How To Start Drop shipping Business In 2020 - All About Business

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Saturday, July 4, 2020

How To Start Drop shipping Business In 2020

How To Start Drop shipping  Business In 2020

How To Start Drop shipping  Business In 2020, Can you start drop shipping business in 2020? Would drop shipping today be correct or not? 

If it is right then how will you start drop shipping business in 2020, Everything we will see in this post.

Drop shipping is the business which you can start very easily without any investment.

Without investment means where you are investing 5 digits in Lac, And now you can start drop shipping in just 5-6 thousand rupees and 5-6 thousand investment is considered as without investment. 

Every business you need to invest some things like Time, Money etc. And here you can earn very well in drop shipping.

How To Start Dropshipping  Business In India in 2020 - Businessqueary
How To Start Drop shipping  Business In India in 2020 

If you want to start drop shipping in 2020, To start this in 2020 you need to understand first what is actually drop shipping. Lets See it by a drop shipping model.

Drop shipping Business Model 

Drop shipping business model shows how drop shipping business works.
Dropshipping Business Model
Dropshipping Business Model

Drop shipping model is where no need to purchase product here so no need of Space because of this no need of any lump-sum amount. 

Shops Like Ali express he provides you products in chip price and that product you have ship by adding your profit margin. 

Here you need a store and here you have to create a store where you can add your products, which products that you've purchased from Ali express or any other cheap price provider.

Basically show your products in your store by adding margin, customers will come and purchase that product, after purchasing by customer you'll start getting money. 

Using that money directly go to Ali Express where you can give them customers address and sent that order to customers address. 

After ordering supplier sent your product directly to the customers address. It is a very simple model where only need time, brain to research, and some amount of money to create a store.

Benefits Of Drop shipping Business   

  • Very less investment ( Capital ) required.
  • No need of warehouses.
  • No need to purchase product.
  • No need to pack product by yourself.
  • No need to ship by yourself.
  • No need of Accounting or tracking of product by yourself.
  • Full business is online.
  • You can open a store free on Facebook, shopify, Etsy.
Your work in drop shipping Business is just, just find order by yourself and place that orders.

Now, You Know all about Drop shipping business, And now if you want to start drop shipping business then read below,

Starting Drop shipping in India

Now-a-days For Drop shipping Business Government Added strict rules to send and receive money from foreign countries governing E-commerce businesses. 

So, Lets see process to start Drop shipping Business.

Register Your Business

As per Indian laws and regulations any business you have to register because you need to register your drop shipping business.

You can directly register This business by visiting Ministry of corporate affairs online. 

Registration is compulsory for drop shipping business, Without registering, you can get into trouble, due to strict law of Indian government.

You'll also get a lots of benefits after registration by State and central government, Like Low Interest Loans and tax benefits etc.

Here you get GS TIN (Goods and service tax identification number), And this is also beneficial to complete payment formalities.

Open A Current Account

YES, It is mandatory to open current account from any goof bank when you are in business.

For drop shipping business you can open current account in reserve bank of India or the best option is to open account in foreign bank because they have large network and it is easy for foreign transaction.

Open PayPal Account  

For Drop shipping Business it is must to open account in PayPal Because foreign Suppliers required instant payments to send orders, Many time foreign suppliers do payments only through PayPal. 

PayPal is very popular all over the world and also for dropshipping business.

To open PayPal Account you need GS-TIN number and current account, PayPal verifies details first before accepting payments. 

PayPal sends two small denominations to your bank account you have to check it and fill that amount in PayPal.com once you've entered correct amount then your PayPal account is ready.

Draw A Product List

Product list Drawing is the next step in drop shipping business after completion of banking & official formalities. 

As a drop-shipper, firstly you have to finalize that products which you're going to sell. 

As every business starting is difficult and confusing is this step, that means you have to draw such products that gets sold out quickly, and it is little bit difficult.

Because when you are going sell any product that get competition automatically with big websites like amazon, flipkart etc. 

Its difficult to compete with these bigger websites. and also competing with other big drop shippers who already have stores on Facebook or shopify etc.

Generally, you have to know what is trending and that you can sell immediately.

For online businesses Maximum selling products are mobile products Like accessories, spare parts of machinery etc. because only these products have large number of customers.

