How to Start a Dropshipping Business in India

Dropshipping has become one of the most popular online business models for beginners, students, freelancers, and working professionals in India. Why? Because you can start it without stocking inventory, without a warehouse, and with very low investment.

If you’ve been thinking about starting your own online business but don’t know where to begin, this guide will walk you through everything step-by-step—exactly how successful dropshippers do it in 2025.

What Is Dropshipping?

Dropshipping is a business model where you sell products online without keeping them in stock. Instead, when a customer places an order, you forward that order to your supplier, who ships the product directly to your customer.

Why Beginners Love Dropshipping:

No inventory required
Low startup cost
Work from anywhere
Scalable business
Wide range of products

But dropshipping only works when you follow a proper system—product research, good suppliers, a high-converting store, and strong marketing.

Let’s start the full step-by-step guide.

Step 1: Choose a Profitable Niche

Your niche decides whether you will make money or struggle. A niche is simply the category of products you want to sell.

How to Choose the Right Niche:

Solve a customer problem
Easy to ship
Good profit margin
Trending or evergreen
Low competition for beginners

Best Niches for India (2025):

Health & fitness accessories
Mobile gadgets
Kitchen tools
Beauty & skincare
Baby products
Pet accessories
Home décor
Car accessories

Avoid These Niches (for beginners):

Electronics with warranty
Large or fragile items
Highly competitive fashion niches
Food items requiring license

Pro Tip: Search TikTok, Instagram Reels, and Pinterest for trending products. If a product is going viral, it’s easier to sell.

Step 2: Do Winning Product Research

This is the heart of dropshipping. A “winning product” is something that solves a real problem and triggers impulse buying.

How to Identify a Winning Product:

It solves a pain point
Not easily available offline
3× profit margin
Good customer reviews
Trending or evergreen demand

Tools for Product Research:

AliExpress
Temu
Amazon Best Sellers
Meesho
TikTok Made Me Buy It
Myntra/New Arrivals
Google Trends

Signs a Product Will Sell Well:

Seen in influencers’ videos
High engagement on product ads
Low competition for the exact variant
Can be demonstrated in 10–15 sec video

Spend time here. A good product can generate a month’s income in a week.

Step 3: Find Reliable Dropshipping Suppliers in India

Choosing the right supplier is extremely important; otherwise you’ll face delays, returns, and unhappy customers.

Top Indian Suppliers for Dropshipping:

GlowRoad
Meesho Suppliers
BaapStore
IndiaMART Vendors
ShopG
TradeIndia
Marvel eCommerce Vendors

International Suppliers:

AliExpress
Temu
CJ Dropshipping

What to Check in a Supplier:

Product quality
Shipping time
Return policy
Availability of COD
Packing quality

India-based suppliers give faster shipping, reducing RTO (Return to Origin) issues.

Step 4: Create Your Dropshipping Store

You now need an online store to display and sell your products.

1. Shopify (Most Popular Worldwide)

Easy to use
Tons of apps
High-converting
Best design and security

2. WooCommerce (WordPress)

Cheaper
Flexible
Best for people with technical knowledge

3. Dukean / Instamojo (India-friendly)

Simple checkout
COD support
Beginner-friendly

Essential Pages Your Store Must Have:

Home
Products
Refund & Return Policy
Shipping Policy
Privacy Policy
Contact Us

Tips to Make Your Store Convert Better:

Clean, premium design
High-quality product images
Short and powerful product descriptions
Social proof (reviews)
Clear “Buy Now” button
COD + Prepaid both available

Remember: A professional store increases your conversion rate by 30–40%.

Step 5: Add Products & Set Correct Pricing

Your pricing will decide your profit.

Pricing Formula:

Selling Price = (Product Cost + Shipping Cost + Packaging) × 3

Example:

Product Cost: ₹200
Shipping: ₹60
Selling Price: ₹800–900

This 3× model covers:
Marketing cost
RTO loss
Returns handling
Profit margin

Never sell very cheap. Dropshipping is profitable only with good margins.

Step 6: Set Up Payment Gateway

You need a secure payment gateway for prepaid orders.

Best Payment Gateways in India:

Razorpay
Cashfree
PayU
Instamojo

✔ UPI
✔ Credit/Debit card
✔ Wallets
✔ Netbanking

Also enable COD but keep a COD confirmation system to reduce fake orders.

Step 7: Start Marketing Your Dropshipping Store

This is the most important step. Without marketing, no one will know your store exists.

1. Meta Ads (Facebook + Instagram Ads)

Perfect for impulse-buy products.

Use reels as ads
Broad targeting
Start with ₹400–₹700 per day
Test 3–5 creatives
Scale winning ad set

2. Influencer Marketing

Works amazingly in India.

Micro influencers (5k–50k followers)
Barter or ₹500–2000 per reel
Great for high-margin products

3. Google Ads

Works best for products with search demand.

4. TikTok/Short Videos (Outside India)

If your audience is international, TikTok is gold.

Important:

Do not rely on one ad. Test at least 10 creatives before deciding.

Step 8: Order Processing & Delivery

When a customer orders:

You receive payment
You place the same order with your supplier
Supplier dispatches directly to your customer
You update the customer with tracking

How to Reduce RTO (India’s biggest problem):

WhatsApp confirmation message
Call customer before dispatch
Prepaid discounts
Branded tracking page
Fast shipping

Even a 5% RTO reduction increases profit significantly.

Step 9: Customer Support & Returns

Good support = repeat buyers.

Provide Support Through:

Email
WhatsApp
Chatbot
Phone support (optional)

Handle Returns Smartly:

Clear 7-day policy
Replace instead of refund
Inspect product on return

A professional approach builds long-term trust.

Step 10: Scale Your Dropshipping Business

Once you get profitable:

How to Scale:

Increase ad budget
Add more winning products
Create bundles/combos
Launch your own inventory (private label)
Expand to Amazon/Flipkart
Hire a team

Scaling turns dropshipping from side-income to a full business.

Is Dropshipping Still Profitable in India in 2025?

YES—if you follow the right process.

Demand for online shopping, COD, UGC creators, and Meta Ads is higher than ever. Even beginners can start earning within 15–30 days if they test the right products.

Expected Earning Potential:

Beginners: ₹15,000 – ₹40,000/month
Intermediate: ₹50,000 – ₹1,50,000
Advanced & scaled stores: ₹2 lakh – ₹10 lakh/month

Your earnings depend on product selection + marketing + store quality.

Starting a dropshipping business in India is one of the easiest and smartest ways to enter eCommerce with low investment. You don’t need a warehouse, staff, or big budget. All you need is: