Is Dropshipping Worth?
Is Dropshipping worth?, Yes it is. But only when you know the Dos and Donts of the Dropshipping Business. The dropshipping business in india is gaining more popularity in recent days not just because of its profitability and quick ROI.
Businesses are loving the quick and easy setup for dropshipping with little investment which is a much-needed perk for entrepreneurs today. Ecommerce Dropshipping website is a lucrative and low-risk business concept that can also be an addition to one’s day job.
The dropshipping market gained popularity as the internet grown and is expected to grow by 32% by 2026, with a net worth of about $128 billion. Dropshipping businesses often made a profit margin between 15% and 20%, though this varies by sector and product.
On choosing the appropriate products and employing an effective strategy businesses can achieve a profit margin of greater than 20% and even up to 300% when done right. Dropshipping businesses can certainly ace the market by accurately tackling the challenges and mitigating the risks involved.
If you are starting a dropshipping business, here are X things you should know that will truly pay off with hefty profits.
10 THINGS TO KNOW BEFORE STARTING A DROPSHIPPING BUSINESS IN INDIA
Dropshipping is a retail fulfilment model where a store doesn’t maintain inventory of the goods it offers. Instead, it makes a purchase from a third party and arranges for the item to be delivered to the customer. As a result, the seller is relieved of direct inventory management.
The difference between dropshipping and the traditional retail model is that the selling merchant does not stock or own inventory. Instead, to fill orders, the seller buys inventory as needed from a third party—typically a wholesaler or manufacturer.
Because you are not in charge of manufacturing or delivery, dropshipping can still be a successful business model for retailers in 2022. It’s a low-risk business strategy that doesn’t have the high expenses that a wholesaler would typically have.
Since eCommerce dropshipping is less reliant on the retailers’ inventory space, businesses that engage in dropshipping are 18.33% more lucrative than businesses that rely on traditional channels.
Here is a list of things to know before starting a dropshipping business in India:
1. Pick a Niche in Dropshipping Business
Your chances of being successful at dropshipping business in india is significantly rise by selecting a specific selection of products for your online store. By catering to a niche audience, you gain some benefits.
You avoid going up against offline supermarkets, eBay, and Amazon, which sell the same products at large volumes.
Large-scale retailers frequently lack flexibility and a customer-focused mindset. So, they focus on a wide variety of products instead of a niche set. You can focus on catering to the specific demands of customers and gain a significant competitive advantage.
Finding and focusing on your audience is simpler.
With a general store, developing a marketing plan is challenging. You must be aware of the websites and communities your target customers frequently order from.
On the contrary, you can create a clear marketing strategy by reducing the variety of things you sell. And in the dropshipping ecommerce industry, marketing is crucial!
SEO jobs get a lot simpler.
You undoubtedly want consumers to find your online store with ease when they are shopping online. Hence, making your website and product pages SEO-friendly is a must. In the case of a general store, this task is practically impossible.
Choosing a niche makes it easier for you to choose the right keywords so that your website appears at the top of Google search results.
2. Know What You Can’t Sell in Dropshipping Business
Dropshipping frees you from the time-consuming and challenging procedure of product storage and transportation. In other words, it facilitates rapid and simple commercial operations.
However, poor product selection could make it a headache for you. Dealing with irritated and dissatisfied clients is not the most enjoyable task in the world. It is recommended that businesses do not pursue selling products that carry high risks. Some products to stay away from can be categorized under:
It can be alluring to market goods bearing a well-known brand. People are anxious to purchase them. But it may backfire quickly.
The products can be knockoffs and could result in significant legal issues for your business. Not to mention that it will be challenging to repair any reputation damage caused among your customers.
Every customer wants their deliveries to be in one piece. The chance of things being damaged in transit or shipping is particularly significant because of the complicated delivery process.
It’s not only difficult to lift heavy objects. They can also increase the cost and difficulty of the delivery. Additionally, due to their weight, they are susceptible to damage while delivery.
Customers anticipate receiving a fully functional product. It can be challenging to guarantee that the goods are of flawless quality when shopping online. Therefore, it is best to stay away from things that demand a rigorous inspection before purchase.
If you still want to proceed with selling such products, be ready with well-drafted shipping and return policy. Also be ready to face the charges incurred with returns and re-shipping new, undamaged products to your customers.
3. Is Dropshipping Worth? Yes, if you are in trend. Try from Google Trends!
Google Trends is a free helpful tool for market research. Google can show you how many individuals were searching for this item. This can help you understand the products that are in demand before you choose your niche. The seasonal, geographic, and other variations in product demand will all be clear to you with thorough market research using Google tools.
4. Don’t Compromise on Research
The initial stages of locating and acquiring a reliable supplier are the main challenge for 84% of eCommerce sellers in starting their firm. In India, your dropshipping business can be ruined by your suppliers or it might succeed because of them.
If something goes wrong with the product quality or delivery, you will be in charge of fixing the issue and dealing with irritated consumers, not the suppliers. Hence, it is critical that you identify suppliers whom you can rely on.
The best course of action is to select a single supplier who specializes in a small selection of goods that fit your niche. It will enhance the quality of service. For instance, Qikink provides Print on demand dropshipping solutions for businesses looking to print on clothes and other merchandise. Their expertise in the niche makes them one of the best print on demand companies in the niche market with high-quality prints.
Having access to a variety of vendors can also be beneficial. There may be a strong chance Supplier B has the item in stock when Supplier A doesn’t. It may also be dangerous to rely solely on one provider to provide your product.
