Dropshipping has emerged as a popular and lucrative business model in the Indian e-commerce landscape. This comprehensive guide is designed to equip you with the knowledge and strategies needed to excel in the world of dropshipping within the Indian market.
Understanding Dropshipping: Dropshipping revolutionizes the traditional retail model by eliminating the need for inventory storage and management. With this approach, you act as an intermediary between suppliers and customers. When a customer places an order on your online store, the product is directly shipped from the supplier to the customer. This model reduces upfront costs, minimizes inventory risks, and allows you to focus on marketing and customer engagement.
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How To Start Dropshipping In India.pdf
1. Everything You Need to Know About
Dropshipping in India
1. A Guide To Dropshipping in India
As anyone with an eCommerce business will tell you, inventory
management is a pain! Keeping track of inventory in physical stores is
hard enough. And this is where a majority of the products are
displayed and out in the open. But an online business?
You have to keep track of product inventory spread across multiple
cardboard cartons. With poor visibility and inconvenient systems, it is
incredibly easy to lose track of your numbers. Especially as Murphy's
2. law comes into play here. When you need it, you won't find it. When
you don't need it, you will find it in seconds.
This is where dropshipping can help you! Dropshipping in India is an
economical method for eCommerce entrepreneurs to run an online
business. It eliminates hassles related to product inventory and
shipping. And it will also help create an ideal low-risk business model.
Today's political scenario involves most governments urging shoppers
to purchase locally made produce. This is partly to reduce
dependence on other countries. Buying local also fosters local
employment. A bonus is that it reduces carbon footprint. India is not
any different.
So how can one use dropshipping in India? How exactly is it beneficial
for your business? And how do you choose the best dropshipper in
India for your business? Which ones are the best in the business? In
this article, we bring to you everything you need to know about
dropshipping in India.
2. What is Dropshipping?
3. With dropshipping, you won't need space to store and process
shipments. A third party, a.k.a the dropshipper, handles the entire
shipment, including production and packaging. All that you will need to
do is set up an eCommerce store and sell the products online.
As an eCommerce business owner who is only selling the product,
you will not need to hold any inventory. Once an order has been
placed by a customer, you will reach out to the dropshipper. You will
purchase the product from them and have it shipped to the shopper.
This is the broad concept of dropshipping. Let’s take a look at how it
fits into the Indian eCommerce industry.
3. How Does Dropshipping Work in the Indian
eCommerce Industry?
3.1) To begin with, Indian retailers need to enroll themselves on a
dropshipping website.
3.2) After this, the dropshipping company provides the retailer with a
list of available products in a CSV file.
4. 3.3) The retailer then uploads the given item stock onto their
respective websites.
3.4) Ordered received by the retailers are handed over to the
dropshipping company.
3.5) The dropshipping company then processes and ships the order to
the customers.
To get a better understanding of dropshipping in India, let’s compare it
to a normal business model and take a look at the differences.
4. Comparison between a normal shipping model and
a dropshipping model in India
4.1) This is how a normal business model functions:
● An order is placed by the customer on the website.
● Then the retailer (a.k.a the owner of the website) checks for
inventory and finds the stock.
● The order is then packed and shipped to the customer by the
retailer.
● This is followed by the customer making a payment to the
retailer.
5. 4.2) Now, take a look at what a dropshipping business model
looks like:
● An order is placed by the customer on the website.
● After this, the retailer informs the dropshipper about the order.
● The dropshipper manufactures the product.
● The product is then processed and shipped to the customer by
the dropshipper.
● Lastly, the customer makes a payment to the retailer, which is
also cumulative of the dropshipping charges.
Dropshipping in India is a simple business model that is easy to
understand and execute. It also has a long list of additional benefits.
Let’s take a closer look.
5. What are the Key Benefits of Dropshipping in India?
5.1) No Added Stress About Inventory
The regular business model in eCommerce demands storage and
inventory of products. However, the dropshipping method eliminates
this need. When Indian eCommerce retailers use dropshipping, they
don't have to worry about storing their products in bulk.
6. eCommerce businesses in India no longer need to practice
time-consuming and cumbersome processes. With the advent of
dropshipping in India, they no longer need to worry about inventory.
This helps eCommerce retailers save plenty of time and other
resources.
5.2) Suitable For Businesses With A Low Budget
A huge budget is required to run an eCommerce business in India.
