Want to avoid going into product manufacturing and production or are trying to decide what kind of products to sell? Dropshipping in India is still an option.
With dropshipping in India, you can quickly start your e-commerce business from anywhere without worrying about production and fulfilment costs.
In this article, we will see dropshipping meaning, how it works, and its benefits. So let’s get started.
Table Of Contents
1. What Is Dropshipping Business In India?
2. How Does Dropshipping In India Work?
- Step 1: Sign Up With A Dropshipper/Supplier
- Step 2: List Products On Your Website And Marketplace
- Step 3: You Receive An Order From Your Customer
- Step 4: Dropshipper Packs And Ships Your Order
3. Why Start Dropshipping Business In India?
4. Normal Retail Business Vs Dropshipping Business Model
5. Benefits Of Dropshipping In India
- No Inventory Hassle
- No Minimum Order Value
- A Wide Range Of Product Choices
- Reduced Startup Costs
- Flexibility
6. Is Dropshipping Profitable In India?
7. How To Start A Dropshipping Business In India
- Step 1: Find Your Niche
- Step 2: Decide The Products To Sell
- Step 3: Choose A Dropshipping Supplier To Fulfil Your Order
- Step 4: Create An Online Store And A Payment Method
- Step 5: Promote On Social Media
- Step 6: Fulfill Store Orders
- Step 7: Earn With Every Order
8. Why Is Dropshipping Better Than Wholesale In India?
9. Dropshipping Websites In India
10. How Do You Choose The Best Dropshipping Partner In India?
11. How To Find Profitable Dropshipping Products To Sell?
- Determine Which Items Are In High Demand
- How Marketable Are The Products?
- Product Characteristics
- Pricing Your Products Correctly
- Make The Most Of Seasonal Products
12. Best-Selling Products For Dropshipping In India
13. Key Takeaways: How To Earn Money Using Dropshipping In India
- Don’t Rely On A Single Supplier
- Coping With Errors
- Outstanding Customer Support
- Provide A Clear Return Policy
- Do Not Compromise On Quality
- Remember To Value The Importance Of Marketing
- Keep An Eye On Your Competitors
14. Conclusion
What Is Dropshipping Business In India?
Dropshipping is a retail business that does not require a retail store to stock the products it sells. Instead, it serves as a storefront for a product that is then delivered directly to the customer when the seller places an order with the supplier/manufacturer.
Therefore, you don’t need to handle or physically shop for the product.
How Does Dropshipping In India Work?
Step 1: Sign Up With A Dropshipper/Supplier
After all your research on product demand and market gaps, you find the best dropshipping supplier to fulfil your orders.
Step 2: List Products On Your Website And Marketplace
Once you sign up, you can start listing your dropshipper’s products on your website. You can also list them in a marketplace like Amazon and Flipkart.
Step 3: You Receive An Order From Your Customer
After you have listed the products and a customer purchases on your website, you send the order details to your supplier or dropshipper.
Step 4: Dropshipper Packs And Ships Your Order
Once the dropshippers receive your order, they will pack and ship it to your customer under your brand name.
Now let us look at how a standard online store works vs dropshipping in India model would work.
Why Start Dropshipping Business In India?
According to recent estimates, the global dropshipping industry will reach $243.42 billion by 2023. It is also the first year it has over $200 billion, following a 23.7% growth from 2022 figures.
Dropshipping is the most cost-effective alternative when launching an eCommerce business in India. It enables you to sell various things online without having to carry, store, or manage an inventory of goods in your hands.
- It eliminates the requirement for the customer to handle shipping and order fulfilment. It eliminates the need for significant upfront expenditure.
- You will save money on overhead expenditures like power, water, rent, and personnel fees because no extra infrastructure is required. You must pay for your digital infrastructure, including your website, domain name, and any other products or services you sell.
- Because you don’t own a warehouse or supplier, dropshipping is less complex to run. You can work with many providers and distribute your orders to them. In this situation, you can be in one area of the country while your supplier is in another and run your business successfully.
Dropshipping makes opening an online store in India a low-risk business strategy to explore.
