This guide is meant to hold your hand while you experience the vast universe of a dropshipping business in India. We will address everything from a brief introduction to the intricacies of using dropshipping to your advantage. Let’s dive into it.
1. What Is Dropshipping?
Broadly speaking, dropshipping is a method of fulfillment used in retail where a store doesn’t keep the products physically in stock. Instead, whenever an order is placed, the purchased item is shipped directly from the wholesaler to the customer. As a result, it eliminates the step of the seller having to directly get involved in product handling.
The main difference between the standard retail warehousing model and dropshipping is that in this case, the selling merchant does not stock or own any inventory, thus eliminating expensive inventory keeping and logistic costs.
With dropshipping, you can be free from the trouble of:
- Managing or paying for a storage unit
- Packing and shipping orders
- Keeping a track of inventory
- Handling returns
- Continuous ordering and managing stock levels
To know more, read What Is Dropshipping?
2. How To Start Dropshipping?
Now that we have the basics of dropshipping squared away, let’s get into the steps of actually launching a dropshipping business.
– Pick the perfect product
Browse various categories of products and study the latest trends.
– Choose the right sellers
This is going to be the make-or-break step in your dropshipping business. Spend as much time as required researching, shortlisting, and finalizing your sellers. Choose sellers that can be trusted to maintain a certain standard of professionalism without you having to interact with them daily.
Pick sellers that are manufacturers and not just third-party sellers themselves to avoid having to track a long chain of procurement. Compare profit margins and delivery times of various sellers to pick the best one.
– Get your GSTIN
– Get yourself an online store
Even though you do not need to have a physical inventory of the products, you need to have a virtual catalog of all your products. Pair it with a responsive platform and a clever domain name and you’ll be good to go!
– Promote! Promote! Promote
Now that you’ve finalized your, product and platform, it’s time to spread the word. Engage your customers in a smart way to generate lots of interest pre-launch.
To know more, read Dropshipping In India
3. Is Dropshipping Profitable?
Dropshipping is a fantastic concept, one that has a lot of scope of growth and experimentation in India. Here are a few reasons why:
- Cost-Effective: it eliminates the cost of warehousing and logistics
- Low Risk: The risk of loss isn’t as significant since you don’t hold any inventory that might expire.
- Automated Functioning: dropshipping can be automated to a very high degree as all functions involved, i.e., branding, marketing, placing orders, setting prices can be automated.
- Location Independent: you save on rent cost as you don’t need to have a physical office.
- Purchasing Power: another major development seen in the market is the increase in disposable income of various economic groups which results in higher spending power.
- Wider Reach: since dropshipping is essentially dependent on the internet, your business can have a much broader reach across the globe.
To know more, read Is Dropshipping Profitable?
4. How To Promote Your Dropshipping Business?
- Running Ads on Instagram & Facebook: this includes influencer shout outs, story ads, and Facebook posts
- Pay-Per-Click Ads: Google is the biggest platform for PPC ads and you can get featured in Google shopping and in Google search results.
- Pinterest Advertising: create an aesthetic pins board featuring your products and promote it on other social media channels
- YouTube Advertising: create your own channel and post informative videos on relevant topics featuring your products. You could also pay influencers to promote your product on their channel.
- Get your customers’ reviews and testimonials to promote positive word of mouth.
To know more, read Marketing Tips for a Successful Dropshipping Business in 2021
5. Can You Start A Dropshipping Business Without Money?
Although you do not need loads of money to start a dropshipping business, you still need to make an investment. The two most crucial things to starting earning money via dropshipping are time and niche. Some platform options:
All three of these platforms require you to pay a fee only when you sell an item and listing is easy and free.
To know more, read Can You Start Dropshipping Without Money?
6. Top 5 Dropshipping Companies In India
- Indiamart: Indiamart is a huge online B2B platform, where you can find all major dropshippers, suppliers, and manufacturers for your online dropshipping business.
- Baapstore: Baapstore is one of India’s most trusted platforms to start a dropshipping business. This platform provides a variety of product catalogs for you to sell on your online store, online marketplaces, social media, or any other medium.
- ExportersIndia: Exporters India is also a B2B marketplace, where online retailers can find dropshipping service providers for a variety of products across India. There you can contact suppliers directly for your requirements and fulfill the orders customers place on your website directly.
- Dropship Zone: Dropship Zone is an Indian dropshipping company focused on providing specialized services to drop shippers. They have a wide range of hottest selling products in India. Because they source products directly from the manufacturer, it gives you the opportunity to earn a high-profit margin.
- Wholesale Box: Wholesale Box is one of the earliest, fully dedicated dropshipping platforms, and probably one of the top wholesale dropshippers in India. When you place an order as a wholesaler, you have to buy the bunch, but if you register yourself as a drop shipper, you can buy a single product and ship it to your customer directly.
To know more, read Dropshipping Companies In India
Your new store may or may not be an internet sensation in the first few months of inception but you gotta be patient and make the right moves. If your products don’t sell well at first, try switching niches and suppliers or reassess your marketing strategies.
Take the initial period for experimentation and find a strategy that works for you. Trial and error with products, vendors, platforms, and marketing strategies will definitely result in you finding your dropshipping sweet spot.