How to choose best drop shipping companies in India

How to choose best drop shipping companies in India

Finding Drop ship supplier for your e commerce business can be daunting task in India.While searching google, you’ll likely come across a large number of “fake” drop shipping companies. Most of them do not own any inventory, they simply advertise products they have sourced from the third party vendor.

To help, we’ve narrowed it down to five most important factors to consider when choosing a drop shipping provider for your online business..  Scroll down to check out the top five tips on  How to choose best drop shipping companies in India .

1- Choose manufacturer 

Try to find out who manufactures the items you want to promote on your store and contact them directly to ask them if they can drop ship their items. There are many reasons why this is always the smartest business move – manufacture can offer the best prices if they do drop ship, and if they don’t, they can at least refer you to their distributors . These distributors will usually be authentic, and carry a huge inventory of similar products from different brands you can then add to your inventory.Trustworthy distributors can definitely earn a profit for you.

2- Look at Margins they offer

 Margin, make or break all businesses. The best way to gain staying power in startups is to get to revenue and profitability fast.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.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.



3- Know the delivery time 

Today’s buyer expect online retailers to provide fast and free shipping to accommodate their busy lifestyle needs.Consumers will not hesitate to cancel an online purchase if the delivery is not done within 3 to 4 days.When it comes to fast delivery , today’s consumers want their order tracking details within 24 hours. You must know if the drop ship supplier has a good dateline so that your business can be absolute in telling your customers the expected arrivals of their purchases.

4. Know if they can offer customized package

Since your buyer purchases from your store, they will automatically believe that the products are from your business originally. Details of packaging and shipping will be expected by the customers to be handled by you. Many are very particular about details like that so you must know if the drop ship supplier can customize the packages of your products to appear as originally yours.

5 – Drop shipping Fees

There are two potential fees you’ll likely encounter with drop shippers:

Per Order Fee / One time set up fee: It’s common for drop shippers to charge a per-order or one time set up fee to cover the expense involved with packaging and shipping an individual product.

Monthly Fees:  Legitimate drop shipping companies do not charge any monthly fee. If you are considering a company that asks for an monthly fee to for doing business with them, the company is most likely a scam.

Purchasing Minimums: Some legitimate drop shippers may require a minimum purchase size, either for your first order or on a monthly basis. If you don’t meet these sales threshold, they’ll charge you a fee. They do this to filter out non-serious business owners who will likely be more trouble than they are worth.


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