A Guide On Dropshipping in India
Dropshipping in India is an economical method for new entrepreneurs to run an eCommerce business. It provides an opportunity for businesses to sell their products online without having to worry about carrying inventory and shipping products. It helps create a business model that is low risk and perfect for businesses that are just starting.
Additionally, with today’s government promoting “Make in India” and boycotting products from countries like China, it is the ideal time to switch over from foreign dropshippers to Indian ones.
In this article, we bring to you everything you need to know about dropshipping in India, including the top ten dropshippers in India. Right from the basic definition of dropshipping to how to go about selecting a supplier, we’ve got you covered. So, sit back and understand the entire dropshipping landscape in India.
1) What is Dropshipping?
Dropshipping is a process where you can sell goods without needing storage space and processing shipments. A third party, a.k.a the dropshipper, handles the entire shipment that will be sold under your store, including production and packaging.
You, as an eCommerce business owner, only need to set up your store online that will display the products, however, you will not have to hold the inventory right away. Only once an order has been placed by a customer do you need to reach out to a dropshipper and purchase the product from them.
Now that we’ve understood the concept of dropshipping, let’s take a look at how it fits into the Indian eCommerce industry.
2) How Does Dropshipping Work in the Indian eCommerce Industry?
* To begin with, a retailer enrolls themselves on a dropshipping website like TradeIndia, Baapstore or Indiamart.
* After this, the dropshipping company provides the retailer with a list of available products in a CSV file.
* The retailer then uploads the given item stock onto their respective websites
* Once the retailers receive an order from their customers, they hand over these orders to the dropshipping company.
* 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.
3) Comparison between a normal shipping model and a dropshipping model in India
b) Then the retailer (a.k.a the owner of the website) checks for inventory and finds the stock.
c) The order is then packed and shipped to the customer by the retailer.
d) This is followed by the customer making a payment to the retailer.
b) After this, the retailer informs the drop shipper about the order
c) The dropshipper manufactures the product
d) The product is then processed and shipped to the customer by the dropshipper
e) Lastly, the customer makes a payment to the retailer, which is also cumulative of the dropshipping charges.
Along with having a simple business model that is easy to understand and execute, dropshipping has a long list of additional benefits. Let’s take a closer look.
4) What are the Key Benefits of Dropshipping in India?
4.1) No added stress about inventory
Generally, in a regular business model for an eCommerce business, there is a requirement for storage and inventory of products. However, with the dropshipping method, there is no need for businesses to stress over storing and taking care of their products in bulk.
Businesses no longer need to practice time-consuming techniques of tracking inventory and can devote all their time to other important areas. This helps eCommerce retailers save plenty of time and other resources.
4.2) Suitable for businesses with a low budget
eCommerce businesses in India require a huge budget in place for manufacturing, processing, maintaining, storing and shipping products. Most businesses are required to manage their refunds and returns as well. This can be quite tedious, time-consuming and expensive.
However, dropshipping can reduce costs significantly. With this technique, the retailer need not have to pay or invest in anything until the order is placed and paid for by the customer.
This reduces the risk by quite a large margin, thus requiring minimal amounts of money that will mostly be required for marketing the business and paying taxes.
4.3) Gives the option to sell a wide range of products
Consumers in India are willing to explore and try out a variety of products according to their tastes. This is why most eCommerce websites are successful because they offer a wide variety of products. But offering a spectrum of items means online retailers must be able to hold sufficient inventory and regular supply of such items, which may often not be feasible for them.
With dropshipping, 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. This provides an opportunity for an entrepreneur to immerse themselves into selling a varying range of products on their website without having to worry about actually producing or storing items beforehand.
4.4) Low risk
With drop shipping, the retailer need not buy the entire inventory, he only needs to pay for the product that is ordered by his customer. This offers a secure system to the retailer where he does not need to bear any risks, such as being unable to sell the remaining inventory. The retailer will only be liable for the products his customer has ordered.
4.5) Independent of location
Dropshipping allows retailers to run their business with just a website. The entrepreneur can be anywhere across the country and the drop shipper will still be able to cater to him. All a retailer requires is a computer and a stable wi-fi connection.
Dropshipping in India is an exceptional and profitable concept because it 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.
5) 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, emerging enterprises can quickly streamline their product deliveries and start earning regular benefits like:
For start-ups and new businesses, dropshipping can help in saving the initial costs and provide a budget-friendly business model for growth. This method is best suited for developing countries like India.
5.2) Low risk
With dropshipping, the risk that is usually involved in manufacturing a product is reduced because products are made based on demand. This reduces a large margin of risk, given that shipping and taxes are usually expensive.
5.3) Internet penetration
Being an online retailer has now become a trendsetter, because the Indian market is leaning towards online shopping. Consumers are finding it more convenient to buy things online instead of going to a physical store. In such a scenario, even without a huge setup and in-house inventory and delivery management systems, new entrepreneurs can enter the online retail arena and manage orders, inventory, and deliveries through dropshipping.
5.4) No hassle of inventory
Dropshipping removes the unnecessary tension of where to keep the inventory and the aggressive marketing that needs to be done if the product doesn’t get sold. Instead, it reduces the pressure of selling a product and its cost.
