Can Dropshipping Make You Rich ? Yes, it is. But only when you know the dos and don’ts of the dropshipping business. The dropshipping business in India has been gaining more popularity, not just because of its profitability and quick ROI.
Businesses like the rapid and easy setup for dropshipping with minimal expenditure, a much-needed benefit for businesses today. Ecommerce Dropshipping is a profitable and low-risk business idea that may be added to one’s day job.
The dropshipping business developed in popularity as the internet expanded, and it is anticipated to increase by 32% by 2026, with a net worth of over $128 billion. Dropshipping companies often have a profit margin of 15% to 20%, though this varies by sector and product.
Businesses that choose the right items and implement an effective plan can earn profit margins of more than 20%, and even up to 300% when done correctly. Dropshipping enterprises may dominate the industry by correctly addressing difficulties and mitigating risks.
If you’re establishing a dropshipping business, here are X things you should know that will result in large profits.
How does dropshipping work in India?
Here’s how the dropshipping business works in India.
To begin, sellers must sign up with a dropshipping website. Examine the products and services and sign up for one that meets your business needs.
Set up and add products to your website. When a consumer makes a purchase, the dropshipping company processes the order and ships it to them.
In the dropshipping business, you must focus on items and ads while your dropshipping company handles the rest.
10 things to know before starting a dropshipping business in India
Dropshipping is a retail fulfillment model in which a store does not keep an inventory of the products it sells. Instead, it buys from a third party and has the item delivered to the buyer. As a result, the seller no longer needs to handle his or her inventory directly.
Dropshipping differs from the traditional retail model in that the selling merchant does not stock or own inventory. Instead, to complete orders, the seller purchases products as needed from a third party, usually a wholesaler or manufacturer.
Because you are not in control of manufacturing or delivery, dropshipping can still be a profitable business model for merchants in 2022. It’s a low-risk company model that often avoids the significant costs associated with becoming a wholesaler.
Since eCommerce dropshipping is less reliant on the retailers’ inventory space, businesses that engage in dropshipping are 18.33% more lucrative than businesses that rely on traditional channels.
Here is a list of things to know before starting a dropshipping business in India:
1. Pick a niche in dropshipping business
Choosing a precise set of products for your online store increases your chances of success in the dropshipping business in India greatly. There are certain advantages to catering to a particular clientele.
You avoid competing against offline supermarkets such as eBay and Amazon, which sell the same things in enormous quantities.
Large-scale retailers usually require more flexibility and a customer-centric approach. As a result, they concentrate on a diverse range of items rather than a narrow concentration. You can obtain a major competitive edge by focusing on meeting the individual needs of your clients.
Finding and focusing on your audience is easier.
It is difficult to establish a marketing strategy for a general store. You must be familiar with the websites and communities where your target customers commonly place orders.
On the contrary, you can develop a clear marketing plan by limiting the number of products you sell. In the dropshipping e-commerce industry, marketing is essential!
SEO jobs get a lot simpler.
You undoubtedly want consumers to find your online store when shopping online quickly. Hence, making your website and product pages SEO-friendly is a must. In the case of a general store, this task is practically impossible.
Choosing a niche makes it easier to select the right keywords so that your website appears at the top of Google search results.
2. Know what you can’t sell in dropshipping business
Dropshipping relieves you of the time-consuming and difficult product storage and transit process. In other terms, it enables quick and simple commercial transactions.
However, a poor product selection may cause you headaches. Dealing with furious and disappointed customers is not the most pleasant chore. It is recommended that businesses avoid offering things that are high risk. Some products to avoid fall into the following categories:
Copyrighted items
It can be alluring to market goods bearing a well-known brand. People are anxious to purchase them. But it may backfire quickly.
The products can be knockoffs, resulting in significant legal issues for your business. Not to mention that it will be challenging to repair any reputation damage caused among your customers.
Brittle items
Every customer wants their deliveries to be in one piece. The chance of things being damaged in transit or shipping is particularly significant because of the complicated delivery process.
Heavy products in eCommerce
It is not simply difficult to lift large objects. They can also raise the cost and difficulty of delivery. Furthermore, their weight renders them prone to breakage during transportation.
Technical products
Customers expect getting a fully functional product. When shopping online, it might be difficult to ensure the quality of the products. As a result, it is better to avoid goods that require a thorough check before purchase.
If you still wish to offer such things, make sure you have a well-drafted shipping and return policy. Also, be prepared to pay the costs associated with returns and re-shipping fresh, undamaged products to customers.
3. Is dropshipping worth?
Yes, if you’re on-trend. Try utilizing Google Trends!
Google Trends is a free and effective market research tool. Google can tell you how many people looked for this item. This may help you better understand production demand before making a choice. After completing comprehensive market research using Google resources, you will be able to identify seasonal, geographic, and other swings in product demand.
4. Don’t compromise on research
The initial phases of discovering and acquiring a dependable supplier are the primary challenge for 84% of eCommerce sellers when establishing their business. In India, your suppliers can either damage or make your dropshipping business successful.
If something goes wrong with the product’s quality or delivery, you will resolve the issue and deal with dissatisfied customers, not suppliers. As a result, you must find reputable vendors.
