Best Dropshipping Course in Kolkata for Beginners

Are you interested in launching a dropshipping business in India? Continue reading to discover what dropshipping is, the business model it employs, how it operates, the various types available, as well as its advantages and disadvantages.

What is dropshipping? Let’s say that you want to start your own online business, but you have no idea where to get started. You are not sure what products you want to sell, you don’t have money to invest, nor do you have room for inventory. Well, that is all that the dropshipping model is about.

Confused? Okay, we’ll explain. With dropshipping, you can sell products online without actually having the products with you.

Yes, you heard it right. All you need is to have a basic understanding of how to market and sell online. And of course, you need an online store to sell your products, and…yes, you need a computer!

This blog will walk you through how to build a dropshipping business in India; by building on what a dropshipping business is, how dropshipping works, what to ensure before starting your dropshipping business in India, the strengths and shortcomings of dropshipping business, and so on.

What is Dropshipping? What makes a Dropshipping Business Model?

Dropshipping represents a retail fulfillment technique enabling stores to sell the products to customers without actually owning them. Sounds interesting, right? Dropshipping helps run a business or store, saving you from the hassle of handling the products, having an inventory, and shipping it to the customer.

How does it work?

One of the most crucial elements of a dropshipping business model is the supplier. When a customer places an order, you buy the product from the supplier who dropships the package to the customer directly.  This image shows the main elements of a dropshipping business model.

The dropshipping business model enables you to promote your brand and business by identifying the right suppliers, retailers, or wholesalers for your dropshipping products.

How Does a Dropshipping Business Operate?
Regardless of whether you are based in Europe or looking to start a dropshipping venture in India, the first step is to identify the product you wish to sell from a supplier. After that, you will list the product on your website at a price you determine. When a customer places an order and pays for the product at your set price, you earn a profit.

How does this work?

You will place the order with your supplier at their wholesale price, and the product will be shipped directly to your customer. This is the fundamental operation of dropshipping, both in India and globally.

For instance, imagine you discover a printer on a supplier’s website priced at INR 4800. You can list that printer on your own website for INR 5500. When a customer orders through your site, you then place the order with your supplier using the customer’s shipping information, allowing you to earn a profit of INR 700 while the printer is shipped directly to the customer.

It’s quite straightforward, isn’t it?

You might be wondering why a customer wouldn’t simply order the printer directly from the supplier’s website. Here are a few reasons:

The Internet is Expansive – Customers may not know which supplier to purchase from directly.

Product is Not the Sole Factor – When consumers make purchases, they consider the brand, trustworthiness, lifestyle, and marketing associated with the products. With the dropshipping model, you can concentrate on marketing and delivering genuine value to your customers without the burdens of warehousing or the complexities of managing an e-commerce business.

However, it’s important to note that the dropshipping business model does come with its own set of challenges. The primary challenge for dropshipping in India or elsewhere is locating reliable suppliers who offer high-quality products. It requires thorough research and significant time investment to find and negotiate with suppliers who can meet your customers’ expectations for product quality and timely delivery. Additionally, due to the low barrier to entry, there is a high level of competition in the dropshipping space.

Essential Considerations Before Launching a Dropshipping Business

Before embarking on a dropshipping venture in India or any other location, it is crucial to engage in careful planning, comprehensive research, and secure some initial funding. Here are key factors to consider to facilitate a successful dropshipping experience:

Select an Appropriate Niche

A well-defined niche is fundamental to your business’s direction. Choose a niche that aligns with your business objectives and aspirations. A specialized niche store can be more advantageous than a general store, as it allows for easier customer base development. For instance, would you rather purchase shoes from a dedicated brand like Adidas or from a convenience store?

Identify Products to Avoid in Dropshipping

While dropshipping alleviates the burden of inventory management and shipping, it is vital to recognize which products to steer clear of. Selecting inappropriate items can harm your business and erode customer trust. Avoid products that are copyrighted, fragile, excessively heavy for shipping, or overly complex for your customers to handle.

Perform Thorough Research on Potential Suppliers

Suppliers play a pivotal role in your dropshipping business by managing product delivery and packaging. Therefore, it is essential to conduct extensive research to identify the right supplier for your needs. Prioritize product quality and service over supplier cost, as opting for a cheaper supplier may lead to greater expenses down the line.

Acknowledge the Value of Google Analytics Tools

Google Analytics is an invaluable resource for identifying your niche, analyzing trends, understanding consumer behavior, and selecting products for your dropshipping business in India. Familiarizing yourself with this tool can significantly enhance your strategic decision-making.

