Are you planning to start a dropshipping business and looking answers for Is dropshipping profitable in India? If yes, you’re at the right place.
Qikink is India’s largest print-on-demand dropshipping company, and with many years in the industry, we are here to help you understand the dropshipping business and its profitability.
Dropshipping in India has gained popularity in recent years. This is the right time to establish your store and online presence.
What is dropshipping?
Dropshipping is a business model where you, as a seller, tie up with a dropshipper and sell their products on your website. You don’t need to stock up on inventory or manage shipping in dropshipping. Your dropshipping partner fulfills your order on your behalf. You only need to list new products and promote your store.
Suppose you are new to online business and dropshipping. In that case, it is an excellent business strategy for entrepreneurs who are strong at selling since it relieves them of the burden of stock management and shipping. They only need to select the correct supplier with the proper processes to ship the orders. Then, they can return to their original focus:
- Making a fantastic online store
- Identifying popular things to sell in their store
- Directing a large number of people to the store
- Converting browsers into consumers, then into recurring customers.
How does dropshipping work in India?
Here’s how dropshipping works in India
- You, as a seller, partner with a dropshipping supplier.
- You set up an online store and list the dropshippers products online.
- When a customer purchases on your website, you send the details to the dropshipper.
- The dropshipper picks, packs and ships the orders to the customer directly.
Advantages and disadvantages of dropshipping in India
Advantages of dropshipping | Disadvantages of dropshipping |
Low start-up cost | High competition |
No entry barrier | No control over inventory management |
Need not manage inventory | Low margins |
No shipping hassles | No customizations |
Easy to add and remove products | No custom branding |
Easy to scale | |
No retail store is required. | |
Flexible work location – You can work from any part of the world. | |
It is easier to test different markets |
Why start dropshipping in India?
Dropshipping is a profitable option to invest in a virtual store or an e-commerce venture in India. Starting an online store is a secure business concept because the selling merchant does not need to transport or deliver the products.
E-commerce sales in the country are expected to grow at a 51% annual rate, making it the greatest option for people wishing to establish a new business. Regardless of what you wish to offer in your business, Indian dropshipping is an excellent method to get started in the sector.
India is also one of the world’s top suppliers of raw commodities. It provides raw materials to a variety of businesses. As a result, there is lots of opportunity for new dropshipping entrepreneurs. You might begin by gauging product demand with a local manufacturer. The manufacturer shall be responsible for the on-time delivery of the orders.
Is dropshipping profitable in India?
Yes, dropshipping is profitable in India. Here’s why it is profitable.
No inventory management
Dropshipping in India is a profitable business model because the selling merchant is not responsible for handling the costs of product manufacturing and shipping. You only need to focus on promoting the product you want to sell, reach the correct audience, and start profiting from every transaction!
Cost effective
You don’t need to invest much money in advance because you can start getting products from a supplier and running a profitable business for very little money. Create an online store without worrying about storage, warehouses, or inventory. You don’t even have to buy the upgraded product.
Online trading
India is a developing country with increasing e-commerce enterprises. In such instances, starting an internet dropshipping business provides increased exposure to the audience and the opportunity for higher earnings.
How much can you earn from dropshipping in India?
The monthly income from dropshipping in India ranges from 20,000 INR to 4,00,000 INR. Profits increase as sales increase. However, the success of your dropshipping business depends on the products and services you offer. If your product does not meet the customer demands or you are not targeting the right customers, your business may vanish in the competitive market.
How much you can earn from dropshipping in India depends on your products, services, ease of order process, dropshipping partner, marketing skills, and post-purchase customer experience.
Is dropshipping legal in India?
Yes, dropshipping is legal in India. It is a low-cost approach to order fulfilment in which the selling merchant manages marketing and sales while the supplier handles manufacturing, packaging, and shipment.
It is a completely safe and secure business model. The dropshipper sells goods and items with the seller’s authorization. As a result, it is not illegal. Furthermore, provided you follow all of the appropriate rules in the country, there is nothing improper with operating this business. It is becoming more popular as more customers and suppliers transition to online platforms for sale and purchase.
Conclusion
Dropshipping is a profitable option for entrepreneurs in India, as it eliminates the need for inventory management and shipping. With the expected growth in e-commerce sales in India, starting an online store and partnering with a dropshipping supplier can provide increased exposure and higher earnings.
Read more
- List of Best Dropshipping Niches to Choose From
- Is Dropshipping a Profitable Business in India? 10 Key Factors to Consider
- Print on Demand Dropshipping: 21 Actionable Points to Start and Scale Successfully
- How To Start An eCommerce Business and Scale Profitably In India
- Dropshipping India: Key To Start Your Profitable Business
Frequently Asked Questions
Does dropshipping still offer profitability prospects in India's e-commerce scenario?
Dropshipping allows you to sell products without inventory and shipping hassles, making it the most suitable and reliable business model. There is no investment risk since you only pay when you receive an order. It is a great start-up-friendly business and highly profitable with the right marketing tactics.
What factors influence the success and profitability of dropshipping ventures in India?
Here are 5 major factors that influence the success and profitability of the dropshipping business in India
- Your niche and target audience
- Finding a reliable dropshipping partner
- Product quality
- Website optimization and ease of use
- Marketing skills
How can challenges unique to the Indian market be overcome to maintain dropshipping profits?
Here are a few challenges that dropshippers face
- Inconsistent product quality
- Out-of-stock and low-stock issues
- Inconsistent fulfillment time
- Customer returns and replacements
- Building a brand.
Are certain product categories more conducive to profitable dropshipping in India?
Yes, there are product categories that have been profitable over the years.
- Men’s clothing
- Women’s clothing
- Kid’s clothing
- Phone accessories
- Office supplies
- Home decor
- Art posters and stickers
What strategies are vital to ensure sustained profitability in the Indian context of dropshipping?
Here are a few strategies that work
- Conduct thorough research on your product and target audience.
- Find a reliable supplier and build a strong relationship with them.
- Set your product pricing strategically
- Use different platforms to promote your product
- Upskill your marketing efforts to boost sales
With over 6+ years of experience in the industry, Ayushi excels in building strong customer relationships and guiding clients toward growth as a Brand Partnership Manager. She enjoys sharing her experience in her content.
