How to Start Dropshipping in India: 2024 Guide (+ 7 Tips)

We all dream of finding that perfect business—one that is both profitable and enjoyable.

If you're in India, starting a dropshipping store could be that perfect opportunity!

With a young, tech-savvy population and a growing appetite for online shopping, there's never been a better time to explore dropshipping here.

In this article, we'll explain how to start dropshipping in India and share some of our top recommendations.

Read on!

Should you dropship in India?

Let's honestly assess if dropshipping in India is the right move for you.

The best target countries for dropshipping often share these characteristics:

• Fast shipping options. The country needs reliable shipping options, ideally with quick delivery times.
• High GDP per capita. A higher average income means residents are more likely to have disposable income to spend on online purchases.
• High social network penetration. A significant presence on platforms like Facebook and Instagram makes it easier to reach potential customers through digital marketing.
• Large population. A larger population reduces the risk of ad fatigue and provides a broader customer base.

So, does India fit the bill? Let’s break it down!

Shipping options in India

First, let's talk about shipping.

India ranks 38th in the world on the logistics performance index.

While this means the infrastructure is still developing, you have access to reliable shipping options like DHL, BlueDart, FedEx, and India Post.

These domestic delivery companies offer fast shipping options, including next-day delivery to major cities where the big spenders are.

Income of Indians

Next, let's look at the GDP per capita.

It’s around $2.4k in India, which is lower compared to Western countries.

While the average income is lower, the middle class is growing, and their disposable income is increasing. 

However, this generally means you'll need to focus on lower-priced products that are affordable for a larger segment of the population.

Social media use in India

So, what about social media penetration and the population?

462 Million Indians use social media, and a significant portion of them are active on social media platforms like Facebook, Instagram, and WhatsApp. 

The diversity within this population does require targeted marketing strategies. Still, the market size helps mitigate the risk of market saturation.

India’s market size

Lastly, India has a population exceeding 1.4 billion people. 

This vast population provides a large potential customer base, which is great for scaling your dropshipping business.

However, the diversity within this population means you'll need targeted marketing strategies.

This could mean spending more on marketing unless you have extensive knowledge of the market, which can then help you navigate these challenges more effectively.

Our thoughts on dropshipping in India

So, should you do dropshipping in India?

To put it straight and simple: no, unless you have a deep understanding of the market.

Let's look at the pros and cons.

Pros

• High social media usage. 462 Million Indians use social media. The large number of internet and social media users allows for broad digital marketing reach.
• Growing market. A rising middle class with increasing disposable income offers potential opportunities.
• Large population. The sheer size of the population provides a big potential customer base, reducing the risk of market saturation.
• Fast shipping options. Many delivery companies in India offer fast shipping options, such as next-day delivery to major cities.

Cons

• Lower average income. This limits the range of high-priced products.
• Market fragmentation. You'll need careful targeting and segmentation due to the diverse market.
• Lower currency value. One USD is equal to almost 82 Indian Rupees. The current trend also shows the dollar is strengthening and the rupee is weakening, making it challenging to manage costs.
• Cash on delivery. Despite 114 billion digital payments recorded across India in 2023, 65% of consumers still prefer COD, especially for fashion and clothing products.

To sum it up, if you don't live in India or aren't familiar with the market, it might be better to focus on countries with higher GDP per capita.

We recommend starting with low- or medium-priced products in countries like the USA or the UK, where the purchasing power is higher.

If you have more experience, you can explore medium-priced products or even consider high-ticket dropshipping for potentially higher profits.

Here are some articles we have created that will help you figure it out:

• The Best Fit: Low, Medium, or High-Ticket Dropshipping?
• Dropshipping Profit Margin: All the Stats You Need to Know
• 10 Most Common Dropshipping Mistakes & How to Avoid Them

And what about dropshipping from India?

Do you live in India or a Southeast Asian country?

If so, you probably already get the regional preferences and currency values, which can give you an edge over someone from a Western country.

So, if you're wondering whether you should start a dropshipping business from India, meaning selling products manufactured or stored in India, let us tell you this: it could definitely be a smart move!

