Dropshipping in India is a new concept through which people can earn money by working from home without any investment required. So the question arises that is dropshipping profitable in India or not?
There are various factors that determine whether dropshipping is profitable or not. But today we will look at the most important factors to find out whether dropshipping is a profitable business or not.
Before we go on the main topic let’s quickly understand what is dropshipping? (in 10 seconds)
Dropshipping is a business where you don’t need to worry about buying the products in order to sell them. You are directly connected to a supplier who will ship products to your customers.
All you need to worry about is finding the customers and your supplier will send products to your customer with the same bill, you charged to your customer. That way customers will never know where did the product actually come from.
Now I hope dropshipping is clear to you. Let’s get to our main topic
Now we know what dropshipping means. Let’s find out
Table of Contents
Is dropshipping profitable in India in 2023 or is it dead?
1. Value of the dropshipping business.
This graph crafted by grandviewsearch.com shows that the dropshipping market is rapidly increasing every year and by 2025 dropshipping will be at a different level.
With the help of this chart, you can easily understand the future and scope of dropshipping business in India as India is a big marketplace for business.
So if you are interested in the dropshipping business you should start as early as possible before the market is exhausted and you won’t get a chance to start your own business.
2. Emerging dropshipping platforms
Do you know how many dropshipping companies are in India as of now?
There are 20+ dropshipping companies in India. All these companies are earning good revenue and are having more than 1 million resellers connected with them in India.
If I take about the revenue made by some of the dropshipping companies
- Shopify made 158 crores in the year 2019
- Meesho made revenue of 80 crores in India in 2019
- Shop101 revenue made 11 crores from 2.20 crore in 2019
The revenue earned by the dropshipping companies clearly shows dropshipping companies are doing good in the market.
The company earns a good profit because of the dropshippers like you and me.
This proves that dropshipping is a profitable business in India that is slowly growing India and new dropshipping companies are also joining the competition.
Here is the list of dropshippers in India
Here is the full list of the other top dropshipping suppliers in India.
3. Variety of products introduced by dropshipping companies
Do you know what is the best way to identify the growth and profitability of a company? Any idea?
Don’t worry if you don’t know I will explain it to you
It’s the different types of products and services provided by the companies that show the growth and profitability of a company.
A company will never diversify its operations in other words, a company will never introduce new products unless the company is not making an extra profit on existing products.
Similarly, these drop shipping companies in India are not only providing one type of product but various products from fashion to tech, to cosmetics, kitchen stuff, jewelry, and much more.
4. International market dropshipping
This concept of the international market will clear your confusion about is dropshipping profitable in India or not.
Today the world is a global business. All companies are focusing on selling products to foreign countries in order to increase their customer base.
You can also start a dropshipping business and sell your products outside India to foreign countries to earn more profit.
You don’t even have to worry about logistics as your dropshipping platform will provide you with courier services and we all know how fast logistics delivery is in today’s world.
5. Low competition and more profitability in dropshipping:
I believe dropshipping is the only business with low competition. Do you why?
Because in dropshipping your main focus is to get to the customer, not the customer coming to you. What I mean to say is that. Let’s suppose you started your own dropshipping business. How will you generate sales?
You can’t generate any sales as your customers don’t know you. So it’s your responsibility to get to your customer and how can you do that is by advertising on Instagram or other social media. Don’t worry advertising is cheap on social media.
When you reach out to your customers all you need is to provide products at a reasonable price than your competitor (if there is any). If you do so your customer will definitely purchase your products.
6. Technology advancement makes dropshipping profitable:
Everything is online now!. You can study online, you can watch a movie online, you can talk to friends online and you can also shop online.
Nowadays People mostly prefer to buy products online rather than from a physical shop because of certain reasons like cheap prices, fast delivery, good quality, refunds, and more.
Since the outbreak of Covid-19 staying and buying products online has become a major trend. Due to Covid-19 a lot of people lost their job and business and everyone realized that online business is the best business.
This gives the dropshipping business a big opportunity to grow and generate profit. This factor makes dropshipping a profitable business in India
7. Quality products with the dropshipping major reason for the success of dropshipping
When online shopping came into existence everyone started to complain about the quality of the products. That was a huge drawback for online businesses.
Online companies realized that customers need quality products at a reasonable price so these companies started to deliver quality products to their customers which increased the customer’s trust in the company.
In dropshipping, you will also find quality products to sell because these dropshipping companies know the importance of selling quality products otherwise no dropshipper will sell their products.
So, the quality of the products plays a vital role in the dropshipping business.
Check out this blog post on the best dropshipping products that you can sell now for maximum profit
The Dropshipping business is not dead in India and it still has a lot of potential to grow. The 7 reasons discussed above clearly state that you still can earn in the dropshipping business for a very long time. But you need a good strategy than your competitors and other dropshippers.
This was my opinion on whether dropshipping is profitable or not in India. Now I want to know from your guys is dropshipping profitable in India What do you think? comment on your valuable ideas below.