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Is Dropshipping a Profitable Business in India? 10 Key Factors to Consider

Businesses love the quick and easy setup for dropshipping with little investment, 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.


Brand Partnership Manager at Qikink


Brand Partnership Manager at Qikink

is dropshipping profitable in india

Is dropshipping profitable in India? Yes, it is. But only when you know the dos and don’ts of the dropshipping business. The dropshipping business in India has been gaining more popularity, not just because of its profitability and quick ROI.

Businesses love the quick and easy setup for dropshipping with little investment, 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 grew and is expected to grow by 32% by 2026, with a net worth of about $128 billion. Dropshipping businesses often make a profit margin between 15% and 20%, though this varies by sector and product.


When 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 correctly. Dropshipping businesses can ace the market by accurately tackling the challenges and mitigating the risks.

If you are starting a dropshipping business, here are X things you should know that will pay off with hefty profits.


How does dropshipping work in India?

Here’s how does dropshipping business works in India.

To begin, sellers must register with a dropshipping website. Check out the products and services and sign up for one that suits your business requirements. 

Set up your website and add products to your website. Once the customers make a purchase, the order is processed and shipped to the customer by the dropshipping firm. 

In the dropshipping business, your focus must be on products and advertisements while your dropshipping firm takes care of the rest.


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 purchases 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.

Dropshipping and the traditional retail model differ because the selling merchant does not stock or own inventory. Instead, to fill orders, the seller buys merchandise 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 typically have the high expenses a wholesaler would 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 success in dropshipping business in India 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 like eBay and Amazon, which sell the same products at large volumes.

Large-scale retailers frequently need to have more flexibility and a customer-focused mindset. So, they focus on various products instead of a niche set. You can focus on catering to customers’ specific demands 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 know 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 e-commerce industry, marketing is crucial!


Main dropshipping product categories on Shopify stores as of April 2021

SEO jobs get a lot simpler.

You undoubtedly want consumers to find your online store when shopping online quickly. 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 to select 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 product storage and transportation procedure. In other words, it facilitates rapid and straightforward 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. It is recommended that businesses refrain from pursuing selling products that carry high risks. Some products to stay away from can be categorised under:


Copyrighted items

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, resulting in significant legal issues for your business. Not to mention that it will be challenging to repair any reputation damage caused among your customers.

Brittle items

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.

Heavy products in eCommerce

It’s not only challenging to lift heavy objects. They can also increase the cost and difficulty of the delivery. Additionally, their weight makes them susceptible to damage during delivery.

Technical products

Customers anticipate receiving a fully functional product. It can be challenging to guarantee flawless goods when shopping online. Therefore, it is best to avoid things demanding a rigorous inspection before purchase.

If you still want to sell such products, be ready with a well-drafted shipping and return policy. Also, be prepared 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 production demand before choosing.  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 suppliers can ruin your dropshipping business, or it might succeed because of them.

If something goes wrong with the product quality or delivery, you will fix the issue and deal with irritated consumers, not the suppliers. Hence, you must identify suppliers whom you can rely on.

The best course of action is to select a single supplier specialising 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 eCommerce dropshipping platform

Decide which eCommerce platform you will employ before you start developing your website. Most venues 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 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 autonomy and other solutions to boost your e-commerce dropshipping business in India or worldwide. They are also easy to set up and require little to no technical expertise.

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6. Plan your payment gateways


Customers today are looking for reasons to trust a brand—also, a dropshipping business must look like something other than a scam. Customers need to feel secure when making purchases from the store. Setting up specific payment channels does the trick. Also, Google boosts SEO for sites with a good security layer.

If you cater to international customers, ensure the payment gateway is compatible with users abroad and within your country.  Review the transaction costs. It can be tempting to go with the lowest-price solution. However, consider integrating gateways that many customers prefer members to ensure that your gateways accept all major credit and debit cards.

Some examples of secure payment gateways customers use 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 need to pay more attention to 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 optimisation (SEO). Therefore, every owner of an eCommerce business should begin to prioritise 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 the eCommerce platform can reveal much 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 and guarding a good reputation can save your business and even boost sales quickly.


9. Prioritize product quality

New dropshippers frequently choose vendors with lower prices to reduce their risk. The worst thing you can do is start a dropshipping company on a budget. It’ll probably lead to many 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 customer emails, requests, and returns could be better. Excel is a great program, but not designed to work in customer care. Working 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 ensure your clients receive high-quality support is to set up CRM software and write several FAQ articles to make the customer journey easier. Many types of CRM software offer a wide range of solutions to efficiently manage your customer support correspondence and concerns. CRMs simplify distributing 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.


Can dropshipping make you rich? 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 inventory.

Dropshipping can make you rich, but it requires a significant amount of time and expertise in marketing. Starting your dropshipping e-commerce 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.


Future of dropshipping

In recent years, there has been a growth in the number of business sites adopting the dropshipping model in the E-commerce industry, which is expected to continue. 

The future of dropshipping depends on how you set up and run your business. It can only be a viable business model if you play all your cards correctly and adhere to all the techniques. For example, when choosing a dropshipping firm for your business, you must conduct thorough research before proceeding with your plan.

E-commerce sites that are correctly developed and followed will become high-return businesses and a source of tremendous wealth.



You can start and grow your dropshipping business in India while elegantly overcoming every hurdle with the right attitude, patience, and plan. These ten 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 e-commerce 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.


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Frequently Asked Questions

Here are a few advantages of starting a dropshipping business in India 

  • It is quick and simple to start, with a little initial commitment.
  • It is not necessary to have a well-established corporate entity.
  • You won’t have to worry about inventory, packing, or shipping.
  • Suppliers provide access to millions of products.
  • Setting your own profit margins- You have complete control over your profit margins. However, it should not be set so high that it costs your consumers money.
  • Simple to scale- Dropshipping facilitates scaling up by allowing necessary adjustments to be made through the provider.

Many industries and products perform well in dropshipping. A few of them are 

  • Clothing – T-shirts, hoodies, kid’s clothing 
  • Accessories – Phone cases, airpod cases, keychains
  • Home and Living – Mugs, pillow covers, 
  • Art – Framed posters, posters, canvas

Starting a small-scale dropshipping business in India might cost anywhere from INR 10,000 to INR 50,000 or more, depending on your product selection, marketing efforts, and platform fees. You must extensively search, develop a budget, and alter your spending.

You can run a dropshipping business from home or any part of the world. All you need is a laptop and a stable internet connection to start a dropshipping business in India.

Here are a few potential risks involved in dropshipping business. 

  • Finding reliable wholesale businesses is a challenge for new dropshipping business owners.
  • Products that are out of stock…
  • Returns and replacements
  • Product dissatisfaction.
  • Social media complaints.

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.

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About the author

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.
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.
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