Looking for a way to start an online selling business without incurring high overhead costs? Drop shipping is your gateway to this e-commerce dream. Let us see what makes it a market buzzword.

Drop shipping is an e-commerce fulfillment strategy that allows you to process orders through a third party, usually a supplier. It is your key to a quick online shop setup. You, the seller, do not invest in, own, or store the inventory in this arrangement. Instead, you collaborate with a supplier who shall receive and fulfill the orders forwarded to them. The convenience of drop shipping offers contributes to its popularity among sellers, which includes but is not limited to:

Significantly Reduced Overhead Costs:

The biggest appeal of drop shipping is that it reduces the costs of running a retail business. This is primarily due to the limited capital required to start drop shipping, most of which is spent on branding and advertisement. Unlike e-commerce, inventory, storage, shipping, and personnel costs are absent or significantly reduced in Drop Shipping. By reducing these costs, you can:

Increase Profit Margins

An important determinant of how big your profit margin is is the investment you made in your business. Since the supplier is the one sharing most of your investment needs, it leaves room for you to maximize your profit margin.

Better Cash Flow

Lower costs associated with inventory leave you with more capital to invest. This can be utilized to achieve better branding and marketing.

Improved Scalability

Eliminating significant overhead costs makes it convenient for you to expand your operations, automate your processes, optimize marketing, foster better relationships with your suppliers, and monitor and analyze your performance.

Minimal Risk

When you have no inventory, you bear no responsibility for dealing with unsold products. However, that is not all. Drop shipping also frees you from the risks of inventory depreciation and obsolescence that happen over time. This way, they get access to:

Reduced Financial Risk

Avoiding inventory costs reduces the financial risk to a great extent. It also exempts you from the responsibility to absorb the losses of unsold products. It also preserves your capital. 

Increased Flexibility

Drop shipping provides you the freedom to experiment with new products, suppliers, or markets without worrying about the risk. It enables you to remove underperforming products from your store. The scope of adapting to changes in the market, consumer demand, and supplier availability is immense with drop shipping. 

Lesser Stress

Less risk translates to less stress. Focus on growing your business on the best online selling platforms in India without stressing about inventory management. Use the additional time to develop strategies for growth, marketing, and customer satisfaction. 

Increase In Product Offerings

As opposed to traditional e-commerce, in drop shipping, sellers are not limited by the amount of inventory they can hold. They have the flexibility to partner with multiple suppliers and provide an assortment of products catering to buyers. In turn, this will:

Attract a Broader Customer Base

Offer more products to attract buyers with varied interests and needs.

Increase The Average Order Value

With more products to choose from, customers will likely purchase multiple items. This will, in turn, increase the average order value.

Stay Ahead Of The Competition

In a crowded e-commerce market, you have the luxury of switching products according to the demand from buyers without having to incur huge manufacturing or storage costs. 

Access Niche Markets

Niche Market specializes in catering to specific customer needs, interests, and demographics. On an odd day, it is challenging to tap into one of these because of the limited product availability, high inventory costs, and targeted marketing. However, that is not the case when you opt for drop shipping. With the flexibility offered, you can easily add or remove niche products without worrying about inventory costs. Accessing niche markets via drop shipping has several perks:

Unique Brand Identity:

Catering to a specific niche permits you to weave a unique brand identity based on what resonates with your buyers or target audience.

Reduced Customer Acquisition Costs:

Accessing a niche market with drop shipping cuts down your customer acquisition costs since your marketing efforts become more targeted and effective. 

More Opportunities for Partnerships:

These markets come with established communities and influencers. This provides you with opportunities for collaborations and partnerships. 

Now that we are through with the benefits of drop shipping as a retail model, let us dive straight into learning:

How To Start Drop Shipping In India

India is a huge sub-continent and has abundant scope for drop shipping merchants to make successful businesses. The variety in demographics comes with just as many niche markets with dedicated buyers. If you find yourself wondering, “What is a dropshipping business in India?”, crack this code with these steps:

  • Decide on a Niche
  • Find Trustworthy Suppliers
  • Set up a Store
  • Market and Promote Your Store

Decide on a Niche

Any successful business model has to start with research and planning. Drop shipping is no exception. To start drop shipping, you must start by researching what you want to sell and who you want to sell to.

Identify Popular Products

Tools like Google Trends and Amazon Best Sellers are available for you to locate what products sell a lot. When you have a list of these products, shortlist them based on your preferences for your store.

Analyze Competition 

Anyone would pick a product that doesn't have much competition in the market. In any other case, the set of loyal customers for a product will be divided among the major competitors. The more competition, the less likely you are to make a sizeable profit. 

