How to start dropshipping business in india
Welcome to our guide on how to start a dropshipping business in India! This journey promises not just financial independence but also the thrill of building your own brand from scratch. With e-commerce booming and digital transactions on the rise in India, there's never been a better time to explore this innovative way of doing business. Whether you're an ambitious entrepreneur or someone looking for a side hustle, dropshipping offers a unique blend of freedom, scalability, and creative expression.
Starting a dropshipping business in India is a smart move for several reasons. First, India's e-commerce market is growing rapidly, expected to reach $99 billion by 2024. This means there's a huge potential customer base to tap into.
Secondly, the Indian government's push towards digitalization, like the Digital India initiative, has led to an increase in online transactions. This shift in consumer behavior makes it easier for dropshipping businesses to thrive.
Thirdly, India has a strong entrepreneurial spirit, with many individuals looking for opportunities to start their own ventures. Dropshipping is appealing because it requires minimal upfront investment and overhead costs.
Additionally, dropshipping offers scalability, allowing businesses to grow quickly without the hassle of managing inventory or logistics. This flexibility is crucial in a diverse market like India, where there are numerous niche opportunities to explore.
Moreover, the rising internet and smartphone penetration in India mean more people are shopping online, providing a larger pool of potential customers for dropshipping businesses.
With these insights and good product ideas, people who want to start dropshipping businesses in India can make them successful
What is dropshipping and how does it works ?
Dropshipping is a way to do business that is easy to understand if you look at the basics. Let's look at an example to try to understand. If you've ever bought something online and had to wait more than 24 hours for it to ship, your order was probably made with a third-party vendor.
This third-party seller will be the original source, the manufacturer, or the wholesaler. All of the big online stores just advertise the goods they get from dropshipping stores. When you buy something from their store, they will make a third-party order with their own dropshipping suppliers. This is why it can take up to a few weeks for your order to arrive.
Is Dropshipping legal in India?
Dropshipping is a legal way to do business in India. If it wasn't allowed, companies like Amazon, Flipkart, Myntra, and others would not be able to do business in India.
Is dropshipping profitable in India ?
In dropshipping as well as in every other kind of business, the reason for success is the same. The correct product, the appropriate marketing, and some luck.
Right Product
Your product is the most important component in determining the success or failure of your dropshipping business, thus it is essential that you spend a lot of time looking for the ideal product that will ensure your company's prosperity.
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.
Right Marketing
Because marketing is the only way to get more people to know about your website or shop. So, it should be very strong and focused if you want to get more people to buy from your business.
One of the best ways to do this is to make sales content that is SEO-friendly and works to engage customers while also growing the number of people who find your brand through organic search.
Good Luck
Good luck is about being in the right place at the right time when it matters .For Sure, your dropship website success is no different to success in life. luck plays a major part, but to have a successful dropship business you also need to have put in the position to use the luck when it happens. We can be more successful by training to be Lucky in the following way:
“people receive good luck via four basic fundamentals. They are expert at finding an opportunities, make lucky commitment by listening and acting to their intuition, full of positive expectations, and adopt a resilient attitude that transforms bad luck into good.”
Is GST compulsory in India For drop shipping Business?
Here are the few reasons why you need to obtain GST Number
1- First of all to accept the payments on your web store you need the Payment and all Indian or international payment gateways need GST Number.
2- Without a GST number, you cannot sell on any marketplace like Amazon and Flipkart .
3- Without GST number you won’t be able to run facebook ads.
4- Without a GST number , you can not contract with any shipping company.
Documents required for GST registration(Sole Proprietorship )
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PAN card
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Details and proof of place of business like rent agreement or electricity bill
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Cancelled cheque of your bank account showing name of account holder, MICR code, IFSC code and bank branch detail
In every city or town , there are several tax lawyers that will help you acquire your GST number for a minimum fee.
What is the GST rate applicable to dropshipping businesses in India ?
Depending on what you sell, the GST rate can be different. There may be different GST rates for different goods, such as 5%, 12%, 18%, or 28%. It's important to classify your goods properly so that you can charge the right amount of GST.
How to start dropshipping business in India ?
The following is an in-depth tutorial that will walk you through the process of starting a dropshipping business in India.
Step 1 - Choose the right products to sell
The first step in setting up a successful dropshipping business is figuring out who you want to sell to and what you want to sell.
It's important to pick a niche that you're passionate about and that's also in demand. Start by listing the products you want to sell and the words people might use to find them.
Next, check how popular these keywords have been over the past few months. This helps you see if people are consistently interested in these products or if interest changes over time. You can do this by searching on Google Trends and looking at the results for the last three months.
Useful Reading
14 Best Dropshipping Niches India (Hottest Picks In 2024)
Step 2 - Find a reliable supplier
When choosing suppliers for your store, it can be tough to make the right choice with so many options out there. It's worth taking the time to do this step properly, even if it means spending a few extra days.
