What is Dropshipping?
Dropshipping is a fulfillment method where the retail store doesn’t keep the inventory it sells. The products are directly shipped from the wholesaler or manufacturer to your customer. In this manner the store doesn’t have to handle inventory, invest upfront in stocks and manage operations.
How Dropshipping Works?
With Dropshipping no upfront inventory costs as you can ship orders directly from your dropshipping supplier.
Start by deciding what products you want to sell on your store.
Next, look for a Dropshipping supplier who supplies these products.
Now, all you need to do is Start your Ecommerce store
A customer places an order on your ecommerce store
Your orders is received by your dropshipping supplier.
Your Dropshipping Supplier will ship the order directly to your customer.
Dropshipping India-The Business
Dropshipping in India is a fairly new concept whereas; it’s been prevalent in other countries for a long time.
As per a study posted by Business Standard the Indian Ecommerce market is set to grow 84% by 2024 making the total ecommerce market in India to $111 Billion. Which gives a huge opportunity to grow and start your ecommerce dropshipping store. Check this blog on how to start a dropshipping business in India for a detailed guide. (How to start a dropshipping business)
Dropshipping in India is a great way to start your business as it has enormous benefits. Some of these are listed below.
1. Low Risk Model
Due to now inventory maintenance needed in Dropshipping this makes it a very low risk model to start an online store in India.
2. Very Easy to Start
Dropshipping is very easy to start. You can literally start your online store within days and just start selling.
3. Many products to choose from
With many dropshipping suppliers now available in India. You can choose from a wide range of products to sell and add it to your ecommerce store.
4. Easy to test the market and products
Since you don’t need to invest capital initially in inventory and availability of large products to sell you can test the market and see what products to sell and scale easily.