How Dropshipping Business Works In India

03:09:00



Drop shipping is a fulfillment method that does not require a business to keep products in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

The beautiful thing about selling products is that you don't have to buy any inventory beforehand. You buy the items as you sell them, shipping straight to your customer's house.

Tips
  • Large varieties of products available in stock including the biggest makes.
  • Prices and reductions adapted for professionals
  • A complete and personalized account.
  • A professional team at your service.
  •  A centralized logistics service.
  •  Dispatch of goods within 48 hours of receiving the order.
  •  After-sales support
  •  Direct delivery to your final customer.
  •  Presence in all major cities in India

Benefits of Dropshipping

1. Less Capital Is Required

Probably the biggest advantage to dropshipping is that it's possible to launch an e-commerce store without having to invest thousands of dollars in inventory upfront. Traditionally, retailers have had to tie up huge amounts of capital purchasing inventory.

With the drop-shipping model, you don't have to purchase a product unless you already made the sale and have been paid by the customer. Without major up-front inventory investments, it's possible to start a successful dropshipping business with very little money.

2.Flexible Location

A dropshipping business can be run from just about anywhere with an internet connection. As long as you can communicate with suppliers and customers easily , you can manage your business.

3.Wide Selection of Products

Because you don't have to pre-purchase the items you sell, you can offer an array of products to your potential customers. If suppliers stock an item, you can list if for sale on your website at no additional cost.

4.Easy to Scale

Because you don't have to pre-purchase the items you sell, you can offer an array of products to your potential customers. If suppliers stock an item, you can list if for sale on your website at no additional cost.

5.Low Overhead

Because you don't have to deal with purchasing inventory or managing a warehouse, your overhead expenses are quite low. In fact, many successful dropshipping businesses are run from a home office with a laptop . As you grow, these expenses will likely increase but will still be low compared to those of traditional brick-and-mortar businesses.

Disadvantages of Drop shipping

1.Low Margins

Low margins are the biggest disadvantage to operating in a highly competitive drop shipping niche. Because it's so easy to get started – and the overhead costs are so minimal – many merchants will set up shop and sell items at rock-bottom prices in an attempt to grow revenue. They've invested so little in getting the business started so they can afford to operate on minuscule margins.

2.Inventory Issues

If you stock all your own items, it's relatively simple to keep track of which items are in and out of stock. But when you're sourcing from multiple warehouses, which are also fulfilling orders for other merchants, inventory changes on a daily basis. While there are ways you can better sync your store's inventory with your suppliers', these solutions don't always work seamlessly, and suppliers don't always support the technology required.

3.Shipping Complexities

If you work with multiple suppliers as most drop shippers do the products on your website will be sourced through a number of different drop shippers. This complicates your shipping costs. Let's say a customer places an order for three items, all of which are available only from separate suppliers. You'll incur three separate shipping charges for sending each item to the customer. And even if you did want to pass these charges along, automating these calculations can be difficult.

4.Supplier Errors

Have you ever been blamed for something that wasn't your fault, but you had to accept responsibility for the mistake anyway?

Even the best dropshipping suppliers make mistakes fulfilling orders – mistakes for which you have to take responsibility and apologize. And mediocre and low-quality suppliers will cause endless frustration with missing items, botched shipments and low-quality packing, which can damage your business's reputation.

Best 5 Challenges in Drop-Shipping

1. Start with the Right E-commerce Platform Provider

Since all your operations start with an online store it's important that you find the right eCommerce platform provider to start the business. Often you end-up investing in technologies that you don't need. Start small and then scale-up to meet the demands.

2. Find the Right Drop-shipping Partner

In a fast paced world coined with customer satisfaction, only the best can survive. Finding the right drop-shipping partner can play a important role in determining the success of your digital venture. You need to determined right partners who are ready to fulfill the order when an order is received. Also, you need to look after the fact that most logistics handlers may carelessly handle the consignment. Which in turn results in damage or even loss of goods.

At no cost, the process should result in a bleak customer satisfaction. Your customer is your asset, at no point they are worried about how you manage and run an enterprise. They paid for your service and they deserved to be treated with empathy.

3.Shipping Complexities

If you work with multiple suppliers as most drop shippers do the products on your website will be sourced through a number of different drop shippers. This complicates your shipping costs. Let's say a customer places an order for three items, all of which are available only from separate suppliers. You'll incur three separate shipping charges for sending each item to the customer. And even if you did want to pass these charges along, automating these calculations can be difficult.

4. Select the Right Product

Not every product has a high commercial value. So make sure that the products you offer are unique and have some commercial value. Try not to drop-ship regular products.

5. Up-Selling and Cross-Selling

Makes sure that you will use your customer data to Upsell and cross-sell products. Position re-target the customer with similar products with a higher discount rate and higher sales value. Cross-selling is an amazing way to offer the customer an additional option to purchase products that are highly intertwined with the primary product

Does the dropshipping business model work in India?

Lots of people keep any items in stock yourself is a big load off. All you do is pay for the item and pocket the difference between your wholesale price and your customer's price. You have no inventory to keep track of and no obligations of fulfillment, it's all done for you by the drop-shipper. Is It Sounds really great?

Many new store owners fail to realize that those profit margins are not so good and if they should screw up your order or ship something too late - it's YOU who gets to deal with the customer. You also don't want to be dealing with a drop-shipper who makes a habit of shipping faulty items.

Before you can start searching for your reliable dropship supplier, you'll need to ensure you have a few things taken care of

Are they manufacturer or wholesaler of the product?

What are their prices like?

What margins they offer?

Useful Link :https://seasonsway.com/india/dropshipping/dropshipping-reseller-india.php

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