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How to Start a Dropshipping Business in India in 7 Steps

Dropshipping business is a specific method of online selling. And here you don’t need to store the inventory. There are some drop shipping service providers in the market. And they do the all hard work on your behalf when you get orders. However, they will charge fees for the services.

Among all the online selling options, dropshipping is the most profitable one. You can start this business in Inda from home with very minimum infrastructure. Generally, you will need to have a computer with an internet connection and a phone. Additionally, this innovative business model offers you the ease to carry out an e-commerce business without even going into any hassle of production, stocking, shipping, or anything related to maintenance.

Dropshipping business is currently the best option to start an online business. As per Statista, the global dropshipping market volume is expected to reach $243.42 billion in the year 2023.

All you need to do is choose a few suppliers, and partners, and start selling your products. It’s easy to start a business, but there are a few things you should know about.

No one tells you what you need to do to run a successful dropshipping business. A ton of things are involved, and in this article, we will discuss everything you need to know about a dropshipping business.

From costs to shipping to marketing, we have will cover every aspect of a dropshipping business.

How Does Dropshipping Business Work?

First of all, you set up an online store. A customer places an order at your online store. The money changes hands and is transferred to your bank account.

At that point, you forward the order to a drop shipping company and pay for the same product (at a lower price than what your customer is paying you for the same item). The drop shipper takes the product from their warehouse, packages it nicely, and sends it to the customer.

Your customer receives the product on the appropriate date. Interestingly, your company info appears as the sender. Additionally, you are happy because you made a sale that resulted in only profit, all without ever having to stock or even touch this product throughout the entire transaction.

A good product from a trusted dropshipping supplier will eliminate the need for any up-front investment on your part. At the same time, you are returning with a healthy profit margin on each and every product you sell.

Here are the 7 Steps to Start a Dropshipping Business in India

Certainly, there are many crucial aspects of this business. And you must consider those seriously to get success in the business. Here we put some of the important considerations in starting the business.

1. Select a Niche

Choosing the right product or products is the single most important factor for a successful dropshipping business. You need to carry out in-depth online research on a wide range of products that have the potential to bring in good margins. If you are a beginner and do not have much experience in the dropshipping trade, it is advised to start with a little money. You can always scale up anytime as the sales volume increases.

Some of the basic factors that experts suggest considering for new drop shippers are the following:

  • Avoid big-size products as it increases shipping costs.
  • Do not sell fragile products as they are prone to damage while in transit.
  • Try to sell unique products that are not readily available in nearby retail stores.
  • Select products that help customers in their day-to-day activities.

There are many places on the internet where you can do your product research. Places like Google Trends, and online marketplaces like Amazon, and Flipkart are useful sources for researching best-selling products in India.

It is worth mentioning that before finalizing the product, it is essential to find a good supplier for supplying those products. If you don’t find an able product supplying company, it is advised not to include it in your product store.

2. Selecting Suppliers

Find suppliers carefully. You can find suppliers online as well as offline. Additionally, check their conditions and procedures of delivery. Also, provide them with GST requirements so that no legal issues are created.

In India, it is seen there are many dropshipping suppliers who work as wholesalers. It is advised to be careful when dealing with them. It is always advised to find an original manufacturer of the product item. This ensures a smooth supply of products.

3. Apply for Taxes

It is essential to check the tax regulations of your state before starting a dropshipping business in India. In the present day, the most important tax requirement is GST. Talk to a local Chartered Accountant and get your GST registration number. You can also get the GST number online.

Read: Best GST Software in India

4. Name Your Dropshipping Business

it is without saying, a catchy and attractive name for your dropshipping company goes a long way to creating brand awareness and also fetching extra customers. Take some time off and shortlist some relevant names that appropriately manifest your list of products. Share opinions from your near ones and finally select the one that fits best.

Also, do not forget to register the website domain name similar to the business name. If the domain name is already taken, make some changes or register entirely a new domain name.

5. Create your Dropshipping Website

The website is actually the showroom of your dropshipping business. You must take all the steps possible to make your website look professional. Furthermore, make your design of the website user-friendly so that can customers can easily roam around it.

The two most popular way of making a dropshipping website is Shopify and Woocommerce. If you are not comfortable investing time in the maintenance of the website, Shopify is a better option. Most drop shippers in India are preferring Shopify to create their dropshipping website as it provides all features including a wide range of payment options for customers.

Read: Most Popular E-commerce Website Builders in India

6. List your Products

It is extremely critical to list your products professionally. Try to upload big and high-resolution images of the products. Contact your product supplier and ask them to send original images of the products. Provide every detail of the product and their usages so that customers are well-informed and feel confident about buying the same.

7. Have a Marketing Plan

Marketing is the most difficult part of any dropshipping business. One needs to create an effective marketing plan to be successful in this type of business. Some of the popular ways of promoting your products in the dropshipping business are social media marketing, Google Ads campaigns, Facebook, and Instagram promotional activities.

Finally, to be successful in dropshipping business, you have to be patient. If you do the right things like product promotion, catchy website, and selecting proper niche items, the chance of making money in dropshipping business is high and bright.