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Tata Capital > Blog > Loan for Business > How To Start A Dropshipping Business In India

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How To Start A Dropshipping Business In India

How To Start A Dropshipping Business In India

Shark Tank India has brought a new wave of entrepreneurship to India. Everyone seems to be interested in building their businesses or learning about how businesses work. Today, even celebrities are interested in becoming co-founders and founders. Especially youngsters from schools and colleges who once used to dream about starting a start-up are already building their side hustles. But sometimes, the requirement of big investment slows down the speed of these hustlers. Other than this, finding out a good and rare idea is also a hard nut to crack. Dropshipping can be a perfect option for such budding entrepreneurs, one can easily set up their eCommerce business without the hassle of keeping a stock of products, maintaining the inventory, and storing the products. Let's discover the dropshipping business inside out in this article.

How Does Dropshipping Work?

Dropshipping is the process of buying products from manufacturers and wholesalers and selling them to customers. In this process of buying and shipping products, one can earn a percentage of the profit share on each product. Here's how it works:

  • Business owner contacts the wholesalers and ties up with them for the products he wants to sell on their website.
  • Then, he creates an eCommerce website and lists all those products.
  • As soon as a customer buys the product, the business owner places the order for the same product from the wholesaler.
  • On each product, he keeps a percentage of the profit and thus earns money through this.
  • One doesn't need to take care of the maintenance and storage of the products. But they do need to take care of the minimal shipping charges and marketing charges.

This is how one earns money through dropshipping, now let's see why one must start a dropshipping business in India.

Why Start a Dropshipping Business in India?

Starting a dropshipping business in India can turn out to be a good decision. An eCommerce business involves, carrying, maintaining and storing products. Which itself is a very difficult task. But with dropshipping, one can easily take care of these things as the wholesaler has to take care of them. In India, dropshipping business is a cost-effective way to do eCommerce.

The eCommerce market in India is also supposed to grow at an annual rate of 51%. This makes it a good opportunity for everyone to start now. India is also one of the biggest suppliers of raw materials for products across industries. One has a full range of choices available when it comes to starting an eCommerce business in India.

Dropshipping has made eCommerce business a low-risk and low-investment business. Indians can take advantage of this in the coming years.

How to Start a Dropshipping Business in India?

This is the question stuck in most people's minds, how do start doing dropshipping in India? Now let's see, how one can start their dropshipping business in India:

  • Finding products

The first step in setting up an eCommerce business online is to find out what one wants to sell. A suitable product to keep in one's online store would align with their views and they must be truly passionate about it. Besides personal interest, the demand for the product is another factor. One can create a list of the products they are interested in and then check the SEO keyword trends online. If the trends are also good, this product will be perfect for one's website.

  • Price range

Profitability should be another criterion when choosing a product. One can avoid even expensive products if the profit margin is not high. A good profit margin on a product is around 40-70%, if not higher. One also needs to take care of the marketing and shipping charges, so the amount left in their hands will be lesser than the actual profit margin. A low-cost product that one can sell at a premium price would be perfect for dropshipping.

  • Website

There are a few online platforms available where one can easily set up their online store. After sorting out the products to put in one's shop, giving the business identity will be the next step. A nice name and logo for your business will make it reach and attract more audience, so choose wisely!

  • Start now!

Once the website part is also done, one can now start dropshipping products and earn money. The next step can be hiring a few people to manage the business and automate it completely. In this way, one's business can become a passive income.


This is how the budding entrepreneurs of India, or anyone looking to start a low-risk low investment business can get started with their journey. Dropshipping seems like an easy way to earn money, but it requires a lot of time and effort along with skills like coordination, communication, and observation as well. Youngsters can easily acquire these skills with time and their businesses can take off as they once wished. Also, for an Indian looking to start a business, dropshipping is one of the best options. Looking at the stats of the growth of the eCommerce market now is a good time!

If you are also looking to start a low-investment business in 2023, click here to read about some of the best business ideas. If you are looking to take a small loan for your business, you can check out our business loan at TATA capital, and we can guide you for your start-up as well. Try today!

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