Dropshipping From India to the US: Is It Possible in 2025?

We live in an incredible era where you can sell products to customers in another country without ever handling the inventory yourself—all from the comfort of your home.

That’s the power of dropshipping!

But for dropshipping to work, you need to pick the right market and suppliers.

Dropshipping from India to the US is an excellent opportunity that combines the best of both worlds: India's cost-effective, diverse products and the US's massive, lucrative market.

In this article, we’ll look at why the US is a top choice for dropshipping and how sourcing products from India can give you an edge.

So let’s get started!

Why you should dropship from India to the US

We all know why the US is the best market for dropshipping.

Thanks to its high GDP and disposable income, and a huge population of online shoppers, the potential here is massive.

In fact, did you know Americans spend the second-highest amount on online shopping globally?

Let’s not forget how well their infrastructure and shipping options are!

So, if you choose the right shipping methods, your delivery times shouldn’t be an issue.

Plus, Americans have plenty of purchasing power, with a GDP per capita of $63,544.

Last but not least, about 82% of the population (approximately 335 million) uses social media, and that number keeps growing, giving you a vast audience to reach.

This clearly shows why you should target the United States for dropshipping. 

But why dropship from India specifically? Let’s find out!

Cost-effective products

For starters, India is known for its low manufacturing costs.

This means you can source high-quality products at a fraction of the price compared to other countries.

Think handmade jewelry, textiles, and electronics—all at competitive rates. Lower product costs translate to higher profit margins for your business.

Diverse product range

Secondly, India offers a diverse range of products that cater to various niches.

From traditional handicrafts to coffee, you can find unique items that stand out in the US market.

Eco-friendly yoga mats, for example, are a hit among health-conscious consumers, particularly women. This variety allows you to target different customer segments easily.

Skilled craftsmanship

India has a rich heritage of skilled artisans and craftsmen.

Products such as handcrafted decor, intricate embroidery, and bespoke clothing are highly valued for their quality and uniqueness.

Dropshipping such items can attract customers looking for exclusive and well-crafted products, giving you a competitive edge.

Favorable exchange rates

And don’t forget the favorable exchange rates between the Indian Rupee and the US Dollar.

Currently, one USD is equal to almost 82 Indian Rupees.

This means you can buy goods in bulk at lower costs, which can either increase your profit margins or allow you to offer competitive prices to your customers.

Ecommerce infrastructure

India has a growing ecommerce infrastructure with reliable suppliers and efficient shipping options. 

If you're looking for Indian sellers with a good reputation in dropshipping but without fancy websites, check out IndiaMart. 

It’s one of the largest B2B ecommerce platforms, often called the Alibaba of India, with over 7.8 million suppliers and 170 million buyers.

However, unlike Alibaba, IndiaMart is a wholesale directory.

That means it doesn’t sell products directly. Instead, it connects users to manufacturers and suppliers who do.

Comparing different approaches to dropshipping from India to the US

When you’re dropshipping from India to the US, your approach can vary depending on where you live.

Here are the four options that we’ll cover below:

• Indian dropshippers using local Indian suppliers for US customers
• Indian dropshippers using suppliers outside of India for US customers
• US dropshippers using local Indian suppliers for US customers
• International dropshippers using local Indian suppliers for US customers

1. Indian dropshippers using local resources

If you're based in India and looking to enter the US market with your dropshipping business, you can take advantage of your local connections and cultural knowledge.

For instance, if you’re running a business like IndianCraftsCo that focuses on handcrafted items, you’re tapping into a niche market that values authenticity and quality.

Indian craftsmanship can stand out in the US market, where consumers are often looking for unique, high-quality products.

You can work with local suppliers to export goods on your behalf. This way, you can negotiate better terms with your supplier and charge a premium to your customers.

Advantages

• Quality control. You can easily visit suppliers, inspect products, and build strong relationships.
• Local knowledge. Your understanding of Indian markets and trends can help you select products that have international appeal.
• Negotiating power. Being local allows you to negotiate better deals with suppliers, courier companies, and packaging providers, especially as you scale.

Challenges

• Market understanding. You might find it harder to grasp US consumer preferences from afar, even if use tools like Google Trends to gauge what's trending. This can impact how well your products perform in the American market.
• Taxes. When you use a supplier to export goods from India to the US, you might need an import-export license, and the tax situation gets more complicated. This is why many Indian dropshippers choose to use US or China-based suppliers to simplify their operations.

