What Is Dropshipping And How Does It Work?

The niche online stores have started to establish themselves because of the growing number of online retailers. Due to the small and uncertain market size of niche stores (which can be huge or slim), the concept of Dropshipping is becoming increasingly popular.

Dropshipping is easy to understand once you know what it is. You are supposed to know what this buzzword means as a seller in India. Assuming you’re considering entering the dropshipping business, let’s assume you’re thinking about it.

Follow these steps to start your own dropshipping business in India:

Step 1: Pick a Supplier

A store owner’s choice of supplier is crucial from the plethora of suppliers available. I urge you to complete this first step as quickly as possible, even if it takes you some days. Having regrets later would be pointless if this goes horribly wrong. Because you won’t see your chosen suppliers every day like your employees, you can’t monitor their activities much as well.

Many sellers like you have started dropshipping, but they don’t all provide the value you ought to be looking for in a vendor. 

Consider these signs of caution when choosing your supplier:

1. Products should be manufactured by the supplier as well. A supplier shouldn’t use a third-party manufacturer’s service. The chain will be long and will be hard to track. As far as manufacturing is concerned, ask for your supplier’s distributors and try to contact them. High chances exist that they have a lot of inventory, making them authentic.

2. Profit margins can be made with suppliers if you study them. Considering you just started your online retail store or are switching to dropshipping, your first focus should be on profits. Establish your own prices taking into account your suppliers’ quotes while maintaining a healthy margin for all of your products. You will obviously make more money if you have higher margins.

3. Make sure the supplier promises a specific delivery time. You need to provide your customers with an efficient shipping service if you want to distinguish yourself from competitors. Dropshipping is a business where you are totally dependent on the provider for the shipping as well. You cannot deliver in a day as other reputable online stores do, because no customer will wait beyond 3-4 days.

4. Do you have white-labeled products from your supplier? It is known as white-label products when they are made under your brand. This is a brownie point for you since your customers will expect your brand to be the only one supplying the product.

5. There are many ways in which your supplier can charge you. The supplier may charge a one-time setup fee followed by a charge per order, which indicates a trustworthy company. A fixed monthly subscription is also available. Also, some suppliers impose minimum purchase orders so that serious sellers can be distinguished from irregular sellers.

Step 2: Decide your products to sell

Picking the products is not your first step for a reason. In the event that looking for a good supplier in India is proving difficult, how would you proceed? You will have to scrutinize all suppliers you find to determine if they fit your brand. Neither time nor money will be saved by doing this.

You can browse their products and talk to them to find out what their top-selling products are, once you find your supplier. Look for the same products on other online stores such as Amazon and Flipkart based on what they suggest and what you are interested in. The product images, descriptions, and pricing are all shown. You’ll have a pretty good idea what to start with.

Step 3: Get your GSTIN

Business has been reshaped by the introduction of GST. To claim the input credit later, if you are a registered company, please provide the supplier with your GSTIN. Dropshipping business in India can be done as an individual, however, if you’re not a company.

To avoid any legal repercussions in the future, confirm with your supplier the GST requirement before starting any business.

Step 4: Design a website for your store

In other words, you don’t have inventory, but you can sell all the products online. Set up a domain name and a website for your store (You can use solutions like Shopify or WooCommerce to create a responsive and beautifully designed eCommerce site). Do not let your website look haphazard or ugly.

You should think highly of the products you sell when a first-time visitor arrives at your website. Authenticity and trust are reflected in your website design and content throughout the site. Don’t go overboard.

You need to provide as many payment options as possible while maintaining your technical skills to manage your online store because that’s all you have in your hands.

Step 5: List your products and market

Try to provide the customers with as much information about the products as possible when you list them on your store. For a greater chance of selling, request variations for your product. Take this as a game-changing step once you have listed your products.

You cannot expect them to buy from you until they are aware of your presence! Therefore, you should use social media marketing and Google Adwords campaigns to drive traffic to your website and get customers. You’ll be able to sell like hotcakes if you actually do this right.


Be patient and make the right moves, as your store may not catch fire right away with your audience. It could be for a wide variety of reasons, such as bad marketing, the wrong product selection, the wrong audience, a lack of variety, dull website messages and media coverage, bad customer service, etc. The list goes on.

So, if you are starting out, let’s experiment, give variations, and improve our strategies and choices. It is certain that you will be successful in your dropshipping business.

Aishwar Babber

Aishwar Babber is a passionate blogger and a digital marketer. He loves to talk and blog about the latest tech and gadgets, which motivates him to run GizmoBase. He is currently practicing his digital marketing, SEO, and SMO expertise as a full-time marketer on various projects. He is an active investor in AffiliateBay.

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