Here's why:

1. Dropshipping within India

India has a massive and growing market with a large, diverse population.

By using a local dropshipping supplier, your products won't have to cross international borders, leading to:

• Reduced shipping times. Domestic shipping is faster and more reliable compared to international shipping.
• Lower shipping costs. Shipping within India is significantly cheaper, making your products more competitively priced.
• Same time zone. You can answer calls and solve customer queries in real-time.

So, if you see an opportunity to leverage local suppliers and cater to the Indian market, you should definitely consider it!

2. Dropshipping from India to other countries

Now, what if you want to dropship from India to other countries?

Basically, you find unique, high-quality products from Indian suppliers and sell these products to customers in wealthier countries, such as the US, Europe, or even Australia, where there is demand for unique Indian products.

An example of this could be selling Indian handicrafts, organic spices, or traditional textiles to international markets.

These products have a unique appeal and can attract customers looking for authentic and high-quality items.

However, you should know that shipping internationally is expensive which can affect your profit margins.

Plus, international shipping takes 10 to 12 days on average.

Most importantly, you’ll need to register for GST (Goods and Services Tax) and hire a chartered accountant to file approximately 25 returns each year.

That said, you can get around with late delivery times by being upfront with your customers.

As for GST, hiring a good CA with experience in cross-border shipping businesses can help you manage the regulatory requirements smoothly.

8 Steps to start a dropshipping business in India

Excited to start your online business?

Here’s a simple guide to launching a dropshipping business in India:

• Choose your store type: general, niche, or one-product store
• Select products to sell
• Identify your ideal target audience
• Find reliable dropshipping suppliers
• Choose an ecommerce platform
• Design and brand your store
• Set up payment gateways
• Promote your store with social media and content marketing

Going into detail on each step would make this guide too lengthy, but don’t worry!

If you need an in-depth guide on building your online store, check out this article.

Alternatively, you can follow our checklist, which includes 23 steps to launch your dropshipping store successfully!

7 Tips for dropshipping in India

These tips will help you avoid common mistakes, making your dropshipping journey much smoother.

Let’s start with the first one!

1. Use an ecommerce platform suited for the Indian market

Your ecommerce platform is the backbone of your dropshipping store. It enables you to design, build, and manage your store efficiently.

A good platform should have the right features, be user-friendly, and offer excellent customer support.

Choosing an ecommerce platform for your dropshipping store can be challenging as there are many options available.

The ideal platform will offer various features, be easy to use, and fit your business model and budget. This will make managing your store much simpler.

The platform that fits you best depends on a few factors.

For example, do you have a budget for a feature-rich platform? Or are you looking for the best SEO performance to market your store organically?

Here’s a table to help you decide:

You need:	The best options(s) for you:	Read Review
Easy to use platform with extensive features	Shopify	- Shopify Review
A robust feature set and scalability	BigCommerce	- BigCommerce Review
The most flexible and customizable platform	WooCommerce	- WooCommerce Review

Just so you know, as of 2024, Indians favor WooCommerce over Shopify.

According to BuiltWith, there are 122,729 live WooCommerce stores and 66,141 live Shopify stores in India.

So, if you're still not sure, we recommend Shopify and WooCommerce.

You can read our reviews of these platforms (link in the table above) if you have any doubts.

Note: If you're wondering why we haven't recommended Wix, it's because Wix has fewer advanced ecommerce features and design limitations. For more details, read our article 'Why You Should Not Use Wix for Dropshipping in 2024.'

If you're still uncertain about which ecommerce platform to choose, take our quiz here to get a personalized recommendation based on your needs:

Or, use our Ecommerce Platform Advisor GPT to easily find which ecommerce platform fits you!

2. Find local suppliers

Before opening your store, you need to find a reliable dropshipping supplier.

A dropshipping supplier holds the products you sell and ships them to your customers once you start receiving orders.

While you could opt for a Chinese dropshipping supplier, we recommend looking for suppliers based in India. 