India’s eCommerce sales are growing by 51% annually, representing the massive potential for entrepreneurs. Dropshipping in India is an excellent way if you want to sell online.
India is a provider of raw materials and finished goods in various sectors.
With over 5 lakh merchants on Amazon alone and many more on other e-commerce platforms, it is safe to say that the Indian e-commerce business is fast increasing. This rise in demand requires a more extensive supply resulting in purchases and inventory storage.
Normal Retail Business Vs Dropshipping Business Model
Normal Retail Model
- Retailer stocks the products that he sells online
- A customer places an order on the retailer’s website
- The retailer then checks for stock in his inventory
- Then they pack and ship the order to the customer
Dropshipping Business Model
Step 1: The customer orders from the retailer’s website.
Step 2: The retailer passes that order to his supplier or dropshipper
Step 3: The dropshipper pack and ships the charge directly to the retailer’s customer under the retailer’s brand name
Dropshipping is a fantastic business model with huge benefits. You can start your online business today with dropshipping in India.
Benefits Of Dropshipping In India
1. No Inventory Hassle
With dropshipping India, you need not manage any product inventory, unlike other business models where you store physical inventory, which adds to a storage fee and rent.
With drop shipping, you only source the product from the supplier when you receive an order from your customer.
Therefore, dropshipping makes opening an online store in India a low-risk business.
2. No Minimum Order Value
You only place an order when you receive an order from your customer. And with that, there is no compulsion to minimum order products or value.
You can place an order for a simple one product or the least-priced product.
3. Reduced Startup Costs
Businesses that use a dropshipping method save money by not investing in inventory or maintaining a warehouse. They also save time by not having to organize their inventory or hire people to fill orders.
It means that the business has a shallow entrance barrier. You can establish a dropshipping business when you need more funds to run a regular retail operation.
4. A Wide Range Of Product Choices
This method even expands product choices. Retailers may provide a broader selection of products, allowing a small firm that could only offer as many alternatives with storage to sell a wide variety.
5. Flexibility
There’s a reason why digital nomads prefer this business model. Dropshipping is for you if you love working from anywhere globally.
With no warehouse to maintain or couriers to communicate with, you can run your dropshipping business from almost anywhere.
When your shop grows, and you need to hire more people, you’ll be able to hire people from all over the world.
Is Dropshipping Profitable In India?
Dropshipping is the most profitable business model. It is because you do not manufacture or stock inventory of any product. And with every sale, you make a profit. With dropshipping, you only handle the marketing and customer side of things, while the supplier takes care of manufacturing and shipping.
Nevertheless, dropshipping has become popular as more individuals leave sites like AliExpress. It’s a beautiful alternative for people who want to work in the e-commerce market.
However, you must focus on products with a genuine market demand to run the business profitably.
It is not only profitable but also blooming! Profits from e-commerce and dropshipping have exceeded $196 billion.
The scope of dropshipping is that once you gain popularity, you may indefinitely scale your e-commerce business.
You may concentrate on marketing and sales because you won’t have to carry inventory or physically ship orders.
Dropshipping in India may be a very profitable business for several reasons. Here’s why.
Online Trading:
India is a growing country with increasing e-commerce businesses. In such instances, starting an online dropshipping business provides increased exposure to the audience and the opportunity for higher revenue.
Broad Market Reach:
With over 700 million internet users in India, dropshipping can give you access to an extensive consumer base.
Cost Effective:
You don’t need to invest much money in advance because you can start getting products from a supplier and run 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 thing right away.
Zero Inventory:
Dropshipping in India is a profitable business model since the selling merchant is not responsible for handling the costs of product manufacture and shipping.
You only need to focus on promoting the product you want to sell, attracting the correct audience, and starting to profit from every transaction!
Integrations And Automations:
Dropshipping functions can be automated if you look carefully enough. It is optional to oversee the actions involved daily. Integration improves efficiency and allows retailers to concentrate on other elements of their company.
Diverse Product Options:
Dropshipping allows you to sell various items without investing in inventory. It will enable you to adapt to multiple consumer demands and tastes, making it attractive and straightforward.
