Dropshipping Guide: All About Dropshipping in India

Dropshipping in India is the best way to start your e-commerce business easily. Nowadays you can start your own business without investing on inventory, business space and many more expenses. That’s why more and more users getting into online selling and making huge profits. To boost online e-commerce business in India, DropshipZone came with a very unusual way to do online business without investment which is called Dropshipping India. Let move over the getting started guide to start Dropshipping in India.

The Ultimate Guide to Understanding Drop Shipping

What is Drop Shipping?

Dropshipping is the latest retail fulfilment method in which a store isn’t needed for keeping the products of the business in stock. What the store does is that it sells a product which it purchases from a third party and then has it directly shipped to the end customer. Due to this, the merchant doesn’t have to see or handle the product. Dropshipping India has become a huge industry. Here we have great resource where you can find more about Drop shipping.

How is Drop Shipping Different?

The main difference between dropshipping and the conventional retail model is that the merchant who sells the product doesn’t have to stock inventory. Instead of stocking inventory, the merchant just purchases the inventory it needs from a third party, normally a manufacturer or wholesaler to fulfil its order. It can even be defined as the newest form of Just in Time Inventory System and it has quickly become highly famous across the world especially due to the advent of e-commerce stores.

How does Drop Shipping work?

Dropshipping is rather simple and easy to manage as the only thing which is important is to have a great relationship with the manufacturer or wholesaler from whom the business buys its products to sell to the end consumer. The way in which dropshipping works is simple. When a customer places an order, the merchant or rather you directly place the order to a third party which is the manufacturer or wholesaler. Once the product has been made or the order has been placed, it is directly shipped to the end customer.

Why you need to start Drop Shipping?

As the world becomes more tech-savvy, there is no need to have a physical retail store for customers to visit when you can set up a store online. There are many advantages of starting a dropshipping business and here are some of the reasons why you need to start dropshipping and close your retail outlet:

1. Less Capital Requirement

The main advantage of dropshipping is the fact that all you need to do is set up an e-commerce store instead of having to invest in a physical retail outlet as well as on an inventory upfront. Normally, retailers have to spend and tie up huge amounts of money on inventory but that needn’t be the case anymore. It is a low investment business. One can easily find a dropshipping supplier in India. There are some wholesale drop shippers in India which is why one needs to check the list of drop shippers in India.

2. Purchase Products When Ordered To

Unlike traditional retail, where retailers always had to keep inventory for customers in case they got interested in buying the products, dropshipping doesn’t require you to purchase a product until a customer has placed an order and paid for it. Why waste money on inventory when you can set up your own dropshipping business. The apparel industry is one which has seen a rise of drop shippers in India and around the world, especially with there being many apparel drop shippers in India to choose from.

3. Easy to Start

Running e-commerce stores is much easier compared to a physical retail outlet for which you need to hire many workers and have expert knowledge of running a business. Dropshipping allows you to easily enter the business and take advantage of the low investment costs.

How to Start Your Own Dropshipping Business in India?

Dropshipping has quickly become a popular business model for entrepreneurs, especially Millennials who are tech-savvy and have superior internet marketing skills as compared their financial capacity. The biggest advantage of running a drop shipping business is the fact that one does not need to hold stock or even handle the items they sell, thus making it the ultimate choice for entrepreneurs with limited funds. It is cost-effective due to its low operational costs and your time is freed up to focus on other key areas such as customer acquisition.

How do I start a Drop Shipping Business?

The dropshipping model has been adopted throughout the world and drop shipping India is a great way to launch your business. Although, all one needs is an e-commerce site to operate their drop shipping model and purchase from a third-party manufacturer or suppliers when a certain amount of orders have been reached. Here is your guide to start a dropshipping business.

1. Choose a Drop Shipping Idea

The first and most important thing which is required to start your own dropshipping business is by choosing a drop shipping idea. A unique idea is a good place to start. Look at your expertise and understand the market. If there is a niche which has been identified then provide products or services targeted towards the niche.

2. Build a Drop Shipping Business Store

Once, you have chosen a drop shipping idea, it is time to build a dropshipping store. As the dropshipping store or the e-commerce site is the only place where customers will be able to experience buying from you, it is essential to spend on the online store.

You will need to find a unique domain name which goes hand in hand with the dropshipping idea so as to generate more organic traffic to your online store and convert the traffic into sales. It is also a good idea to hire a specialist to build and manage the online store for you.

3. Find the Right Drop Shipping Suppliers

One needs to find a dropshipping supplier in India they can trust and rely on so that the right products can be provided to the end customers. There are many wholesale drop shippers in India and one can easily check the list of drop shippers in India to find the right suppliers for their business. A business link needs to be developed with the dropshipping suppliers to ensure that the right goods are delivered to customers at the right time.

How much do you make from Drop Shipping?

Although it completely depends on the dropshipping idea, the amount of money one can make from the business model will go up in a short amount of time due to the low operational costs. It is a highly profitable business model. Many apparel drop shippers in India have made it big. Give it a try on your own to see for yourself why it is the future of retail business.

Is the DropShipping Most Cost-Effective Business Model?

Dropshipping is a great cost-effective way for people to launch their e-commerce business, especially in India. It allows entrepreneurs to sell their products online without having to invest in an inventory. It is a low-risk business model and for countries like India, it is vital to have a low-capital requirement business so that everyone can join in and have a piece of the pie.

Is Dropshipping Profitable?

There is a reason why people are flocking to the dropshipping business model as it allows you to only buy customers the products they have ordered after have made their purchase which shows the profitability of the business. It has been observed that in 2016, Indians had spent a whopping $ 16.08 Billion in online sales alone and it has been seen that online sales have experienced a steady annual growth of 24.5%.