To start selling from marketplace like drop shipping you have just finalize your sector that you wish to enter.

Check Indian Rules And Regulations

Checking of Rules and Regulations are very important before entering in business world. You have to check import and sales Rules.

For example, remote control car have operated above frequency is banned by government.

Also for food items only if they have clearances from Indian standard Authorities And Food Safety.

Pharmacy sector also have strict rules and regulations in India, you can't import medicines from foreign countries directly, that means you are not able to start online pharmacy shop.  

In drop shipping business many products requires certification and clearances before of its use.  

Contact Suppliers for best rate

As a retailer to connect with manufacturer, distributors or any others suppliers you get help by Ali express, tradeindia.com, indiamart.com

Because of these websites you'll get a list of products are not regulated by Indian government, and its a great advantage of these websites.

Also these websites have supplier list with strong credentials.

Finalize Price And Policies

Every time you have to ask to the supplier for quotations of that products that you're going to sell from drop shipping business. 

Here you have to solicit quotation from three to four suppliers for choosing best one.

Also, you don't have to respond that types of questions like Average order quantity, before confirmation of market and bagging of order. 

Also you need to understand about suppliers policies like return policy.

Return policy is very important because sometimes in transportation products may get damage, or product that supplied to customer won't meet customers specifications.

Because of these reasons you need to get return that product to supplier, otherwise you have to write it in your own loss if you not get understand about return policies.

Decide selling price

It is main and important factor in drop shipping business of finalizing of product selling price.

Deciding of selling price depends on factors like Taxes, import duty, GST, returns, banking charges for payments, and operational cost etc. you have to add your margin considering above of these factors.

Without calculation of cost of stuff, expenses, other charges, and taxes, it's going to end up your drop shipping business. also you will see many drop shippers gone because they tried to sell products in unrealistic price.

Open E-commerce Website Or Marketplace

E-commerce website is the best way for drop shipping business, because it gives your business credibility of sorts. making of website cost going to be 5 to 6000/- only.

Also in India prefer shopify to get popularity and To get clients from america and other western clients prefer Etsy.

You can also open your marketplace on Facebook, main disadvantage of Facebook marketplace is you get clients only from your area.

Integrate Tools, Apps, And widgets   

To integrate your website or marketplace the best tools, apps and widgets like oberlo and mailchimp.

To be a successful drop shipper in India you need to automate your drop shipping business and these tools and widgets will help you for this purpose. 

Many of them are free and some are paid use it as per your requirements.

You can manage this drop shipping business easily if you start using these apps and resources. 

It helps to get better online shopping experience to your customers and ultimately it gives you more business.

Area Of Operation

Here, every supplier have their deliver boundaries and  they are not able to deliver products beyond it, because India is a big country.

You need to connect with different different suppliers to get better coverage of your drop shipping business in India, also you can choose logistic post, logistic post it is a service by Indian post.

Using logistic post you are able to deliver over 150,000 PIN in India. Logistic post is a custom made and to use of this you need to stock your products.

Upload Excellent Images And Content

To get order you need to Upload excellent Images and Some content (description of product) and this helps to your customers to choose right product.

Launch Own App

Now-a-days Internet prices are chip in India Because of this everybody use their smartphones for selling and buying purposes. 

For wide range of mobile use of buying product you can launch you own app for your drop shipping business, also many third party apps and website gives option to promote your app. 

In today's time app is very important for drop shipping business to get orders. 

Use Social Media To Advertise 

For advertisement of drop shipping business social media is best option, social media means you can create a business page on Facebook, Twitter, LinkedIn, Pinterest etc. 

It is going to be free or for some options it is paid. you can also prefer How to use social media for small business marketing | Instagram marketing.

Also, Best option is to start affiliate program where you have to provide links of your products and many affiliate marketing experts sell your products on their platforms. 

Also, You can use section of videos and YouTube gives you option to create a free channel on it, Read about How to grow on YouTube 2020

You can share your videos of products and also by joining YouTube partner program you can also make money from Google Adsense.  

How To Start Drop shipping  Business In 2020, Above article covered all points, If you have any question about it i would love to hear it, you can post a comment below.

   

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