The  shift from silver-surfer to silver-entrepreneur comes amid growing concerns over pension shortfalls and financial security as figures show that the UK has the largest pension gap in Europe, with the over 50s needing to increase their pension saving by £6,200 a year*.

The B2B online reseller (www.pixmania-pro.co.uk) which is part of the Dixons Retail group, questioned new customers following a surge in demand for its online dropshipping service. Figures show that 20 per cent of new customers have started dropshipping businesses compared to the same period last year.

Feedback reveals that over half (57%) of the 2,000 new customers using the service are first time sole traders between 55 – 65 years of age. Two in a hundred customers are aged over 70. It represents an increase of nearly a quarter (24%) in the number of over 55’s setting up dropshipping businesses compared to 12 months ago.

When questioned, concerns over pension shortfalls and the need to supplement existing part time incomes was cited as the most common reason behind starting a business by the majority (78 per cent) of the respondents. Less than 1 in ten revealed they were fulfilling a long term ambition to run their own business. Three in ten revealed they had launched the business after becoming concerned they would have to work beyond the minimum retirement age.

The trend has pushed demand for dropshipping in the UK to a record high with analysis of the PIX-PRO survey estimating that over ¼ million sole traders are operating dropshipping businesses. Popular with so called e-Bay entrepreneurs, reselling allows entrepreneurs the ability to set-up and launch a business quickly and easily and with little or no financial risks, which was cited as being of the greatest appeal. Low management costs and ease of day-to-day operations were also identified as adding to the popularity of running a dropshipping business.

Twenty per cent of respondents to the survey revealed that they had started a dropshipping business selling products related to their career or a hobby. IT and photography were revealed as the most common products sol. Analysis of customer sales figures has revealed that the average drop shipping business in the UK earns £40,000 per annum. It would mean an increase of over 7 times the weekly income for an OAP receiving British state pension.

Katja Felke, MD, PIXmania-PRO comments: “For anyone used to using a computer and buying on the internet, dropshipping is a very simple and effective way of setting up and running a business. We are seeing that many of our customers are able to operate a dropshipping business alongside a part time job, so it’s a popular way of supplementing an income.”

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