Expenses entail manufacturing, processing, maintaining, storing, and
shipping products. Most businesses are required to manage their
refunds and returns as well.
eCommerce businesses that do not employ dropshipping can find
operations tedious, time-consuming, and expensive. Using
dropshipping in India, online retailers do not need to pay in advance.
Payments are only made after an order is placed and paid for by the
customer. This reduces the risk by quite a large margin. This model
requires only the bare minimum amount of money for marketing and
accounting-related tasks.
7. 5.3) Gives The Option To Sell A Wide Range Of Products
Consumers in India are willing to explore and try out a variety of
products that address their needs. This is why most Indian
eCommerce websites are successful. Online shops offer a wide
variety of products.
But offering a spectrum of items does come with certain issues. It
might mean that the retailer needs to have sufficient inventory and a
regular supply of such items in stock. This is often not feasible.
With dropshipping in India, there is no need for storing and
maintaining an inventory. This allows the retailer to offer a wide range
of products to customers at a low budget. They no longer have to
worry about actually producing or storing items.
5.4) Low Risk
By utilizing dropshipping, the retailer need not buy the entire inventory.
They only need to pay for the product that is ordered by their
customer. Dropshipping offers a secure system to the retailer where
he does not need to bear any risks.
8. Indian eCommerce stores no longer need to be burdened with worries
like being stuck with dead stock. The retailer will only be liable for the
products his customer has ordered.
5.5) Independent Of Location
Dropshipping in India allows retailers to run their businesses with just
a website. The entrepreneur can be anywhere across the country, and
the dropshipper will still be able to cater to the requirements. All a
retailer requires is a computer and a stable wi-fi connection.
Indian dropshipping activities are exceptional and profitable. This
concept provides room for experimentation and growth in the industry.
Here’s how you, as a retailer, will earn a profit by opting for the drop
shipping technique.
6. How will you earn profit with Dropshipping?
Building revenue and growing it steadily requires a lot of effort and
patience. It involves several activities, especially for new players in the
eCommerce industry. But with dropshipping in India, emerging
9. enterprises can quickly streamline their product deliveries. This
enables them to start experiencing regular benefits like:
6.1) Cost-Effectiveness
For start-ups and new businesses in India, dropshipping can help in
saving initial costs. It provides a budget-friendly business model for
growth. This method is best suited for developing countries like India.
6.2) Low Risk
With dropshipping, the risk that is usually involved in manufacturing a
product is reduced. This is because products are made based on
demand. This reduces a large margin of risk, given that shipping and
taxes are usually expensive.
6.3) Internet Penetration
Being an online retailer has now become a trendsetter because the
Indian market is leaning towards online shopping. Indian consumers
are finding it more convenient to buy things online instead of going to
a physical store.
10. New entrepreneurs in India no longer need to worry about a huge
setup, in-house inventory, and delivery management systems. They
can safely enter the online retail arena and manage orders, inventory,
and deliveries through dropshipping.
6.4) No Hassle Of Inventory
Dropshipping removes the unnecessary tension of where to keep the
inventory. This removes the need for aggressive marketing that needs
to be done if the product doesn’t get sold. Instead, it reduces the
pressure of selling a product and recouping its cost.
6.5) Automated Functions
If you look closely, you will notice that dropshipping functions can be
automated. The activities involved in it don't needn’t be managed on a
daily basis. This makes it more efficient and allows retailers to focus
on other aspects of the business.
Their involvement can now contribute towards activities such as
marketing, branding, and business development. Processes like
11. tracking orders, performance reviews, setting prices, promotions, etc.,
can all be automated.
6.6) Availability Of Niche Products
Bringing niche products into the market is like having a superpower.
More and more retailers in India continue to jump into eCommerce.
There’s no dearth of varieties in merchandise, from clothes and books
to medicines and shoes.
Dropshipping helps Indian retailers let go of the hassle of maintaining
delivery agents and managing inventory. It also allows them to procure
exclusive products on-demand, even if ordered in lesser quantities.
This is especially true for businesses that sell customized products.
7. Why is Dropshipping ideal in India as compared to
Wholesale?
In India, wholesale retailing is the most expensive and least
cost-effective operation. This is due to the increasing cost of goods,
employee costs, and shipping costs. Goods often need to be
purchased in large quantities to get a good price. However, there is no
guarantee that they will be sold.
12. Additionally, shipping and labor costs are generally high. It takes quite
an extensive team to pack and ship products as the business grows.
With dropshipping, most of these aspects of the business can be
automated.
