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How to Start a Dropshipping Business in India? Step By Step Guide on How to Create a Successful Online Dropshipping Business in 2024?

Published on July 7, 2022

Last updated on January 29, 2024 • 15 min read

The e-commerce market has advanced significantly due to the widespread adoption of online purchasing for most goods. For many new e-commerce firms, dropshipping has proven to be revolutionary. Because the business strategy provides relief to the seller, it is becoming more and more common. As a result, most goods handled through the dropshipping channel are consistently in demand, according to consumer trends.

Due to its minimal start-up expenses and lack of inventory holding requirements, future business owners find dropshipping quite enticing. The value of the worldwide dropshipping market in 2020 was $128.6 billion. The size of the worldwide dropshipping industry is anticipated to reach 476.1 billion USD between 2021 and 2026. Its expansion cannot be disputed. It is a legitimate business concept and has the potential to succeed over the long run. The advantages of establishing a dropshipping business are substantial. 
We have already talked a lot about dropshipping. 
Now let us know how to establish a dropshipping business in India.  

Table Of Contents
  1. How to Start Dropshipping Business In India?
  2. How to Create a Successful Online Dropshipping Business in 15 Easy Steps [2024 Updated]?
  3. Conclusion
  4. WareIQ As Fulfilment Partner For Your Dropshipping Business Model
  5. Frequently Asked Questions

How to Start Dropshipping Business In India?

It is advisable to thoroughly understand the industry before starting a business anywhere in the world. This includes knowing how the industry functions, the costs associated with operating that particular business, the legal requirements that surround it, who your competitors are, the technological and material aspects of the company, and your management skills.

The same is true for dropshipping businesses in India; before engaging with this kind of venture, you must be fully knowledgeable in this field.

Once your study on the dropshipping industry in India is complete, you must create a business plan. In this plan, you must include information on the company’s location, legal form, all employees’ names, the amount of money invested, marketing plans, and other essential details.

After you have prepared your business plan, you must first register your company. You may register your company by selecting a business entity, such as an LLP, partnership, private limited company, or OPC, and applying to the Ministry of Corporate Affairs. You may also obtain a Business Registration Under MSME to start your business. Additionally, you must obtain a Shop Act License from the appropriate state authorities. Finally, you must also get a GST Registration for Service Providers In India to engage in dropshipping in India.

In the meanwhile, you should get finance for your company. Today, you may do this through banks, financial institutions, gold loans, and venture capitalists. The process of business registration will take some time to complete entirely. You should also be aware that after obtaining MSME Registration, you should apply for a Mudra Loan. As a result, you will receive a Mudra Card that you may use to apply for loans for your business’s operations or other financial needs.

Once you’ve taken care of everything we’ve just discussed, it’s time to start the business operations. First, you should speak with the online merchant about this, and then you may make a website or register as a dropshipper on listing websites.

Further, we will discuss the step-wise process of establishing a dropshipping business.

WareIQ – Amazon-prime Like Logistics for Modern Brands in India

WareIQ, an eCommerce fulfillment company, empowers online brands with a superior-tech platform to compete with Amazon like service levels by bringing their average delivery timelines from 5-10 days to 1-2 days.

"With WareIQ, UTH is able to consolidate common inventory for all platforms and get much closer to the customer through access to WareIQ’s strong nationwide network of fulfilment centres, and last mile & hyper-local courier partners. We are excited about being able to offer same day delivery in several pin codes due to WareIQ."
- Samit Mehta, Founder, UTH Beverages

How to Create a Successful Online Dropshipping Business in 15 Easy Steps [2024 Updated]?

Due to current laws and regulations controlling international money transfers and eCommerce fulfilment services, this can become a little tricky. So let’s go step by step to learn how to launch a dropshipping business in India.

Examine Indian Laws & Regulations

You must complete the following step before beginning a dropshipping company in India. First, check the laws and norms governing the selling and importing of various items into India.

For usage in India, some items may require prior certification and approvals from various governmental agencies. Therefore, the list of importable things that are forbidden, limited, and authorized is periodically updated.

Check the import taxes on anything you want to purchase from foreign dropshipping vendors. For obvious reasons, you cannot require your consumer to pay customs duty after accepting an order at a specific price.

Register Your Business

You must register any business under the current legislation in India. There are several ways to register your business.

Read some top-notch articles on setting up a company or business in India.

A business or company can now be registered online through the Ministry of Corporate Affairs webpage.

Your dropshipping company must be registered. If you don’t, you might have a lot of difficulty with the different Indian government officials.

However, you may gain much from the federal and state governments after registering a corporation or organization. Tax breaks and low-interest loans are some of these.

