If you have always wanted to fulfil your entrepreneurial ambitions, 2025 has a lot to offer. Ever heard of dropshipping? The coolest trend in the retail industry has created a lot of buzz in retail fulfilment.
By 2030, the dropshipping market in India is projected to have grown from USD 20,776.8 million in 2023 to USD 102,393.2 million. Not just that, the retail industry is expanding rapidly, with the e-retail market expected to exceed US$ 160 billion by 2028.
Dropshipping is a business model that doesn’t demand much from you, as everything is outsourced except for customer service. Let’s dig deeper into the various facets of the dropshipping business model and understand how it works, its benefits, and the drawbacks of this order fulfilment model. Stay tuned!
What is a Dropshipping Business?
Dropshipping is a way of doing business where you sell products without keeping them in stock. Instead of buying products in bulk and storing them, you only purchase an item when you receive an order from a customer. The product is then shipped directly from the supplier to the customer.
How Does Dropshipping Work?
- Set Up an Online Store – You create a website or list products on platforms like Shopify, Amazon, or eBay.
- Find a Supplier – Partner with a manufacturer, wholesaler, or supplier that provides dropshipping services (like Alibaba, AliExpress, CJ Dropshipping, or local wholesalers).
- Customer Places an Order – When someone buys from your store, you receive the order details and payment.
- You forward the Order to the Supplier – Instead of keeping stock, you simply pay the supplier and share the customer’s address.
- Supplier Ships the Product – The supplier directly ships the product to the customer under your business name.
- You Keep the Profit – The difference between the price you charged the customer and what you paid the supplier is your profit.
Let’s Understand eCommerce Dropshipping with an Example
Let’s say you set up an online store selling phone cases.
- A customer buys a phone case for ₹500 from your store.
- You forward the order to your supplier, who sells it for ₹300.
- The supplier ships the product directly to the customer.
- You keep ₹200 as profit!
Why People Like Dropshipping
- Low Investment – No need to buy stock upfront
- Less Risk – You only buy when a customer orders
- Easy to Start – Just an online store and a supplier are needed
- Flexible – Run the business from anywhere with an internet connection
How to Start a Dropshipping Business in India?
Step 1: Pick a Niche (Choose What to Sell)
Select a product category with good demand, like:
- Fashion & Accessories
- Mobile & Tech Gadgets
- Home & Kitchen Products
- Beauty & Personal Care
- Pet Products
Step 2: Find a Reliable Supplier
- Your supplier will store, pack, and ship the products directly to customers.
- Where to find suppliers?
- Indian Suppliers – GlowRoad, Meesho, IndiaMART, TradeIndia
- International Suppliers – Alibaba, AliExpress, CJ Dropshipping, SaleHoo
Step 3: Create Your Online Store
You need a platform to showcase your products and accept orders. You can choose:
- Your Website – Use Shopify, WooCommerce (WordPress), or Wix
- Marketplaces – Amazon, Flipkart, Meesho (Dropshipping-friendly platforms)
Step 4: Set Up Payment & Shipping Options
- Payment Gateway: Integrate Razorpay, PayU, or Instamojo to accept online payments
- Shipping Partners: Tie up with logistics services like NimbusPost, XpressBees, or Delhivery to ensure smooth delivery
Step 5: Add & Market Your Products
- Product listing – List your products with good images, descriptions, and competitive prices.
- Use social media marketing – Promote your store on Instagram, Facebook, and Google Ads.
- SEO & Content Marketing – Write blogs or create videos about your products to attract organic traffic.
Step 6: Start Getting Orders & Automate
- Once customers start ordering, forward the details to your supplier.
- Automate order processing using tools like Oberlo, DSers, or AutoDS to streamline operations.
- Track shipments and offer customer support for a better experience.
What are the Pros of Starting a Dropshipping Business in India?
Zero Headache of Product Development
Normally, when you start a business, you need to design, manufacture, and test products before selling them. This takes time, effort, and money.
But in dropshipping, you skip this step because the suppliers already have ready-made products. You just pick the best-selling items and list them in your store—no need to create anything from scratch!
Flexibility in working
One of the biggest perks of dropshipping is that you can work from anywhere, anytime. You don’t need a warehouse, a physical store, or employees.
Let’s say you love to travel. With dropshipping, you can handle your store while sitting on a beach or in a café, just by checking orders and forwarding them to suppliers. No need to be physically present anywhere!
A diverse range of products to experiment with
In a traditional business, you invest in a product upfront, which means if it doesn’t sell, you lose money. But in dropshipping, you can try different products without risk. If one product doesn’t work, you simply switch to another, without wasting inventory or money.
Zero to minimal investment
Starting a traditional business requires huge investments in product manufacturing, warehouse storage, packaging, and delivery. But in dropshipping, your main cost is only the website setup and marketing. You don’t need to buy products in advance, rent a shop or warehouse, or hire staff.
Better scope for making a profit
Since you don’t have inventory costs, you can set your prices and make good profit margins. For instance, a trendy LED clock costs ₹250 from the supplier. If you sell it for ₹700, you make ₹450 per sale. Now imagine selling 50 pieces a month—that’s ₹22,500 profit without handling inventory!
Recommended Read: https://nimbuspost.com/blog/dropshipping-how-does-it-work-and-what-are-its-pros-cons/
Are There Any Drawbacks or Limitations in the Dropshipping Business in India?
- High Competition: Since Dropshipping is easy to start, many sellers offer the same products, leading to price wars and lower profits. To stand out, focus on a niche market instead of selling generic items.
- Low-Profit Margins: With intense competition, pricing becomes a challenge, and some suppliers charge extra fees, reducing your earnings. Selling high-ticket or unique products can help increase profit margins.
- Dependence on Suppliers: Product quality, packaging, and shipping are handled by suppliers. If they ship poor-quality items, delay deliveries, or run out of stock, your business suffers. Working with multiple trusted suppliers can reduce risks.
- Shipping & Delivery Issues: If you rely on international suppliers, shipping to India can take 15-30 days, which Indian customers may not like. High shipping costs and customs delays can also cause problems. Choosing Indian suppliers can improve delivery speed.
- Return & Refund Challenges: Many suppliers don’t accept returns, so you might bear the loss if a customer returns a product. Handling complaints and refunds can be tricky, so it’s important to have a clear return policy and work with suppliers who offer return services.
- Payment & COD Issues: Many Indian customers prefer Cash on Delivery (COD), but this increases the risk of fake orders and refusals at delivery. Payment gateways also charge transaction fees, cutting into profits. Offering prepaid discounts can help encourage online payments.
Final Verdict
Dropshipping works well if you sell quality products, use trusted suppliers, and have a strong marketing plan. However, it’s not ideal if you expect quick profits without effort or struggle with handling customer complaints.
While most drop shippers begin by sourcing from global platforms like AliExpress or Meesho, many successful sellers eventually shift to holding their stock or working with Indian suppliers. At this stage, NimbusPost becomes a game-changer for you, offering swift shipping aggregation, real-time tracking, lower RTO orders, and nationwide reach to scale your dropshipping business.
FAQs
Can I start drop-shipping for free?
Yes, you can start a dropshipping business for free using platforms like Shopify (free trials), free product sourcing apps, and marketing on social media. But for serious growth, some investment in tools, ads, or a domain may be needed later.
