The eCommerce market globally has been growing steadily over the past decade. Even in India, the number of online buyers has spread from metro cities to even Tier-2 and Tier-3 markets. There have been some major drivers spearheading this change, such as affordable internet and mass adoption of UPI. It's a very lucrative market today and opportunities are wide open. However, even with the massive growth potential, actually starting an eCommerce business is still easier said than done. Especially if you're a little tight on your budget, it's understandable if you're in a doubt over developing an eCommerce app in India. But when there's a will, there's always a way!
Dropshipping is quite a viable model for selling products online and it has a large market in India. The basic rule of thumb here is that you spend absolutely nothing for managing an inventory by yourself. You don't even need to operate a warehouse or to bear the cost of logistics. The supplies handle it all and you can simply focus on actually selling the products to your target customers.
If you're interested in starting a dropshipping business, you can always hire Shopify developers to build a store and start selling. However, if it's still a little confusing to you, we've got you covered. Let's take a closer look at how dropshipping functions and the best strategies to start your own dropshipping business!
What Is Dropshipping and How Does It Work
In traditional eCommerce business, stores have to usually manage their own inventories. When a customer places an order, they also have to manage shipping and delivery. However, that makes the process a little more complex and a little more expensive. In dropshipping, things are different. In this model, when you receive an order, you can pass it to your suppliers who can then ship the product directly to the buyer. So, what this means is, you don't need to:
- Buy or manufacture products upfront
- Store inventory
- Handle packaging or shipping
However, you still have some work to do when you start your dropshipping store. You'll still have to:
- Build the store
- Market the products
- Handle customer experience
If you're serious about it, the best way is to opt for Shopify online store development. Right now, it's one of the fastest ways to enter eCommerce, especially if you're starting in a congested market like India.
Why Dropshipping Is Booming in India
In India, online commerce has well and truly established its place as one of the largest sectors. Reports suggest that the market could reach $163-$200 billion by 2026. This is good news for new eCommerce businesses. A high-growth market always translates into:
- More buyers
- More spending
- More opportunities for new seller
Benefits of Starting a Dropshipping Store
Low investment, reduced risks
If we're being completely honest, most dropshipping businesses come from a similar background: the owner is either a little tight on budget or doesn't want to spend too much on the business. With dropshipping, the cost of operations can be reduced significantly as you don't need to manage or invest in product stocks. You can simply purchase products once a customer actually places an order. This means that you neither have to bear the upfront investments in product stocks, nor do you have to spend any money on managing a warehouse or inventory.
Especially if you're starting in India, you can start with as little as ₹10,000-₹30,000. However, the final cost of Shopify dropshipping store development depends on a number of factors. You have to talk to the agency you hire before you actually start the project.
No Inventory or Logistics
In eCommerce, even with all that growth, inventory management has always remained a headache. In dropshipping, this is one key benefit. You don't need to worry about anything as your supplier will (ideally) handle:
- Stock management
- Packaging
- Shipping
- Returns and exchanges
All you have to do is invest all your time and energy on marketing and actually getting buyers for the items you list on your store. Especially for beginners, this is a massive advantage.
Easy to Start and Scale
Many aspiring business owners face a lack of confidence in taking the plunge because they don't have any technical expertise. However, in the present day, you don't need to be an engineer to operate your own online store. Platforms like Shopify have made online dropshipping store development extremely easy and accessible to all. Hire Shopify developers and your store will be ready in just a few days.
To top it off, when your business grows, Shopify makes it quite simple to:
- Add new products
- Test different niches
- Expand without increasing operational complexity
Partner with the right Shopify development agency, and you can operate a store that's destined for success.
Wide Product Selection
Manufacturing your own products can often limit how much variety you can have. Even if you're buying the stock in advance from a supplier, you'll always be restrained by your budget. However, dropshipping works differently. Since you don't operate an inventory, you can add just as many products as you want. From fashion to gadgets and from home decor to fitness – you can venture into any sector that you want to. Since you won't be bound by stock clearance, you can also switch products quickly depending on the market trends. Just add products that sell and you can remove everything else.
Step-by-Step Guide to Building Your Dropshipping Store
Choose a Profitable Niche
No matter the model of your business, the first thing that you have to figure out is what you can sell. You can't just sell everything and expect to succeed at random. You have to build trust by focusing on a particular niche. A good niche, ideally, should:
- Solve a problem
- Have demand
- Be easy to market visually
So, for example, fitness accessories, home improvement products, or pet supplies are really in the vogue right now. You need to research your audience and your competitors before you select which way to begin. That, in fact, brings us to our next step.
Conduct Market Research
When you pick a niche, you need to be certain that it's going to work out. For that, you have to look at:
- Competitor stores
- Pricing strategies
- Product demand
- Market volatility
The best way to test the market is to follow the large online marketplaces like Flipkart or Amazon. There, you can find out what sells and what doesn't. Studying the ads that are running on Instagram or Facebook is also a good way to go about it.
Find reliable suppliers
Now, we enter the actual field of business. For dropshipping, good suppliers mean everything. If your supplier isn't trustworthy, you might face:
- Late deliveries
- Poor product quality
- High return rates
The challenge is that your customers don't really care which supplier the product came from. If they buy it on your store and it fails to meet their expectations, that damages the reputation of your store. You have to ensure that the supplier can:
- Ensure product quality
- Offer fast shipping across the country
- Support COD
- Handle returns or exchanges efficiently
Set up your Online Store
You can build your first dropshipping store on Shopify. It's a platform that:
- Is beginner-friendly
- Supports dropshipping integrations
- Scales easily
You also need to take charge of the project by clarifying what exactly you're looking for. When you hire Shopify developers for building your store, you need to ensure:
- A clean design
- Mobile-friendly layout
- Clean product pages
- Trust signals
Configure Payments
When the buyers go online to buy something, they always look for flexibility in payments. In a country like India, that's extremely important. You must integrate:
- UPI payments
- Debit/credit cards
- Digital wallets
- COD
Ensure that your store meets all the necessary regulations for processing transactions. Failing to do so can result in frauds and bans.
Launch and market your store
Many online commerce businesses fail because they stop right at launch. But a store without traffic is just another website. If you want to actually sell your products, focus on:
- Social media ad campaigns
- Influencer marketing
- SEO and AEO
- Google Ads and similar campaigns
You don't really have to spend all your money on marketing. Starting small is absolutely justified. However, you may still need to scale your campaigns as your store grows.
Best Practices to Succeed in Dropshipping
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You can't just build another generic store if you really want to taste success. You need to focus on branding. Build a brand that people can trust and you're destined for success.
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If you have only one supplier, you're going to take a hit whenever they fail to fulfil an order. The easiest way to overcome that challenge is managing multiple suppliers. In that case, even if one supplier fails to supply a product, you can turn to another.
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Smartphones are extremely common in India and most buyers will visit your digital storefront on their phones. When you design the store, you have to keep it optimised for mobile users.
Conclusion
A very common misconception is that dropshipping is only good for quick money. However, if you can execute it properly, it can actually be a pretty strong business model. If you're serious about entering the market, you need to have the right strategy.
Building your dropshipping store begins with choosing the right Shopify partner. Jaipuria Geeks is a reputed Shopify development agency, experienced in multiple eCommerce niches. We can help you build a dropshipping store on Shopify that actually connects with your target customers.
Ready to start? Talk to us today
