Dropshipping in India - Suppliers and Experiences

Dhanush

Contributor
Hey fellow entrepreneurs,

I'm excited to start my dropshipping journey in India and I'm looking for some valuable insights from the community. After doing my research online, I've decided to go with Shopify as my e-commerce platform of choice. It seems to have a vast array of dropshipping suppliers and delivery partners, along with multiple payment options.

For suppliers, I've come across Roposo Clout and IndiaMART, which seem to be popular options. However, I'd love to hear from you guys about any other renowned suppliers that you've had good experiences with. Are there any local suppliers that you'd recommend?

I'm looking for suppliers that offer a wide range of products, competitive pricing, and reliable shipping. Any suggestions or recommendations would be greatly appreciated.

My initial budget for this venture is around ₹10,000 - ₹15,000, so I'm looking for cost-effective solutions that can help me get started. I'd love to hear about any affordable supplier options, marketing strategies, or other tips that can help me make the most of my budget.

Some specific questions I have are:
  • What are some other popular dropshipping suppliers in India?
  • Have you had any experiences with local suppliers that you'd like to share?
  • Are there any specific product categories that are in high demand in the Indian market?
  • How can I effectively utilize my budget to get started with dropshipping in India?
Let's discuss and share our knowledge to help each other succeed in the world of dropshipping in India.

Looking forward to hearing from you all!
 
I do not have answers to your questions but very interesting thread for me to follow. Ill try to find out what I can from people I know.

Shopify is probably the best platform to start with if you want to focus on the core of your business.

I think most of your strategies would hinge on what category of products you are looking to focus on. You will probably need to pick up a niche and focus your marketing strategies on that category before you expand category by category. Answer questions on how will you differentiate your brand and reach out to the audience.
 
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I m also interested in Drop shipping, but dont know from where to start? What to do? If anyone have guide or related videos pls share.
 
I m also interested in Drop shipping, but dont know from where to start? What to do? If anyone have guide or related videos pls share.
To get started with drop shipping, a good solution would be to use Shopify, which offers a free trial for the first three months, costing only 20 rupees. Shopify has many integrated plugins, including those for dropshipping suppliers and delivery partners, making it easier to manage your business. One way to find a winning product is to select something that is currently trending, such as resin art for married couples, which is currently in high demand. If you can find a supplier who can provide the product at a cheap price, you can make a profit by selling it online. You can find suppliers and products on platforms like Roposo Clout, indiaMART or by doing research on YouTube and Reddit.

Resources for learning about drop shipping:
  • YouTube channels
  • Reddit communities like r/dropshipping and r/shopify
  • Blogs like Shopify Blog

"It's also a good idea to start small and test your products and marketing strategies before scaling up your business."
 
Any commerce model and more so dropshipping has 3 basic aspects to it. Sourcing, packing and shipping.

Shipping is the easiest as you have services like shiprocket.

Packing is the most sensitive but easy to solve by doing it yourself.
If you are a small merchant then not many would be willing to do it for you. Plus you lose complete control over your brand and quality. If you do it yourself then you know what you are sending, how you are sending and can personalize it to the buyer or most importantly for your brand.

Sourcing is what you need to solve by either of the following ways:
1. Have a lead time on shipping and back source the material from Meesho, repackage and ship.
2. Have tie up with local shops to source the materials, package and ship.
3. Look up the list of sellers for your target products on Amazon and try to contact them and get them to sell it to you.
4. Places like just dial and IndiaMart to source it.

Now if you tell me the product category then maybe I can probe around further.
 
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What do you mean by doesn't work in India?
There are many issues with dropshipping, and I have not seen even 1 successful business that has consistently made money with dropshipping at least in India.
Reasons why it doesn't work:
  • Setting up a dropshipping business is relatively easy, leading to intense competition because barrier to entry is low.
  • Many sellers undercut each other, resulting in razor-thin profit margins.
  • Indian customers often prefer trusted marketplaces like Amazon, Flipkart, or Myntra etc. due to the possibility of being scammed.
  • Managing returns is expensive and challenging, given the high return rates in India.
  • Indian customers heavily favour COD, creating cash flow and fraud risks for drop shippers, this is why I don't do COD on my website, you also don't easily get the money back into your account from these courier companies in the stipulated time frame.
  • Customers expect fast delivery, which is difficult to achieve with international suppliers.
  • Indian consumers often prefer established brands and platforms over unknown dropshipping stores.
  • Many are wary of fake products or scams, leading to lower conversion rates.
  • Products sourced internationally often face customs delays, and customs agents often ask bribes to clear your product even when everything is in place, which also drives up the procurement price.
  • Plus, Import duties can significantly increase product costs.
  • Then there are Indian import regulations (or lack thereof) which are vague and complex,and understanding them is time-consuming, even when you do understand them, yo are at the mercy of the customs officer and his "mood-for-the-day" as I've been charged 28% customs +gst one product, and also charged only 18% custom + gst on the same product and HS code at different times.
  • Many drop shippers sell the same items, leading to a lack of unique value propositions.
  • The cost of running ads on platforms like Facebook or Google has increased, eating into profit margins.
  • Indian consumers are bombarded with similar ads, reducing their effectiveness.
  • Even with targeted ads, conversion rates in the Indian market are often lower than in Western countries.
 
There are many issues with dropshipping, and I have not seen even 1 successful business that has consistently made money with dropshipping at least in India.
Reasons why it doesn't work:
  • Setting up a dropshipping business is relatively easy, leading to intense competition because barrier to entry is low.
  • Many sellers undercut each other, resulting in razor-thin profit margins.
  • Indian customers often prefer trusted marketplaces like Amazon, Flipkart, or Myntra etc. due to the possibility of being scammed.
  • Managing returns is expensive and challenging, given the high return rates in India.
  • Indian customers heavily favour COD, creating cash flow and fraud risks for drop shippers, this is why I don't do COD on my website, you also don't easily get the money back into your account from these courier companies in the stipulated time frame.
  • Customers expect fast delivery, which is difficult to achieve with international suppliers.
  • Indian consumers often prefer established brands and platforms over unknown dropshipping stores.
  • Many are wary of fake products or scams, leading to lower conversion rates.
  • Products sourced internationally often face customs delays, and customs agents often ask bribes to clear your product even when everything is in place, which also drives up the procurement price.
  • Plus, Import duties can significantly increase product costs.
  • Then there are Indian import regulations (or lack thereof) which are vague and complex,and understanding them is time-consuming, even when you do understand them, yo are at the mercy of the customs officer and his "mood-for-the-day" as I've been charged 28% customs +gst one product, and also charged only 18% custom + gst on the same product and HS code at different times.
  • Many drop shippers sell the same items, leading to a lack of unique value propositions.
  • The cost of running ads on platforms like Facebook or Google has increased, eating into profit margins.
  • Indian consumers are bombarded with similar ads, reducing their effectiveness.
  • Even with targeted ads, conversion rates in the Indian market are often lower than in Western countries.

Thank you for sharing your valuable insights and experiences.
I can understand the mentality of Indians, the intense competition, and the shipping challenges.