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

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.  

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,, and

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. 


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