What is Dropshipping Business Model? Steps to Start Dropshipping Business in India?

You have reached the right place where you will learn the ways to start your dropshipping business in India.

What is dropshipping? Want to start your own online business but don’t know where & how to start?
If you don’t know what products to sell & don’t have the money to invest, dropshipping model will definitely suit you.

Let’s start from the definition of dropshipping business.

What is Dropshipping Business Model?

Dropshipping is a business model that allows online stores to sell products to customers without actually owning them. Dropshipping helps you run your store or business, saving you the hassle of handling products, maintaining inventory, and shipping them to your customers. In this online model, sellers don’t have to manage inventory. Most of the time the seller doesn’t see the product at all. We will deliver directly to you from the manufacturer.

Unlike traditional online retailers, Indian dropshipping companies have to select products and then execute marketing strategies to promote their products and provide after-sales service. The age-old practice of managing goods, conducting shipping, and distribution operations was quite tough.

In simple words, a dropshipping business model advertises your products and provides an online storefront. When a customer places an order, you submit the order to the drop shipper and notify the customer that the product is on its way. The rest of the physical fulfillment process is out of your control. In some dropshipping arrangements, while the dropshipping service manages physical merchandise and fulfillment, it may also handle customer service.

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How Does Dropshipping Business Model Work?

The exact logistics of dropshipping vary from contract to contract, but generally the dropshipping process follows this general sequence:

• The seller signs a contract with the dropshipper. Customers place orders online.
• Seller receives the order.
• Customer receives order confirmation.
• The seller forwards the order to the dropshipper.
• The dropshipper will ship the order. Customers receive their products.

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Types of Dropshipping Business in India

Here is a list of all dropshipping types:

Reselling Product

Product reselling is the purest and most popular form of dropshipping. In this model, dropshippers offer their customers products from various providers under one roof. The key is to show the unique quality of your products to attract customers. If you have good marketing skills, reselling products can be your calling.

For example, to sell a product that meets the needs of a work-from-home audience, you must have a good knowledge of marketing and the product, highlighting its uniqueness and why customers should buy it.

Brand Dropshipping

Branded dropshipping involves buying an unbranded product from a supplier and reselling it under a branded name. For Indian dropshippers who want their brand name and products to be known without inventory, branded dropshipping is your answer. By designing your own brand logo and packaging for your dropshipping products, you can be branded in India.

Reverse Dropshipping

Reverse dropshipping involves taking high value products from the importing country and selling them in your country/exporting country. The quality of our reverse dropshipping products is relatively better than locally available products.For example, we source high quality items from the US and sell them to the wealthy in India. Reverse dropshipping limits competition and encourages testing of new products in the market.

Business Extension

The business expansion model allows retailers and store owners to grow their business online. Retailers partner with dropshipping companies to ship products to customers when the dropshipping site receives an order. Maintaining a good relationship between the dropshipper or dropshipping company and the store is essential to making this model a reality.

Ecommerce Dropshipping

It is a business model that allows you to sell products without holding inventory. In this case, the seller finds a manufacturing partner who ships the product directly to the consumer and orders from the website. Some of the popular e-commerce platforms that enable e-commerce dropshipping business in India include Amazon, Shopify, IndiaMart, etc.

Product Creation

Product creation represents a dropshipping business model where different products are bundled into one product. It includes many items such as kraft paper, ribbons, string, colored pencils, tape, and other supplies.

The hard part is finding the right supplier for your product. The ideal scenario is for him to find one supplier for all products in the package. Otherwise, different products may ship differently.

Print on Request

Print on demand includes dropshipping of products with your name or text. He is one of the easiest dropshipping companies to operate in India. Some of the most popular products from our print-on-demand service include mugs, t-shirts, phone cases, pens and curtains.

B2B Dropshipping

Unlike other business models that support B2B dropshipping, B2B dropshipping involves an online transaction between two companies. Dropshipping here is between a wholesaler and a retailer, or a wholesaler and a manufacturer. B2B dropshipping involves a different buying process, product quantities, and buyer interactions.

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Effective Method to Start Dropshipping Business in India

Here are the steps you can follow to start your online dropshipping business:

Start Your Online Store

Start your outsourcing business with an eCommerce web designer. With Wix, you can browse 100s of adaptable online store formats. At that point, register a one of a kind space for your website so clients can discover you on the web.

Pick Products to Sell

With many classifications and a large number of items to browse, it could be a test to limit your contribution. Look at this article for tips on picking items to outsource.

Start by settling on your specialty. With specialty items, you can sell all the more viably to explicit crowds. Explicit doesn’t really mean little; your specialty market can be anything from energetic anglers to popular music fans. Use instruments like Google Trends and commercial center hit records to investigate your customers’ advantages. See what they need to purchase, discover a provider and get selling.

Moving items can be particularly beneficial. Do your examination to discover exceptional items. However long you outsource, you don’t have to stress over overloading your stock. On the off chance that a pattern passes, you can trade providers or items.

Discover a Supplier

Finding outsourcing providers autonomously requires escalated research. In the event that you’d prefer to stay with autonomous sourcing, look for providers on Google. Contact outsourcing wholesalers who appear to be solid. Search for positive audits from different dealers to help you choose.