Their participation may now help with marketing, branding, and business growth. Order monitoring, performance reviews, pricing setting, promotions, and so on may all be automated.
How To Start A Dropshipping Business In India
You may start a dropshipping business in India easily. The following steps will assist you in starting this business:
Step 1: Find Your Niche
Pick the best niche in which you are interested and passionate. At the same time, ensure that the niche and product are in high demand in the market.
Step 2: Decide The Products To Sell
While dropshipping allows you to sell nearly any product in your shop, it is essential to find successful products.
Step 3: Choose A Dropshipping Supplier To Fulfil Your Order
Choose the dropshipping company from whom you want to acquire the product and contact them about dropshipping the products to the consumer.
Step 4: Create An Online Store And A Payment Method
Decide on which platform you wish to sell products. You can check out our blogs on the best e-commerce platforms to create your online store.
Step 5: Promote On Social Media
Make use of social media sites to promote your products. Increase your audience reach and identify relevant consumers interested in purchasing your products.
Step 6: Fulfill Store Orders
When you receive an order, you can send them to the dropshipping partner to fulfil the order.
Step 7: Earn With Every Order
Start making profits with every order you place.
Why Is Dropshipping Better Than Wholesale In India?
India has always practised wholesale. Yet, wholesale in India may result in a more significant initial investment in commodities or products and increased transportation costs and labour costs to manage the operations.
The cost of things is currently high under the wholesale model since a consumer must purchase in large numbers to get a good bargain. As a result, you must stock up on extra things with no certainty of selling them.
Moreover, shipping and labour expenses are typically high. As the company expands, packing and shipping items require a large crew. Most of these components of the company may be automated using dropshipping.
On the other side, launching dropshipping in India allows you to focus only on marketing your brand and giving outstanding customer service to clients who purchase from you. The supplier or manufacturer handles the remaining.
Dropshipping Websites In India
Regarding population, India is one of the world’s largest countries. As a result, the top dropshipping provider in India must be able to meet the requirements of the Indian market.
Finding a reliable, trustworthy provider with a diverse product range is difficult. Yet, several companies in India have been in the dropshipping industry for a while.
If you want to launch a dropshipping business, here is a list of dropshipping suppliers in India:
- Baapstore
- vFulfil
- Qikink
- SaleHoo
- Indiamart dropshipping
- Spocket
- Dropshipzone
You can read about these dropshipping suppliers and their offerings in detail on our blogs
How Do You Choose The Best Dropshipping Partner In India?
The following are some requirements that a reliable dropshipper in India must fulfil:
- It is impossible to do everything correctly, so choosing a company that can work according to your specifications is essential.
- Evaluate what you need. Please only hire a dropshipping business that can offer you the services you demand on time, regardless of how reputable and trustworthy they are.
- Shortlist several companies and then compare them to discover which fits your needs best.
- They should be capable of delivering a wide range of high-quality products in sufficient quantity.
- They should be sure that errors are knowledge.
- They should be available in several languages 24 hours a day, seven days a week.
- They should be able to ship to consumers worldwide within 48 hours.
- Companies should be able to distribute new items to Indian retailers using online and other web-based channels.
- They must tackle urgent matters appropriately and quickly.
How To Find Profitable Dropshipping Products To Sell?
Finding the best dropshipping products is a difficult task. Multiple factors help you select which products suit your dropshipping business in India.
Consider the following factors while determining the best dropshipping products:
Determine Which Items Are In High Demand
Study market trends and popular niches to select items that meet their needs. To determine which items are in great demand, use social media, Google search, and Google keywords.
How Marketable Are The Products?
The marketing potential of products influences their reach and store promotion. Efficiently marketable products frequently drive more website visitors, turning them into purchases.
Product Characteristics
The kind of products you select also influences their profitability. Niche-oriented, commercial products, accessories, often purchased products, and tiny products, for example, have different profit margins.
Pricing Your Products Correctly
Make sure you use product pricing strategies correctly. Before deciding on a price, think about the pre-sale service. If you price your things high, your chances of providing pre-sale customer assistance grow.
