Anyone looking for opening an eCommerce venture might have come across the term – Drop shipping. What a beautiful idea it will be if I want to open a online store for selling my niche products, but do not have to carry the burden of buying products from whole-sellers, store them in a warehouse, price and list them on my eCommerce portal and then handle shipping!! Drop shipping business exactly gives you this facility.
Drop shipping is an eCommerce business model of retail fulfillment where you can sell physical products online without stocking them. When a store sells a product, it actually buys it from a supplier and has it shipped directly to the customer.
In India, you can start your drop shipping business using drop ship aggregators like Shopify, Chinabrands or BiglyDropship. However, monetizing your drop shipping store will require you to chose the right products to sell. You cannot opt for mobile phones as your niche product because there will be many options for customers to compare the price in various online platforms. In drop shipping, you sell the products by adding margin over the price the supplier has quoted. The margin is your profit. So, you have to look for products such as garments, jeweler or computer accessories, which do not have a universal fixed price attached to them.
Drop shipping business is considered as any other trading company so you need to first decide how you want to operate this company (Proprietorship/ Partnership/ Private Limited/ LLP/ OPC). Accordingly, you have to register your entity and make sure to obtain your GSTIN. Thereafter, you have to buy your domain, design your own eCommerece site using shopify, woocommerce or WordPress, list niche products from your supplier and then host your business online.
Once your eCommerce site is live, you need to follow various marketing techniques to drive traffic and customers to your site. If you are lucky, you can make some good bucks out of your drop shipping business!!
Why not give a try!!
Opps!! There is another social commerce platform Meesho which is slowly gaining popularity. It enables small businesses and individuals to start their online stores via social channels such as WhatsApp, Facebook, Instagram etc. Lets keep discussion on Meesho for another blog!!!