Tips

We have two tips for you:

First, you should expect advertising costs, Shopify fees (if you use it), app fees, and other operating expenses to be charged in USD.

These costs can add up quickly due to currency exchange rates.

Factor in about 5% to 8% of your revenue going towards these expenses and price your products accordingly. This will help you maintain a healthy profit margin despite higher operational costs.

Second, you should definitely get your taxes sorted out before starting your dropshipping business in India.

When operating a dropshipping business in India, you need to be aware of two main types of taxes:

• Individual income tax: Your dropshipping income will be subject to personal income tax in India unless you set up a company in India specifically for your dropshipping business.
• Goods and Services Tax (GST): Every business in India must register for GST. The good news is that exports have 0% GST in India as of 2024. So, if you’re an Indian dropshipping to foreign customers, you won’t have to pay any GST.
  
  However, you must register for GST and file accordingly with the help of a chartered accountant (CA).

If you want to know more about how taxes for a dropshipper using an Indian supplier to export goods to the US (or customers outside India), I suggest reading this Printrove article:

• GST And Taxes For Drop Shipping Businesses In India

Why set up a US-based LLC as an Indian dropshipper?

As you scale, or if you have the budget, consider establishing a US-based Limited Liability Company (LLC).

There are three reasons for this:

• This will give you access to more payment gateways, which will improve your customer’s purchasing experience.
• US customers are more likely to trust and feel confident buying from an American company.
• Dealing with GST and other taxes in India can be a hassle, involving approximately 25 filings a year.

Don’t worry, it’s a very common strategy nowadays, and there are many reputable companies who can get this done. 

However, it makes sense to do it after you have generated significant revenue, as registering and maintaining a company in the US requires more money.

2. Indian dropshippers using non-Indian suppliers for US customers

If you're an Indian using suppliers outside of India, for example, China or the US itself, you don't need to worry about anything but local taxes.

Since your suppliers are outside of India, you don't need to worry about local Indian taxes on those products, but you'll still need to manage your GST registration and income taxes in India.

The ideal method would be to use dropshipping companies like Spocket and Syncee, which simplify the process of finding and sourcing products.

In fact, most Indian dropshippers prefer to work with foreign suppliers than Indian suppliers precisely because it helps avoid complicated tax issues.

Advantages

• Market flexibility. With access to international suppliers, you can quickly adapt to US market trends. If a particular product category becomes popular, you're not limited to what's available in India.

Challenges

• Complex supply chain. Managing suppliers across multiple countries can be challenging. You'll need to develop strong communication systems to manage different time zones.
• Currency management. You'll need to carefully manage the fluctuations in exchange rates and transaction fees as dealing with multiple currencies can impact your pricing and profits. To be on the safer side, expect about 5% to 8% of your revenue to go towards these expenses.

Tips

We have two tips for you:

First, either use US-based suppliers or platforms like Zendrop or Spocket that connect you to US dropshipping partners.

This will simplify logistics and tax management. Here are some suppliers you can look into:

• The 9 Best Free US Dropshipping Suppliers in 2025
• 12 Best US Dropshipping Suppliers in 2025 (Fast Shipping)
• 14 Best US Print on Demand Suppliers in 2025 (Fast Shipping)

Plus, you'll only have to manage between time zone differences between India and the US.

If you work with suppliers in other countries, you'll have to deal with additional time zones, learn about their shipping companies, and stay awake in their local schedules as well.

Second, set up a pricing strategy that accounts for variables like currency exchange rates and transaction fees to maintain healthy profit margins.

And, finally, if you want to look at fellow Indian dropshippers for inspiration, check out our article '8 Best Dropshipping & POD Store Examples in India (2025).'

3. US-based dropshippers working with Indian suppliers

If you’re based in the US and want to source products from Indian suppliers, you can leverage your understanding of US market trends and customer preferences.

If you have dealt with Chinese suppliers in the past, working with Indian suppliers can be a similar experience. Both regions have similar time zones and comparable shipping times to the US.

However, shipping from India is slightly more expensive than from China. We'll cover this point below.

