How to start drop shipping business in india
If you have been looking for dropshipping suppliers in India 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 dropshipping store in India if you follow the correct steps
How Dropshipping Works In India?
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/dropshipping stores in India . 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 dropshipping stores. And when you order from their store, they in turn will then place a third party order with their own dropshipping suppliers; and this is the reason why your order can sometimes take weeks to be delivered.
Is Dropshipping legal in India?
Absolutely, Dropshipping business model is legal in India. if it had been not legal then companies like Amazon, Filpkart and Snapdeal etc, would not be able to conduct their Business operations in India.
Is dropshipping profitable in India ?
The reason for success is common, dropshipping or any other business. Right product, Right marketing and Good luck
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.
As marketing is the only way through which you can create more awareness of your website or store. SO, it should be very powerful and targeted, as a result to attract more customers to your business.One of the best ways of doing this is through the creation of SEO-friendly sales content that works to engage consumers while simultaneously increasing your brand’s organic search traffic.
Good luck is about being in the right place at the right time when it matters .For Sure, your dropship business 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 tranning 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?
This is a very frequently asked question by young Indian enterperure . Glad to answer this . 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 )
- PAN card
- Details and proof of place of business like rent agreement or electricity bill
- 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.
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.
- 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 GSTN , 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 in India, 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
it is that you’ll just get by.Consider these three possible ways of generating Rs 500,00 of profit:
- Rs 10 Lakh revenue with 5% profit margin
- Rs 5 Lakh revenue with 10% profit margin
- 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.