Decide your marketing strategy

Have a clear vision on how you will promote your dropshipping business. The money you spend on marketing depends on your marketing platforms, target audience and the kind of product you are selling. If you are running on a tight budget, you could opt for influencer marketing and affiliate marketing. Nevertheless, don’t fall into the pile of dropshippers who start selling and fail to build a loyal customer base without any marketing plan.

You have more competition that you think

Don’t underestimate the competition you will face while starting your dropshipping business in India. You may have many competitors selling the same products. Although your business can coexist with others if your dropshipping services or products stand out from your competitors.

Create a website and identify the online ecommerce platform

It isn’t easy to establish your dropshipping business in India without a website listing your products and an efficient e-commerce platform to sell them. E-commerce platforms like shopify, Amazon, Indiamart, or Baapstore could come to the aid of Indian dropshippers.

Steps on How to Start Dropshipping Business in India?

Here’s a quick stepwise guide listing how to start a dropshipping business in India:

Step 1– Identify your business niche

Step 2- Study your competitors and define what makes you different

Step 3- Choose your dropshipping products

Step 4- Find a reliable supplier with quality products

Step 5- Price your products

Step 6-  Set up your dropshipping store

Step 7- Create the website and pick a secure payment gateway

Step 8- Form a marketing plan to advertise your dropshipping business

Step 9- Choose the e-commerce platform

Step 10- Start selling!

Types of Dropshipping Business Model

A dropshipping business model has many manifestations. You could decide which model to adopt for your dropshipping business in India depending on your business venture:

Product reselling

Product reselling is the purest and most common form of dropshipping. In this model the dropshipper makes products from different suppliers available for customers under one roof. The key is to pitch the unique qualities of the products to attract customers. Product reselling could be your calling if you have good marketing skills. For example, selling products sufficing the needs of a work-from-home audience needs adequate marketing and product knowledge to underline their uniqueness and why customers should buy them.

Business extensions

The business extension model enables retailers or store owners to expand their business online. The retailers partner up with dropshipping companies who ship the products to the customers whenever the dropshipping site gets an order. Maintaining a good relationship between the dropshipper or dropshipping company and store is essential to execute this model.

Product creation

Product creation represents a dropshipping business model where different products are bundled up to form a single product. Suppose you want to sell a DIY crafts kit, this kit will include many items like craft papers, ribbons, decorative threads, coloring pens, tape, and other accessories. For example, this image shows a craft kit with twenty two items wrapped as one product.

The tricky part is finding the right supplier or suppliers for your products. The ideal scenario is finding a single supplier for all the products in your bundle; otherwise, different products may get shipped differently.

 

Print on demand

Print on demand involves dropshipping products with either name or text on them. One of the easiest dropshipping businesses in India to execute. A few of the popular products to avail print on demand service includes mugs, t-shirts, mobile covers, pens, and curtains. Here’s an example of Gifteeng selling customized couples t-shirts sold via Amazon.

Other Types of Dropshipping models

Here are some more dropshipping business models for you to decide on your dropshipping business venture in India.

Reverse Dropshipping

In reverse dropshipping, high-quality products are acquired from countries importing them to be sold within your country/ countries exporting them. The quality of the reverse dropshipped products is relatively better than ones available locally. For example, sourcing quality items from the US and selling them to wealthy people in India. Reverse dropshipping limits the competition and promotes testing new products in the market.

E-Commerce Dropshipping

This business model enables you to sell products without any inventory stock. In this case, the seller finds a manufacturing partner delivering the products directly to consumers,  placing orders through your website. Popular ecommerce platforms facilitating e-commerce dropshipping business in India include Amazon, Shopify, IndiaMart and Baapstore.

Branded Dropshipping

Branded dropshipping involves buying unbranded products from the supplier and reselling them under your brand name.  For Indian dropshippers wanting to popularize their brand name and product without an inventory, branded dropshipping is your answer. By designing a unique brand logo and packaging for the products dropshipped, you could expand your branded dropshipping business in India.

B2B Dropshipping

Unlike the other business models supporting B2C dropshipping, B2C dropshipping involves online transactions between two businesses. Here, dropshipping occurs between wholesalers and retailers or wholesalers and manufacturers. The purchasing process, the product’s quantity and buyer interaction are different in b2b dropshipping.

