How To Start Dropshipping In Sri Lanka In 2025
Why start dropshipping
Tired of a mundane job? Dropshipping offers freedom and flexibility.
Create your own brand, connecting with customers who appreciate your unique style.
It’s more than selling products; it’s about building a community and a lasting legacy.
No need for a storefront or inventory – just an internet connection and drive.
So, if you’re seeking a venture that offers both personal satisfaction and financial growth, dropshipping is the perfect fit.
Turn your vision into a successful dropshipping business. Keep reading to learn how to get started today.
How dropshipping works
Why start dropshipping in Sri Lanka
Sri Lanka, a nation renowned for its rich cultural heritage and natural beauty, stands at the cusp of a transformative ecommerce revolution. As the digital landscape continues to evolve, dropshipping emerges as a beacon of opportunity for entrepreneurs and small business owners.
With a population of over 21 million, Sri Lanka boasts a growing middle class with increasing disposable income, making it an ideal market for ecommerce ventures. The country’s robust internet penetration, which has surpassed 60%, coupled with a youthful demographic eager to embrace online shopping, presents a fertile ground for innovative business models.
Dropshipping, in particular, offers a low-risk entry point into the ecommerce arena. Unlike traditional retail, which requires significant upfront investment in inventory and physical infrastructure, dropshipping allows entrepreneurs to start a business with minimal capital. This model enables sellers to list products from suppliers without the need to stock inventory, streamlining operations and reducing overhead costs. For a nation like Sri Lanka, where many aspiring entrepreneurs may lack access to substantial financial resources, dropshipping provides a pathway to economic empowerment.
Moreover, the Sri Lankan government has recognized the potential of ecommerce and has implemented policies to support its growth. Initiatives such as the National E-Commerce Strategy aim to enhance digital literacy, improve logistics, and create a favorable regulatory environment. These efforts are not only fostering a more conducive ecosystem for ecommerce but are also attracting international investors and partnerships, further bolstering the sector’s potential.
The global dropshipping market is projected to grow at a compound annual growth rate of 16.5% from 2023 to 2028, underscoring the vast opportunities that await those who seize the moment. For Sri Lankan entrepreneurs, the time to dive into dropshipping is now. By leveraging the country’s digital infrastructure, supportive policies, and burgeoning consumer base, they can position themselves at the forefront of a thriving industry, paving the way for a prosperous future.
Advantages and disadvantages of dropshipping in Sri Lanka
Advantages of dropshipping in Sri Lanka
1. Low initial investment
One of the most compelling advantages of dropshipping in Sri Lanka is the minimal financial barrier to entry. Unlike traditional retail, which often requires substantial upfront capital for inventory and physical store infrastructure, dropshipping allows entrepreneurs to start their businesses with a small budget. This low-risk model is particularly beneficial in a country where many aspiring business owners may not have access to significant financial resources.
2. Flexibility and scalability
Dropshipping offers unparalleled flexibility and scalability. Entrepreneurs can operate their businesses from anywhere, making it an ideal choice for those who prefer a work-from-home setup or wish to balance their business with other commitments. Adding new products and suppliers can be done seamlessly, allowing for rapid expansion without the need for additional physical space or significant logistical changes. This agility is crucial in a dynamic market like Sri Lanka, where consumer preferences and trends can change rapidly.
3. Access to a diverse market
Sri Lanka’s growing middle class, coupled with increasing internet penetration, presents a vast and diverse market for dropshippers. The country’s population of over 21 million, with a significant portion of young, tech-savvy consumers, offers a fertile ground for ecommerce ventures. Additionally, the government’s initiatives to promote digital literacy and enhance logistics infrastructure are creating a more favorable environment for online businesses.
4. Government support and incentives
The Sri Lankan government has recognized the potential of ecommerce and has implemented several policies to support its growth. The National E-Commerce Strategy, for instance, aims to enhance digital literacy, improve logistics, and create a favorable regulatory environment. These efforts not only foster a more conducive ecosystem for ecommerce but also attract international investors and partnerships. For dropshippers, this means access to a broader range of resources, expertise, and market opportunities. Government incentives, such as tax breaks and grants, can further reduce the financial burden and encourage more entrepreneurs to enter the market.
5. Reduced operational costs
One of the significant benefits of dropshipping is the reduction in operational costs. Without the need to manage inventory, rent physical store space, or hire a large workforce, dropshippers can operate lean and efficient businesses. This cost-effectiveness allows for more competitive pricing, which can be a significant advantage in a market where consumers are increasingly price-sensitive.
Disadvantages of dropshipping in Sri Lanka
1. Limited control over inventory and quality
Since dropshippers do not handle the products themselves, they rely heavily on suppliers to ensure that the items are of high quality and delivered on time. This dependency can lead to issues such as delayed shipments, damaged goods, and discrepancies in product descriptions. To mitigate these risks, dropshippers must carefully vet their suppliers and establish clear communication channels to ensure consistent quality and timely delivery.
2. Intense competition
The low barriers to entry in dropshipping have led to intense competition in the market. With many entrepreneurs vying for the same customer base, it can be challenging to stand out and build a loyal customer base. To succeed, dropshippers need to differentiate their businesses through unique value propositions, superior customer service, and innovative marketing strategies.
3. Higher risk of supplier reliability issues
Supplier reliability is a critical factor in the success of a dropshipping business. Unreliable suppliers can lead to stockouts, delayed shipments, and poor customer experiences. In Sri Lanka, where the ecommerce market is still developing, finding reliable and trustworthy suppliers can be a challenge.
4. Limited brand control
Dropshipping often involves selling products from multiple suppliers, which can make it difficult to maintain a consistent brand identity. Unlike traditional retail, where businesses have full control over the products they sell and the customer experience, dropshippers must navigate the complexities of managing a diverse product range from various sources.To overcome this challenge, dropshippers can focus on curating a cohesive product range and developing a strong brand narrative that resonates with their target audience.
While some may argue that dropshipping has its challenges, the ability to start a business with minimal upfront investment and the flexibility to operate from anywhere makes it a compelling choice for aspiring entrepreneurs ready to embrace the digital marketplace.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Is dropshipping legal in Sri Lanka?
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 Sri Lanka, 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 AliExpress 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