On the other hand, you can sell your own marked items with a print on request administration. Print on request is a type of outsourcing. Item satisfaction and transportation are taken care of by the provider. On account of print on request, the provider additionally puts your specially crafts on the things you sell.

elect items, add your plans or logo, at that point import the items to your online store.

Add Products to Your Online Store

Alter the item postings in your customer facing facade. Make item pages your own with thing subtleties, great pictures and recordings that match your image.

Then, set your valuing and transportation rules. Consider your overall revenue. When setting your costs, consider discount and delivery costs. Discover an equilibrium that will expand your income while keeping your items reasonable.

Make it simple for clients to discover precisely what they need. Get into the outlook of your customers. View your online store from your clients’ viewpoint to all the more likely comprehend their experience. Make channels, classes and assortments for your items.

Business Promotion

When you import outsourcing items to your retail facade, it’s an ideal opportunity to begin advertising. Spread the word about your business with a promoting plan that works for your objective customers.

It covers these 5 components:

• Branding: Use a predictable shading plan to foster your image personality. Make a logo that is clear and essential. Write in a language that is close to home and sounds good to your clients.

• SEO (Search Engine Optimization): Strong SEO makes it simpler for customers to discover you on Google. Utilize pertinent catchphrases for your business. Fuse key expressions into your website pages and blog content.

• Email Marketing: Incentivize your endorsers with restrictive limits. Set up email robotizations reminding clients what they left in their trucks.

• Social Media: Run showcasing efforts on friendly. Post tips, item photographs, promotion recordings and client tributes to connect with your crowd.

• Paid Ads: Reach new clients with focused advertisement crusades on Facebook, Instagram and web indexes.

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Pros of Dropshipping Business in India

Let’s discuss the various advantages of dropshipping business in India.

1. Initial costs are very low

Businesses adopting a dropshipping strategy do not need to invest capital in acquiring inventory or setting up storage locations. You also don’t have to spend time organizing inventory or hiring staff to fulfill orders. This means that the barriers to entry into practice are very low. If you don’t have the funds to run a traditional retail business, you can actually start a dropshipping business.

2. It is scalable

Dropshipping retailers can scale quickly because order fulfillment does not depend on the size of the physical location or the number of employees required to ship the order. This is a great advantage for retailers whose sales fluctuate seasonally or for other reasons.

3. Sell your products immediately

Normally, when retailers want to start selling their products, they have to wait until all their inventory is shipped before they can start promoting them on their website.

Dropshipping allows you to start promoting your product almost immediately if you decide to put it on your website.

4. Inventory management is negligible

Dropshipping reduces the administrative burden faced by retailers by eliminating the need to maintain physical inventories. You don’t have to spend time tracking inventory, managing infrastructure to house inventory, or managing shipping. Instead, the supplier will handle it.

5. Wide range of products

This practice opens up even more product possibilities. Retailers can offer a wider range of products. This means that even small businesses that can’t offer so many options without inventory can sell a wide selection.

6. It is flexible

Dropshipping brings flexibility to many aspects of your retail business. Brands can operate from anywhere, offer a wide variety of product types, and easily change products to meet changing market preferences.

7. Dropshipping does not require an office setup

You can manage your entire business completely from your laptop without a large investment. Advertising is your most important investment, but it can grow if your business is successful. As your business grows, your expenses will remain relatively low, especially when compared to traditional business expenses.

8. Dropshipping is more manageable

With no significant commitments such as hiring employees or acquiring storage space, everything can be managed with minimal effort. Once you’ve identified your suppliers and configured everything, you’re primarily responsible for managing your online store.

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Is dropshipping legal?

Yes, dropshipping is legal. It works as an order fulfillment model where the retailer handles the sales and the supplier handles the shipping. However, there is a lot of confusion and misunderstanding in this business.

Depending on where you operate your ecommerce business, there are either no legal requirements to meet or various legal dropshipping issues. This is the current state of the ecommerce industry.

Some countries are promoting, innovating and promoting the e-commerce industry, while others are limiting e-commerce business growth with strict regulatory requirements. So remember that legal issues are territorial issues.

1. GST number

If the product is sold outside India, the dropshipper must claim his GST in the usual way from the retailer. For the trader, this is an export sale and he can choose to submit a Letter of Undertaking and sell without GST, or he can choose to pay IGST at the time of sale and request a refund later.

While drop shippers issue invoices to merchants, they may issue Notice No. 40/2017 – Central Tax (Rate) to pay CGST and SGST at a rate of 0.05 inch or 0.1% IGST. This service is subject to certain terms set forth in the notice.

2. Checking account

To start a dropshipping business, you will also need to open a new checking account.

3. Export/Import Code

IEC is required for individuals exporting goods and services from India.

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How much do drop shippers make in India?

The average product selling price between Rs 300 to Rs 500 and the total earnings depend on the number of products you sell. Dropshipping business income in India ranges from INR 25,000 to INR 3,00,000 per month. The higher the turnover, the more profit you will make. On average, you can earn at least 25,000 to 60,000 from dropshipping in India.