I’ve been wanting to write a blog about this for a very long time, so here it is – learn how to start a dropshipping business in India.
Dropshipping wave is getting bigger & bigger all around the world & it’s expected to touch new heights in 2020 but as every country has it’s own laws regarding eCommerce, it creates a lot of confusion.
I’ve seen Indian entrepreneurs ask questions in many communities but they didn’t seem to find an answer that aligned with Indian laws & their questions went unanswered.
So I decided to write a complete blog including all the information you need to start a dropshipping business in India.
If you’ve been waiting to start a business in India than in 2020 dropshipping can be one of the options to choose.
Let’s dive in.
How to Start a Dropshipping Business in India
Below are the outlined points to consider when starting a dropshipping business in India.
1. Dropshipping Business in India Explained
So for those of you who don’t know what a dropshipping business is, it’s is –
A business model in which the supplier has no inventory but he/she sells the product on behalf of the manufacturer & keeps the profit in between.
So basically acting as a middle man for goods.
But why dropshipping business is different in India than any other country?
Even though the dropshipping model remains universal, there are some problems that Indian’s might face when starting a dropshipping business.
a. Not Suitable for India
Unlike other dropshippers who can sell products in their own country, Indian’s can’t.
Because of the low per-capita Income averaging about $250-$300 for Indians, dropshipping business can’t survive in this situation.
Indian people are not fully yet exposed with new eCommerce businesses & so people tend to buy online only from Amazon, Flipkart & also Indian people expect COD 98% of the time which is not possible with dropshipping.
So almost 98% of dropshippers currently in India dropshipping to countries like the USA, AU, NZ, CA, etc.
b. Not Many Indian Gurus to Teach
Apart from Mr.Rito ban (Flying Start Online) I have not seen many Indian’s showing how to start a dropshipping business in India.
Many Indians still don’t understand English properly & that’s why an Indian dropshipper/Guru is required who can speak in Hindi.
c. Not Fully Developed with Dropshipping Industry
Even though the Indian market is very big with eCommerce but dropshipping model is still very new in India.
Many companies like Realme majorly survive on the Indian market but as same compared to a normal eCommerce store or business would not work because of the above 2 reasons.
But the good side of it is dropshipping is a borderless business & anyone anywhere in the world could do business in any country.
So let’s start what are the most essential things requires to start a dropshipping business in India.
2. Things Needed to Start a Dropshipping Business in India
Let’s start with what are the essentials of starting a dropshipping business in India.
To start a dropshipping business in India & sell internationally, you would require a PayPal account to send & receive payments Internationally.
Now don’t worry if you don’t have GST or any business-related documents because any Individual can open a PayPal business account without any legal business docs.
Now Stripe just launched in India in mid-2019 as it’s the best thing happened to dropshippers.
With stripe people can pay you via debit/credit card which was not previously possible.
Also, Stripe account does not require any business details like GST, etc. You can register on Stripe as an Individual business & it’s all good.
c. Credit Card
A credit card will be required on every step of the process ie – with Shopify, Facebook, AliExpress to ship products to the customer, etc.
But if you are an Indian below the age of 21 then you can’t really get a credit card but the good news is there are some great alternatives.
When I started out at 19, the credit card was a great hurdle for me as no-one would give me his/her card because I was 19.
But as I dug into that I found that many banks offer prepaid cards (acting as a credit card) which was great.
You can use Pockets by ICIC to get a prepaid card within 15 mins of signup & there are no charges whatsoever.
You can use that prepaid card everywhere so you won’t require a credit card.
d. Facebook Account
As Facebook ads are the backbone of the dropshipping business, a Facebook account is required to advertise on Facebook. (No brainer).
But Facebook blocks ad accounts of new dropshippers very quickly if you don’t follow the Facebook ads policies & stuff.
And without a Facebook account, your dropshipping business cannot survive. And so I would recommend you going with the rules & do not do anything spammy.
e. Understanding of Dropshipping & Marketing
Now the reason I put this point under things you need to start a dropshipping business in India is because many people watch 5-10-15 videos of dropshipping on YouTube & start the business.
That’s the right way to lose some money & the wrong way to start a business.
I personally made that mistakes & lost money.