Just so you know, India is 9 to 12 hours ahead of the US, so you’ll need to plan your communication schedule to accommodate the time difference

Advantages

• Market insight. You have a better grasp of US consumer behavior and trends than most other dropshippers.
• Customer service. You can provide timely support in the same time zone as your customers.
• Brand building. It's easier to create a brand that resonates with US customers when you're immersed in the culture.

Challenges

• Shipping costs. Shipping costs from India to the US are more expensive than those from China to the US.
• Time zone management. A 12-hour difference in time zone means you’ll need to handle your customers and suppliers at different times.

Tips

We have two main tips for you (again!):

First and foremost, focus on branding! As an American targeting the American market, you are in a unique position.

Go big on your social media game by promoting your brand (or brands) to the right audience (instead of just anyone or everyone) and engaging with them daily.

Secondly, you can use one of the best dropshipping suppliers in India.

If you want to find dropshipping suppliers outside the usual fancy websites, you should first understand India’s regional strengths.

Similar to China, different regions in India are known for specializing in specific products.

For example:

• Kolkata specializes in leather bags.
• Tiruppur is famous for cotton textiles and fashion.

To find the best suppliers, Google your niche and the products you’re interested in to identify which regions in India specialize in those products.

Then look for these suppliers on Google or IndiaMart. Most importantly, check if they allow dropshipping.

Keep in mind that these suppliers might not have website integrations or online shopping carts. You’ll likely have to place orders via email.

So, this approach is ideal only if you know someone locally who can visit the supplier or if you have a contact in the US who speaks the supplier's local language.

Should you negotiate with Indian suppliers?

Absolutely!

Negotiating with Indian suppliers is not just acceptable; it's expected.

Here’s what you need to know to make your negotiations successful:

• In India, haggling over prices is a common practice. Some suppliers may even offer discounts for bulk orders or long-term partnerships.
• Engaging with multiple suppliers can provide you with leverage, helping you find the best price.
• Your ability to negotiate effectively largely depends on the size of your order. As a dropshipper, if you’re placing a small initial order, your negotiation power might be limited.
• Be aware that the price you negotiate might not include shipping. Always ask for a detailed quote that includes shipping costs and any additional policies that might affect the final price.
• If you’re using a dropshipping platform like Printrove, which connects you directly with Indian suppliers, you might not have room to negotiate prices. These platforms often set fixed prices to streamline the process and include helpful features for beginners.
• Do not try to negotiate the price of your samples. If you do so, this can make you appear unprofessional and may negatively impact your relationship with the supplier and others in the supply chain.

How is business etiquette in India?

There are two key points that cross my mind when I think about business etiquette in India.

First, you should know that Indian business culture places a high value on building personal relationships. Show respect to your suppliers, and they’ll be more likely to accommodate your special requests.

The other point is that Indians tend to communicate in a more indirect manner to avoid confrontation and maintain harmony. 

Here’s an example scenario: You have placed an order for handmade jewelry with an Indian supplier. You ask if the supplier can meet a tighter deadline than usual because you have a special promotion coming up.

Supplier responds by saying, "We will certainly try our best to meet your request. We understand the importance of your promotion."

While the supplier hasn't directly said "no," phrases like "we will try our best" and "we understand the importance" might indicate that meeting the deadline could be challenging for them.

They are being polite and avoiding a direct refusal to maintain a positive relationship.

I would also like you to not worry too much about language barriers. Most Indians understand at least basic English. 

If you’re dealing with an Indian dropshipping platform, language issues are basically none.

However, if you’re working with suppliers from rural areas, using simple English words can help avoid misunderstandings.

And of course, you can always use tools like Google Translate.

What are the shipping costs from India to the US?

You might be wondering if shipping costs from India to the US are as cheap as from China to the US. 

The reality is that shipping costs from India to the US are generally higher compared to those from China. 

Here’s why:

China exports significantly more goods to the US than India does.

This higher volume of trade results in economies of scale, which is why the per-container cost for Chinese exports is lower.

Then, as of 2024, India and the US do not have a specific trade agreement that would reduce tariffs or streamline logistics, which can add to shipping costs.

Your dropshipping supplier will most likely have a preferred courier like FedEx or DHL. You can ask them about shipping rates and whether customs duties apply.

Given the higher shipping costs, it’s best to dropship lighter-weight things to minimize expenses.

Plus, as you grow, we recommend you to private label and ship all your goods to a fulfillment center in the US and distribute them from there.