It does not imply that you underprice your things. Discover the happy medium between profitability and client satisfaction.
Make The Most Of Seasonal Products
Your profit margin might increase by selling seasonal products. Work-from-home, winter/summer, festive, and rain-proof products are a few examples.
Another strategy to find the best products is to look at your competitors’ sales.
Best-Selling Products For Dropshipping In India
Electronics & Media
Due to the increased demand for electronic items, the electronics category accounted for more than 19.15% of the market in 2022. Customers examine a broad collection of objects, receive discounts, and apply for quick returns on e-commerce platforms, opening up many possibilities for selling electronic devices.
Best-selling products in the electronics category were wireless chargers, power banks, laptop covers, smartphones and videography equipment.
Fashion
Throughout the projected period, the fashion sector is predicted to increase at the fastest pace of 24.8%. Consumers prefer to buy personal and beauty items online.
The fashion dropshipping market is predicted to grow from 2023 to 2030 due to increased globalization and changing customer purchasing habits.
Increasing customer desire for branded items and the availability of several brands on a single platform is expected to boost the fashion category throughout the projection period.
Best-selling products in the fashion category are T-Shirts, shapewear, tote bags, scrunchies, nail extensions and footwear.
Food, Personal Care And Furniture
From 2019 to 2025, the Food & Personal Care industry will expand at a CAGR of more than 30.0%. Increasing consumer expenditure in cosmetics, fragrances, and other personal care goods will promise well for category development in the future.
Furthermore, growing household furniture expenditure has increased consumer taste for luxury furniture, strengthening the furniture & appliances market throughout the forecast period.
Key Takeaways: How To Earn Money Using Dropshipping In India
No matter how simple it appears to establish a dropshipping business in India, many things must be corrected. There are several factors to consider while generating money online with dropshipping. But, the steps to success are rather basic. So here are some suggestions to help your dropshipping business run more smoothly:
Don’t Rely On A Single Supplier
Regardless of how efficient or service-oriented your supplier is, it is better to have multiple suppliers to reduce risk and be dependent on a single source.
Several suppliers boost order fulfilment speed, reduce the likelihood of product shortages, and increase inventory capacity. Pay special attention to inventory management and product selection while working with multiple vendors.
Coping With Errors
In any business, problems are unavoidable. You may encounter supplier, delivery, product, or inventory challenges. When consumers suffer, regardless of the cause, it’s important to accept responsibility rather than assign blame.
Attempt to compensate customers by discounting the next product, refunding the shipping price, or replacing/upgrading the products.
Outstanding Customer Support
Delivering outstanding customer service influences your business and fosters strong customer connections. Make sure you do it right. Your customer interactions directly impact customer satisfaction and retention.
Provide A Clear Return Policy
For any dropshipping business, a well-written refund policy is essential. The idea is to be open and honest about the return policy. Mention the conditions, product exceptions, procedure, hidden charges, time frame, and other return factors.
Make the return procedure as simple as possible for the consumer while not preventing them from placing orders.
Do Not Compromise On Quality
Be it your website, supplier, product, or customer service; quality is of the utmost importance for any dropshipping business in India.
Build an SEO-friendly website with high-quality product images/videos and well-written product descriptions. Select reliable suppliers with high-quality items, and don’t compromise on customer service.
Remember To Value The Importance Of Marketing
After your website is up and operating, devote additional time and effort to promote it. Building a consumer base with a well-thought-out marketing plan is possible. Increase website traffic with SEO, advertising, and social media marketing.
YouTube, Instagram, and Facebook advertising and influencer and affiliate marketing might help you promote your brand on a budget.
Keep An Eye On Your Competitors
Monitoring your competition is the finest method to boost your desire for progress. You can learn from your competitors’ failures, brilliant ideas, and service implementation.
To enhance and differentiate your strategy, constantly examine and research the competitor’s website, product listings, and social media platforms.
Finally, keep in mind that you make money by providing value. Hence, consider how you offer value whenever you put effort into your dropshipping business.
