undeerstanding dropshipping and gst

Ready to take the path to better success and build a dropshipping empire ? The Snazzyway express dropship Learning Center offers a wide array of tools and resources to help you on your way. Our goal is to make it learn dropshipping surprisingly easy . Take advantage of our dropshipping resources—including one-on-one coaching and online videos—to achieve your goals.Let's get started

What exactly is dropshipping ?

Drop shipping 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 is Drop Shipping Advantageous?

1   No need to invest in stocks: Since you don’t stock the product, you don’t pay for it until it’s sold (after you’ve been paid for it).

2   Scalability: Test products and add new ones quickly without bearing the burden of ordering in bulk and having something fail (which ties up valuable time and capital expenditure).

3   Increase lifetime value of customers: With the ability to add new and expanded product selections consistently, you can keep your existing customers engaged and returning to see what new items you’ve acquired. Costco stores offer a great example of this concept, and with a drop ship program, you can offer a similar experience online.

4   Low starting cost: You can start selling without a lot of early investment because you don’t have to buy wholesale or cover the cost of manufacturing your own products.

5  Reduce costs: Every time you need to touch a product in the supply chain, there is a cost associated. Shipping charges and warehouse employees all get added into the Cost of Goods Sold. Often, you will find that a percentage of your product offering would net a business higher profit margins if it were drop shipped.

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 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.

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