That way you can save on shipping costs and take advantage of India’s cheaper product prices.

4. International dropshippers working with Indian suppliers

If you’re based outside both India and the US—say in Europe or Australia—you'll find yourself juggling multiple logistics and market dynamics.

Suppose you run an online store called BlingTrends from Europe, which sources Indian-made fashion accessories to sell in the US.

You benefit from cost-effective products but must manage shipping and customer service across continents.

Advantages

• Competitive pricing. Take advantage of lower production costs in India to offer better prices than your competitors.
• Global reach. Your international viewpoint can help you identify emerging trends and consumer preferences that might not be immediately apparent to US-based dropshippers.

Challenges

• Complex logistics. Coordinating shipping from India to the US means managing different shipping providers, tracking systems, and customs regulations.
• Cultural and market differences. You need to ensure your product selections and marketing strategies align with what resonates with American consumers.

Tips

We recommend switching to US-based suppliers to avoid the headaches of managing multiple time zones. This switch will simplify both logistics and tax management.

With US-based suppliers, you won’t have to worry about navigating different time zones or learning regional languages to communicate effectively.

However, if you prefer to use Indian suppliers, we suggest checking out our article The 11 Best Dropshipping Suppliers in India (Free & Paid).

Although these suppliers may charge slightly more than local options without fancy websites, you'll be able to communicate in English.

Just remember that you'll still need to manage communication across different time zones.

Dropshipping from India to USA alternatives

After reading the above section, you might decide that dropshipping from India isn’t the right solution for you, or you might want to explore suppliers from other countries before making a decision.

No worries! Check out the lists below to find the right country for your business:

• Best Dropshipping Suppliers in the UK
• Best Dropshipping Suppliers in the US
• Best Dropshipping Suppliers in Canada
• Best Dropshipping Suppliers in Europe
• Best Dropshipping Suppliers in Australia
• Best Dropshipping Suppliers in Malaysia
• Best Dropshipping Suppliers in New Zealand

Plus, don't forget to check our guide on the best countries for dropshipping!

FAQs

Here are some more FAQs answered:

Summary

Before we go, we've created a quick summary of this article for you, so you can easily remember it:

• The US is an excellent market for dropshipping due to its high GDP, large social media-active population, significant disposable income, and superior shipping options.
• India can be a great place to dropship from, as it offers low product prices, diverse offerings, skilled craftsmanship, a favorable exchange rate (1 USD = 82 INR), and a growing ecommerce infrastructure.
• If you’re based in India, use your local connections and knowledge to your advantage. As your business grows, consider setting up an LLC in the US to access more payment methods and build trust with US customers. Make sure to consult a chartered accountant (CA) to understand your tax responsibilities.
• If you're an Indian dropshipping with suppliers from other countries, such as China or the US, your main focus will be handling local taxes.
• If you’re based in the US and sourcing from Indian suppliers, use your knowledge of US market trends and customer preferences to your advantage. Focus on building your brand and boosting your social media presence.
• If you’re located outside both India and the US (like in Europe or Australia), managing multiple time zones and logistics can be challenging. We recommend switching to US-based suppliers to avoid the headaches of managing multiple time zones and languages.

Final thoughts

We hope this article has clarified whether dropshipping from India to the US is the right choice for you.

Unfortunately, India doesn't have China's AliExpress or Alibaba, which would have helped you simplify finding winning products and suppliers.

However, India does offer unique opportunities.

India is known for its affordable products in categories like coffee, leather, gems and jewelry, sustainable clothing, and handloom items.

You can find low, medium, and high ticket products in all of these categories!

And, to recap, we believe that dropshipping Indian products is best managed either from within India or through a US-based operation.

If you're neither based in India nor familiar with the Indian dropshipping scene, it might be easier to work directly with US suppliers.

We’d love to hear about your successes and challenges. Please share your experiences in the comments—we can all learn from each other in this journey!

Want to learn more about dropshipping?

Ready to move your dropshipping store to the next level? Check out the articles below for actionable steps to guide you on everything you need to know:

• How to Start Dropshipping in India: 2025 Guide (+ 7 Tips)
• Can You Do Dropshipping in Japan? (We Have the Answer!)
• 18+ Awesome Dropshipping Tools to Build a Great Store (2025)

Plus, don’t forget to check out our in-depth guide on how to start dropshipping here!

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