What is Dropshipping? The Ultimate Guide to Dropshipping India
Use Seasonsway.com to start a lucrative dropshipping business.
Dropshipping is a type of business where the seller does not store the inventory. Instead, the supplier carries the inventory and fulfils the order on behalf of the seller. When the seller receives an order, they buy products from the supplier who then ships it directly to the customer. The order is shipped directly to the customer from the supplier and you as a seller do not have to purchase products in advance from the supplier nor invest money in renting warehouse space.
Why a Dropship Business is a Good Idea?
In 2018-19, approximately 27% of online sales amounting to $96.2 billion were fulfilled via dropshipping. The idea of selling products without having to stock inventory or worry about shipping is appealing to many, especially those just starting out.Dropshipping has long been known as one of the quickest ways of starting an online business. Launch your dropship store without seeing, owning or physically handling the products. All you need to do is get in touch with the right dropship supplier, create your website and start selling. You have access to thousands of products without worrying about inventory or order fulfilment. Moreover, this business model gives you the flexibility to run your business from anywhere that has internet access.
How to Start a Dropship Business
Step 1: Choose Products to Dropship
Dropshipping is a promising business model, provided you choose the right products to sell. Product selection can make or break your dropshipping business. A good dropship product is one that:
- lows you to make handsome profits
- Is popular
- is easy to ship
The criteria to consider when selecting dropship products is the following:
Profitability
Choose dropship products that you can sell at a high-profit margin. Slim profit margins cannot absorb the cost associated with shipping, packaging and marketing a product. Choose products that give you at least 30-40% profit margins.
Price
You can make decent profits if you sold low cost products in large volumes on a regular basis and get a good return on investment. A better alternative is to sell products ranging from INR 300 TO INR 1000. However, many prefer to sell products costing at least INR 1500. Such products cover your costs and give good margins without having to sell a lot of stock. Higher the order size, the more profit you will make. People who are highly successful in dropship businesses sell products starting from INR 3000. Here’s an article to help you with pricing your products to sell online.
Weight
Shipping cost rises substantially with the weight of the product. Heavy products will lead to higher shipping costs. This will eat into your margins and cause your business to suffer. Overpricing products to compensate for the high shipping cost will discourage customers from purchasing. A better option is to select lightweight products that are cheap and easy to ship and give good profit margins.
Seasonality
Your aim is to run your dropshipping business comfortably throughout the year. The weather should not influence product sales. A dropship business that relies heavily on one season cannot make money during the remaining months of the year. Avoid choosing product niches that have a sales window of just 3 to 4 months in a year. For year-round business, pick up product niches that have a demand throughout the year.
Popularity
You want a product that will sell and allow you to make money. You want a product that is popular and yet not highly saturated. Even though popular products such as T-Shirts, earphones and books are easy to sell, you will face intense competition, leaving you with low-profit margins.
The key is to define your target niche market that is not being served properly. Identify and analyze customer buying behavior trends and choose niche products that don’t have too many sellers and perform well. For example, instead of selling ‘earphones’, focus on a niche market such as ‘earphones for professional swimmers’.
You can also use SEO tools like Google Keyword Planner and Google Trends to identify keywords that give insights into potentially profitable niches. Think about how you can add value to the products that you are selling. For instance, you can offer value-added services and even dedicated customer care support to set yourself apart from the competition.
Dropship Products to Sell
Following are some of the trending dropship products that you can consider:
- Apparels
- Mobile Accessories
- Maternity Dresses
- Suiting & Shirtings
- Home Appliances
- Mobile
- Innerwear
- Sports Items
- Night Masks
- Women’s fashion products such as Choker Necklaces
- Artificial Jwellery
Step 2: Choose the Right Dropship Supplier
Once you finalize your product niche, it is time to contact the dropship supplier through email or phone. Following are the factors that you need to consider before you select a dropship supplier:
Experience
It is always better to choose a veteran dropship supplier than a novice. Veteran dropshippers are reliable and have competent. dedicated and knowledgable staff. Find out how long a supplier has been in the dropship business before deciding on one. Need help to choose a dropship supplier? Seasonsway will help you.
