Dropshipping is a retail fulfilment approach where a store does not keep the products it sells in stock. Rather, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it consigned directly to the client. As a result, the merchandiser doesn’t have to handle the product directly.

The most significant difference between dropshipping and the standard retail model is that the selling merchant needs to stock or own inventory. Rather, the dealer purchases stock as demanded from a third party, generally a wholesaler or manufacturer, to fulfil the order.

To start a Dropshipping business, research products you wish to sell, find reliable suppliers, build an e-commerce website, and create a customer acquisition plan. Understanding the legalities and regulations involved in running an online business is also essential.

Key points about Dropshipping

Low Overhead: Your overhead expenses are pretty low because you don’t have to purchase inventory or manage a warehouse. However, the profit margins for Dropshipping can be significantly lower than other retail models.

Flexibility: Dropshipping can be run as a home-based business with a laptop and an internet connection.

Wide Selection of Products: Since you don’t have to pre-purchase the goods you retail, you can offer a package of products to your possible clients.

Responsibility for Order Fulfilment: Even though you don’t handle the shipment of products, customer satisfaction relies on how well your suppliers fulfill orders.

Competition and Market Saturation: Dropshipping has low barriers to entry, which can lead to significant competition. Differentiating your product offerings and providing excellent customer service is vital to standing out.

Dependence on Third-Party Suppliers: Your business’s reputation depends heavily on your suppliers. If they deliver on quality or shipping times, it can reflect well on your store.

Types of Dropshipping

Dropshipping can generally be categorised into several types based on various factors, such as the kinds of products sold, the relationship with suppliers, and the sales platforms used. Here are some common types of dropshipping:

1. Print on Demand: This type involves selling custom designs on various products like t-shirts, mugs, and phone cases. When an order is made, the design is printed on the product by the supplier and then shipped to the customer.

2. Private Label Dropshipping: A retailer sells products assembled by a third party but branded with the retailer’s label. This type allows for brand control and exclusivity in the market.

3. White Label Dropshipping: Like private labelling, white labelling involves reselling products made by another manufacturer under your brand name. However, multiple retailers can sell these generic products under different brand names.

4. Domestic Dropshipping: In this model, retailers partner with suppliers in the same country. This often results in faster shipping times and more accessible communication with suppliers but might come with higher product costs.

5. Overseas Dropshipping: The retailer sources products from suppliers located in different countries. This can often lead to lower product costs but longer shipping times and more complex logistics.

6. Niche Dropshipping: Retailers focus on a specific niche market, selling products that cater to a particular interest or demographic. This allows for specialisation and targeted marketing but can limit the potential customer base.

7. General Dropshipping: The retailer sells a wide range of products without specialising in a particular niche. This approach has a broader market but faces more competition and can have less customer loyalty.

8. Business to Business (B2B) Dropshipping: In this model, the retailer provides products in bulk to other businesses instead of individual customers. This often involves higher order volumes and longer-lasting business relationships.

9. Direct from Manufacturer Dropshipping: This is when a retailer partners directly with a manufacturer who dropships products. This eliminates the intermediary and can often result in better pricing and quality control.

Each Dropshipping type has its challenges and benefits, and the suitable model depends on the retailer’s goals, resources, and market. Researching and understanding the market demand, competition, and supplier reliability is essential before choosing a dropshipping niche.

Product categories in Dropshipping

Online buying and selling in India have significantly increased in recent years. In this competitive life, most people want to purchase products from their comfortable location without going outside. 

Products capable of selling through online platforms can be considered for Dropshipping. Some of the bestselling categories of products suggested by experts are:

  • Clothes and other related accessories
  • Electronic appliances
  • Cosmetic products
  • Art and handy craft-related products
  • Home decor products

Best Dropshipping platforms in India

In India, several Dropshipping platforms are available that cater to the needs of entrepreneurs looking to start or grow their e-commerce businesses. Some of the popular dropshipping platforms in India include:

Shopify is one of the biggest global e-commerce platforms, which allows you to set up your e-commerce marketplace, and it’s also widely used in India. With plugins like Oberlo or Spocket, you can easily import and manage products from suppliers worldwide.

Shopify gives immediate solutions for issues that occur during Dropshipping. It offers a 14-day trial pack for beginners and charges a minimum fee depending on the plan you subscribe to.

Another Indian-based platform offering Dropshipping services is known for a wide selection of products and a focus on women entrepreneurs and students.

It gives a one-stop solution for services like a virtual shop, shipping and payment integration, and real-time stock updates, which makes the online business hassle-free. With its zero commission policy and time-to-time payouts, it has become the first choice of many new Dropshippers.

This is a popular choice for many dropshippers due to its vast selection of products and suppliers. AliExpress suppliers often offer Dropshipping as a service, which makes it a convenient platform for Indian entrepreneurs to start with.

Aliexpress Dropshipping offers a bundle of policies related to refunds and replacement, which makes the process convenient and easy for many Dropshipping Businesses. In addition, many businesses prefer this platform due to its low investment policy. Being the world’s biggest online marketplace, it is very time-efficient to set up your venture.

An Indian-based Dropshipping platform that provides a wide range of products related to the Indian market and the necessary integration with e-commerce stores. It helps you set up your online dropshipping store and maximise profits.

Baapstore offers 70,000+ products related to women’s apparel, men’s apparel, footwear, fashion accessories, home and kitchen products, and electronics accessories. It gives a wide range of gift vouchers, coupon codes, promotional tools like e-mail marketing, and much more.

This platform provides print-on-demand Dropshipping services, ideal for selling custom-designed merchandise like clothing, notebooks, phone cases, and mugs in India.

It is one of the best Print-on-demand Dropshipping platforms in India. They offer a No minimum order policy to increase the conversion rate. You just need to integrate your e-commerce plugin to get started. They act as a medium between your store and customers and offer the products what customers want.

Conclusion

Always keep in mind that the viability and services of these platforms can change, and it is always best to conduct your Due Diligence to find the most suitable Dropshipping platform for your specific needs.