Dropshipping India – Everything You have To Know

Introduction of Dropshipping India

Are you seeking an online business opportunity, then you might have come across dropshipping. It is an online business type that generates good return margins. Dropshipping in India can be started with a small amount of capital and effort. Once you begin to get success, you can allocate more resources for advertising and brand building.

In this article we are going to discuss what is Dropshipping basically, how does it work, the advantages and disadvantages, and how you can startup. So let’s start.

What is Dropshipping India?

Dropshipping is a type of retail goods fulfillment method for online stores, where the customer makes an order, then the merchant purchase the product from a third-party supplier without having stock or warehouse or inventory. The products are then shipped directly to the consumer. Here, the seller doesn’t have to handle the product directly.

For the retail store manager, it is a handout process when comes to shipping and order fulfillment. The merchant doesn’t have to stock products, order inventory in bulk, or physically fulfill the orders in any way. Instead, the third-party supplier will ship products on the merchant’s behalf.

Let’s understand it simply,

Every time a customer places an order, you’ll forward it to your supplier, who will then ship the product directly to the buyer. There is no hassle with packaging or shipment from your end. Furthermore, you can export all the product details from the wholesaler to your own e-shop.

Supply Chain

The Dropshipping supply chain consists of three parties,

Manufacturer

They are the creators of the products you dropship. They basically manufacture and sell those items in large quantities to suppliers and wholesalers. You can get your products shipped directly from manufacturers. But, you would have to meet the manufacturer’s minimum order requirements to buy products directly. Meaning, you have to invest large amounts of money, which can be risky specially when you are just starting a dropshipping business.

Suppliers or Wholesalers

The person/company who buys products from manufacturers and sells them to retailers (Dropshippers). Suppliers are specific in a particular product. So, it is easy to find a supplier who can supply the products you want to sell. The purchase requirements are much less for wholesalers than the manufacturers, making the purchase much more convenient for you.

Retailer (Dropshipper)

The person selling products directly to the customer. Once the product goes through the supply chain and the price is marked up several times, your task is to make sure your profit margins are enough but, not too high that your potential customers would choose your competitors instead.

Dropshipping provides an easy way for entrepreneurs, who want to enter the e-commerce world as you don’t need any degree or a large amount of money. However, there are both benefits and troubles that accompany dropshipping’s great flexibility.

Advantages of Dropshipping India

Easy to get started

You can start your first dropshipping store in a couple of hours after finding quality products. Surely you need to keep improving your store by observing how are the visitors behave on it, but it is easy to get things going. Since you don’t have to pre-purchase inventory, you can conveniently test new product ideas.

No need of huge investment

You don’t have to dip deep into your savings to start your online store. This business doesn’t require you to buy products, invest in inventory or rent a space to store your products. You can eliminate many usual costs that traditional retailers need to cover.

No worry for product delivery or shipping

One key benefit of dropshipping is you don’t have to worry about storing and shipping your inventory. You can perform a retail business without ever touching the products you are selling. Your third-party supplier will take care of the order from very the moment your customer buys. With all the spare free time, you can focus on improving your store and bring more traffic to your online store.

Easy to scale

Since it is a hands-off business, you don’t need to worry about more work on packing and shipping the products. As your business grows, so depending on the customers need you to invest more in marketing to get even more sales, but the nature of your daily tasks won’t change much to scale up. The infrastructure costs don’t skyrocket when you scale. So, the more you focus on promoting your business and delivering great customer experiences, you will get.

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Sell anywhere

Your location won’t be a limit once you get into e-commerce. As a dropshipper, you can sell products anywhere in the world as long as they have valid shipping costs. So, in one word your online store will have a global reach.

Be your own boss

Most importantly, you have freedom. It is accessible from anywhere and you don’t need to work under someone else’s pressure. Yes, you won’t get success overnight but, all are up to you. Your online store can be a side income or you can turn it into a full-time business. You will get the rewards for every hour you spend in making sales.

Disadvantages of Dropshipping India

Complication in shipping

If you are sourcing your products from one supplier only, then calculating the shipping costs is easy. However, dropshippers use more than one supplier for different products. In this case, it will get a bit more complicated to calculate the shipping costs, specially when items with different shipping charges are contained in a single order. Also, multiple suppliers may have different invoicing systems and take a different amount of time to ship.

Control branding

While dropshipping products, you can’t do much about customization. If you want to put a bit more effort into branding, then you can definitely have a nice eye-catchy website with high-quality photoshoots and quality descriptions of your products. However, you can’t do much about the packaging or the instructions that come with the products you sell.

Customer support problems

It is great that you don’t have to take any headache with the inventory management by yourself, but until you get a complaint from an angry customer. Whenever the suppliers fail to provide a quality product or to ship the product in considerable time, you are the one here to take all blame. So, always be ready to apologize deeply and try the utmost on providing excellent customer service to avoid getting negative reviews.

Low profit

Because of a low entry threshold, you’ll likely face a lot of competition. Until you have a solid customer base, you may need to keep your prices pretty low to stay afloat in competition hence, making a low profit. But, as you get trusted customers with positive feedback, you will expand your sales making better profits. Make your store look like a legit brand, and people will trust you enough to buy at a slightly higher price.

Note

Dropshipping is for everyone but, it is certainly not a get-rich-quick method. If you are ready to accept the good with the bad, then it can be an exciting choice of business.

If you choose it as a side income, You don’t need to dedicate too much time and energy, you can spend only a couple of hours on your dropshipping business every day and still succeed. But, once you reach customers and start getting enough sales, you can move from dropshipping part-time to full-time at whatever pace you want.

Top best Companies for Dropshipping India

I. Indiamart.
II. Baapstore.
III. TradeIndia.
IV. ExportersIndia.
V. Tradeford.
VI. Hothaat.
VII. WebdealIndia.
VIII. Snazzyway.
IX. JimTrade.
X. Bluember.

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