Do acquire your business a Goods & Services Tax Identification Number (GSTIN). This is crucial nowadays if you want to purchase or sell anything in India. Additionally, you’ll require it for payment-related formalities.

Establish a Current Account

You’re in this business to earn money. So the following step is to open a current account with any top-notch Indian bank.

Even though banks must adhere to strict rules set forth by the Reserve Bank of India to offer current accounts, you should compare several options to discover the finest ones.

Due to their extensive global networks of branches and correspondent banks, I propose international institutions. Transacting is now considerably more straightforward and quicker as a result.

You will require a current account with a bank that provides quick money transfers to any international manufacturers or suppliers if you plan to engage in dropshipping.

A worldwide online compatible payment gateway from vendors like Razor Pay, CC Avenue, or others should also be available through the bank.

Check for international transaction costs as well. Some banks impose absurdly high costs when sending money overseas. Keep in mind that these costs will reduce your earnings.

Select Your Preferred Product

A specific pattern appears when you look at some of the most prosperous dropshippers. They don’t waste time dealing with commodities that are easily accessible. Instead, by creating a borewell for them and limiting competition, they oversaturate the market with speciality items in particular categories.

With dropshipping, you’ll be free to see how well these things do on the market. If they do well, you can permanently alter your mind and offer a new item. As a result, you’ll avoid having an overstock of unsold goods and save money.

Along with other things, you may use Google Trends to discover what’s in style right now, browse through top-selling items, and keep an eye out for the “People Also Ask” sections of Google search results pages. You can also take advantage of new trends and unexpected requests.

Research Your Competition

Research your rivals’ product offerings before starting your dropshipping business in India. You may get a lot of helpful information about the market rivals you otherwise wouldn’t know about by conducting a quick online search. For example, you may get a list of competitors, information about where they like to operate, market prices, and other pertinent information.

Find out how your rivals operate and the many product specialities they use to set themselves apart from you. Learn about the many marketing tactics they use to boost sales and profitability. Additionally, note the many value-added services they offer and any potential improvements you may make to increase client acquisition. To learn more about what your target market is looking for, go through some of the best-selling goods in your niche’s customer evaluations.

It’s not a good sign if no significant rivals for your goods exist. That suggests that there isn’t a market for that particular product. Lack of competition for a product is caused by various circumstances, including high transportation costs, supplier and manufacturing issues, and slim profit margins. Try to identify things that do not have these restrictions as a remedy.

Create Listing

You are now prepared to launch your dropshipping business in India once all legal and banking requirements have been satisfied.

The next stage is to make a finalized list of the items you want to offer as a dropshipper. This may be pretty challenging and perplexing. Consequently, sound judgement is required. Again, confusion arises from the need to recognize online commodities that sell rapidly.

It will be challenging because you’ll be up against industry leaders like Amazon and Flipkart. Other dropshippers have shops on Facebook, Shopify, Etsy, and other websites.

Spend time and effort searching for the top-selling items online. The best course of action is to identify evergreen and trendy things to offer online.

Items like mobile phone accessories, vehicle accessories, equipment spare parts, and others typically have a significant number of both private and industrial clients.

Create a list of the items you want to sell from your dropshipping marketplace and decide the industry you want to enter.

Contact Suppliers For The Best Prices

Several websites link retailers like you with producers, distributors, and suppliers, like Ali Express, IndiaMart.com, and TradeIndia.com.

The top three websites can be accessed with certain benefits. They have a carefully chosen list of goods not subject to Indian government regulation.

As a result, shipping these goods is simple. Additionally, some items are exempt from customs taxes. Before selling anything, it would be good to check on any import taxes.

These top websites also include providers who have excellent, verified credentials. As a result, there is a far smaller likelihood of a supplier stealing your funds or delivering defective items.

Dropshipping calls for this because you won’t be physically examining each item. Instead, you can order a few product samples to evaluate the quality. Do not blindly trust the supplier’s word over quality and performance.

Get Quoting Price & Discuss Returns Policies

After choosing your suppliers, get quotes for the items you want to sell through your dropshipping company in India. Since it’s best to give a consumer a selection of things, you’ll need to request quotes from several suppliers.

Suppliers may frequently ask you for an average order volume. Avoid answering inquiries like these until you know the market and bagging orders.

Verify the supplier’s return policy, too. Customers frequently receive products that are defective or do not fulfil their expectations. Despite good treatment, sometimes things might still get damaged while in transportation.

You cannot give a consumer a defective, incorrect or damaged product. As a result, you should inquire about the supplier’s return procedures to choose whether to receive a replacement or a refund.