Dropshipping in India allows the retailer to focus solely on
revenue-generating tasks. These include marketing and building
customer loyalty via customer service. This method enables online
businesses in India to ship goods at minimal expense. It is certainly a
budget-friendly option for all eCommerce retailers.
We've now gone through the basic information regarding dropshipping
and its benefits. Here’s a list of the best dropshippers in India that you
can partner with.
8. Best Dropshippers in India
8.1) Indiamart
Indiamart, one of India’s leading dropshipping companies, is a B2B
platform. It connects suppliers and retailers. With this platform, you as
13. a retailer will not have to struggle and waste time finding suppliers that
are willing to produce products that you wish to sell.
This dropshipping company’s main area of focus is on providing
pharmaceutical services. However, they also offer products in fashion,
food, jewelry, and furniture.
8.2) TradeIndia
Founded in 1996, TradeIndia functions as a B2B dropshipping
platform in India. It aims to bridge the gap between Indian
manufacturers and retailers. The company provides a “360-degree
digital solution” to its retail partners.
TradeIndia provides a platform for secure transactions between
buyers and suppliers. Additionally, the company assists in locating
manufacturers, exporters, and suppliers in India from a global
perspective.
8.3) Exporters India
Exporters India is another B2B Indian dropshipping platform that aims
to connect sellers and manufacturers. This company is known for its
14. reliable and flexible services. It is known for its services globally and
has been running successfully for the past two decades.
This dropshipping company has a majority of positive reviews from the
retailer's end. They can help their clients connect with companies
such as Primark.
8.4) Coorgle Dropshipping
CDS is one of the best automated dropshipping companies in India. It
provides several ranges of product classes, right from accessories
and apparel to electronics. This Indian dropshipping company has a
simple user interface and website. This makes it very easy for retailers
in India to navigate and find what they are looking for.
The advantage of CDS for retailers is that their names needn’t be
mentioned anywhere on the packaging. With CDS' choice to withhold
their name from the products, they maintain anonymity with regards to
their services.
8.5) Bluember
15. Bluember is one of the best and one of the first dropshipping
companies in India. This Indian company aims to connect suppliers
and retailers. Bluember also enjoys the privilege of having access to a
wide variety of products.
This company is equipped with a team of professionals that looks at
empowering retailers. They do so by removing a major obstacle of
setting up inventory.
8.6) Tradeford
Tradeford is a reputable dropshipping company. It provides a platform
for retailers to avail a wide range of products from Indian
manufacturers. This company assures retailers of the required
standard of their products.
Unlike the companies listed above, Tradeford is a growth company. It
is best suited for businesses that are looking to get enlisted. Since the
company is relatively new, it strives to take care of customers' needs
better.
8.7) Baapstore
16. Based in Chennai, India, Baapstore is a dropshipping company that
was started only a few years ago. Within a short amount of time, it has
grown to become a reputable and established company. Baapstore
caters to all back-end needs of a retailer.
Their services range from delivering, technical, hosting, and
cataloging. This gives plenty of time for retailers to focus on their
goods. The company has partnered with other reputable brands in
India, such as Speed Post, Delhivery, FedEx, Ecom Express, and
Aramex.
8.8) Hothaat
Established in 2012, Hothaat is a newcomer in the Indian
dropshipping industry. This company provides a wide assortment of
facilities on its website. It allows its retailers and sellers to maximize
the usage of its facilities as much as they wish to.
The main aim of this company is to find competitive and reliable
manufacturers, suppliers, and merchants to mobilize their products.
This dropshipping company is run by professionals along with a
committed workforce.
17. 8.9) Jim Trade
Jim Trade has claimed to be India's Largest Business Directory
Online. It has lived up to this claim. This dropshipping company is a
B2B platform that facilitates global trade. The main focus of this
company is to provide information to international buyers.
This dropshipping company provides a wide range of categories in
India. They cater to varied domains ranging from agriculture, beauty,
and wellness to electronics and sports. Jim Trade aims to provide an
integrated sourcing tool for B2B buyers of Indian products.
8.10) Webdealindia
WebdealIndia provides a wholesale marketplace in the country. It
allows local and international manufacturers to display their products
on their websites. This company has partnered with other premium
retail businesses across the globe.
WebdealIndia has a user-friendly website that assists you in searching
for your product across wide categories. Additionally, it provides
18. notification for the drop shippers as and when the manufacturer enlists
their product on their websites.
