How To Start Dropshipping In India?

dropshipping India

What is dropshipping?

Dropshipping is a retail strategy in which an e-commerce store owner does not maintain an inventory of products but instead orders them from a supplier or wholesaler and ships them directly to the customer. After the product has been delivered directly from the wholesaler, the order is considered complete. The dropshipping strategy is always a safe bet for any entrepreneur who is just getting their feet wet in the online business world.

Why to start dropshipping business in India?

When we talk about starting an eCommerce business in India, dropshipping is the most cost-effective option available. It empowers you to sell various products online without having to worry about carrying, storing, and maintaining an inventory of goods in your possession. It also eliminates the need to handle shipping and order fulfilment on behalf of the client. It wipes off the substantial initial investment required if otherwise.

As no additional infrastructure is needed, you will save money on various overhead costs such as electricity, water, rent, and expenses on employees. You only have to pay for your digital infrastructure, including your website, domain name, and other related services and products.

Dropshipping is less complicated to operate because you are not tied to a specific warehouse or supplier. You can choose to work with several different suppliers and distribute your orders to them. In this case, you can be located in one part of the country, while your supplier is located in some other part, and still manage to run your business smoothly.

All things considered, dropshipping makes starting an online store in India a low-risk business model to pursue.

Steps to start dropshipping in India

1. Choose your ideal product

When you look at some of the most successful dropshippers, there is a clear pattern that emerges. They don’t waste their time dealing with widely available products. They crowd the market with niche products in specific categories by digging a borewell for them and preventing competition.

Dropshipping will provide you with the flexibility to test how well these products sell, and depending on how well they perform; you can always change your mind and choose a different product to sell. The stock of unsold products will not pile up, and you’ll save money in the process.

You can use Google Trends as well to find out what’s popular right now, browse through Amazon’s best-selling products, and keep an eye out for the ‘People Also Ask’ sections in Google search results pages, among other things. Sudden demands and new trends can also be capitalized on.

2. Find out the right supplier

The next step to start your dropshipping business is to seek out suppliers who can provide you with these products at a profit while also having a credible and reliable track record in the industry.

There are two approaches you can take to finding your suppliers. Either you can make direct contact with them or use some online platform to connect with them. It is possible to find suppliers or wholesalers specializing in a specific niche of products by conducting a simple online search. There are many sites you can check out to find the suitable suppliers for your product.

There are certain things you should keep in mind when choosing the right supplier for dropshipping in India. The products should be manufactured on-site by the supplier. If a supplier uses the services of a third-party manufacturer, you should avoid that supplier at all costs.

Investigate the profit margins that you can achieve with your suppliers. Considering that you’re just getting started, you should concentrate on making money right away. It would help if you also examined the delivery schedule your supplier has promised to ensure you fulfil your orders in time.

3. Study about your competition

To launch your dropshipping business in India, you should study your competitors’ offerings. There are two types of competitors: traditional brick and mortar stores and other internet-based companies online. A simple search on the internet can give you lots of valuable information about the competitors in the market that you otherwise would never have known about. You can obtain a list of competitors and their preferred operating location, market prices, and other relevant data.

Learn about the various product specializations in which your competitors function and how they differ from you. Learn about the various marketing strategies that they employ to increase their sales and profits. Also, note down the different value-added services they provide and how you might be able to improve them to increase customer acquisition. Read through the customer reviews for a few of the best-selling products in your niche to get a better understanding of what they are looking for.

If your product does not have any major competitors, this is not a positive indicator. That indicates that there is a lack of a market for that specific product. Multiple factors play a role in a product’s lack of competition, including high transportation costs, supplier and production challenges, and low-profit margins, among others. As a solution, try to find products that do not come with these barriers.

4. Market your dropshipping business

Once you have created a website and listed your products, you must make sure that your customers are aware of all of the pertinent information. Additionally, you must ensure that your product listing is seen by the potential customer. Marketing your brand is a critical step in achieving success in the dropshipping business world. If you have good marketing skills, you will make a profit no matter what commodity you sell. The key is to communicate with the appropriate audience.

Advertising and marketing are all about spreading awareness of your company’s existence in the marketplace. You must be innovative and willing to take some risks. Social media marketing can be a great place to begin your marketing campaign. Make use of social media platforms such as Instagram, Facebook, and Twitter. Participate in groups where people who are interested in your products are likely to be found. Interact with people and be pleasant to them to entice them to check out your product or service.

In order to attract customers, social media campaigns should be launched. The majority of social media platforms provide exposure for businesses and services. If one chooses the appropriate plans on these platforms, one can easily attract customers. You can use online advertising services such as Google Adwords to showcase your products to the target audience. A well-written SEO strategy can be highly beneficial because it will attract interested customers by using the appropriate keywords and marketing techniques.

How is dropshipping different from wholesale business

features of dropshipping store

In India, the wholesale business model has been in operation for many years. Wholesale in India can result in higher initial investment in goods or products, as well as an increase in shipping costs and employee costs to manage the processes.

Because a consumer must purchase in large quantities in order to get a reasonable price in the wholesale business model, the cost of goods is high in this model. To keep up with demand, you’ll need to stock up on more inventory with no guarantee that it will sell.

Starting a dropshipping business in India, on the other hand, allows you to concentrate solely on tasks such as marketing your brand and providing excellent customer service to those who purchase from you. The supplier/manufacturer will take care of the remaining operational overheads for you.

Products you can sell online via dropshipping

You can sell a variety of products via dropshipping in India. You can sell anything from water bottles to masks, face packs, tea, coffee, pet supplies, sanitizers, electronics, clothing and so on.

Some more categories you can explore are-

  1. Baby products
  2. Car Accessories
  3. Beauty Products
  4. Sports Gear
  5. Home Decor and Garden

The product that will give you huge profits will be the one you choose from your judgement of the market and thorough market research.

Payment methods for your online business

For an online business, using different payment methods can be very convenient as it would give your customer the freedom to pay through the mode they are most comfortable with.

You can make payments via debit or credit cards, net banking, bank transfer, EMIs, UPI, wallets, Paypal and cash on delivery, available for your customers to get a huge market advantage.

Is dropshipping profitable in India?

Dropshipping in India is a highly lucrative market due to the incredible growth potential, the ample market space available for experimentation, and the lower risk involved. The reason for this method’s popularity is that it has a low risk of failure as products in dropshipping are only produced when there is an increase in demand.

Frequently Asked Questions (FAQ)

It ideally costs nothing to start a dropshipping business in India. You can set up your business within an hour using the right online platform.

There might be significant shipping costs involved depending on the product and the place. Then controlling the quality of products becomes quite tricky. It may sometimes give you less profit margin as you are re-selling the products.

This is one of the highlights of dropshipping as you don’t have to stock up any inventory and exactly why there is hardly any cost to start dropshipping in India.

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