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What is Dropshipping? How to Begin a Dropshipping Business in India?

Updated: Dec 12, 2023

Dropshipping Business in India

Starting a dropshipping business in India is the first step towards entrepreneurship. Where you will sell the things to the seller yourself, set your product prices, and launch your brand. Also, you don't have to pay for the inventory until it's sold to an actual customer. So, if you are willing to put in the work, you can build a successful brand.

However, if you're still thinking about starting your business online, it might help to know that e-commerce sales are expected to reach $5.2 trillion by 2023. So, starting an online business is a highly profitable option right now.

Learn how to start a dropshipping business in India in this article. We have covered all things about how to start a dropshipping business.

Explain: What is Dropshipping?

Dropshipping is a method used in a commercial business where the e-commerce owner does not have the inventory of the products. Instead, they source their products from a wholesaler and, when demand increases, they ship the order directly from the wholesaler's warehouse.

They claim that drop shipping is often a safe option for entrepreneurs as it is a very cost-effective tool. Since the entrepreneur is just starting the business, it can be difficult to manage all the inventory and supplies alone. One who does not have a deep understanding of how the market works and thus cannot accurately predict demand. So, here dropshipping is recommended.

How is India's drop shipping industry doing?

Dropshipping in India works as it does in the rest of the world. India's unique geographical location makes it easier for drop shippers to earn more profits.

Even international goods can be easily shipped using this method. Although there are certain legal precautions to be followed, an Indian freight forwarder can earn a profitable income with its Indian business. Business loans are available for financial needs.

How to begin a Dropshipping Business in India?

Starting a dropshipping business in India requires a lot of deep studies and research about the market. After the initial research process, the following steps are the process of starting a dropshipping business in India:

Choose a Dropshipping Idea

It is important to create a unique product or service so that you can deliver a product that may be in demand in India. Some patterns suggest that the most successful dropshipping companies are those that have not worked with the mainstream media, but with a specific niche. They worked at a deeper level to find their unique idea.

The benefit of dropshipping in India is that it easily offers flexibility in checking new products for sale. The service may be modified or terminated based on market performance. Hence, there is no pressure to commit to a single product that may not sell or be profitable. There are guaranteed products that can make a profit. Also, a perfect product can only be finalized by trial and error. Though, many financial supports are also available in the form of MSME loans.

Search for a Right Supplier

Dropshipping is not the preferred business method. Thus, there is a need to ensure that they select the right suppliers to work with. Google search helps in this process. Based on the selected niche, the supplier can be selected and cooperated with.

The process of choosing a supplier is based on specialized platforms such as Oberlo, Printrove, etc. However, choose the supplier, who tells you that they deliver the right product and are not affected by a third party, and are committed to on-time delivery. This is an important step, because if the delivered product does not meet the customer's expectations, you may have to respond to it.

Assure financial and legal sectors

Before you get down to business, don't forget to register as a Sole Proprietorship or Pvt. Ltd. in India. So, the following are the steps that we should follow:

  • GST number registration

  • Opening a checking account

  • Import and Export code

Ensure that an experienced lawyer provides advice and support to the firm to avoid future legal complications. Along with that, ensure that the MSME registration is completed correctly.

Establish promotion

It is important to market the company so that the desired sellers can get in touch. Despite the remarkable service, many businesses failed to turn a profit. This is mainly due to a lack of marketing and exposure. To avoid such situations, it is necessary to sell and promote the business at a high level.

There are many latest features to promote a brand online such as Google Ads, Facebook Ads, or Instagram Ads. These online advertising campaigns offer high brand promotion and recognition. Influencer marketing is also one of the most used marketing tactics today.

Create a social presence

In today's world, the customer would dive into research about the seller and would start ordering continuously. This research is often done online, so any business needs a strong social presence.

Now social media services are free, so create attractive content about the service and publish your social media interface freely. It will give a clear and positive image of the business.

An active social presence is also a way for future sellers to make contact with the company. It is one of the most important tools in today's business world.

Closing up with Dropshipping business in India

So, we've shown you how to start a dropshipping business in India. If you apply some of the advice from this article to your online store, you'll be building your online empire. And remember, the best way to learn how to start a dropshipping business in India, is to take the first step in building it. At last, we would suggest that it is a good option to select dropshipping services for your business.


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