5.5) Automated functions
If you look closely, you will notice that dropshipping functions can be automated, making it more efficient and allowing retailers to focus on other aspects of the business such as marketing, branding and business development. Processes like tracking orders, performance reviews, setting prices, promotions, etc., can all be automated and needn’t be managed on a daily basis.
5.6) Availability of niche products
Bringing niche products into the market is like having a superpower. With more and more retailers jumping into eCommerce, there’s no dearth of different varieties of merchandise, from clothes and books to medicines and shoes. Letting go of the hassle of maintaining delivery agents and managing inventory has allowed retailers to procure exclusive products on-demand, even if ordered in lesser quantities. For example, if you’re a retailer selling t-shirts with popular pop culture or tv show references, you can get a custom print made for a customer and have it delivered to them at their doorstep all while making a profit, thanks to dropshipping functions.
6) Why is Dropshipping ideal in India as compared to Wholesale?
In India, wholesale retailing is the most expensive and least cost-effective operation due to the increasing cost of goods, employee costs, and shipping costs. This is because goods need to be purchased in large quantities to get a good price, and that too, without a guarantee that they will be sold.
Additionally, shipping costs are high because most wholesalers don’t have access to deals that the government receives. And employee costs are high because a bigger team is required to pack and ship products as the business grows.
With dropshipping, most of these aspects of the business can be automated, and the retailer can solely focus on revenue-generating tasks like marketing and building customer loyalty via customer service. Dropshipping in India enables businesses to ship goods with minimal to almost nothing expense. It is certainly a budget-friendly option for all retailers.
Now that you’re aware of all the basic information regarding dropshipping and its benefits. Here’s a list of best dropshippers in India that you can collaborate with.
7) 10 Best Dropshippers in India
Indiamart, one of India’s leading dropshipping companies, is a B2B platform that connects suppliers and retailers. With this platform, you as a retailer will not have to struggle and waste time finding suppliers that are willing to produce products that you wish to sell.
The company’s main area of focus is providers of pharmaceutical services, but they also provide products in fashion, food, jewelry and furniture as well.
Founded in 1996, TradeIndia functions as a B2B dropshipping platform that aims to bridge the gap between 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.
7.3) Exporters India
Exporters India is another B2B platform that aims to connect sellers and manufacturers. The company is known for its reliable and flexible services. This dropshipping company is known for its services globally and has been running successfully for the past two decades.
The company has a majority of positive reviews from the retailer's end and can help their clients connect with companies such as Primark, Ace Parag etc.
7.4) Coorgle Dropshipping
CDS is one of the best automated dropshipping companies in India, for it provides several ranges of product classes, right from accessories and apparel to electronics. The company has a simple user interface and website, making it very easy for a retailer to navigate and find what they are looking for.
The advantage of CDS for retailers is that their name needn’t be mentioned anywhere on the packaging of the products. They have the complete privilege and advantage to keep their names hidden from the customers.
Bluember is one of the best and among the first dropshipping companies in India. The company aims to connect suppliers and retailers, ensuring that the dropshippers have access to a wide variety of products.
This company is equipped with a team of professionals that looks at empowering retailers and removing a major obstacle of setting up inventory.
Tradeford is a reputable dropshipping company that provides a platform for retailers to avail a wide range of products from Indian manufacturers. The company assures retailers of the required standard of their products.
Unlike the companies listed above, Tradeford is a growth company and is best suited for businesses that are looking to get enlisted. Since the company is relatively new, it strives to take care of customer needs better.
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, ranging 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 such as Speed Post, Delhivery, FedEx, Ecom Express and Aramex.
Established in 2012, Hothaat is a newcomer in the dropshipping industry. The company provides all the facilities available on its website and allows its retailers and sellers to maximize the usage of their 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. The dropshipping company is run by professionals along with a committed workforce.
7.9) Jim Trade
Jim Trade has claimed to be India's Largest Business Directory Online and the company has lived up to this claim. The company is a B2B platform that facilitates global trade. The main focus of the company is to provide information to international buyers about local businesses and suppliers about integrated marketing services.
The dropshipping company provides a wide range of categories 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.
WebdealIndia provides a wholesale marketplace in the country with which local and international manufacturers can display their products on their websites. The company has partnered with other premium retail companies across the globe.
WebdealIndia has a user-friendly website that assists you in searching for your product across wide categories. Additionally, it provides notification for the drop shippers as and when the manufacturer enlists their product on their websites.
All the above-mentioned dropshipping companies in India are special in their ways and it can get quite overwhelming to sort through the list and select the one best suited for your company. Worry not, we got you covered! Here’s how you can select a reliable dropshipping partner in India.
8) How to Choose the Best Dropshipping Partner in India?
Listed below are certain conditions that a dropshipper must possess to qualify as trustworthy:
* They should support delivery of a wide variety of high-quality products as well as enough quantity to supply.
* They should be able to deliver to customers across the globe within 48 hours.
* They should be able to push fresh products to retailers via the internet and other web-based platforms.
* They should own warehouses overseas
* They should be available round the clock and in different languages
* They should handle urgent issues correctly
* They should ensure that mistakes don’t go unacknowledged
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.
9) To Conclude
Dropshipping is an ideal business model for startups and businesses with a low budget. 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.
We hope this article has answered your queries about dropshipping in India and helped you finalize your dropshipping partner.