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A Beginner’s Guide To Dropshipping

What is Dropshipping?

By definition, drop shipping is a supply chain fulfilment model in which you do not own an inventory. You can connect a whole seller with the customer’s requirements and they can ship it directly to the customer, via various channels. Drop shippers work as an intermediate step that connects the sellers conducting wholesale to the customer without any additional investment in first purchasing products from them. This way drop shippers charge commission from wholesale sellers for every new order and the product sold to the customer is comparatively cheaper. Dropshipping in India is picking up the pace with more entrepreneurs taking the plunge and stepping into the e-commerce industry.

How is Dropshipping carried out?

Dropshipping involves a supplier, a dropshipping store/platform, and a customer. The flow of events is as follows. A drop shipper ties up with a supplier and they agree to sell their products. The dropshipper sets up an online store on Shopify or Amazon and lists the products the supplier sell. A customer accesses the site and places the order on the dropshipper’s website. The dropshipper forwards this order to the supplier and the supplier ships the product to the customer.

Here are 5 tips you can adapt to help set up a dropshipping store:

1) Choose your selling segment:

This means to choose what you will sell when you begin dropshipping. You can sell anything from shoes to hair accessories, but if you try to include all categories it will be difficult for you to tap the correct audience. Thus, after conducting a thorough market research by studying your audience, their demand and your competition, choose your segment.

2) Find Dropshipping suppliers:

Finding reliable dropshipping suppliers can be a game changer for your dropshipping business. The foremost concern for you must be shipping. You must make sure the supplier also has the capability and ties to shipping the product on time as this will impact your business. Secondly, always sign up with a supplier if they have quality products. Make this decision by ordering product samples and making sure yourself. If they have high-quality product photos then that is a bonus. Experience counts, therefore invest in it and start with an experienced drop ship supplier.

3) Choose a selling platform :

This is the part which is going to represent your business. Thus, this decision must be made carefully. There are a number of platforms available in India that let you set up your selling platform. Some of them are as follows:

  1. Shopify: With over 500,00 Shopify stores, Shopify offers unique solutions for dropshipping by partnering with Oberlo. It gives users sellers a chance to set up their store and begins their dropshipping business faster than ever.
  2. Amazon: Amazon for dropshipping is a great call! You can easily set up a marketplace on Amazon and list your products. Once you get the orders, process them with the supplier and ship them. Amazon has around 300 million daily users. That makes it a huge market to tap and sell to. You can also sign up with the ‘fulfilled by Amazon’ program and partner with Amazon to drop ship your products.

Benefits of Dropshipping?

1) Low investment model:

Dropshipping in India is a low investment model as it gives the e-commerce entrepreneurs a chance to start a new business with just an online store. With no additional investment in a whorehouse, inventory the entrepreneurs can easily sell their desired products by directly partnering with suppliers.

2) No physical dependency:

You don’t need to own a store to operate a dropshipping. Having an internet connection and a laptop is all you need. You need to be able to communicate with suppliers and customers. Drop shipping offers flexibility and convenience.

3) Easy to setup:

Setting up a dropshipping business is must easier than setting up an online retail store/brick & mortar shop. Drop shipping will help you succeed faster and gather more profits as you harmonize with the supplier and your customers.  

4) Easier to market products:

With more time on your hands, you will be able to capture the audience’s attention in creative ways and also build your brand stronger. You can slowly expand after analyzing your performance and the market.

Dropshipping is a growing field with more e-commerce enthusiasts opting for it. If you are starting out and want to start an e-commerce venture, dropshipping business is a good option for you as it gives room for research and understanding.  


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