It is believed that by 2021, online sales would be expected to have reached $45.17 Billion making it the most profitable market to operate in. Indian drop shippers can freely market their businesses to outsiders as well as the Indian eCommerce market continues to grow. First, all one has to do to succeed in dropshipping India is by finding a dropshipping supplier in India. Local suppliers increase the likelihood of the products being delivered to customers on time. In order for your dropshipping business to be profitable, all you need is a unique business idea.

How much does Dropshipping Cost?

The best thing about dropshipping is the fact that the model enjoys low-operational costs as well as requires low capital investment. Since there is no need to hold inventories which have contributed to, much of the costs, dropshipping is a low cost and highly profitable business method.

One needs to build a good relationship with wholesale drop shippers India if they want to succeed in the business. There is a list of drop shippers in India which one can check to find all types of drop shippers such as apparel drop shippers in India. There are some industries which are more successful in adopting the dropshipping business model such as the apparel industry. Here is a break up of costs:

Major Component:

The major component of the cost is that of e-commerce store setup. The e-commerce store needs to be created with a view to providing customers with all facilities. There are many companies in India which offer service at low cost. However, a fixed cost cannot be determined as the cost of setting up an e-commerce store varies from business to business.

Digital Marketing:

The other cost besides the cost of setting up the e-commerce store is the cost of digital marketing. Digital marketing is important for every e-commerce store as it is through digital marketing that the dropshipping business will be able to generate traffic to the online store and convert the visitors into sales. It is cost-effective and business of any size can easily spend on digital marketing.

The Legal Aspect of Drop Shipping

Dropshipping is an easy business model and just about anyone with a business idea can just the latest business model with little capital. There are many advantages of operating a drop shipping business as it is easy and does not take up much of your time. You could even do it as a side hustle.

Is Drop Shipping Illegal?

A question which everyone who wishes to set up a dropshipping business has is if drop shipping is illegal but the truth is that is completely legal and the only issue which is worth mentioning is that some suppliers might turn out to be not as legitimate as they claim to be. It might be difficult to find out where the merchandise comes from exactly.

One needs to be careful when to select a supplier as some are even deceptive as they illegally use a trademarked logo of another company and that might create some legal issues. As you are the vendor, you automatically become complicit.

How to Overcome Legal Issues Due to Deceptive Suppliers?

If you come to think of it, there are deceptive suppliers in just about every industry and that is why the best way to overcome legal issues caused by deceptive suppliers is having a solid drop shipping agreement contract. However, anyone starting out in the field might not know that it is completely legal and enforceable to have a drop shipping agreement contract in place.

There are many wholesale drop shippers India who are trustworthy and will provide you with products that are as they have claimed them to be. Check the list of drop shippers in India to choose the right apparel drop shippers in India.

Is Drop Shipping Legal on Amazon / eBay?

The simple answer to the question is no. In a way, dropshipping is more like outsourcing and that is completely legal as long as it is as per the laws of the state. It is more like retail arbitrage which involves finding a lower-priced supplier, buying from them and selling the products for a higher price to the end consumer. The process involves finding, buying and selling which is completely legal but requires integrity in the supplier.

Dropshipping on Amazon and eBay does not break any laws and as such is legal. One needs to follow their agreements with Amazon and eBay but the breaking of any of the terms of the agreement is more difficult to determine and is governed by civil law.

The Future of Retail in India

Dropshipping India has quickly become highly popular in India due to its low-capital requirements. Anyone with a unique business idea can set up their drop shipping business and all one needs is a dropshipping supplier in India.

As the world becomes more digital drop shipping is the future of retail in India. If you have a business idea then you can set up your own dropshipping business.

Dropshipping Vs. Wholesale

Dropshipping has become the leading business model as online sales continue to increase. Anyone with a business idea can start their own dropshipping business. It does not require much experience to start your own dropshipping business. All one needs to do is set up their e-commerce store as it is the place where customers will be able to experience the business products or services and find out all the information they need as well as place their orders.

Why Dropshipping is Better than Wholesale in India?

Dropshipping India is simply much better than wholesale due to its cost-effectiveness. Wholesale in India costs much more capital as there are costs associated with inventory, shipping costs and employee costs, whereas, these costs are almost non-existent in dropshipping.

In a wholesale business, the cost of goods is high as a large inventory is a requirement and needed to ensure that the business takes advantage of economies of scale, however, due to this, inventory related costs are increased such as storage and handling costs. Individual wholesalers also do not have access to government deals such as ePacket and hence, have high shipping costs. Further, the employee costs are usually high as employees need to be hired for packaging and shipping the products of the business.

Wholesale has become a thing of the past due to its high costs and drop shipping is the future.

Why Start a Dropshipping Business in India?

India is expected to experience record online sales growth and this has prompted entrepreneurs to tap into the Indian online retail market. In 2021 alone, it is expected that the amount of online sales in India would reach a record $45 Billion and is likely to grow at a steady rate of 24% which is the fastest growth for any business model.

As traditional business models continue to become outdated, starting a drop shipping business is the answer to the changing market. Dropshipping allows a business to automate the majority of their business so that it can focus on other more important tasks which help add value and increase its revenue through digital marketing and creating strong relationships with customers.

There are many shipping services providers such as Oberlo which ship products for you at minimal costs. It can even be free at times. Indian drop shippers can even sell their products throughout the world for their business to quickly grow by using the shipping services. Dropshipping is budget-friendly for entrepreneurs in India and provides them an option which has minimal risk.

Tips to Start a Dropshipping Business in India

All one needs to do is find a trustworthy dropshipping supplier in India. There is a list of drop shippers in India which one can use to find wholesale drop shippers India and apparel drop shippers in India.

The most important thing which one needs to do to start a dropshipping business in India is by building an e-commerce store with the latest features.