Shipping Provider
Get the list of shipping providers the supplier is connected to. Certain shipping companies have geographic limitations; they do not ship products to certain regions. Ensure that the shipping carriers ship everywhere in your country. Ideally, shipping providers with no geographic limitations are recommended.
Shipping Methods
The main purpose of your organization is to reduce customer wait time for product delivery. In today’s highly competitive environment, lengthy shipping processes are not acceptable and, you need a supplier who offers shipping methods that deliver products faster. Ensure that the shipping methods have tracking details that can be sent to the customer.
Quality Control Systems
You certainly don’t want to sell sub-standard products and ruin your reputation. Your top priority is to sell high-quality products that translate into higher customer satisfaction and positive word of mouth. The supplier you choose should have modern quality control systems that guarantee each product will meet customer expectations.
Product Photos
Product photos are extremely important to create a lasting impression on online shoppers. However, if you are not willing to invest money on product photography, get professional product photos from the supplier.
Per Order Fee
Some dropship companies charge a per order fee whenever you place an order with the dropship supplier. Although it is legitimate to charge dropship fees, it doesn’t mean suppliers can charge you exorbitant fees. The per order fee will vary from INR 100 to INR 500, depending upon the size and weight of the product to be shipped. The per order fee should not erode into your profit margins. This fee is in addition to a one-time dropship account setup fee that allows you to access their product range at wholesale prices.Seasonsway.com do not charge per order fee in any of its Dropshipping Accounts.
Warranties
The supplier you choose should offer a warranty for his products. Warranties ensure that the product will work as advertised for the specified duration. The warranty also replaces damaged products that are shipped.
Tech-Savvy
Choose suppliers that use the latest technology to run their business. You don’t want to deal with suppliers who handle dropship orders manually. The supplier should have a website that allows you to place and cancel orders easily. Ensure that you get an inventory data feed from your supplier. This will help avoid the risk of selling products that are out of stock.
Step 3: Choose your Online Platform
Online Marketplaces
Online marketplaces like Amazon and Flipkart provide a great opportunity to start your dropship business. Millions of online buyers visit these sites daily, thereby providing wide exposure to your products. However, dropshipping on Flipkart or Amazon has its own set of disadvantages. For instance, you will have to bear marketplace fees or pay them a percentage of your sales.
In an online marketplace, you have limited control over your store. These sites may decide what you can sell because their focus is on the products and not the sellers. Their rules and regulations might put limitations on your ability to promote your online presence. A better alternative to marketplaces is to set up your own e-commerce store.
Dropshipping with your Own Online Store
Launch your own e-commerce store if you want to stand out from the thousands of people who are currently selling on online marketplaces. In fact, quite a few dropshipping suppliers sign up a contract only with sellers who have their own online store. When it comes to creating that perfect business oriented dropshipping store, you can depend on Seasonsway.com technical support desk to provide – a robust cloud-based e-commerce platform that is connected to dropship suppliers. With Seasonsway.com, you get highly professional, responsive and customizable e-commerce store that can leave a lasting impression.
Step 4: Setup an Online Payment Gateway
Set up a payment gateway before launching your store. Payment gateways such as CC Avenue, Payu, Amazon Pay, Razorpay, PayPal have become a necessity and provide an easy way for businesses to process credit card payments. They enable customers to make payments online in a convenient and safe manner. In order to set up an online payment gateway, it is mandatory to have your own business account.
Step 5: Promote your Store
Starting your own dropshipping store is not enough to be successful in this business. You need to market your e-commerce site properly to attract customers. Consider different customer acquisition channels to promote your e-commerce store. Email marketing has been one of the most powerful means of online marketing. It allows you to reach a large number of customers with lesser effort. You can also use social media marketing to establish your online presence. Implementing a strong SEO strategy is equally important to drive onsite traffic and increase sales.