Choose The Selling Price Of The Product 

The most crucial step in launching your dropshipping business in India in 2022 is now. Set a final price for the items you are selling.

It would help if you considered all factors, including import duties, GST and other relevant taxes, returns and refunds, bank fees for online payments, and your operational costs.

You can add your margin only once you’ve established fair pricing that considers all the factors above.

Determine the item’s cost and associated importation, tax, or other fees. Otherwise, you risk overpricing the products.

Launch An Online Store 

Launching your eCommerce service website may start a dropshipping business in India in the best possible way. I’m not saying you should directly compete with online retail behemoths like Amazon, Flipkart, and others. However, owning a dropshipping website lends some legitimacy to your company.

But if you decide on a marketplace, think about Shopify and Etsy. While Etsy lets you connect with customers in the US and other western countries, Shopify is more well-known in India.

You can also start an online store on Facebook Marketplace for minimal cost. Facebook Marketplace’s sole issue is that your viewers will be localized to your town or city.

Integrate Widgets, Tools, and Apps

Several such free and paid materials can help you start a successful dropshipping business in India. In addition, many dropshipping operations may be automated and sped up with the aid of these applications, widgets, and tools.

Here is a comprehensive collection of top-notch free applications, resources, and solutions for your dropshipping marketplace. Using these tools and applications, you can run your dropshipping business reasonably efficiently.

Doing this may increase sales while giving clients a better online buying experience. However, for the integration of these applications with Shopify or other marketplaces, you could need the assistance of a capable digital marketer.

Operating Region

India is a sizable nation with a variety of landscapes. Therefore, it’s possible that your provider won’t be able to deliver everywhere. You have two choices in these situations.

One is to set boundaries around your business to ensure your provider can get there quickly. The second is to look for several providers that can deliver to most locations in India.

There is a third choice you might want to take into account. To have your items delivered to the specified place, register with third-party logistics, a fulfilment partner service.

Uploading Content & Images

Upload top-notch pictures and material for each item you plan to sell through your dropshipping company.

Look at global eCommerce fulfilment giants like eBay and Amazon for some great examples of how to use photos.

The key has the buyer experience the thing virtually, without touching or physically seeing it. Therefore, the better your photographs and descriptions, the more likely your company will convert leads.

Create Your Own Smartphone App

In India, cell phones are used for over 50% of internet purchases. This is due to the availability of low-cost cellphones and low-cost, high-speed mobile Internet services today in India.

It is common knowledge that most internet transactions are made on mobile devices on the spur of the moment. As a result, apps are a crucial tool for any dropshipper looking to grow their business and succeed in India.

Utilize Social media To Promote

You may promote your dropshipping company through a Facebook page, Twitter account, Instagram, Pinterest, LinkedIn, and other social media sites. Compared to traditional marketing, which entails expensive physical advertising, this is relatively affordable.

In addition, you might build a blog for your dropshipping company and publish fantastic yet truthful product evaluations. Make affiliate marketing links available on the blog to assist readers in placing orders right away.

You may create a free video channel on YouTube. Utilize this tool to post top-notch films promoting your goods and earn money. Tell stories to draw in more clients.

You may collect client testimonials to produce videos that viewers will relate to. This increases your sales by bringing in new clients. 

Conclusion

Be patient and take the proper actions because your audience could or might not immediately take to your new shop. If your first items weren’t successful, there might be several causes, including poor marketing, inappropriate product selection, the incorrect target market, a lack of variety, dull media and website messaging, poor customer service, and so on.

Therefore, use the early phase to explore, provide variants, and improve your decisions and methods. You will undoubtedly succeed and turn your dropshipping business successful one.

WareIQ As Fulfilment Partner For Your Dropshipping Business Model

Although dropshipping enables businesses to enter the market and begin selling swiftly, it has several drawbacks. For example, branding, refunds, and product accessibility issues can affect a company’s marketability and sales potential.

Sellers may get through these difficulties by integrating WareIQ services with dropshipping. Sellers can leverage WareIQ’s current network to increase their reach and deliver in 24-48 hours, design a comforting shipping policy and returns policy, and provide the best items for their company.

WareIQ enables simpler purchasing and returns procedures, improved market positioning, and brand quality and loyalty improvements.
Dropshipping is an excellent option for many online merchants thanks to these advantages and WareIQ as a fulfilment partner.

Frequently Asked Questions

Supercharge your fulfilment with WareIQ now, contact our team.

