How To Start Dropshipping In India In 2025
Why start dropshipping
Many people dream of a profitable business that serves customers all over the world. If you are one of them – this information is exactly what you need.
Dropshipping is the business that provides equal opportunities to everyone. It doesn’t matter whether you are an islander or a resident of a busy metropolis.
If you want to secure a better future for yourself and your family, you can easily set up an online business that will bring you money at any point of the globe. You don’t need to manufacture products or to buy them from someone in advance and stock them paying all related expenses. All you need is stable Internet access and an online store. Starting here, your business journey begins.
How dropshipping works
Why start dropshipping in India
In recent years, the Indian ecommerce market has witnessed a remarkable surge, making it an ideal landscape for entrepreneurs to venture into dropshipping. With a population exceeding 1.3 billion, India boasts a vast consumer base that is increasingly connected to the internet, creating a fertile ground for online businesses. Dropshipping, in particular, has emerged as a lucrative opportunity for those looking to start an online business with minimal upfront investment.
One of the key advantages of dropshipping in India is the growing middle class, which has a rising disposable income and a strong appetite for international products. According to a report by Statista, the number of internet users in India is projected to reach 829 million by 2025, indicating a significant potential for online sales. This digital transformation has not only made it easier for consumers to shop online but has also opened up new avenues for dropshippers to reach a broader audience.
Moreover, the Indian government’s push towards digitalization and ecommerce has further fueled the growth of this sector, offering various incentives and support for startups.
As the Indian ecommerce market continues to evolve, the opportunities for dropshippers are only expected to grow. By leveraging the country’s vast consumer base, digital infrastructure, and supportive government policies, entrepreneurs can capitalize on the growing demand for online shopping and establish a successful dropshipping business in India.
Population
Digital buyers
eCommerce sales in 2018
Advantages and disadvantages of dropshipping in India
Advantages of dropshipping in India
1.Low Startup Costs
One of the most significant advantages of dropshipping in India is the low initial investment required. Unlike traditional retail, where you need to purchase inventory upfront, dropshipping allows you to list products without holding any stock. This reduces the financial risk and makes it easier for entrepreneurs to start a business with limited capital.
2.No Inventory Management
With dropshipping, you don’t need to manage inventory. The supplier handles the storage, packaging, and shipping of the products. This means you can focus on marketing, customer service, and other aspects of your business without worrying about the logistics of inventory management.
3.Flexible Location
Dropshipping is a location-independent business model. You can run your store from anywhere, as long as you have an internet connection. This flexibility is particularly beneficial for entrepreneurs in India, where many business owners prefer to work from home or operate from various locations.
4.Scalability
Dropshipping is highly scalable. As your business grows, you can easily add more products to your store without the need for additional storage space or significant capital investment. This scalability allows you to expand your business rapidly and take advantage of new market opportunities.
5.Access to a Wide Range of Products
India has a diverse and rich market with a wide range of products available for dropshipping. From traditional handicrafts to modern electronics, you can choose from a vast array of products to cater to different customer segments. This variety allows you to create a unique and appealing product lineup.
6.Reduced Operational Costs
Since you don’t have to manage a physical store or warehouse, your operational costs are significantly lower. This includes savings on rent, utilities, and staff salaries. Lower operational costs can improve your profit margins and make your business more sustainable.
7.Diverse Payment Options
India has a robust digital payment ecosystem, with a variety of payment options available to customers. This includes online banking, UPI, and digital wallets. Dropshippers can integrate these payment methods into their online stores, making it easier for customers to complete their purchases.
Disadvantages of dropshipping in India
1.High Competition
The low barriers to entry in dropshipping have led to intense competition. Many entrepreneurs in India are attracted to the model, making it challenging to stand out. You’ll need to differentiate your store with unique products, superior customer service, and effective marketing strategies.
2.Supplier Reliability
Finding reliable suppliers is a significant challenge in dropshipping. Not all suppliers are trustworthy, and issues like delayed shipments, damaged products, and poor customer service can negatively impact your business. It’s crucial to vet suppliers thoroughly and establish strong relationships with them.
3.Profit Margins
While dropshipping can be profitable, the margins are often thin. Competition and the need to offer competitive prices can compress your profit margins. To maintain profitability, you may need to focus on high-margin products or find ways to reduce costs.
4.Customer Service Challenges
Since you don’t handle the products directly, resolving customer issues can be more challenging. For example, if a product is damaged during shipping, you may need to coordinate with the supplier to resolve the issue, which can be time-consuming and affect customer satisfaction.
5.Regulatory Compliance
India has specific regulations and compliance requirements for ecommerce businesses. Navigating these regulations can be complex and time-consuming, especially for new entrepreneurs. It’s important to stay informed about the latest regulations to avoid legal issues.
6.Branding Challenges
Building a strong brand in a crowded market can be difficult. With so many dropshippers offering similar products, it can be challenging to establish a unique brand identity. You’ll need to invest in branding and marketing to stand out.
7.Customer Trust Issues
Some customers may be skeptical about buying from a dropshipping store, especially if they are not familiar with the concept. Building trust through transparent communication, positive customer reviews, and a secure checkout process is crucial.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
From 0 to $12,000 In 5 Months With A Single AliDropship Store
$28,000+ in Sales With a Brand New Dropshipping Store
FAQ
Is dropshipping legal in India?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
What country to target?
Living in India, you are not limited to your local market. You can serve customers all over the globe, even in the countries of Europe and North America. Remember your store niche and think who might be interested in these products. Where do these people live, most likely? That’s your target region!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
