How to start drop shipping business in india


If you have been looking to start your own online business, then chances are you must have heard of dropshipping . But what exactly is dropshipping, and how to start drop shipping business in India?

We show you how it can be useful, and how to start drop shipping business in India? The drop shipping business has changed quite significantly since the early days. It is much more then just listing few items onto eBay to some money. You can start and grow a highly profitable online business if you follow the correct steps

Let’s understand the dropshipping First?

Dropshipping is a business method that can be understood clearly if you break down the basics. Let’s try to understand by an example. If you have ever purchase anything online , and had to wait more the 24 hours for your order to ship, then chances are, that the same order was placed with a third party vendor. This third party vendor will be the original supplier, the manufacturer or wholesaler. All big online stores simply advertise products they have sourced from the third party vendor. And when you order from their store, they in turn will then place a third party order with their own suppliers; and this is the reason why your order can sometimes take weeks to be delivered.

How to start drop shipping business in India in three steps?

Step 1 – Choose a Right Product to Sell

Your product is key factor for your business success or failure and it is vital that you invest a lot of time finding the right product that will guarantee your success .If you choose a bad product and  follow all other marketing steps perfectly. Meaning competitive price, high quality images, SEO, etc.Guess what happens?Yup, you are sure to fail and lose your hard earned money.Below are the check list of an Ideal product for drop shipping  business.

  • Average Product Sale Price Between Rs 300 to Rs 500


How to start drop shipping business in India in three steps?

  • Should be lightweight(Preferably under 500 grams)
  • Should be unbreakable
  • Should be Year-Round Seller(Not Seasonal)
  • Similar Products Being Sold on eBay and Amazon
  • Should make profit of 25%- 50%
Step 2- Find a reliable supplier 

Before you can start searching for your reliable dropship supplier, you’ll need to ensure you have a few things taken care of. Wholesale dropshipper often need proof that you’re an serious retailer and not just a consumer before they even consider partnering with you.Address this issue before it occurs and make sure you have your business’ Tin/ Vat no , as well as a copy of your Company Pan Card and registration.There are three main things to look at when considering a drop shipper.

Are they manufacturer or wholesaler of the product? – When you  search Google for dropshippers, you will almost certainly come up with many dropship companies in the search result, but do they stock the products or manufacture them ? Many so called drop ship companies do not own any inventory, they simply advertise products they have sourced from the third party vendor.This is where you need to be careful.The reason being, that if you start your own dropship business, you are then going to have to sell the stock yourself, and ensure that the products you are selling reaches to your buyer within few days and have enough profit margin, and discount in them to make them attractive to potential buyers.

What are their prices like?  You need to look on Flipkart and Amazon and see what is the selling price of similar products there. This roughly determines how much you can sell this product for. These are your competitors.If the supplier product cost is higher than the prices on Filpkart and Amazon… you won’t be able to sell.

What discount they offer ? In e- commerce or any retail business, margin is everything. Margin, make or break all businesses. The higher your profit margin, the better your chances are of being profitable. The smaller your profit margin, the more likely

How to start drop shipping business in india

it is that you’ll just get by.Consider these three possible ways of generating Rs 500,00 of profit:

  1. Rs 10 Lakh revenue with 5% profit margin
  2. Rs 5 Lakh revenue with 10% profit margin
  3. Rs 2.5 Lakh revenue with 20% profit margin

When you consider some critical business measures, the 20% profit margin indicates stronger performance than the results shown by the other companies.

Step 3 – Choose a platform to sell 

All drop shipper will have some kind of product data feed files in form of CSV/XML/XLS which will contain all their inventory, the selling prices, sizes, colors,and the images, descriptions, etc. It will then be up to you to then go off and sell this stock, and make profit. Where you would sell the inventory is up to you. Easiest way to start is with eBay and Shopclues. What you need to do , is log into your eBay account, and list the items for sale, generally be careful about the pricing you set, because eBay can be very competitive, and unless you make the prices attractive, then you may struggle to sell any products.This is one of the reasons why choosing the reliable  dropshipper is absolutely important. You really need to work with a dropship company that offers competitive prices, and are not middlemen themselves , because if you don’t choose a manufacturer or wholesaler as your dropshipper, then your pricing can never be competitive, and you won’t be able to sell and make any profits – it is as simple as that, it really is.

Related Reading


How To Pick a Profitable Niche for Dropshipping Business In India

5 Fundamentals For Successful Dropshipping Business

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