This is because shipping from China to India takes a long time due to the lack of a trade deal between the countries.

On the other hand, local suppliers in India can offer:

• Faster shipping times
• Easier return processes
• High-quality ‘Made in India’ products
• Better customer service

The only downside is that local products might cost a bit more, but the benefits outweigh this.

Tip: Always check if the products are available on Alibaba or AliExpress, as many Indian sellers buy products in bulk from China and resell them at a margin.

With that in mind, here’s an overview of some of the best dropshipping suppliers based in India:

Supplier	Rating	Niche	Pricing
vFulfill	4.4/5.0	General	$79 / $149 / $249 per month
Printrove	4.4/5.0	POD	Free
eSources	4.0/5.0	General	£12.50 / £20 per month
Blinkstore	3.8/5.0	POD	Free
BaapStore	3.8/5.0	General	Rs 29,999 / Rs 59,999 / Rs 99,999 per year
Snazzyway	3.8/5.0	Lingerie	Rs 5,000 to Rs 100,000 one-time fee
SaleHoo	3.6/5.0	General	$67 per year or $127 for a lifetime
Wholesalebox	3.6/5.0	Fashion	Free
SeasonsWay	3.5/5.0	General	Rs 5,000 to Rs 100,000 per month
IndiaMART	3.2/5.0	General	Free

Read our reviews here: The 10 Best Dropshipping Suppliers in India (Free & Paid)

If you want to explore more Indian sellers who offer dropshipping but don’t have fancy websites, check out IndiaMart. 

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

However, unlike Alibaba, IndiaMart is a wholesale directory. It doesn't sell products directly; instead, it connects users to manufacturers and suppliers who do.

3. Use India’s regional strengths (Optional)

This tip is for those of you looking to find dropshipping suppliers outside the usual fancy websites.

These suppliers are experts at local selling and exporting goods but don’t have a strong online presence.

For instance, if you want to sell Indian crafts or leather bags, this is the approach for you.

If you’re choosing an Indian version of dropshipping intermediaries like Spocket or Syncee from the list of suppliers provided in the last step, you can skip this tip!

So let’s understand how you can take advantage of India’s regional strengths!

India is a huge country, and while it doesn't manufacture everything, the products it does produce are often of high quality and competitively priced.

Similar to China, different regions in India specialize in specific products.

For example, Kolkata specializes in producing leather bags, while Tiruppur is known for cotton textiles and fashion products.

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

Then look for these suppliers on Google or IndiaMart. And most importantly, check with the suppliers 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 through email.

That's why this approach makes the most sense if you're based in India.

However, this method could also be very useful when you're looking to import goods in bulk or start private labeling in the future!

4. Offer popular payment methods

An important part of starting a dropshipping business in India is understanding which payment methods your customers prefer.

If you don't offer these options, you may end up with a lot of abandoned checkouts!

So, how do you make sure you provide the most important payment methods for the Indian market?

Begin by setting up the right payment gateways. These third-party systems make sure your customers' money reaches your account safely and smoothly.

Each payment gateway typically supports multiple payment methods. Let's check out the most popular ones in India.

According to a survey by Statista in 2024:

• 64% of respondents use digital wallets like Google Pay and PhonePe for online payments.
• 57% use Cash on Delivery (COD)
• 57% use debit cards.
• 46% use credit cards.

While COD is popular, it can be a hassle to handle.

What you can do is remove this option altogether!

This way, you'll attract tech-savvy and affluent customers, which is a great advantage.

However, if you’re selling low-cost items and your target audience is the general public, you might want to keep the COD option.

And let's not forget the remaining payment methods: direct debit (7%) and vouchers (19%).

To sum up, if you can offer the following payment methods on your dropshipping store, you'll satisfy nearly all of your visitors:

• Google Pay
• Paytm
• Amazon Pay
• Debit card
• Credit card
• Bank transfer

5. Budget for dropshipping costs

Although dropshipping has minimal startup costs, it isn’t free. You’ll need to budget for various expenses to get your business off the ground. 

