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 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?
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.
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
- 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.
- 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.
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 need 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.
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.
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 enterprises can quickly streamline their product deliveries. This enables them to start experiencing regular benefits like:
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.
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 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.
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
Indiamart, one of India’s leading dropshipping companies, is a B2B platform. It 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.
This dropshipping company’s main area of focus is on providing pharmaceutical services. However, they also offer products in fashion, food, jewelry, and furniture.
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 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.
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.
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.
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.
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.
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.
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 notification for the drop shippers as and when the manufacturer enlists their product on their websites.
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.
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.
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.
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.
Glowroad is an OOAK dropshipper in the sense of its products. This Indian dropshipping company enables reselling of products. All you 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.
Seasonsway facilitates dropshipping in India. eCommerce retailers who use their services have access to nearly 200,000 products. Their product database includes clothing and accessory, 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.
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:
They should support the 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 Indian 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 accurately and with speed.
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.
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.
We hope this article has answered your queries about dropshipping in India and helped you finalize your dropshipping partner.
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.