Starting a Dropshipping business in India: If you are a beginner and know nothing about the dropshipping business, you need to read this. If you are searching on the internet on how to make money online, a dropshipping business can be a perfect fit for you. Well, out of all the options, drop shipping seemed the most profitable.
But sadly, most beginners know little about dropshipping business. From scratch to a few thousand dollars, running a drop shipping business is easy and manageable.
To start with, you need a business plan. A simple plan on what you wish to sale, who is target market and where from you will ship.
Dropshipping is basically a business where you are the middleman. You don’t do anything, you contact the supplier, select the products you want to sell, pitch them to your audience and they do it all for you. You will be like an Amazon where people come to buy your products and they are directly shipped by your chosen supplier.
Here are the 12 Steps to Start a Drop Shipping Business In India
Here’s a complete guide on how to start a successful dropshipping business in India without any major investment.
1. Choosing What To Sell
First, you need to pick your category. It’s really important. You select your suppliers and list their products on your dropshipping site. So, first, choose what you wish to sell. Don’t go for something common, like a mobile cover.
Instead go for something like Marvel Avengers Endgame mobile cover, or PUBG mobile cover. Choose a niche over a common category.
There are plenty of tools you can take help from. As an example, Jungle Scout is a popular tool in finding the best selling products on Amazon.
2. Understanding the Competition
You need to study the market and your competitors properly. If you will follow the crowd, hardly you will have an impact unless your products are very cheap. For instance, take the example of selling backpacks. There was already a market for backpacks, but special editioned Deadpool backpacks had only a couple of sellers.
This helped me cater to an audience who is actually interested and I am reaching to the right traffic.
3. Finding The Supplier
Once you choose a product category, now you need to find the seller. You just can’t randomly wish to sell something that may not even have been produced. So be practical, see what’s in demand, and choose the products. Go through possible suppliers. It’s always better to go with sellers who stock a wide range of products.
You can visit sites like IndiaMart.com and TradeIndia.com to find the right suppliers. They have a huge database of suppliers and manufacturers to choose from.
See if the supplier has any drop shipping experience or not. It’s important for the seller to understand the process and why he needs to ship them in time.
4. Selecting The Supplier
Before you choose a supplier, go through all the details. Check for how long he has been in the dropshipping business, how will he ship the product, how long will it take to deliver it, shipping methods, payments and more. Also, wholesalers charge to offer drop shipping services, they generally add a fee to cover the costs like international shipping and packing.
The costs vary from product to product and countries from where you want to dropship.
5. Choosing A Platform
The easiest way to start a dropshipping business for a beginner is to try dropship marketplaces. There are plenty of such marketplaces available online nowadays. Oberlo that integrates with Shopify, is the most popular one worldwide.
In fact, you can create a full-fledged dropshipping site with Shopify. If you are looking to create an online website for dropshipping business, Shopify is the best available. No one comes even close to Shopify.
You have to list your products. Enlist all the details and photos of your products after you take them from the supplier.
6. Working On The Keywords
To make your dropshipping site SEO friendly, you need to work on the keywords. As I said before, you need to target a few niche products. A niche will offer you better search results and higher are your chances to be successful in the e-commerce market.
It’s not easy to rank on the keyword backpacks on Google or any other search engine, but Liverpool backpacks will have one-tenth of the same competition.
7. Managing Your Product Listings
Now you need to list your items accordingly. Listing a product properly is very important. You must disclose all the product details in your listing. This will help you to sell your product to all the potential buyers. And most importantly show from where you are shipping your product. Like if your supplier is in China, you should list that the product may take longer than expected to reach.
Dropshipping is different than other e-commerce orders or other regular wholesale orders.
8. Payment Integration
You need to choose a payment gateway. There are different options available via which you can accept the payments. Again understand that you are the middleman, so you have to accept the payment on behalf of your supplier and then pay the charges to the supplier.
Paypal and Stripe remain one of the most used and easy to integrate payment options. Paypal is now available in India while Stripe is available on request.
9. Deciding The Prices
You will be adding your commission to the supplier’s pricing and decide the final pricing. Study the market properly, see the competition available and pricing of other similar products. Also, do keep in mind that international shipping does add up to a lot of charges, so decide the pricing accordingly.
It’s better to go through other websites and see how they are charging their products. It will help you choose a better price for your product.
10. Register Your Dropshipping Business
It is compulsory to register your business if you want to carry out a dropshipping business in India. Read our guide on how to register a business in India. Another mandatory requirement is to have a GST Number. It is not going to be possible to run a business in India without having GST registration.
11. Open a Current Bank Account
While opening a current bank account for a dropshipping, it is advised to check whether the bank offers instant money transfer facilities or not. Since foreign banks have a wider network of branches worldwide, most drop shippers prefer foreign banks for their bank account.
12. Making Money
Once an item is sold on your site or platform, you will collect the money from the buyer. Then you pay your supplier and keep the profit. Now you order the item to your supplier you have just sold from their website and provide the shipping details. The supplier will now ship the item you have sold via your platform directly to the buyer.
Within a few days, you can start to work out on your best-selling products. You can start to list products in the future based on the sell-through rate and delete the products which don’t sell.
Dropshipping offers you the advantage to sell products without going into production or manufacturing, making it a profitable business.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.