Is It Profitable To Start A Dropshipping Business In India

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Is It Profitable To Start A Dropshipping Business In India

India is a country with a high potential for e-commerce. A huge number of people in the country still have to get online, and those who already are will spend more and more money online.

So it’s no wonder that the number of entrepreneurs is growing rapidly in India. Additionally there is a global demand for Indian products. Hence as an entrepreneur, if you want to start a business in dropshipping India is the ideal location for it.

Dropshipping is a business model that involves selling products without actually carrying inventory. Instead, you purchase the item from a third party once you receive an order, and they ship it directly to your customer.

Because dropshipping eliminates many of the steps involved in traditional retail, it’s a great way for aspiring entrepreneurs to start their own online businesses with little investment.

But why exactly does dropshipping work in India? There are 5 different reasons for this:

  1. Cost-effective:

Dropshipping business is ideal for new businesses as the initial costs are extremely low. You do not have to buy products upfront, store them and then wait for customers to buy the product after which you place an order with the supplier. In this way, you save money on inventory handling and storage costs.

  1. Easier to start:

Dropshipping reduces the risk involved in starting a new business as you do not need to invest heavily in buying and storing inventory which could become obsolete as trends change. All you need to do is create a website, register your business understand some tax-related technicalities like GST number format, some online marketing and you can start selling the products of your choice immediately. Check out this page for more info.

  1. Flexibility

You can sell a wide variety of products from various suppliers at one store without having to stock them somewhere first. This gives you flexibility and opens up new opportunities for your business.

  1. No minimum order quantities: 

Because you do not have to buy products beforehand and store them somewhere, there is no minimum order quantity that you have to maintain for your business to work.

  1. Regional restrictions don’t apply:

With traditional business models, you often run into problems when selling products abroad. With drop shipping, this isn’t an issue since you can sell products all around the world without any hassle and without having to worry about regional restrictions (like having to pay taxes or needing additional certifications).

  1. Indian Products are in demand worldwide:

The same applies to products you want to sell. When I talk about Indian products, do not limit yourself only to apparel and handicrafts. We have a wide range of products like spices, tea, fabrics etc which have huge market worldwide and Indians too would love buying from you.

How Does Drop Shipping Work?

In dropshipping, there are three main parties namely: The seller, the end customer and the drop shipping company. Here’s how it works:

  • You list products for sale on a platform such as eBay or Amazon (or use a website to sell online).
  • Anyone can place order through your website.
  • You then purchase that product from your supplier (the manufacturer or wholesaler) and have it shipped directly to your customer.
  • Your profit is the difference between what you charge the customer and what you paid your supplier.

Originally posted 2022-03-15 11:30:20.

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