Finding reliable dropshipping suppliers in India is crucial for your e-commerce business to succeed. Here are some signs to watch out for:
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Low-Quality Products: If a supplier refuses to share their best-selling products, it could be a sign they're fake. Genuine suppliers are proud to show off their top items.
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Quality Matters: Customers prefer high-quality products, so it's important to offer them. Ask for product samples from the supplier to make sure you're not selling low-quality goods. Fake suppliers usually avoid giving samples.
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Unrealistic Promises: Be cautious if a supplier promises extremely high profit margins or guarantees success. If their claims sound too good to be true, they probably are.
Step 3 – Design Your Store
When building your online store, it's important to pick a user-friendly e-commerce platform and a domain name that fits your brand. There are options like Shopify, WooCommerce, and Magento, each with its own features.
Choosing a theme or template is crucial. It affects how your store looks and how easy it is for customers to shop.
Customizing your website is key to making it unique. You can change the design, style, and branding to stand out. The way your site looks shapes how people see your brand and forms their first impression.
Step 4 – Add products
Importing product listings to your shop and making sure the product descriptions are as detailed and accurate as possible are two essential phases in the process of establishing a profitable dropshipping business. Let's go into the specifics of these critical tasks:
1- Access Supplier Catalog: Log in to your supplier's platform or dashboard to view their product catalog.
2- Choose the products you want to sell in your online store.
3- Export Product Data: Download the product data from your supplier or acquire product feeds. This information usually consists of product names, descriptions, photos, pricing, and SKU numbers.
4-Integration with E-Commerce Platforms: If your supplier offers integration with e-commerce platforms (such as Shopify), utilize these tools to streamline the import process. Otherwise, you may have to manually enter product information.
Step 5 – Set up payment gateways
Before launching your online store, it is crucial to make sure that you provide payment gateways that cater to the preferences of Indian customers.
Conduct research on and make comparisons between the various payment gateway choices that are accessible in India. Among the many options available, Razorpay, Cashfree, Phonepe, and PayPal are among the most popular solutions for international financial dealings.
Useful reading
Best Payment Gateways for Your Dropshipping Business in India ( 2024 )
Step 5 – Go live
Perform some final tests on your website, focusing on the checkout procedure and go live . Make sure the user has a smooth experience.
Q -Why is dropshipping in India better than wholesale?
When it comes to the world of e-commerce, dropshipping has emerged as a popular business model, especially India. Many entrepreneurs are opting for dropshipping over traditional wholesale methods, and for good reason. Let's explore some reasons why dropshipping in India is considered to be a better option compared to wholesale.
1 - Dropshipping costs less than wholesale. Wholesale requires large purchases, which tie up capital. Dropshippers only buy things when they sell.
2- Dropshipping lets you sell more things without ordering in bulk. This flexibility lets you test items and adapt to market developments and client preferences.
3- Since dropshipping eliminates product sourcing, warehousing, and shipping logistics, you can focus on marketing, customer acquisition, and exceptional customer service.
Q -Why non-returnable product are best for dropshipping in India ?
When you're using a dropshipping model and don't have direct control over the things you sell, dealing with customer returns may be an expensive and time-consuming process. Products that cannot be returned mitigate the potential for financial losses as well as the administrative burdens that are connected with refunds and returns.
Q -How much does it cost to start a dropshipping business in India?
The cost of launching a dropshipping business in India depends on your business size, niche, marketing strategy, and e-commerce platform. . Here is a rough breakdown of potential costs involved in starting a dropshipping business in India:
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E-Commerce Platform: Shopify and WooCommerce require domain registration, and possibly expensive themes and plugins. Shopify costs INR 1499 per month, while WooCommerce is free but may have associated costs.
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Website Design and Development: If you do not feel confident in your ability to build websites, you may want to consider working with a professional to establish your online business. This cost can range anywhere from INR 10,000 to INR 75,000
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Marketing and Advertising: The cost of social media advertising, influencer marketing, Google AdWords, and other promotional endeavors should be approximately INR 5,000 to 10, 000 per month
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Domain Name and Hosting: The cost of a domain name (approximately INR 600-1,500 per year) and hosting for your website (costs differ by provider and plan).
Q -Can you dropship alone?
Absolutely! Running a dropshipping business solo is entirely possible. In reality, numerous dropshipping entrepreneurs embark on their business journeys as independent operators.
Q- Can I start a dropshipping business as a part-time venture ?
Absolutely! Starting a dropshipping business as a part-time venture is a fantastic idea. Indeed, it is quite common for numerous ambitious entrepreneurs to embark on their dropshipping journey as a side hustle before eventually making the leap to becoming full-time business owners.
Q- What are the best Indian dropshipping companies?