8.11) Dropshipzone
Dropshipzone facilitates dropshipping in India. By sourcing directly
from manufacturers, they are able to offer low pricing to eCommerce
retailers. They are known for their reliable customer support and
extensive delivery network. They deliver to over 22,000+ postal codes
in India.
Dropshipzone doesn't require you to research and choose a paid plan
that is suitable for your business. All you need to start dropshipping is
to sign up. Their products come with a seller warranty, and their
reasonable pricing helps you stay highly profitable.
8.12) Printrove
Printrove is a unique dropshipping company. Based in Tamilnadu,
India, it functions as a print-on-demand customer fulfillment service
portal. Printrove offers a range of printed products, from clothing to
pop grips, notepads, and mugs.
19. Once your customer places an order, Printrove prints, packs, and
ships the product to them. It withholds its branding from the packaging
and product. Printrove provides fast fulfillment and easy replacement
and requires no minimum orders.
8.13) Snazzyway
Snazzyway is one of the most reputable dropshipping companies in
India. They are focused on providing products and services for
eCommerce companies that are keen on lingerie and womenswear.
Snazzyway operates as a manufacturer, wholesaler, as well as a
supplier.
This Indian dropshipper offers quick deliveries worldwide. Their wide
and diverse range of products, which also comes in plus sizes, opens
up the possibility for high-profit margins. They withhold their name
from the products and facilitate easy returns and refund processes.
8.14) Glowroad
Glowroad is an OOAK dropshipper in the sense of its products. This
Indian dropshipping company enables reselling of products. All you
20. need to do once you sign up is push your products on Facebook,
Instagram, and WhatsApp business.
eCommerce retailers who are interested in reselling can connect with
their extensive supplier database. Glowroad will also provide you with
a webshop, payment gateways, and shipping support. They are
working towards providing advanced features such as store analytics,
personalized digital marketing, etc.
8.15) Seasonsway
Seasonsway facilitates dropshipping in India. eCommerce retailers
who use their services have access to nearly 200,000 products. Their
product database includes clothing and accessories, as well as
trending and popular items from other categories.
Seasonsway products can be dropshipped across multiple
marketplaces. These include Flipkart, Amazon, eBay, Snapdeal,
Facebook, and even your own online store. It is armed with an
interface that is user-friendly. Retailers can take advantage of its
automated system and API integration and even make direct listings
on marketplaces.
21. All the above-mentioned dropshipping companies in India are special
in their ways. It can get quite overwhelming to sort through the list and
select the one best suited for your company. Worry not, we've got you
covered! Here’s how you can select a reliable dropshipping partner in
India.
9. How to Choose the Best Dropshipping Partner in
India?
Listed below are certain conditions that a dropshipper in India must
possess to qualify as trustworthy:
1. They should support the delivery of a wide variety of high-quality
products as well as enough quantity to supply.
2. They should be able to deliver to customers across the globe within 48
hours.
3. They should be able to push fresh products to Indian retailers via the
internet and other web-based platforms.
4. They should own warehouses overseas.
5. They should be available round the clock and in different languages.
6. They should handle urgent issues accurately and with speed.
7. They should ensure that mistakes don’t go unacknowledged.
22. To select a dropshipper that is best suited for your company, here are
a few other things you must take into consideration:
● Analyze what you require. Regardless of how reputed and
trustworthy the dropshipping company is, if they can’t provide
you with the services you require on time, do not choose them.
● Doing everything perfectly is not possible, which is why it’s best
to select a company that is willing to work according to your
requirements.
● Shortlist more than one company and then compare to see
which one suits your business better.
10. To Conclude
Dropshipping is an ideal business model for startups and businesses
with low budgets. It is profitable and comes with little to almost no risk.
Retailers no longer have to manufacture and ship items, leaving them
for other business activities.
This method is cost-efficient and saves plenty of time for retailers as
there is no unnecessary headache in storing and managing inventory.
23. We hope this article has answered your queries about dropshipping in
India and helped you finalize your dropshipping partner.
11. FAQ
1) Is Dropshipping Legal In India?
Yes, dropshipping in India is indubitably legal. It is a type of order
fulfillment where the responsibilities are split between the retailer and
supplier.
2) Do I Need GST For Dropshipping In India?
GST is needed for items that are purchased in India but sold abroad.
3) Can You Dropship In India From Your
Phone?
Dropshipping in India can be done as long as there is wifi access to a
phone, laptop, or tablet.