Earning Money through Dropshipping Business in India in 2022 – BiographyMafia

In this article, we will understand what dropshipping business is and Earning Money through dropshipping in 2022.  What are the various factors related to it, and how can someone earn money by doing dropshipping business in India. Dropshipping is a form of online business where any businessman takes orders from the customer and without having any inventory or warehousing purchases the product from a third-party supplier by becoming a customer and then fulfilling the orders of his customer. This form of business allows the businessman to outsource all the products and instead of storing and managing all the warehouse activities they directly deliver to the customer by basically becoming a type of supplier.

In this business, the products are directly delivered to the customers and the person doing dropshipping does not have to handle and manage any product directly by himself. The person does not need any physical Store but only needs an online store or online platform from where he can manage all the activities, manage his orders from his customers, and can fulfill them sitting in the comfort of their home.

This kind of business was started by entrepreneurs which is very much different from the traditional retail model of doing business. In the dropshipping business model basically, the person manages all the products in the online store and online medium so when the customer places an order, we have to send that particular order to the drop shipper and have to inform our customers about the advancement in his order. We just have to handle all the service of the customers but not in the physical form.


How dropshipping works

Now in this paragraph, we will understand the working of drop shopping. This particular business of dropshipping depends on all the online arrangements that a person makes. This form of business also needs a particular sequence to be followed to complete everything as per the requirement.

  • The first step is where we have to find the drop shippers and we have to sign an agreement with that drop shipper so that he will fulfill all our orders that we may be receiving.
  • The next step is to take orders from all our customers in the online mode.
  • When the seller receives the order the customer will get a confirmation that the seller has received his order.
  • The next step is where the seller sends his order to the drop shipper.
  • When the drop shipper receives the order from the seller, he shifts the order forward to the customer.
  • The final step is that the customer receives his or her product.


Things you need in Dropshipping business 

In Dropshipping business, you need to keep the following things in mind:


  • Research- You need to research customers’ needs as your service will be only for consumers’ use. So you need to know everything about customers’ needs and wants, and you should do proper customer profiling as well before offering them the service and its price. 
  • Competitive analysis- you need to do competitive analysis as well to know how your competitors are delivering their products to the customers and at what price. 
  • User-friendly app and website- As your customers will be booking through an app or website, you need to keep your app or website user-friendly, technologically advanced, and easy to use to make the customer experience unforgettable.
  • Offers and discounts- To attract a large number of target customers, you need to provide your customers with various offers and discounts. In this way, they won’t switch to your competitor. 
  • Provide order details- You need to provide your customers with order details like order confirmation, order shipment detail, tracking of the orders, etc.

Now you must be wondering what are the pros and cons of dropshipping, we have mentioned them to you.


Pros of dropshipping

  • You don’t need to invest in the installation of a physical warehouse for products, you will supply directly from the manufacturer.
  • You don’t have to bear any risk of investing a huge amount of inventory.
  • You will be able to reduce your cost of storing and logistics. 


Cons of dropshipping

  • There is very little control over product quality as it is directly shifted from the manufacturer to the consumer, low quality may lead to trust issues in your Shipping service.
  • Due to competition, it becomes difficult to set a price that you can at the same time is low in the market so that customers do not switch to the competitors.
  • You need to keep your website up to date or else your customers may not know which product is in stock or which product went out of stock.


Despite a few cons we can say drop shipping is a profitable business for merchants. As it involves a very low rate of risk and it also allows you to sell products to your customers directly by eliminating the intermediate cost. 

Now you know the benefits of drop shipping, we will discuss the steps to follow to start your own dropshipping business. 

Registering your Dropshipping business

As we know in India you need to register your company under the Companies Act 2013 irrespective of the industries to which your company belongs. You can’t register your business through online platforms or the websites of the ministry of corporate affairs.

You need to register your business or else very serious consequences or some legal actions can be taken by Indian government authorities.

As you register your company you will get various benefits and may get low-interest rate loans as well as some tax exemptions.

Mobile registering your business we need to get your good and service tax identification number as well as it is important to make any kind of transaction or to buy all sell anything in India. 


Open a current account


Now, you have registered your business and now you need to have a current account. Initially, this account is for every transaction and exchange of money in the business. 

You need to find the best bank that provides you with various offers to open your current account. You can open your current account with foreign banks as well because you have a larger network of branches and they will also have their correspondent Bank everywhere in the world. International bank’s current account, your transaction will become easier and faster. 

As for your Dropshipping business, you need a bank account that takes less time than others and makes instant payments to any manufacturer. 


Opening PayPal account

You need to open your PayPal account if you want to do business in India. The PayPal account will be open once you have got your GSTN number and current account. As PayPal is the fastest way to transfer money worldwide. You need a few documents to open a PayPal account such as a GSPIN number, current account details, etc. Sure details all being verified by the bank then your are applying will be accepted to open your account on PayPal. 


