How to Start with Shopify Dropshipping In India

In this guide, I will walk you through the key steps to leverage the benefits and set up a successful dropshipping business in India with Shopify.

How to Get Started With Shopify Dropshipping India

The following steps will guide you from initial planning to launching and managing your dropshipping store. This process will help you build a solid foundation for your business, especially in India’s active market.

Step 1: Find Your Niche   

Choosing the right products is crucial for dropshipping success. You can start by conducting market research to find high-demand, low-competition niches. Tools like Google Trends and SEMrush are very helpful for this purpose. Moreover, it’s also important to understand customer behavior and preferences.

If you can’t focus on one product type, dropshipping allows you to sell many different kinds. You can easily add or remove products depending on what’s in demand.

Here are some tips on choosing products to sell:

• Find products that help people solve their problems.
• Choose products that people are excited about.
• Pick products that have a branding potential
• Stay updated on what’s trending.
• Choose products that people might buy on impulse.
• Focus on specific groups of customers with unique needs.

Here are some of the profitable niches for dropshipping in India, in my opinion:

• Regional Foods and Spices: India’s rich diversity in food means that regional specialties and spices are always in demand.
• Local Artisan and Handicraft Items: India has a rich heritage of handicrafts and artisanal products. Items such as handwoven textiles, pottery, traditional jewelry, and handcrafted decor pieces have a domestic and international market.
• Ayurvedic and Herbal Products: There’s a significant shift towards natural and Ayurvedic products, including health supplements, skincare, haircare, and wellness products. Products like turmeric supplements, neem face wash, and ashwagandha tablets are popular among consumers looking for natural health solutions.

Step 2: Source Your Products and Suppliers

Finding reliable suppliers is critical to the success of your dropshipping business. To efficiently source products, you can use platforms like AliExpress and various local Indian dropshipping suppliers. 

Here are the 5 of the best dropshipping suppliers in India to look at:

• Printful: A top company for print-on-demand, Printful lets users extend their reach by selling on social media platforms like Facebook, TikTok, and YouTube.
• Spocket: It provides a unique advantage by letting Indian dropshippers work exclusively with Indian suppliers. 
• CJdropshipping: This platform makes it easy to add products to Shopify stores with lower prices than those found on AliExpress.
• IndiaMART: Known as India’s top B2B marketplace, IndiaMART has 60% of the market and connects users with many suppliers.
• SaleHoo: With 8,000 wholesalers, this platform mainly helps those who sell on eBay and Amazon.

Step 3: Register Your Business of Shopify Dropshipping India Store

In India, there are four main ways to register your business:

• The first way is to register for the company yourself. But, gathering all the necessary documents takes time, effort, and money. You might also face legal problems.
• The second way is to use a lawyer or an accountant. This is the best method for setting up a dropshipping business in India.
• Another way is to register online. This has become more popular in recent years. You just need to fill out a few forms, pay a fee, and send the information to the right authorities.
• You can also use an online agency. You can easily find these on Google. Some specialize in areas like Shopify dropshipping. Just make sure you choose a trustworthy agency.

Moreover, e-commerce businesses in India looking to register must comply with specific legal requirements. Consider the following aspects:

• Business registration: Choose the type of business you want (e.g., sole proprietorship, LLP, or Pvt Ltd) and register it accordingly. If your sales exceed the threshold, you may need to obtain a GST (Goods and Services Tax) registration.
• Taxation: You should learn about India’s tax laws, especially GST. According to TaxAdda, you must charge GST if you’re dropshipping and your sales are over Rs. 20 lakhs.
• Import-export license: In case you want to source products internationally, you might need an Importer-Exporter Code (IEC).
• Payment gateway: Set up a way to take payments online. Razorpay, PayU, and Instamojo are popular choices in India.
• Legal documents: Write up important legal documents like terms and conditions, privacy policies, and return policies for your online store.

Step 4: Price Your Products

Product pricing is a critical strategy for your dropshipping business. To decide your first price, you can follow the following steps:

• Add up your variable costs per product.
• Include a profit margin.
• Consider all your fixed costs.
• Use price-checking software to compare your prices with those of your competitors.

In addition, in India, Shopify doesn’t take a cut of sales. However, it charges a fee for each transaction made with a payment service through a third-party payment provider. The amount of this fee depends on which Shopify plan you have. It’s calculated every 30 days using a basic formula: ([(cost of products – discounts) + tax + shipping charges] x rate).

Here are some common pricing strategies for dropshipping:

Fixed Markup

With this method, you set a fixed profit margin for all your products. For example, if you decide on a 20% markup, you add 20% to the cost of each product to determine the selling price.

Tiered Markup

If you sell many different types of products, you can adjust the markup based on the product’s price. This method lets you tailor the markup for each product. For instance, you might add a 50% markup to cheaper items to cover costs and make a profit but only a 20% markup on expensive items to keep your prices competitive.

Competition-Based Pricing

This strategy involves monitoring your competitors’ prices with tools and setting your prices accordingly. It’s common to consider charging less than your competitors. But be cautious—lower prices might make customers think your products are of lower quality.

Psychological Pricing

This approach uses pricing tricks influencing customer behavior, like setting prices just below whole numbers (e.g., $9.99 instead of $10). This strategy has been successful for many drop shippers because it can encourage more sales than traditional pricing methods.

Keep in mind that the initial price you set might be temporary. You’ll need to stay flexible, monitor your pricing, and adjust prices as required.

Step 5: Build Your Shopify Dropshipping Store In India

Here’s a quick look at what you need to do to have a Shopify dropshipping store:

Log in to your Shopify account.

You can sign up for a free trial if you’re new to Shopify and choose a plan that suits your budget and business size.