Here’s a detailed overview of the costs involved in starting a dropshipping business in India:

• Business startup costs. Starting a business can cost between $50 and $320.
• Ecommerce platform costs. You can expect to pay between $39 and $439 a month if you use Shopify.
• Domain name costs. Domain name costs range from $8 to $20 per year.
• Creating your dropshipping store costs. Setting up a dropshipping store can cost from $0 to $440. This includes various dropshipping apps that add some extra functionalities to your store. However, you might find free apps that meet your needs. Check out the best Shopify dropshipping apps for beginners here!
• Advertisement costs. Advertisement costs range from $0 to $1,000 a month for an Indian market.
• Supplier costs. Supplier costs range from $0 to $30 per month.

So, how much does that end up being in total?

Let's break the costs down:

1. One-time costs. Before you start dropshipping, expect to spend between $60 and $700. This includes registering your business, buying a domain, and building your store. Doing these tasks yourself can lead to significant savings.
2. Monthly payments. To run a successful dropshipping business, expect monthly expenses between $150 and $1,500. This covers Shopify fees, themes, apps, product research, advertising, and supplier costs.

6. Learn Indian tax rules

Taxes might not be the most exciting topic, but you should definitely figure it out before starting your dropshipping business in India.

The last thing you want is an unexpected tax bill!

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

• Individual income tax. This tax takes a percentage of your income, similar to if you were working for a company.
• 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).

Tip: Consult a CA to understand your specific tax obligations and ensure you comply with all regulations.

7. Consider getting an Indian domain

Our last tip will help to increase your visitor's trust!

While most dropshipping businesses use a '.com' domain, targeting the Indian market might be more effective with a local domain.

The '.in' domain is the official domain for Indian businesses. Using it signals to your visitors that you are a legitimate business operating within and for the Indian market.

To register a .in domain, you need to provide valid identification and business documentation, such as a PAN card, business registration certificate, or other official Indian documents.

We recommend checking out Namecheap for domain registration.

They offer some of the lowest prices and include free privacy protection to keep your personal information private.

Fortunately, a domain isn't expensive. For under $11 per year, you can secure a professional .in domain and also set up a custom email address.

Dropshipping in India FAQs

Starting a successful dropshipping business in India can be complex, and you may still have some lingering questions.

To help you out, we've created this frequently asked questions section about dropshipping in India.

Alternative dropshipping markets

Considering that India's GDP per capita is only $2.4K, its lower currency value, and the many small markets within the country, you might want to explore dropshipping opportunities in other countries.

Check out these guides to learn more about starting a dropshipping business in different locations:

• How to Start a Dropshipping Business in Canada
• How to Start a Dropshipping Business in Europe
• How to Start a Dropshipping Business in the United States
• How to Start a Dropshipping Business in the United Kingdom

Plus, don’t miss our comprehensive guide on the best countries to target when dropshipping!

Final thoughts

After reading this article, we hope you're ready to start your own dropshipping business in India!

The Indian market offers a great opportunity with its large and diverse consumer base, high social media use, and growing middle class with more money to spend.

But, be aware of the challenges.

The lower average income means you'll need to focus on affordable products, and the diverse market requires careful targeting. Also, handling shipping, especially Cash on Delivery (COD), can be tricky.

If you're from a Southeast Asian country, your understanding of local preferences and currency values gives you a competitive edge, which will help you make a profit faster.

For those living outside of Southeast Asia, you might want to consider countries with higher GDP per capita.

A final tip from us: Don't spend too much time on research before taking the first steps to create your dropshipping business. Learn as you go!

There’s too much information to cover in one article. So, we recommend following our step-by-step checklist to learn everything more quickly!

If you have any questions, feel free to leave them in the comments below.

Good luck with starting your Indian dropshipping store!

Want to learn more about dropshipping?

Ready to move your dropshipping store to the next level? Check out the articles below:

• Top 10 Fastest Dropshipping Suppliers (Quick Delivery)
• Shein Dropshipping: A Complete Guide (& Is It Allowed?)
• How to Start a WooCommerce Store: Step-By-Step Guide (2024)

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