My golden rule for dropshipping now is – Learn about Facebook ads in-depth & take courses for Facebook ads for about 2-3 months & take dropshipping courses for 1 month.
Don’t worry you can start learning for free with SkillShare 2 months Free Premium.
Because Facebook is the 90% of the dropshipping business & the rest 10% is the other stuff like domain, web design, etc.
Now if you have a brain, then this one was a no-brainer, right?
If you are starting out in dropshipping business then I would recommend you using Shopify because of its vast collection of tools & very user-friendly Interface.
To start a dropshipping business, you will require an AliExpress account because it has the largest suppliers with no policies for dropshipping & almost 98% of dropshippers use AliExpress to dropship.
As we go on in the business you can move on to an agent or a fulfillment center to dropship but that’s a blog for another time.
Now let’s talk about some heavy stuff, alright?
3. Investments Needed To Start A Dropshipping Business in India
Now before in my blogs I’ve talked about this many times but in this blog I’ll talk about the same but in INR and with my Indian experience.
So below are the basic charges you will have when starting a dropshipping business in India:
- Shopify – 2,200/- (Monthly)
- Domains – 600/- (Yearly)
- Oberlo – Free
- Shopify Apps – Mostly Free
- Facebook Ads – 3000/- (To start successfully)
- Cash in hand required – 3000/- (To ship orders) (Because your customer payments will be credited to your account a day late & you need to process orders asap)
Also, I’m assuming that you’ve put effort into learning dropshipping & not only watching YT videos.
I would say to start a successful dropshipping business you would require around 5K -8K in Hand.
Sometimes I even started with 2K & sometimes 10K is not enough & so 5-8k is a normal range I would go for to start properly.
4. Tools Required to Start a Dropshipping business in India
There are some of the tools that play an important role in making an eCommerce/Dropshipping store successful & I’ve listed some of them below.
Oberlo is the best tool you can use to import products in bulk & automate the order processing.
Klaviyo for Shopify
Emails are still one of the best ways to convert a visitor into a customer after he/she leaves the website, it also offers sequential emails, abandoned cart recovery, etc.
I cannot stretch the importance of reviews on a dropshipping store. Reviews are the first thing people look at if they are committed to buy & having reviews can help your store convert customers.
Almost every successful dropshipping store has live chat support because if the customer gets stuck anywhere then he can take the help of live chat & convert into a customer but without live chat, he/she will just bounce back.
A great way to increase your conversions is by using upsells & cross-sells. If you don’t use upsell or cross-sells then you are just leaving money on the table.
Pop-up discount tools, email collecters, etc are very important tools to have in Shopify because an email list can be a gold mone for you & also if you pop-up provides discounts that visitors are very likely to convert.
Commonly Asked Questions
As I said before there are a ton of questions asked about dropshipping business in India, so let’s answer some common questions.
Is Dropshipping legal in India?
Yes, Dropshipping is legal in India. In-fact dropshipping is legal everywhere in the world. But the problem is you can’t dropship with big websites such as Amazon, Flipkart, Walmart, etc because they don’t allow it.
Is GST required for Dropshipping?
NO, when I started dropshipping business in India I didn’t even have a credit card & there’s no question of GST. Even to this date January 2020, GST is not required to start a dropshipping store but if your store becomes successful then I would recommend you get GST to do taxes & stuff.
How to setup GST for online business?
You can easily get a GST for your online by consulting any CA (Chartered Accountant) & the process should take no more than a month & 1000-2000 INR.
So, guys, I hope this blog covers almost all the topics you need to know about starting a dropshipping business in India.
Starting a dropshipping business in India is just like any other countries but there can be some changes & I’ve mentioned the same in this above blog.
Keep in mind marketing is the backbone of dropshipping & if you master Facebook ads then drop shipping will be easy for you.
Dropshipping is going to reach new heights in 2020 & I think if you have the resources & learning capability, dropshipping business is a very good business to start in India & anywhere in the world.
In case I’ve missed some points, please let me know in the comments below & I’ll update the post with more relevant data.
If you want to learn more about dropshipping in-depth, I’ve linked my links after this section, make sure you check them out.
So that’s “How to Start a Dropshipping Business in India“, Make sure you learn the business before you set foot in it.
Have any questions? Comments? Leave them below & I’ll answer them.