs are separate from product prices, ensuring transparent and dependable rates.

• Professional 1-on-1 Customer Service: Every signed-up customer receives personalized support from a dedicated customer manager, ready to assist with any issues or queries.

• Private Label & Customization: SourcinBox also provides customizable options for branded dropshipping, including packaging, logos, labels, and inserts tailored to your business needs.

Pricing: No monthly fee, sourcing service fee, or inventory fee is required to work with SourcinBox.

2. BigBuy

BigBuy is a well-known European supplier specializing in dropshipping and wholesale. Offering a wide range of products—including top brands—it serves dropshippers, traditional retailers, wholesalers, and distributors alike.

Features:

• Multiple Platform Integration: Whether you’re selling on an online marketplace or running your own dropshipping store on a popular e-commerce platform, BigBuy lets you manage all your orders seamlessly from a single platform.

• Inclusive Language Translation Solution: BigBuy offers product catalogs in 24 European languages, with native translations, which eases language burdens for dropshippers significantly.

• Smart Pricing Strategy: BigBuy will configure and define the best pricing strategy per market or channel for dropshippers. You can also set safety rules to ensure a minimum stipulated profit.

• Dropshipping 360° Shop: It is a comprehensive solution for beginners. Since it provides a store designed and optimized to generate sales, and is fully synchronized with BigBuy.

Pricing: To start dropshipping with BigBuy, you have to pay two types of fees: a registration fee and a monthly fee.

• Marketplace- Registration fee of €89.00, a monthly fee of €119.00
• E-commerce- Registration fee of €89.00, a monthly fee of €89.00
• B2B- Registration fee of €89.00, no monthly fee

3. Syncee

Syncee is an excellent B2B platform for European dropshippers to find millions of quality products. You can easily find local dropshipping agents that provide fast delivery for your dropshipping store.

Features:

• Multiple Platform Integrations: Syncee has integrated with major e-commerce platforms, including Shopify, BigCommerce, Ecwid, WooCommerce, and Wix. You can seamlessly connect your online store with Syncee for reliable suppliers and easily import products.

• Direct Supplier Connections: Syncee allows you to connect directly with verified suppliers, ensuring product quality and meeting your requirements.

• Supplier Filtering: Syncee enables dropshippers to filter on warehouse location, language, product category, and more when searching for suppliers. This means you can find appropriate suppliers for your online business more accurately. 

Pricing: Syncee provides a free starter plan with limited services. If you want to experience more, you can choose the basic plan, charging $29 per month, or the pro one(also the most popular one), charging $49 per month.

4. vidaXL (dropshippingXL)

Beginning as a marketplace for home and garden supplies, vidaXL has now turned into a premium supplier option for European dropshippers. If you focus on home and garden niches, it can be your best dropshipping supplier.

Features:

• Wide Product Range: Besides home and garden supplies, it provides 20 categories and over 100 subcategories of products at reasonable prices, such as pet supplies and sporting goods.

• Fast Global Shipping: With a well-established logistics system, vidaXL ensures fast and reliable shipping to customers worldwide. Additionally, it has numerous international warehouses, such as in the Netherlands and Poland, which can effectively shorten shipping time.

• Transparent Pricing Rules: If you work with dropshippingXL, it will fulfill your dropshipping orders with free shipping fees from nearby warehouses. Also, the inventory costs are never billed in advance.

Pricing: Only one pricing plan, which costs €30/per month.

5. Spocket

Spocket provides a wide range of products from US/EU suppliers to dropshippers, which makes it an excellent option for dropshipping in Europe. The comprehensive ecommerce platform integrations make it appropriate for many dropshipping stores.

Features:

• Easy-to-use but Advanced APP: After connecting, you can simply import products from Spocket to your dropshipping store within just a few clicks. The app also automatically updates inventory levels, eliminating the risk of accepting orders for out-of-stock products.

• Search Filter: Spocket allows you to search suppliers based on supplier location or where the products are shipping from. For European dropshippers, it helps limit suppliers to specific countries or regions for faster shipping.

• Branded Invoice: For those selling under brands, Spocket enables you to customize invoices with a unique brand identity to increase brand impression on customers.

Pricing: Spocket requires a monthly fee to import Spocket products, with 4 different pricing plans. The most popular plan is $99.99/month, which offers 10000 unique products, 10000 premium products, and unlimited orders. You can experience each plan with a free 14-day trial.

6. Printful

For dropshippers who stick to custom printing, it's worth checking out Printful, a leading print-on-demand supplier. Printful prints and ships products directly to your customers on demand, all under your brand.

Features:

• European Warehouses: Printful has European warehouses in Barcelona, Spain, and Riga. You can experience Printful's Warehousing & Fulfillment service to store inventory and save delivery time.

• Large Product Collection: Printful offers unique products in numerous categories, allowing customized prints. You can optimize its resources easily to customize products with your creativity.

• Branding Services: Printful provides branding options for dropshippers, including inserts, packaging, and invoices. It can help realize a customized shopping experience for your customers, all under your brand.

Pricing: There’s no monthly fee or membership fee for using Printful. When a product is sold in your store, you will charge for order fulfillment and shipping. However, accessing additional features comes with extra fees.

7. BrandsGateway

Brandsgateway is the largest online luxury fashion marketplace based in Europe. If you want to start a luxury fashion online store, Brandsgateway can always be your best supplier choice! 

Features:

• Reliable Luxury Brands Source: You can easily find fashion items from over 100 well-known luxury brands, including Dolce & Gabbana, Gucci, Swarovski, and Prada.

• Fast Global Shipping: With warehouses in the US, Germany, Sweden, and several locations in Italy, Brandsgateway promises to deliver products to over 170 countries globally in seven days.

• Multiple Platform Integration: Brandsgateway works with 5 eCommerce platforms, allowing you to effortlessly connect your Shopify, WooCommerce, Wix, BigCommerce, or Shift4Shop store.

Pricing: €147 / month for an annual plan and  €279 / month for a monthly plan.

Start EU Dropshipping with SourcinBox

E-commerce continues to grow steadily across Europe, making it an excellent market whether you’re based inside or outside the EU. If you’re planning to start or scale your dropshipping business in Europe, partnering with SourcinBox can give you a strong advantage.

With comprehensive fulfillment services, including high-quality product sourcing, fast global shipping, inventory management, and product customization, SourcinBox helps streamline your operations and strengthen your brand.

Sign up for free and grow your dropshipping business in Europe now!

Frequently Asked Questions

1. Is it legal to start a dropshipping business in Europe? 

Yes, it is legal to start a dropshipping business in Europe. You should comply with the specific laws and regulations of the EU and each member state.

2. How can I find reliable, fast, and cost-effective dropshipping suppliers?

Use trusted sourcing agents like SourcinBox or platforms such as BigBuy, Syncee, Spocket, Printful, and vidaXL. Check their reviews, shipping speed, and product quality, and balance cost vs reliability. Always test with small orders before scaling.

3. How can I stand out in Europe’s competitive dropshipping market?

Focus on one niche, offer high-quality or unique products, and build a strong brand that resonates with European values. Add personalization, creativity, and excellent customer service to differentiate from competitors.