Does drop shipping business model work in India?

does drop shipping business model wok in India

The #1 question I get again and again from many young Indian men and women interested in opening up their own online stores, is what methods to use to locate suppliers and vendors. They want to know  :  Does drop shipping business model work in India? or they should buy wholesale. 

When we first began our own online store, me and my wife,  had these same questions. However, after doing quite a bit of researching on our options, I would like to share those experiences with you and enlighten you on what we learned about stocking our online business with merchandise.Most of our experiences deal mainly with bridal linens. However, the assumption should be the same regardless of what your product may be.

Does drop shipping business model work in India?

Lots of people fall into the old trap of having everything drop-shipped when they first start their online store. Well, it’s hard to blame them since it sounds so good when you first hear it. Not having to keep any items in stock yourself is a big load off. All you do is pay for the item and pocket the difference between your wholesale price and your customer’s price.You have no inventory to keep track of and no obligations of fulfillment, it’s all done for you by the drop-shipper. Sounds really great huh? 

Many new store owners fail to realize that those profit margins are not so good and if they should screw up your order or ship something too late – it’s YOU who gets to deal with the customer. You also don’t want to be dealing with a drop-shipper who makes a habit of shipping faulty items.

These kinds of problems become YOURS once you put yourself in that position. Add in the fact the you have very little wiggle room in the profit margin and combine that will all the stress and headaches you have to go through, suddenly things regarding drop-shipping just don’t look so good.

Remember with dropshipping business model you are putting your online store’s reputation into the hands of a 3rd party, so it is vital important to locate a reliable drop ship supplier.

 

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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’ GST number , as well as a copy of your Company Pan Card and registration. Does drop shipping business model work in India? yes it does if you consider three main things 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 margins 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.it is that you’ll just get by.Conclusion – Does drop shipping business model work in India? YES it does – If you can locate drop ship supplier that is reliable.

 

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