5. Partner With a Reputed E-Commerce Dropshipping Platform
Decide which eCommerce platform you’re going to employ before you start developing your website. Most platforms charge a monthly fee to their users. In addition, they restrict entrepreneurs’ ownership, which keeps them under strict control. It can end up being the factor that causes new entrepreneurs to withdraw. Another reason why entrepreneurs delay launching their businesses is the lack of expertise and availability of quality developers to help create and launch their websites.
A comfortable and user-friendly website can be made using Shopify or WooCommerce, to set up your online store. These platforms provide you with autonomy as well as provide various other solutions that can boost your ecommerce dropshipping business in India or all over the world. They are also easy to set up and require little to no technical expertise to get started.
6. Plan Your Payment Gateways
Customers today are looking for reasons to trust a brand. Also, a dropshipping business cannot afford to look like a scam. Customers need to feel secure when making purchases from the store. Setting up secure payment channels can surely do the trick. Also, Google boosts SEO for sites with a good security layer.
If you are catering to international customers, ensure that the payment gateway is compatible with users abroad as well as users within your country. Review the transaction costs. It can be tempting to go with the solution that has the lowest price. However, consider integrating gateways that are preferred by many customers. Also, remember to ensure that all major credit and debit cards are accepted by your gateways.
Some examples of secure payment gateways used by customers are Razorpay, Instamojo, BillDesk, Paytm, and Cashfree.
7. Utilize the Gifts of SEO in Ecommerce
SEO can be crucial to maintain a successful online business. However, many business owners undervalue the part SEO plays in their success.
The cheapest and most effective method of bringing customers to your online store continues to be search engine optimization (SEO). Therefore, every owner of an eCommerce business should begin to prioritize SEO while building their site.
Design your product pages’ titles and descriptions to fit SEO requirements. Also, remember to incorporate the keywords into these sentences. Seo can also be improved by adding engaging material to your websites like blogs, content marketing, and social media marketing.
8. All Reviews Matter for Dropshipping Business!
People trust People. About 70% of shoppers read online reviews before making a purchase. Customer reviews and store ratings on Google or on the eCommerce platform can reveal a lot about your dropshipping brand to your customers before they even experience or buy your product.
Every time a satisfied customer sends you an email to express their gratitude for your assistance, request that they also leave positive feedback about your brand on reputed platforms like Google or on social media platforms.
Resolve any issues as soon as possible if someone reviews venture our shop negatively. Regardless of whether a comment is nice or negative, respond and address them effectively. Creating a good reputation and guarding it can save your business and even boost sales quickly.
9. Prioritize Product Quality
New dropshippers frequently choose vendors with lower prices in order to reduce their risk. The worst thing you can do is start a dropshipping company on a budget. It’ll probably lead to a tonne of negative customer feedback and complaints about the inferior products you chose for a lower price.
Purchasing goods from a cost-saving vendor is acceptable as long as you don’t skimp on the quality of the final product. Conduct a test order with the selected vendors to evaluate their service, packaging, and overall product quality.
Read comments, reviews, and ratings about the vendor before signing a deal. Order a demo or sample product to witness firsthand what your potential clients will receive from the vendor.
10. Provide The Best Customer Support
Using an Excel spreadsheet to manage your customer emails, requests, and returns is not ideal. Excel is a great program but is not designed to manage customer care. Managing customer support through a single email inbox or a basic program gradually breaks down when your team and business expand, resulting in issues and service interruptions.
One of the best things you can do to make sure your clients receive high-quality support is to set up CRM software and write a number of FAQ articles to make the customer journey easier.
There are many various types of CRM software, that offer a wide range of solutions to efficiently manage your customer support correspondence and concerns. CRMs make it simple to distribute customer issues among teams and keep track of all relevant communications to help deliver a superior customer experience.
Salesforce CRM, Zoho CRM, Freshdesk, and Microsoft Dynamics CRM are some CRM software used in India for dropshipping.
Is Dropshipping Worth? Try POD Dropshipping from Qikink
The popularity of dropshipping as a fulfilment model is expected to rise along with the sector as eCommerce is predicted to expand by roughly 17% annually. Dropshipping can make online retailers 50% more profitable than those who manage their own inventory.
Starting your dropshipping ecommerce process can be challenging at first. Taking the help of a reliable platform to set up your dropshipping business can help you jump-start your entrepreneurial journey.
You can start and grow your dropshipping business in India while elegantly overcoming every hurdle with the right attitude, patience, and plan. These 10 tips can save you the time and energy you would have otherwise spent experimenting and self-learning to launch a successful dropshipping business.
Qikink is a dropshipping platform that helps small ecommerce businesses meet market demands with minimum investment. With over 10k deliveries, Qikink ranks as one of the top print on demand platforms with a wide range of products to begin your dropshipping journey.
Click here to know more about Qikink.
How much money do I need to start dropshipping business in india?
Due to the absence of inventory management, dropshipping is a business model that doesn’t require significant financial outlay. To increase traffic to your website and raise sales, you will need to make a small investment in marketing and customer service.
Can I manage my dropshipping business remotely?
If you want to work from home and be your own boss, the ecommerce dropshipping business model is ideal for you. Dropshipping businesses can be run from any location using just a laptop and an internet connection since they don’t require a physical location or the possession of the goods they are selling.
Do I need a business license to run a dropshipping business?
It’s better if there is some form of licensing even if some dropshippers choose not to create a company when they first enter the sector. For instance, among dropshipping businesses, the Limited Liability Company is the most popular form of organization (LLC). The LLC is frequently registered because it protects the founder’s personal assets by keeping them distinct from the company’s other assets.
Can a dropshipping supplier help me set up my store?
There are suppliers working with development firms to offer you a full turnkey dropshipping store solution when setting up a dropshipping store and supporting your dropshipping journey right from the start.
Qikink is one such platform that can help you set up a dropshipping store.