Given the transaction is between two businesses, the quantity of the product is massive compared to b2c dropshipping, intending to maintain a long-term relationship between the supplier and buyer. The purchasing process of products is complicated compared to b2c dropshipping, as the decision-makers from finance, operation, technical and business departments are involved.

Advantages and Disadvantages of Drop Shipping
Before starting a dropshipping business in India, it is crucial to understand both its advantages and disadvantages.

The main advantages include:

• Quick and straightforward setup with minimal initial investment required.
• No need for an established business entity to begin operations.
• Elimination of concerns related to inventory management, packaging, and shipping logistics.
• Access to a vast array of products from various suppliers.
• Flexibility in setting profit margins, although they should be reasonable to avoid deterring customers.
• Simplified scaling process, as dropshipping allows for adjustments through suppliers without the need to increase labor in line with inventory or customer growth.

On the other hand, dropshipping also presents several disadvantages:

• Generally lower profit margins compared to other business models.
• Potential inventory issues with suppliers, leading to a lack of control over stock management.
• Shipping challenges, including delays, product shortages, incorrect shipments, billing discrepancies, or inaccuracies in product quantities.
• Supplier-related problems such as subpar quality, damaged goods, high costs, slow delivery times, or lack of responsiveness.
• Intense competition in the market.
• Limited control over the overall customer experience.

How to select a Drop Shipping Supplier?

Suppliers are central in operationalizing your dropshipping business in India. Narrowing down the right supplier with required quality products determines the future of your business.

Wondering how to select your dropshipping supplier? Here’s how:

Meticulous Research

Yes, in-depth research is your answer. Get out your laptop and do an exhaustive google search for your supplier. Your ideal supplier is someone with inventory stock of the required products,  good shipping and packaging service, and delivery speed.  Although it sounds easy, it may take you longer to pin down your supplier(s). Being patient and clever with keywords is of essence. Also, knowing to prioritize quality over your budget when it comes to your supplier.

Interact with the Supplier

Before deciding on a supplier, don’t shy away from talking to them. Interacting with the supplier would enable you to assess their approachability and service quality.  Ask relevant questions concerning their operation. Also, ask for contact details of other customers from the supplier to check the service quality credibility of the supplier.

Consider the qualitative aspects of the supplier as well. Because maintaining a good relationship with your supplier is vital for your dropshipping business in India or any part of the globe.

Check the Service Quality

The best way to check the service quality of the supplier is by ordering samples from them. If you can’t seem to decide between the supplier (i.e., two or three) you have narrowed down, order samples from each supplier to assess their quality and customer service for yourself. Make your final choice by considering parameters like the delivery speed, product’s quality, packaging, and response time by witnessing it firsthand.

Consider the Technical aspects of supplier

Some suppliers may use outdated technology for their operations and client service. Ensure your supplier’s website is easy to navigate including a descriptive online product catalog, order history and product customizable feature for online merchants. Although, in some cases, the supplier’s website may look outdated but the required features may be intact.

Supplier’s Return Policy

A vital point to consider for selecting your supplier. Have a clear understanding of the supplier’s return policy before selecting them. Check the number of steps and ease of the process of returning products individually or in bulk, whether any additional charges are involved, the timeline for return and other associated procedures.

Tips for Running a Successful Dropshipping Business

While launching a dropshipping business in India may appear straightforward, various challenges can arise. Here are some strategies to help streamline your operations:

Addressing Errors

Mistakes are a natural part of any business endeavor. You may encounter issues related to suppliers, shipping, products, or inventory. Regardless of the source of the problem, it is essential to take responsibility when customers are affected. Consider offering compensation, such as discounts on future purchases, refunds for shipping costs, or product replacements/upgrades.

Diversify Your Supplier Base

Even if your supplier is reliable and efficient, it is wise to engage multiple suppliers to reduce risk and dependency. Having several suppliers can improve order fulfillment rates, decrease the likelihood of stock shortages, and enhance inventory management. Additionally, pay close attention to product selection and inventory oversight when working with various suppliers.

Prioritize Customer Support

You might believe you can manage customer inquiries, returns, and requests on your own, but the volume can quickly become overwhelming. Depending on your budget, consider hiring staff to handle customer interactions through phone, email, or chat. Providing excellent customer service is vital for your business and fosters strong customer loyalty.