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Increased Operational Efficiency: Streamlined order management reduces manual work and errors. Expert Support: A trained operations team allows businesses to focus on core activities. Enhanced Customer Satisfaction: Timely deliveries contribute to higher customer loyalty. Partnering with WareIQ equips businesses with the tools needed to excel in hyperlocal delivery. By leveraging its comprehensive fulfilment solutions, companies can streamline logistics while ensuring exceptional customer experiences across platforms like Blinkit, Zepto, and Swiggy Instamart. Conclusion In conclusion, hyperlocal delivery represents a transformative shift in how goods are delivered in urban environments. By focusing on speed, efficiency, and local engagement, this model not only meets consumer demands but also supports local economies. As the hyperlocal delivery market continues to grow, businesses must adapt their strategies to harness its potential fully. Understanding what hyperlocal delivery entails and why it matters will empower businesses to stay competitive in an ever-evolving landscape. By embracing this innovative approach, companies can enhance customer satisfaction while fostering community ties—ultimately driving growth in today's fast-paced economy. FAQs About Hyperlocal Delivery What is the meaning of hyperlocal delivery?Hyperlocal delivery is a logistics service that focuses on delivering goods within a small, specific geographic area, typically within a few miles. This model allows businesses to fulfil orders quickly, often within hours, by utilising local resources and nearby merchants. It caters to immediate consumer needs, making it an essential service in today's fast-paced market.How does hyperlocal delivery work?How hyperlocal delivery works involves several key steps:Order Placement: Customers place orders through mobile apps or websites linked to local retailers.Order Processing: Local businesses prepare the items for dispatch once an order is received.Delivery Assignment: The order is assigned to nearby couriers who pick up the items and deliver them directly to the customer.Real-Time Tracking: Customers can track their orders in real-time, enhancing transparency and trust in the service.What are the benefits of hyperlocal delivery for businesses?The hyperlocal delivery business model offers numerous advantages for businesses:Faster Delivery Times: Orders can be delivered within hours, significantly improving customer satisfaction.Cost Efficiency: Shorter delivery distances reduce transportation costs and fuel consumption.Enhanced Customer Experience: Quick service fosters loyalty and encourages repeat business as customers appreciate timely access to products.How does hyperlocal delivery differ from traditional last-mile delivery?While both hyperlocal delivery and last-mile delivery involve transporting goods directly to customers, they differ significantly:Geographic Focus: Hyperlocal delivery operates within a limited radius (typically 5-15 kilometres), while last-mile delivery can cover larger areas.Speed of Service: Hyperlocal deliveries are usually completed within 30 minutes to 2 hours, whereas last-mile deliveries may take longer due to broader geographic coverage.Type of Products Delivered: Hyperlocal services often focus on essential items like groceries and medicines, while last-mile deliveries can include a wider range of products.What role do technology and data play in hyperlocal delivery management?Technology plays a crucial role in hyperlocal delivery management by streamlining operations and enhancing customer experiences. Key aspects include:Mobile Apps: User-friendly apps facilitate order placement, payment processing, and real-time tracking for customers.Route Optimisation: Advanced algorithms help delivery personnel navigate the most efficient routes, minimising travel time.Data Analytics: Businesses leverage data to understand customer preferences, optimise inventory management, and improve overall service efficiency.

November 21, 2024
What is SCRR and How It Impacts Your SAFE-T Claims on Amazon: A Detailed Guide

