How to start a Dropshipping business in India by foreigners?

Introduction

As many people have shifted to online shopping for most products, the e-commerce industry has grown tremendously. Dropshipping has proven to be revolutionary for many entrepreneurs venturing into the e-commerce industry. It is growing in popularity because the business model benefits the seller. Consumer trends indicate that the majority of products handled through the Dropshipping channel are always in high demand. In this article we will include information on “What is Drop-shipping business in India?”, “How to start a Dropshipping business in India by foreigners?”, Benefits of a Drop-shipping business, and documents required to start a Dropshipping business.

What is Drop-shipping business in India?

Dropshipping is a retail business in which a store is not required to stock the products it sells. Instead, it serves as a store-front for a product, which is then shipped directly to the customer when an order is placed with the supplier/manufacturer. As a result, as the seller, you are not required to handle the product directly or store inventory in warehouses.

Features of a Dropshipping business in India by Foreigner

  • The individual company that does Drop-Shipping will be referred to as a “Drop-Shipper.”
  • A Drop-Shipping Business operates entirely online.
  • A Drop-Shipper is not required to keep inventory or stock of the goods they sell.
  • After receiving an order and payment, the Drop-Shipper will forward it to an Indian or Foreign Supplier.
  • They will purchase the products at a lower cost from a foreign or Indian store in order to resell them at a higher cost to their customers.
  • After the Drop-Shipper has paid the supplier, i.e. the manufacturer / wholesaler, the goods will be shipped directly to the customer.

Benefits of a Drop-shipping business

Below is the list of 4 main Benefits of a Drop-shipping business in India:

Low risk

With drop shipping, the retailer does not need to purchase the entire inventory; instead, he only needs to pay for the product ordered by his customer. This provides the retailer with a secure system in which he does not have to bear any risks, such as being unable to sell the remaining inventory. The retailer will only be liable for the products ordered by his customer.

Cost-Effectiveness

Dropshipping can help start-ups and new businesses save money on their initial costs and provide a budget-friendly business model for growth. This method is best suited for India.

Inventory is not a problem

Dropshipping eliminates the unnecessary stress of deciding where to keep inventory and the aggressive marketing that is required if the product does not sell. Instead, it alleviates the stress of selling a product and its associated costs.

Independent of location

Dropshipping enables retailers to operate their businesses with only a website. The entrepreneur can be located anywhere in the United States, and the drop shipper will still be able to serve him. All a retailer needs is a computer and a reliable internet connection. Dropshipping in India is an exceptional and profitable concept because it allows for industry experimentation and growth.

Documents required to start a Dropshipping business

  • Photograph of all the Directors and shareholders.
  • PAN Card of all the Indian Directors and shareholders.
  • Apostille ID Proof of all the Directors (Driving License/Passport/Voter ID).
  • Electricity Bill or any other utility bill for the address proof of the Registered Office.

How to start a Dropshipping business in India by foreigners?

Dropshipping business in India by foreigners, How to start a Dropshipping business, What is Drop-shipping business in India, Benefits of a Drop-shipping business, Ebizfiling

Select a Supplier

Choosing a seller for your store from millions of suppliers is a difficult task. You must devote sufficient time to selecting a supplier because it will determine the growth of your business. There will be no point in regretting later if this process fails. Your supplier should be trustworthy because you will not be meeting them everyday as your employees and thus will not be able to closely monitor their activities.

Choose Your Selling Products

There is a reason why selecting products should not be your first step. You should choose products that are in high demand because if you choose perfect products for you but cannot find good suppliers in India, it will be a waste of both time and money.

 

So, after determining your supplier, browse their products and speak with them to learn about their best-selling items. Do some market research and get good ideas and suggestions from top-level websites like Amazon and others.

Obtain your GSTIN

If you are a registered company, give the supplier your GSTIN for all transactions so that you can claim the ITC (Input Tax Credit) later. However, if you are not a corporation, you can easily start a Dropshipping business as an individual. Clarify the GST requirements before beginning business with any supplier to avoid future legal issues.

Make a Website for Your Business

You must present your products to your customers, which necessitates the purchase of a domain name and the creation of a website for your store. Provide as many payment methods as you can and keep your technical side strong to manage your store because that is all you have in the drop-shipping business.

List your products and target market

When listing products in your store, try to provide customers with all the necessary and relevant product information. Request multiple product images from your seller to increase your options and chances of selling the products.

Summing Up

Dropshipping in India is a highly profitable market due to the incredible growth opportunities, large market space for experimentation, and lower risk. Drop-Shipping is a type of business in which the products to be sold are not kept in the store. The seller is not required to stock the products; instead, in the drop-shipping business model, the products are purchased directly from a third party and shipped directly to the customer.

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Author: zarana-mehta

Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.

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2 thoughts on “A guide on starting a Dropshipping business in India by foreigners

  1. This an excellent guide for foreigners looking to start a dropshipping business in India! The step-by-step process is easy to follow, and the information on legal requirements is very helpful. Highly recommended for anyone considering starting a business in India. Thank You.

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