So you too have heard about it? and now wondering how to make money dropshipping in India?
In this guide, I will reveal everything you need to know about this lucrative venture.
But before then, here is something to make you uncomfortable: the dropshipping market is expected to grow to over 111.28 billion dollars by 2025!
That’s huge and explains why everyone is choosing this business model to start running an online business.
This begs the question, what exactly is dropshipping and why should you consider venturing into dropshipping in India?
What is dropshipping and how does it work?
To help you wrap your head around this business model, I will take you to Disneyland.
Person A has a car and he wants to sell it. In the evening as you are walking around the neighborhood, you see the car and fall in love with it. Shortly, you realize that person A is asking for $2000.
You take pictures of the car, note its specifications, and ask person A for the payment process.
You agreed with person A that you will buy the car.
Armed with the information you’ve gathered about the car, you go to place Q where people want such a car.
You show them the pictures and discussed the specifications.
Then mention that the car is going for $2500.
Person B likes the car and offers to pay the $2500 for it.
So, you send the $2000 to person A and ask him to deliver the car to person B’s address.
In a nutshell, that is how dropshipping works.
- Person A – your supplier, wholesaler, manufacturer
- Person B – customer
- You – drop shipper
- Place Q – marketplace
Here is something worth noting:
In the above anecdote, person A took care of order fulfillment, not you.
Does that make sense?
Generally, as a drop shipper, your only job is to market the business. You don’t deal with customer order fulfillment, after-sales services, or customer support.
And that is the beauty of this business.
Why start a dropshipping business in India?
There are a ton of reasons to start a dropshipping business as a way of making online in India. And one of them is what we are currently undergoing; pandemic.
I can’t tell you how many people have lost their jobs and dug into their life savings for the sake of surviving.
Most workplaces are deserted and even schools are closed.
In such situations, the only way to make ends meet is if you can run a business from home. A business that doesn’t require any kind of office, minimal expenses (if any), and no employees.
That is where dropshipping comes in.
- Easy to start – you don’t need any huge investment to start and make money dropshipping in India. In fact, all you need is a website and marketing
- No company registration is required – you don’t have to worry about things like registration fees or such stuff. You can operate this business as an individual.
- No inventory – forget about holding stock or inventory of any kind. I agree inventory management is a big issue for beginners, luckily with dropshipping, you don’t need any. Here, think of yourself as a supermarketer
- You set the retail prices – you are in control of what to charge per product. You set your own prices based on the amount of profit you want to make among other factors such as what the competition is charging
- Access to millions of products – with thousands of suppliers and wholesalers ready for business, you are spoilt for choice. As such, the best strategy is to go for proven bestselling products
These and many others, are the reasons why you can easily make money dropshipping in India.
How to make money dropshipping in India
While making money dropshipping may sound really simple, often it is not.
You will be surprised to find that it requires a little bit of work and constant research for its top yield results.
On the flip side, it may not require a huge chunk of investment to start, you will have to put in work to pick it off the ground.
#1. Pick a niche
There are so many products you can dropship. But that doesn’t mean you should do all of them.
Let me explain.
Due to its profit potential and lifestyle, dropshipping is attracting huge competition around the world. As such, it is getting harder to make money unless you pick a specific market.
Additionally, not all markets are profitable. Some will take ages to get customers.
- Don’t rush into picking a certain niche. Think through because this can make or break your business
- Look at what the competition is doing. There must be a reason why they are dropshipping certain products. If no one is doing what you want to do, that’s a red flag
- The more specific the niche, the better. Avoid situations where everyone is your customer
- Go for a niche that is profitable and not because you think it is likable
#2. Pick a reliable wholesaler or supplier.
Only work with reliable suppliers or wholesalers with a proven track record. Remember, these are the guys your dropshipping business depends on, their reputation will affect your brand.
It is advisable to have backup suppliers just in case. Also, discuss logistics like return policy in advance.
#3. Perform extensive competition research.
Looking at what the competition is doing is the shortest way to making money dropshipping in India.
As mentioned earlier, there is a reason why they are dealing with certain products and not others.
Here is a pointer:
If no one is already doing what you intend to do, run from it.
Besides that, know things like:
- How much they earn.
- Their target customers.
- What they charge as compared to yours.
- How well are they represented on search engines?
Such things should give you an idea of who you are dealing with and what to expect.
#4. Customer acquisition plan
You don’t have a dropshipping business without customers.
Also, acquiring customers is not enough. If you want a sustainable dropshipping business in India, you need a plan to make the customers return.
For this reason, I find it easy to retain customers who already know and trust your brand. To achieve that, first purpose to build a relationship with your target customers.
This can easily be accomplished through email marketing.
- Educate them about the brand and what you are selling
- Use Facebook ads and Instagram to drive sales
- Leverage search engines to generate organic traffic
- Establish your brand as an authority by blogging and posting advice.
#5. Monitor, analyze, and optimize
You cannot scale what you can’t measure.
Leverage tools like Google Analytics to understand how visitors are interacting with your website.
- Take note of the most popular pages and posts then replicate them
- Analyze exit pages and implement strategies to reduce the rate
- Consider the best time to post on social media
Data is your friend. It contains everything you need to scale your business to greater heights.
Dropshipping ideas in India
To get you started, consider the following niches to get started with:
- Bluetooth products
- Teeth whitening
- Phone accessories
Look into every idea and consider its profitability before venturing.
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