Conclusion
Be cautious and make the proper decisions when your business does or does not immediately catch on with your target audience. There might be many reasons your first items did not sell successfully, including poor marketing, poor product selection, the incorrect target, a lack of options, uninteresting website and media messaging, poor customer service, etc.
Hence, utilize the first few weeks to explore, try new things, and enhance your options and strategies. You will surely successfully turn your dropshipping business in India into a profitable one.
This article helped you understand dropshipping business in India and the different aspects involved. You may unleash your entrepreneurial spirit by launching a dropshipping business in India and leveraging the possibilities surrounding you.
FAQ
Is dropshipping legal in India?
Dropshipping is legal in India. It is a low-cost approach to order fulfilment in which the selling retailer manages marketing and sales. At the same time, the supplier handles production, packing, and shipment.
Consequently, e-commerce sales in the country are expected to grow at a 51% annual pace, making it the best business for individuals wishing to start a new business.
How to dropship in India?
- Choose a niche
- Conduct competitor product research
- Find a reputable dropshipping supplier
- Build your online store
- Market your dropshipping business
- Analyse and improve your store
Is GST mandatory for dropshipping?
GST for dropshipping business is not mandatory. However, it is recommended to have one as GSTIN will also assist you in claiming GST credit. It would help to clarify GST obligations with your manufacturer to prevent legal issues.
How much can you earn from dropshipping in India?
The monthly revenue from dropshipping in India ranges from 20,000 INR to 4,00,000 INR. Profits increase as sales increase. Dropshipping in India can make you anything between 20,000 and 50,000 rupees.
How to do dropshipping on amazon in India?
You can sign in directly at Amazon’s seller central and start listing the products you wish to sell. Amazon dropshipping may help your company reach a worldwide audience by selling indian products worldwide.
Amazon’s excellent customer service, delivery speed, and package quality will help your dropshipping business in India grow and expand.
Can we do dropshipping in India?
We can dropship from India without worrying about inventory or upfront fees. Dropshipping is a low-cost approach to getting started in a company in India.
The eCommerce business is multiplying as more individuals convert to purchasing online for most of their purchases. Dropshipping has been revolutionary for many new eCommerce businesses. Its popularity is expanding as a result of the seller-friendly business model.
According to consumer trends, various items managed via the dropshipping channel are frequently in demand.
How to do dropshipping in USA from India?
You can tie up with dropshippers who ship globally to fulfil orders in the USA from India.
India’s multilingual population and English fluency enable online retailers to communicate with people worldwide, expanding their market space. It opens up more alternatives for delivery and purchases within and outside India.
Is dropshipping successful in India?
Dropshipping is an excellent option to start a side business and generate income.
Dropshipping requires an investment of time, money, and effort to be successful.
Dropshipping is a cost-effective business model which can help new businesses save on initial and later costs. It is especially beneficial in developing countries like India.
Can you sell copyrighted or trademarked products?
No, you cannot sell copyrighted and trademarked products with dropshipping. The purpose of a trade mark is to distinguish a brand from others.
As a result, you cannot sell a trade-mark-protected product. You are violating exclusive rights if you sell an item with an existing trademark without the owner’s permission.
If you are proven to infringe on someone’s exclusive rights to a trade mark, they will take legal action against you. It might result in the court ordering you to stop selling these products or services. Also, you might have to pay for your sales using copyrighted creations.
How to do dropshipping on Shopify?
You may begin dropshipping with Shopify by following these simple steps:
- Create a Shopify account.
- Look for dropshippers and select the products you wish to sell.
- Please set up your shop and customize it to offer your business a more professional appearance and feel.
- To start with Shopify, add a name, set up payments, and choose a plan.
How to setup WooCommerce for dropshipping?
After installing WooCommerce plugin to your store, follow the below steps to set up the WooCommerce dropshipping.
- Install a dropshipping plugin like Qikink.
- Integrate your WooCommerce store with them.
- Create products and push them to your store.
- Promote your store.
- Orders will be processed & shipped to the customer by the dropshipper.