Choose a Profitable Niche

That brings you to the last step in choosing a niche. Select a product where you find a good balance between demand, competition, and profit margin. 

Find Trustworthy Suppliers

Your entire business model depends on the supplier you choose and your relationship with them. To make sure you find a good one, follow these steps:

Use Supplier Directories

Instead of relying solely on word of mouth, find sources that provide you with data-backed suggestions for suppliers. IndiaMart, WholesaleBox, and Amazon Business are some places where you can find credible suppliers. 

Reach Out Directly

Online testimonials are great. However, do not skip reaching out to the suppliers personally. An offline visit would be ideal, but an online one-on-one conversation might be better than nothing. To lay the grounds for a long-term commitment, you should start with efficient communication. The terms should be laid out and agreed upon before starting the business. 

Verify Credentials

Run thorough checks to ensure the supplier you select is a credible one with a good reputation, valid licenses, and a clear return policy. This is key to ensuring good customer satisfaction. 

Set up a Store

In e-commerce, dropshipping means online operations. So, to establish such a business, you are required to create your online shop. 

Pick an Online Store Builder

Select a platform like OrderBooks, Shopify, or WooCommerce that allows you to create an online store quickly and easily and supports drop shipping.

Register a Domain Name

Name your store. Give it an identity. Depending on the platform and the subscription plan you choose, your store’s name could be the domain or the subdomain name. Irrespective of it, you must keep it simple and memorable. 

Add Products, Prices, Payment Gateway

The store setup is not complete without the product, category, and price listings. That leaves you with the payment gateway integration. Some platforms come with their integrated payment gateways, and on some, you are allowed to do it on your own. 

Market and Promote Your Store

An e-commerce dropshipping business model and a simple online store builder make your life as an entrepreneur as easy as possible. All that is left for you is to acquire buyers. That can be achieved by impeccable marketing and promotion.

Develop a Strategy

Hire a copywriter, a social media manager, and a content creator. Alternatively, learn the required skills and set out to determine the promotional strategy for your brand. 

What is Your USP?

What sets you apart from your competition? In the realm of Indian detergents, Ghadi comes with “pehle istemaal karein, phir vishwas karein” (try before you trust), Ariel comes with “daag achhe hain” (dirt is good), and Tide comes with “kyun? chaunk gaye na?” (You got startled, did you not?). The three giants among detergent powders selling in India are competing for the same middle-class Indian household. However, each of them has a different appeal and approach. 

Run Targeted Ads

The benefit of finding a niche market with drop shipping is that you can run ads targeted to a specific set of buyers. By creating engaging content and ads on social media platforms centered around your USP and revising the strategy over time, you are set to make big profits.

That is your guide on how drop shipping helps in e-commerce and how you can start to drop ship in India. Keep experimenting with your products, sellers, and strategies for better results. When beginning, start small, monitor and optimize growth, and stay compliant with local laws and regulations. 

How does OrderBooks make Drop Shipping easy?

To prompt dropshippers nationwide, OrderBooks provides a platform where you can:

  • Create: A dropshipping e-commerce website for free.
  • Source: Manufactured products from the supplier.
  • Sell: Enlist products of choice and start selling from your storefront.
  • Manage: Orders, shipments, payments.
  • Analyse: data related to abandoned cart items, sales made, orders pending, sum refunded, etc. 

Choose a business of convenience- start drop shipping with OrderBooks. 

Also Read:

*Expert Tips for Starting an Online Store in 2025 - OrderBooks*

*How To Make a Website To Sell Stuff: 6 Steps to Success in 2025*

*How to Sell Online in 2025: Easy Steps to Get Started*

FAQs

  1. What is dropshipping?
  • Drop shipping is an e-commerce fulfillment strategy that allows you to process orders through a supplier who receives the orders you forward to them. 
  1. What are the benefits of dropshipping?
  • The benefits include, but are not limited to, significantly reduced overhead costs, increased product offerings, and reduced risks.
  1. Is drop-shipping legal in India?
  • Yes, drop-shipping is legal in India. However, you must comply with the laws and regulations regarding GST and consumer protection.
  1. How to start Drop Shipping for free in India?
  • While it is challenging to start a drop shipping business for free anywhere, you could resort to the free options for individual steps that amount to starting such a business. Say, you use free tools to research products, find a supplier that requires no additional fee for your branding, use a platform that lets you create an online store for free, then promote your store and products on social media without running paid campaigns. But despite being very frugal, you should expect to spend some money to set up and promote the store.