What is SCRR and How It Impacts Your SAFE-T Claims on Amazon: A Detailed Guide

Handling returns is one of the biggest challenges for Amazon sellers. To stay profitable and keep customers happy, it's essential to understand Seller-Controlled Return Rate (SCRR) and how it impacts your business. SCRR is a key metric that measures returns that are directly attributed to the seller's actions or issues, such as product defects, incorrect listings, or inadequate packaging. Managing SCRR effectively is crucial to maintaining strong seller performance metrics and eligibility for programs like Amazon Prime or Buy Box placement. What Is SCRR? (Seller-Controlled Return Rate) SCRR, or Seller-Controlled Return Rate, refers to returns that are caused by factors within the seller's control. This includes issues like inaccurate product descriptions, defective products, poor packaging, incorrect items being shipped, or expired goods. A high SCRR can negatively impact your seller performance, leading to account warnings, suspension, or disqualification from programs like Amazon Prime. Reasons for SCRR Classification ReasonDescriptionExampleInaccurate Product DescriptionThe product listing contains incorrect or misleading information, such as wrong dimensions, features, or materials.A seller lists a product as "100% cotton," but it actually contains synthetic fibers.Defective or Damaged ProductsItems that are shipped in poor condition or are non-functional upon arrival.An electronic gadget is shipped but doesn’t turn on due to a manufacturing defect.Poor PackagingInadequate packaging that leads to product damage during transit.A fragile item like glassware breaks during shipping due to insufficient padding.Wrong Item ShippedSending an incorrect product or a variation different from what the customer ordered.A customer orders a size 'L' shirt but receives size 'S'.Expired ProductsParticularly for consumables or beauty products, if an expired product is sent, it directly impacts the seller’s accountability.A cosmetic item delivered past its expiration date.Missing Parts or AccessoriesProducts with missing components or accessories.A smartphone shipped without a charger or user manual.Delays in FulfillmentFailing to fulfill an order on time, leading to customer dissatisfaction.An item promised for next-day delivery arrives after a week.Customer Complaints About QualityReturns due to dissatisfaction with product quality, even if subjective.A customer claims the fabric of a garment feels cheap compared to the description. Impact of High SCRR Performance Metrics: High SCRR rates negatively affect your seller performance score, which can lead to account warnings or suspension. Loss of Buy Box: Sellers with frequent SCRR issues may lose access to the coveted Amazon Buy Box. Reduced Profit Margins: Frequent returns lead to increased costs due to reverse logistics and damaged inventory. Program Ineligibility: High SCRR rates can disqualify sellers from programs like Amazon Prime or Seller Fulfilled Prime. How SCRR Impacts SAFE-T Claims Amazon's SAFE-T (Seller Assurance for E-commerce Transactions) claims process allows sellers to seek reimbursements for losses due to issues beyond their control. However, when returns are classified under SCRR, it can directly impact your eligibility for SAFE-T claims. For example, if the return is due to poor packaging or an inaccurate product description, Amazon may deny your SAFE-T claim, considering it to be the seller's fault. Therefore, managing and minimizing SCRR is key to improving the chances of a successful SAFE-T claim. How to Reduce SCRR ActionDescriptionOptimize Product ListingsEnsure accurate, detailed, and honest descriptions of your products. Include high-quality images and specify dimensions, materials, and features clearly.Quality ControlConduct thorough checks on your inventory before shipping to ensure defect-free and functional products.Improve Packaging StandardsUse robust and secure packaging materials, especially for fragile or perishable items.Fulfill Orders PromptlyMeet shipping timelines consistently and communicate proactively if delays occur.Customer Feedback MonitoringAct on feedback and reviews to identify patterns or recurring issues with specific products.Batch and Expiry ManagementFor consumables, monitor stock closely to avoid sending products nearing expiration. Leveraging WareIQ's Returns QC App To further enhance returns management and reduce SCRR, consider utilizing WareIQ's Returns QC App. This app automates the collection of high-quality visual documentation during the returns process, ensuring compliance with marketplace guidelines and providing robust evidence for claims. By integrating this tool into your operations, you can streamline returns processing, improve claim approval rates, and maintain better control over your return metrics. Non-SCRR Returns Returns that are not classified as SCRR are typically situations where the seller is not at fault, such as: Customer Change of Mind: The customer changes their mind or finds a better alternative. Product Doesn't Fit or Suit Preferences: Returns due to subjective preferences or size-related issues. Shipping Damage by Carrier: Items damaged during transit by the shipping provider. Incorrect Address Provided by Customer: Delivery issues caused by incorrect shipping information supplied by the buyer. Related read: Amazon's SAFE-T Program Claim: Seller Guide 2024 Conclusion Understanding and managing SCRR is vital for maintaining a successful Amazon selling strategy. By optimizing listings, improving quality control, ensuring timely fulfillment, and leveraging tools like WareIQ's Returns QC App, sellers can minimize SCRR, protect their performance metrics, and maintain eligibility for valuable Amazon programs. Proactively addressing return issues and adhering to best practices will help sellers protect their business from unnecessary losses and maintain a positive customer experience. For more guidance on improving your returns process and reducing SCRR, explore our resources or contact WareIQ for tailored solutions to streamline your Amazon business. FAQs About SCRR and SAFE-T Claims What is SCRR on Amazon?SCRR stands for Seller-Controlled Return Rate. It measures the percentage of returns that are attributed to seller issues, such as product defects or incorrect listings.How does SCRR affect my Amazon business?A high SCRR can lead to negative impacts on your seller performance, including account warnings, suspension, and loss of eligibility for Amazon programs like Prime.Can I file a SAFE-T claim for an SCRR-related return?Typically, no. If the return is classified as SCRR, Amazon may deny your SAFE-T claim because it considers the return to be due to a seller issue.How can I lower my SCRR?Focus on improving product quality, providing accurate descriptions, and ensuring proper packaging. Leveraging tools like WareIQ's Returns QC App can also help.

November 20, 2024