Establish a Clear Return Policy

A clearly defined return policy is essential for your dropshipping business. Transparency is key; outline the conditions, exceptions, processes, potential hidden fees, timeframes, and other relevant details regarding returns. Aim to simplify the return process for customers to encourage them to make purchases.

Emphasize the Importance of Marketing

Once your website is operational, shift your focus to marketing efforts. Building a customer base is crucial for the growth of your business.

1. Prioritize Customer Support

While you may believe you can manage customer emails, inquiries, returns, and requests on your own, the reality is that you may soon find yourself overwhelmed as the volume increases. Depending on your budget, consider hiring staff to handle customer interactions through phone, email, or chat. Delivering outstanding customer service is essential for your business and fosters strong, loyal relationships with your customers.

Establish a Clear Return Policy

A clearly articulated return policy is vital for your dropshipping business. Transparency regarding your return policy is essential. Clearly outline the conditions, exceptions, processes, potential hidden fees, timeframes, and other relevant details related to returns. Aim to simplify the return process for customers to encourage them to place orders rather than deter them.

Recognize the Importance of Marketing

Once your website is operational, shift your focus towards marketing. Building a customer base without a well-defined marketing strategy can be challenging. Increase your website traffic through SEO, advertising, and social media marketing. Utilize platforms like Facebook, Instagram, and YouTube for ads, as well as influencer and affiliate marketing, to promote your business cost-effectively.

Focus on Quality

Ensuring quality across all aspects of your dropshipping business in India—whether it’s your website, suppliers, products, or customer service—is crucial. Develop a well-optimized website featuring high-quality product images and videos, along with well-crafted product descriptions. Select trustworthy suppliers who offer quality products and prioritize customer satisfaction.

Keep an Eye on Your Competitors

Monitoring your competitors is an effective way to enhance your own business practices. By observing their mistakes, innovative ideas, and service strategies, you can gain valuable insights. Regularly assess and analyze your competitors’ websites, product listings, and social media presence to refine and differentiate your own approach.

The Supply Chain for Drop Shipping

The supply chain encompasses the entire process of a product’s journey from its initial creation to its delivery to customers. In the context of dropshipping, this chain can be quite intricate, involving everything from sourcing raw materials to manufacturing and ultimately reaching the end consumer. It is crucial to identify the key participants in this supply chain, which include manufacturers, wholesalers, and retailers.

Manufacturers are responsible for producing the goods but do not sell directly to consumers. Instead, they distribute their products to wholesalers and retailers, typically in large quantities.

Wholesalers purchase these products in bulk from manufacturers and then sell them to retailers, who in turn provide the products to the final customers.

Dropshipping can take place at various stages within this supply chain, depending on which party—manufacturer, wholesaler, or retailer—offers dropshipping services. Purchasing directly from manufacturers can result in lower product prices, provided that the buyer meets specific purchasing criteria. However, it is generally easier to satisfy the purchasing requirements set by wholesalers or retailers.

In this supply chain model, the seller can operate with minimal concern, as the dropshipping process is managed by the chosen supplier. In certain instances, suppliers may also engage external distributors or logistics partners to facilitate delivery.

How to find Profitable High Demand Dropshipping Products

Isn’t the best and most profitable dropshipping products the dream of any merchant? However, identifying the best dropshipping products is not easy. Many factors help you decide which products are best for your dropshipping business in India.

 Consider these factors to pin down the best dropshipping products:

• How marketable are the products?

The marketing potential of products helps to determine their reach and store promotion. Easily marketable products often drive more traffic to websites converting them to sales.

• Nature of products

The nature of the products you choose also determines their profitability. For instance, niche-oriented, hobby supportive, business products, products with additional accessories, repeatedly purchased products, and small products have different profit margins.  You could easily make profit with business products, as businesses order in bulk and sell products that are difficult to find locally.

• Pricing your products right

Ensure you price the products right. Consider the pre-sale service aspect before setting a price. If you price the products high, the chances of you offering pre-sale customer support may increase. Having said that, it doesn’t mean you underprice your products. Find the sweet spot between profitability and customer’s perspective.

• Assess which products are in demand

Analyze the trends and popular niches in the market to pick products satisfying them. Check social media, google search, and use google keywords to assess which products are in high demand. For instance, since the pandemic hit in 2019, the need to mask sanitizers and PPE kits went up.

• Take advantage of seasonal products

Selling seasonal products could help to boost your profit margin. For example, work-from-home products, winter/ summer products, festive products, and rain compliant products.

• Another way to identify the best products is through your competitors.