How To Start Dropshipping Business in India?

Written by: Kaushik Jethva

Last Updated: June 21, 2023

dropshipping business model
dropshipping business model

As the world’s internet population continues to grow, so does the opportunity for eCommerce. Among the many business models out there, dropshipping has emerged as an exciting and potentially lucrative option. Are you wondering how to start dropshipping business in India? If so, you’ve landed on the right page! This comprehensive guide will give you all the information you need to launch your dropshipping venture successfully.

1 What is Dropshipping?

Before we delve into how to start a dropshipping business in India, it’s crucial to understand the basics of what dropshipping is. Dropshipping is a supply chain management technique where the retailer doesn’t keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.

2 Benefits of Dropshipping

  • Low Capital Requirement: You don’t need a massive investment to start a dropshipping business, as you don’t have to buy products upfront. You only purchase a product when a customer has already paid for it.
  • Easy to Start: With drop shipping, you don’t need to worry about warehouse costs, packing or shipping, inventory tracking, handling returns, and inbound shipments.
  • Wide Selection of Products: Since you don’t need to pre-purchase the items you sell, you can offer an array of products to your customers.

3 Step-by-Step Guide on How to Start a Dropshipping Business in India

Now, let’s move to the core subject: how to start a dropshipping business in India.

Step 1: Identify a Niche

identify a niche
identify a niche

The first thing you need to do is identify a niche. You can’t just sell anything and everything. The key to success in dropshipping is to offer specialised products that aren’t readily available in the local market. This could be anything from vegan beauty products, eco-friendly items, custom-made jewellery, pet supplies, and so on.

Step 2: Conduct Market Research

conducting market research
Conducting Market Research

Once you have identified a niche, you need to conduct market research to understand the demand, competition, and potential profitability of your chosen products. You can use tools like Google Trends, Keyword Planner, and social media platforms for this.

Step 3: Find Reliable Dropshipping Suppliers

a visual representation of dropshipping suppliers
A visual representation of dropshipping suppliers

One of the most critical steps in starting a dropshipping business in India is finding reliable suppliers. You can use directories like AliExpress, IndiaMART, or TradeIndia. Ensure your chosen supplier has a good track record, delivers on time, and provides high-quality products.

Step 4: Build an E-commerce Website

online shopping on application and website concept
online shopping on application and website concept

Next, you need to build an e-commerce website where you’ll sell your products. You can use platforms like Shopify, WooCommerce, or BigCommerce, which have inbuilt features specifically for dropshipping businesses.

Step 5: Create a Customer Attraction Plan

visual representation of customer attraction
Visual representation of Customer Attraction

You now need to attract customers. You can use SEO, content marketing, social media marketing, Google AdWords, or Facebook ads. Make sure to use effective keywords in your content to rank better on Google.

Step 6: Analyse and Optimise

young business man working with start-up project analyse graph plans and discuss at workspace office
young business man working with start-up project analyse graph plans and discuss at workspace office

Last but not least, continuously analyse your business performance and optimise your strategies. Use Google Analytics to understand your customer behaviour and adjust your plans accordingly.

You might be wondering about the legalities of starting a dropshipping business in India. Here are the necessary steps:

  • Register Your Business: First, you need to register your business as a legal entity. You can choose to register as a Sole Proprietorship, Partnership, or Private Limited Company.
  • Get a GST Number: Since you’re selling goods, it’s essential to have a Goods and Services Tax (GST) number. You can register for this online through the official GST portal.
  • Open a Bank Account: You should open a separate bank account for your business to manage your finances effectively.
  • Terms of Service & Privacy Policy: Your website should include terms of service and a privacy policy page. This not only builds trust with customers but is also a legal requirement.

5 Essential Tips on How to Start a Dropshipping Business in India

Here are some additional tips to make your journey of starting a dropshipping business in India smoother and more successful:

  • Customer Service: In the dropshipping model, since the product goes directly from the supplier to the customer, customer service should be top-notch. Any complaints or issues from customers should be resolved promptly.
  • Quality Control: Since you’re not the one shipping the products, it might be challenging to maintain quality control. However, regularly purchasing samples from your supplier will help you monitor the quality of the products.
  • Relationship with Suppliers: Cultivate a good relationship with your suppliers. Good relationships mean better cooperation and services, which can greatly help your business.
  • Focus on SEO: If you want to rank on Google’s first page, your SEO game needs to be on point. Use relevant keywords, optimise your product descriptions, use high-quality images, and ensure your website is mobile-friendly.
  • Use Social Media: Utilize social media platforms like Instagram, Facebook, or Pinterest to promote your products and engage with your customers.
  • Stay Updated: The eCommerce industry changes fast. To stay competitive, you must keep up with the latest trends and adapt accordingly.

6 Wrapping Up

Starting a dropshipping business in India, or anywhere else, comes with its own set of challenges. But with careful planning, a bit of investment, and a lot of dedication, it’s a business model that can certainly bring you success.

The rise of digital technology and the internet has made starting a dropshipping business in India a viable option for many aspiring entrepreneurs. And while competition in the online marketplace is fierce, the demand for online shopping continues to rise.

Now that you understand how to start a dropshipping business in India, it’s time to take the first step. Remember, success doesn’t happen overnight. Keep learning, stay flexible, and don’t be afraid to take calculated risks.

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About This Article

Kaushik Jethva
Written by: Kaushik Jethva author

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Updated: June 21, 2023
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