Choose a domain name.

Next, choose a domain name for your store. This is your website’s address. Choose one that matches your niche and clearly shows what you sell.

Set up and design your Shopify dropshipping India store

You can use one of Shopify themes to build and change your store’s look quickly by going to Online Store -> Themes in your Shopify admin dashboard. 

Set up payment gateways.

In India, you’ll want to support a variety of payment methods to accommodate different customer preferences. Consider including the following:

• Credit and Debit Cards: Visa, MasterCard, and American Express are widely accepted.
• UPI (Unified Payments Interface): UPI has become one of the most popular payment methods in India due to its convenience for direct bank transfers.
• Net Banking: Many customers prefer to pay directly from their bank accounts.
• Wallets: Digital wallets like Paytm, PhonePe, and Google Pay are commonly used for online transactions.
• Cash on Delivery (COD): Despite the growth in digital payments, COD remains a popular option for many Indian consumers. If you want to, you can offer this payment option.

Step 6: Use Apps To Automate Your Shopify Dropshipping Store

You can manually add products and manage orders, but this requires a lot of time and effort and is prone to errors. Fortunately, Shopify has an app store that allows you to link and sync your orders and fulfillment directly with your suppliers, streamlining your process and minimizing human mistakes:

Here are the top Shopify apps for dropshipping that are available:

Dropshipera ‑ Indian Dropship

Features: 

• Faster dropshipping
• Wholesale Price without minimum order.
• Automation fulfills your dropshipping.
• 24/7 customer support

Products available for sale: Clothing and accessories

Sourcing locations: India

Spocket ‑ US & EU Dropshipping

Features: 

• Ship faster with a wide range of US and European products.
• Significant discounts 
• Wholesale prices without minimum orders.
• Build a strong brand identity and customer loyalty with branded Invoicing.
• Automate your AliExpress dropshipping effortlessly.
• Access 24/7 VIP customer support for any queries.

Products available for sale: Arts and crafts, Automotive, Baby products, Bags and luggage, Business and office supplies, Clothing and accessories, Electronics, Entertainment and media, Furniture, Hardware, Health and beauty, Home and garden, Mature products, Pet products, Sports products, Toys and games.

Sourcing locations: Australia, Austria, Bahamas, Brazil, Canada, China, Denmark, Finland, France, Germany, India, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, South Korea, Spain, Sweden, Turkey, United Arab Emirates, United Kingdom, United States.

Roposo Clout Dropshipping

Features:

• Trendy product sources.
• Easily handle products, inventory, and orders.
• Reliable shipping and simple order tracking.

Products available for sale: Clothing and accessories, health and beauty, and home and garden.

Sourcing location: India.

Step 7: Launch And Marketing Your Store

Now you know how to start a dropshipping store. So, let’s talk about how to market it. Here are some ways to promote your Shopify Dropshipping India store:

• Paid ads: Facebook ads can reach more people, work well for many products, and catch people who buy impulsively. You can also use Google Shopping Ads to target specific, detailed keywords that attract buyers. Google ads might compete more in price, but they are worth trying.
• Influencer marketing: If your budget is small, consider influencer marketing. It’s cost-effective because people often trust influencers more than standard ads. Work out a deal where the influencer earns a commission on sales. TikTok and Instagram are the best platforms for this.
• Content marketing: To attract long-term traffic, you should plan content marketing. You can start a blog related to your niche or use YouTube, infographics, or a podcast to spread the word about your brand.
• Email marketing: Email marketing can build lasting relationships and encourage repeat business. Use Shopify Inbox to send offers, product suggestions, and news to engage customers and boost sales.

Step 8: Manage Orders and Make Adjustments

Quick order handling and good customer service are essential. You should use your supplier’s shipping options and give customers tracking details. 

Quickly deal with customer questions and complaints to maintain satisfaction. Tools like Zendesk or Freshdesk can help you manage customer support well.

You should also regularly check your product listings, prices, and marketing approaches. Use tools like Shopify’s analytics or other apps to look at sales data and customer behavior. Stay up-to-date with e-commerce trends and industry changes to stay competitive in the Indian market.

Why Should You Start With Dropshipping In India?

India’s e-commerce market is expected to expand significantly. A report from the Reserve Bank of India predicts that by 2024, it could be worth $99 billion, with an annual growth rate of about 28%, according to Statista. This represents a great opportunity for businesses of various sizes to tap into the increasing demand for online products and services.

Dropshipping in India is a smart way to start an online store or e-commerce business. Since the seller does not need to ship or deliver products, it’s a dependable business model.

Moreover, e-commerce sales in the country are expected to grow by 51% each year. Therefore, dropshipping in India has become a great option for those wanting to start a new business.

Additionally, India is a major global supplier of raw materials to various industries. This creates many opportunities for new dropshipping entrepreneurs. You can begin by partnering with a local manufacturer to test product demand. The manufacturer will handle the timely delivery of orders.

Why Shopify For Dropshipping In India?

India ranks in the top five countries for Shopify-powered stores. Shopify is easy to use, fast, and reliable. Therefore, setting up a Shopify dropshipping India store becomes quick and easy. Moreover, you can customize it easily.

• Very easy to use.
• Fully hosted, so you don’t deal with technical stuff like servers or hosting.
• The dashboard is clear and easy to navigate.
• Shopify has a built-in blog.
• Unlimited Bandwidth.
• Fast and secure.
• Add-ons enhance functionality.
• Good SEO.
• Access to many apps for additional features.
• Hardly any downtime.

Bottom Line

Above is a quick guide on Shopify Dropshipping in India. So, don’t hesitate—start your dropshipping business today to find success and make it profitable.

FAQs