The best aspect of dropshipping is that you can only buy your clients' items once they've received the money on your site, which saves you time and money. India's sales figures are increasing at a rate of 51 percent each year, making it the most promising market for online merchants. According to UK-based GlobalData, e-commerce sales are anticipated to generate $120 billion in annual revenue by 2021.
Step 1 – Determine a dropshipping concept that will succeed in India
Let's look at a few examples. A dog bath for pet owners, hardwood cutlery, eco-friendly supermarket bags, beeswax wrapping instead of artificial cling wrap, and phone cases for certain phone types are all available. Dropshipping allows you to evaluate how these items sell and, based on the results, you can always alter and select a new product. There will be no stockpiling of a single type of product that will never sell and will result in a loss.
Step 2 – Discover vendors willing to drop ship to the Indian market
The apparent next objective is to establish suppliers that can provide you with these items at a profit while also having a respectable and dependable background. There are two approaches you may use to discover suppliers:
1. Make direct contact with them
2. Use an internet platform alongside them
A basic Google search could help you locate suppliers/wholesalers that specialize in a product-specific category.
Step 3 – Want to start a dropshipping business in India? Resolve the financial and legal issues
This topic is addressed in many dropshipping comprehensive guides. Nevertheless, because this is such an important element of the process, we're reiterating it here with simpler words. Choose a business strategy by incorporating your dropshipping venture as a single proprietorship or a Pvt Ltd. Following the registration of your firm, you must complete the legal requirements. It is beneficial to have the following items while operating a dropshipping business:
1. GST Number
2. Current Account
3. Import & Export Code (EIC)
Step 4 - Get the idea out!
Don't be afraid to speak up! Market your internet store aggressively. We cannot emphasize how critical it is for individuals to know who you are. Instagram might be a good place to start if you want to create a clothes shop.
You may utilize Google Ads, Instagram Ads, or Facebook Ads to get the ball rolling. Influencer marketing is also gaining popularity. This sum, however, will be added to your overall expenditures, and you can choose how much to pay by check.
Step 5 – Maintain a virtual community that is engaged
It's not the time to blend in. Before making a purchase, a consumer might look you up to ensure that you are legitimate. Use the virtual community to establish your brand, provide customer care and support, and make sales/offer promotions. All of the information is completely free and will be of great assistance to you!
Dropshipping is lawful. You must register your firm as a single proprietorship or a limited liability company, as well as register for GST. That implies you'll have to pay an extra 18% for GST. Assume you purchased a product from a vendor for 200 INR and sold it to a client for 500 INR. Consequently, like GST, you must pay an extra 18% on your revenue of 300 INR. How much money can you make by establishing a dropshipping business?
This must have crossed your thoughts a million times when considering whether or not to use dropshipping. We are aware. Let's try to choose a situation and do some math. Dropship profit margins in India might be as low as 10% or as high as 40%. It would be safe to assume a conservative estimate of 25%.
So, there’s every reason for you to take the plunge into the exciting and dynamic world of dropshipping in India. With a large urban population getting online and internet business becoming more mainstream, the opportunities for dropshipping in India are vast. The major issue is to identify a product or products that will be successful and a vendor with whom you can then do business.
For sure, there are problems in India, such as GST, legal companies, and shipping expenses, but these are easily remedied. The good news is that, although creating an online marketplace for dropshipping used to be difficult, it is now very simple with the AASAAN App. AASAAN allows you to launch your dropshipping operations in India in less than an hour.
As a result, your business can flourish in no time. What exactly are you waiting for? Start your dropshipping operations in India and see if you can find your niche.
With these techniques, you may test ideas before investing in them, or you can start generating money on the side without having to worry about inventory obligations. The above-mentioned company concepts can even be blended in several ways to create a business that is uniquely yours.
It is now simpler than ever to establish a business and start earning sales without getting bogged down with sourcing items, renting space, and keeping an inventory, thanks to a mix of technology, third-party suppliers, and the ability to swiftly test ideas online.
If the thought of sourcing, holding, and shipping inventory has previously deterred you from establishing a business, start with an inventory-free, low-investment marketing strategy and go from there.