How To Start Dropshipping In Finland
Why start dropshipping
Are you ready to ditch the 9-to-5 and build something truly yours?
Dropshipping isn’t just a business; it’s a vibrant marketplace where your ideas blossom.
Imagine curating a collection of amazing products, connecting with customers worldwide, and watching your entrepreneurial spirit soar.
You’re not just starting a business; you’re crafting a story, a brand, a future. You’ve found the perfect springboard.
This is the place to turn your dreams into a profitable reality. The world is waiting.
Let’s dive in and make it happen!
How dropshipping works
Why start dropshipping in Finland
Nestled in the heart of Scandinavia, Finland has emerged as a beacon of innovation and digital transformation, particularly in the realm of ecommerce. The country’s robust digital infrastructure and tech-savvy population have propelled it to the forefront of online retail.
According to a recent report by Statista, the Finnish ecommerce market is projected to grow at a compound annual growth rate (CAGR) of 8.1% from 2021 to 2025, reaching an estimated value of €4.7 billion by 2025. This growth is underpinned by a confluence of factors, including increased consumer confidence in online shopping, a surge in mobile commerce, and the adoption of advanced technologies like AI and big data.
The success of Finnish ecommerce is also bolstered by the country’s commitment to sustainability. Consumers in Finland are increasingly prioritizing eco-friendly practices, and many ecommerce platforms are responding by integrating green logistics and sustainable packaging solutions.
Not to mention, the Finnish government’s support for digital initiatives has been instrumental in fostering this growth. Programs like the Digitalisation Agency’s efforts to enhance digital skills among the population and the establishment of tech hubs have created a fertile ground for ecommerce startups. These startups are not only driving innovation but also contributing to the country’s economic resilience, with many finding success both domestically and internationally.
The future of ecommerce in Finland looks promising, with emerging technologies like augmented reality (AR) and virtual reality (VR) set to revolutionize the shopping experience. These technologies will enable consumers to virtually try on products, enhancing user engagement and potentially increasing conversion rates. As Finland continues to innovate and adapt to changing consumer behaviors, the ecommerce sector is poised to remain a key driver of the country’s economic landscape.
Advantages and disadvantages of dropshipping in Finland
Advantages of dropshipping in Finland
1. Low startup costs
One of the most significant advantages of dropshipping in Finland is the low startup cost. Differing from standard retail practices, where you need to invest in inventory, storage, and physical retail space, dropshipping allows you to start a business with minimal capital. This low barrier to entry makes it an attractive option for aspiring entrepreneurs, especially in a tech-savvy country like Finland.
2. No inventory management
Another major benefit is the absence of inventory management. With dropshipping, you don’t need to handle the physical products. The supplier handles all aspects of product storage, packaging, and shipping. This not only reduces the risk of overstocking or understocking but also allows you to focus on other critical aspects of your business, such as marketing and customer service.
3. Flexibility and scalability
Dropshipping offers a high degree of flexibility and scalability. You can start small and gradually expand your product line and customer base without the need for significant additional investment. This flexibility is crucial in a market like Finland, where consumer preferences can change rapidly. According to a survey by Finnish Ecommerce Association, 70% of Finnish consumers are open to trying new products and brands online, making it easier for dropshippers to test and introduce new items.
4. Access to a global market
Finland’s strategic location and advanced digital infrastructure make it an ideal base for accessing a global market. Dropshippers can leverage platforms like Amazon, and AliExpress to reach customers worldwide. The country’s strong logistics network, with efficient postal and courier services, ensures that products can be delivered quickly and reliably to international destinations. This global reach is a significant advantage, especially for niche products that may have limited demand in the local market.
5. Reduced risk
Starting a dropshipping business in Finland involves significantly less financial risk compared to traditional retail. You don’t have to invest heavily in inventory, which means you’re not stuck with unsold products. Additionally, the pay-per-sale model means you only pay for products when they are sold, reducing the financial burden. This reduced risk is particularly important in a market where consumer behavior can be unpredictable, and trends can change rapidly.
Disadvantages of dropshipping in Finland
1. Limited control over product quality and shipping
One of the primary disadvantages of dropshipping is the limited control over product quality and shipping. Since you rely on third-party suppliers, you have little influence over the condition of the products when they reach your customers. This can lead to issues such as damaged or defective items, which can harm your brand reputation.
2. Profit margins
Profit margins in dropshipping can be slim, especially for new businesses. The cost of products from suppliers, combined with the expenses of marketing, website maintenance, and transaction fees, can eat into your profits. However, experienced dropshippers can improve margins by optimizing their supply chain and leveraging economies of scale.
3. Customer service challenges
Providing excellent customer service can be more challenging in a dropshipping model. Since you don’t handle the products directly, addressing customer issues such as returns, exchanges, and complaints can be more complex. 80% of consumers are more likely to make a repeat purchase from a business that offers excellent customer service. In Finland, where customer service standards are high, this can be a significant barrier. You need to have robust systems in place to manage customer inquiries and ensure a smooth shopping experience.
4. Dependence on suppliers
Your success as a dropshipper is heavily dependent on the reliability and efficiency of your suppliers. If a supplier fails to deliver products on time or provides low-quality goods, it can severely impact your business. It’s crucial to vet suppliers thoroughly and establish strong relationships to ensure consistent performance.
5. Regulatory and legal challenges
Operating a dropshipping business in Finland comes with its own set of regulatory and legal challenges. You need to comply with local and international ecommerce laws, including data protection, consumer rights, and tax regulations. According to the Finnish Ecommerce Association, non-compliance with these regulations can result in fines and legal action. It’s essential to seek legal advice and stay updated on relevant regulations to avoid potential pitfalls.
Although some may doubt the effectiveness of dropshipping, the countless success stories of entrepreneurs who have built thriving businesses from the ground up demonstrate that with the right mindset and strategies, this model is indeed worth pursuing.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