Making a product list

Once all your bank formalities are done now the next step will be starting steps for Dropshipping business in India. 

Now you need to make a list of what you will deliver to your customers. This list-making process is very difficult and complex because you need to decide on products that can easily be delivered before any expiry date and can quickly be delivered. 

In this market, your major competitors are dropshippers and eCommerce sites like Amazon, Flipkart, Myntra, Swiggy, Instamart, Jiomart, etc. 

For you need to put a lot of time into making the list of the products you will be delivering to make sure that you are delivering what’s trending as well as all-time favorite items for selling online. 

Few things generally remain in demand such as mobile accessories, automobile ancillary, books, etc. 


Check Indian Rules and Regulations 


This is the most important step as you are doing business in India. You need to know the Indian rules and regulations before setting up your dropshipping business. You must read all the rules and regulations given by the government about import and say of various goods in India. 


Like in India there are very strict rules when it comes to importing medicines from a foreign country. You also need a license or prior certificate from government authorities to work in this dropshipping business and you also have to take care of all the things that the government of India has banned in the country like Chinese products.


You also have to take care of all the import duties that you have to pay for imported goods from foreign suppliers. As the higher the duty you will pay higher the amount you will charge from your customers and customers want to buy at a lower price.


Get the best rate from the supplier


There are many websites available that give you the contract number of various manufacturers, distributors, or other suppliers. You can use such data to get the best from the supplier and get the advantage of using such a website. These listed manufacturing distributors or other suppliers nose what is permitted by the government and which products are not permitted by the government of India. 

Since these suppliers are listed on credential websites,  the chances of any fraud are very less. It is very important because you are not involved with your customer on any physical platform. 


Deciding the product price and return policy


For deciding the final price of the product you need to talk to the supplier since they are having a better knowledge of what product to offer to the customer. 

Generally, suppliers make an average quantity. Also need to make Shaw that suppliers are giving you the return policy in case any damage or any expiry date is found from the product given by the supplier.  Because you want to provide your customer the best experience and don’t want customers to expect any kind of faulty, wrong, or damaged product from their side. This policy is very important because if you choose this policy you will not have to bear any kind of loss but in case you do not get this policy you will have to write off the damage as a loss. In case of damage, the supplier can take the product back and will replace it without charging you anything.


Selecting selling price


After this, the most important thing is to decide your selling price for dropshipping. In your final price, you need to consider all the costs like import duties, GST, taxes, returns, bank charges, etc. You need to set a price that covers all your costs and keep your margin as well. You need to keep your margin in such a way that it does not make the product price very high for the customers. 


Launch your business website or marketplace


Because your business is online-based we need to make our website and marketplace. It is very easy and inexpensive to make your eCommerce website. 

In case you want to go for Marketplace, you can consider Shopify, Etsy, or Facebook marketplace


Area of Operation 


You have to decide the area where you will be supplying your products. In this the major problem comes is that your suppliers may have limited access to deliver products in the market. In such a situation, you can either limit your area of creation to make sure that your product is delivered quickly or you can find different suppliers to cover the larger area that can cover even the whole country for deliveries. You can also tie-up with the logistic post (such as Indian Post as it has over to deliver your products. 


Uploading unique and excellent Content


Now you finally need to post excellent content which is owned by you and you make in nature. You have to make sure that you are using different graphics on your website to make the customers’ experience you need unforgettable. The more you attach images and infographics the more customer will look at your content. The content should make your customers feel attached to your website or app so that every time they come to your up they make a purchase which initially increases the conversion rate of your business. 


Using social media for advertising


You can use social media to advertise your dropshipping business on different media platforms such as Facebook, Twitter, Instagram, Pinterest, LinkedIn, etc. You are using social media for advertising because after the pandemic everyone is using social media a lot. And they come are an opportunity to use that in our favor of advertising a business at a very low cost. 

You can start your blog you are sharing customers’ reviews and experiences about the product you are saving. Can also make a YouTube free channel where you post different videos of your product and also can make money out of it by making videos like storytelling to bring more attention to the customers.  You can also ask other people like influences or affiliate marketers to make videos of using your product to spread bird of mouth and get more target customers.



Through this article, we discussed how dropshipping business works, its benefits and what you can do to make this business successful. You have to make sure that you are selling a product that gives you a more competitive advantage as well as giving products that are already available in the market and are sold by the competitor at such a price that attracts the customers of competitors to buy products from you. 

You need to keep on researching the customers to make sure that you are maintaining a long-term relationship with them. So now we can say by gaining the knowledge through this article now you are ready to start your dropshipping business.

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