The best course of action is to select a single supplier specialising in a small selection of goods that fit your niche. It will enhance the quality of service. For instance, Qikink provides Print on demand dropshipping solutions for businesses looking to print on clothes and other merchandise. Their expertise in the niche makes them one of the best print on demand companies in the niche market with high-quality prints.
Having access to a variety of vendors can also be beneficial. There may be a strong chance Supplier B has the item in stock when Supplier A doesn’t. It may also be dangerous to rely solely on one provider to provide your product.
5. Partner with a reputed eCommerce dropshipping platform
Before you begin constructing your website, decide on the eCommerce platform you will use. Most venues impose a monthly fee to its customers. Furthermore, they restrict entrepreneurs’ ownership, putting them under rigorous management. It may end up being the issue that causes new entrepreneurs to withdraw. Another reason entrepreneurs delay starting their firms is a lack of skill and availability of quality developers to assist them construct and launch their websites.
A comfortable and user-friendly website can be made using Shopify or WooCommerce, to set up your online store. These platforms provide autonomy and other solutions to boost your e-commerce dropshipping business in India or worldwide. They are also easy to set up and require little to no technical expertise.
6. Plan your payment gateways
Customers today are looking for reasons to trust a brand—also, a dropshipping business must look like something other than a scam. Customers need to feel secure when making purchases from the store. Setting up specific payment channels does the trick. Also, Google boosts SEO for sites with a good security layer.
If you cater to international customers, ensure the payment gateway is compatible with users abroad and within your country. Review the transaction costs. It can be tempting to go with the lowest-price solution. However, consider integrating gateways that many customers prefer members to ensure that your gateways accept all major credit and debit cards.
Some examples of secure payment gateways customers use are Razorpay, Instamojo, BillDesk, Paytm, and Cashfree.
7. Utilize the gifts of SEO in eCommerce
SEO can be critical to running a successful online business. However, many business owners should pay closer attention to the role SEO plays in their success.
Search engine optimisation (SEO) remains the most cost-effective and efficient way to drive visitors to your online store. As a result, every eCommerce business owner should start prioritising SEO while developing their website.
Design your product page titles and descriptions to meet SEO standards. Also, remember to include the keywords in these statements. SEO can be improved by including compelling content on your website, such as blogs, content marketing, and social media marketing.
8. All reviews matter for dropshipping business
People trust one another. Approximately 70% of shoppers examine online reviews before making a purchase. Customer reviews and shop ratings on Google or an eCommerce platform can disclose a lot about your dropshipping brand to potential buyers before they ever try or buy your product.
When a delighted customer sends you an email to show their gratitude for your support, ask them to provide good reviews about your brand on reputable sites such as Google or social networking platforms.
If someone has a poor evaluation of our shop, please resolve the situation as quickly as possible. Whether the comment is positive or unfavorable, respond and address it adequately. Developing and maintaining a positive reputation can save your business and possibly increase sales swiftly.
9. Prioritize product quality
To decrease risk, new dropshippers usually chose lower-cost vendors. The worst thing you can do is launch a dropshipping business on a tight budget. It will most likely result in a large number of bad customer feedback and complains about the inferior products you bought at a lower price.
Purchasing goods from a low-cost vendor is permissible as long as the quality of the finished product is not compromised. Place a test order with the selected vendors to assess their service, packaging, and overall product quality.
Before you sign a deal, read the vendor’s comments, reviews, and ratings. Order a demo or sample product to see exactly what your potential clients will receive from the seller.
10. Provide the best customer support
Using an Excel spreadsheet to manage customer communications, requests, and refunds could be more effective. Excel is an excellent program, but it was not meant for use in customer support. Working customer support through a single email inbox or a rudimentary program gradually breaks down as your team and business grow, resulting in problems and service interruptions.
One of the most effective ways to ensure that your clients receive high-quality support is to install CRM software and publish multiple FAQ articles to simplify the customer journey. Many types of CRM software provide a variety of solutions for successfully managing customer support communication and problems.
CRMs make it easier to distribute client issues around teams and maintain track of all pertinent conversations, allowing businesses to provide a better customer experience.
CRM tools used in India for dropshipping include Salesforce CRM, Zoho CRM, Freshdesk, and Microsoft Dynamics CRM.
Can dropshipping make you rich?
Dropshipping can be profitable, but it demands a large amount of time and marketing expertise. Beginning your dropshipping e-commerce operation can be difficult at first. Using a reputable platform to launch your dropshipping business might help you get started on your entrepreneurial path.
Future of dropshipping
In recent years, the number of business sites using the dropshipping model in the e-commerce industry has increased, and this trend is projected to continue.
The future of dropshipping is dependent on how you set up and handle your business. It can only be a profitable business concept if you play your cards right and follow all of the procedures. For example, when selecting a dropshipping company for your business, you should undertake extensive research before starting with your plan.
E-commerce sites that are properly designed and implemented will become profitable businesses and a source of enormous riches.
Conclusion
You can start and grow your dropshipping business in India while elegantly overcoming every hurdle with the right attitude, patience, and plan. These ten tips can save you the time and energy you would have otherwise spent experimenting and self-learning to launch a successful dropshipping business.
Qikink is a dropshipping platform that helps small e-commerce businesses meet market demands with minimum investment. With over 10k deliveries, Qikink ranks as one of the top print-on-demand platforms with a wide range of products to begin your dropshipping journey.
