How to Start Dropshipping Business in India?

Overview 

Dropshipping is the retail fulfillment method that adapts to make a business smooth and overall operation without maintaining the inventory for selling. According to the latest statistics released, the success rate of dropshipping in the FY 2024 in India is estimated between 10% to 20% with the growing Compound Annual Growth Rate (CAGR) of 23.49% projected from 2020 to 2026. Currently, the total size of dropshipping business in India is presented around $1 Billion. Getting the insights from the reported estimation, dropshipping emerges as the alternative business idea into a new version. This new version to initiate the business from scratch is not only getting popular abroad but also in India. This blog will answer most of your pressing questions on how to start the dropshipping business, kinds of companies gains the popularization and the challenges of B2C dropshipping Indian young entrepreneurs usually faces

What is Dropshipping Business in India?

Dropshipping business is the E-business model that works as an agent between manufacturer/ supplier and the ultimate customers. In simple words, when a dropshipper receives an order for the product from an ultimate consumer, the dropshipper renders a message to the manufacturer or supplier that he/she has ordered the product of the same model. On shipping the ordered product of the manufacturer to the final consumer, dropshippers earn commission. 

Top 7 Dropshipping Brands Flourish in India 

Here is the top 7 dropshipping brands in 2024 that flourish in India:

• Shopify: With over 4 millions sellers worldwide, Shopify is the global platform for outshining dropshipping businesses. As the dropshipping business with Shopify encourages profit for businesses and removes the need to maintain the unsold inventory with the customers. 
  
  
  
• Baapstore: Covers the range of 5000+ products and transparent business operations in the Baapstore. It helps people to start and run their own ecommerce business at the lowest cost by offering drop shipping services.
  
  
• Printrove:The printove is specialized for print on demand dropshipping, offering modified products like apparel and accessories. 
  
  
• Wholesale Box: The wholesale box is ideal for starting a clothing business in India. It offers a wide range of products at a wholesale price rate with retailers. 
  
  
• Trade Ford: Applied with the career oriented approach, this dropshipping company provides the customers a wide range of products directly from the Indian producers. 
  
  
• India Mart: India mart is the largest e-commerce website that bridges the gap between potential buyers and sellers. This website sells wide categories of products. 
  
  
• Meesho: Meesho is a social marketplace where both items that belong to B2C and B2B are covered to sell at a minimum price rate to the customers as well as business owners. This website offers the opportunity to buy at least 5-10 units and can sell these units under their own branding. 

Registration Required to start Dropshipping business in India 

You are required to register your dropshipping business in India which is mentioned as follows: 

• Requirement of GST Registration: In case your threshold limit exceeds a certain turnover amount in the dropshipping business, a taxable person needs to pay taxes by registering under GST registration. 
  
  
• Requirement of Business Registration: For any kind of business in India, you want to establish whether it is online or vendor business, you need to require business registration. There are 5 types of business registration which includes: OPC registration, sole proprietorship, LLP registration, partnership registration and private limited company registration.
  
  
• Udyam Registration: As you are beginning your business from home, your dropshipping business would fall under the category of Micro, Small, and Medium Enterprises. For getting government incentives without heavy investing on your business for inventory stocks, etc. you are required to get Udyam Registration. 
  
  
• Trademark Registration Online: The trademark registration protects the rights and identity of your brand and logos. 
  
  
• Shop and Establishment Act Registration: Even for online business, the registration for Shop and Establishment Act Registration is essential.

For getting multiple benefits from legal and financial regulations, you are required to get assistance from experienced CA and CS experts for easing your application. We at Bizfoc team will dedicatedly serve your needs to make your business comply to meet legal and financial regulations. 

How to Start Dropshipping Business in India?

The renowned brands whose name resonates within the dropshippers business today had once initiated their business from scratch too. On the basis of their experiences, here are some steps to start your dropshipping business in India by adopting simple strategies and steps: 

Step 1: Select the Business Niche:

Your product speaks about the business brand. So it is important to select any particular business niche which suits your interest. Because there are many products to sell in the market, it doesn’t mean that you’re capable of selling everything that is beyond your reach. 

Therefore, the selection of a business niche is important. In case you want to change the product line if you think that your passion for selling the particular product line has been changed.

Step 2: Choose a Supplier:

After deciding the business niche, it is important to choose a supplier. Selecting the medium to drive your product to the ultimate consumer is the main concern. The supplier you choose must have accurate product listings, dispatch products quickly, and maintain quality-assurance standards. 

Step 3: Plan the Product to Sell: 

On selecting the business niche, you need to note that your product should match with the respective business niche. So upon fixing the supplier, you need to communicate with your supplier partner to get to discover about the best-selling products they have. This is important to boost your business as per the business niche they’ve. 

Step 4: Price your Product: 

When deciding the kind of product you’ll sell, it is important to price the product at a reasonable capacity to satisfy the customer’s expectations. The price should be competitive and does make an impact equivalent to the worth. 

Step 5: Get your Legal Recognition Registration:

For all businesses whether you’re starting the dropshipping business in India, getting legal recognition is essential for the business. License such as GSTIN, IEC code, and Shop and Establishment Act Registration is important before operating the dropshipping business. 

Step 6: Create a Website for Your Store: 

Website is a powerful weapon to launch your marketing. By purchasing the domain and starting to customize the website as per your niche will elevate the product to get known among the target audience. By referring to websites by design and content, your brand will speak up about the authenticity and trustworthiness for the product. 

Step 7: List your Product in the Market: 

On the website itself, the listed products should be highlighted with their features and characteristics and  relevant details of the products with the customers. Once you listed the product, you can adapt different strategies to grow your product through social media, email marketing, etc. 

Challenges of Dropshipping in India 

Despite having many related benefits which we obtained from dropshipping business in India, individuals still manage to get through the challenges. These are:

• Sourcing type of products that are of high quality
• Returning the products that doesn't match the customer’s expectations 
• Finding best suppliers for your product 
• The demanded product is getting out of stock. 

Conclusion 

Dropshipping in India is the emerging business alternative for most young budding entrepreneurs. This business can drive online marketing steadily against the competition of traditional marketing. Dropshipping is the scope to bring certain changes in the perspective to fuel the marketing. Therefore, it is important to look into relatable challenges and the derived benefits that the particular brand receives from the dropshipping business. 

Frequently Asked Questions 

1) Which niche is best for dropshipping business?

Clothing, beauty products, accessories, home decor, wall art, etc is the best niche to start your dropship business with these products. 

2) Can I start the dropshipping business if I don’t register under Shops and Establishment Act?

No, you can’t register your dropshipping business if you don’t register under Shops and Establishment Act for legal insurance. 

3) Can I drop ship products from international suppliers to Indian customers?

Yes, it is possible to dropship products from international suppliers to Indian Customers by obtaining an IEC number. 

4) Is digital marketing essential for my dropshipping store?

Yes, digital marketing is essential for my dropshipping store.