If you are an E-Commerce enthusiast in India, you must have come across term – Dropshipping several times. In 2011, 34% of Amazon sales were executed by a dropshippers and the figure has increased since then, a report says. Dropshipping has been in vogue in India. But if you are new to the field or eager to aggrandize the benefits of your E-Commerce store, Dropshipping can seem to be tricky and intimidating. Therefore, we will provide you with a comprehensive understanding of its principles and application in India is crucial to figure out its profitability.
Understanding Dropshipping Mechanism:
Dropshipping is an E-Commerce business model for retail fulfillment that does not require keeping any inventory in stock. In simple words, the store has the products purchased from a third party supplier and then directly shipped to the customer. There are three parties entailed in the dropshipping process – the retailer or the seller, the dropshipper and the end customer.
Understanding How Dropshipping Works (With Vendorboat):
The Dropshipping model with Vendorboat works in the following ways:
The profitability of the seller depends on the difference between the retail price and the wholesale price. Sometimes, the seller earns in commission by procuring a concurred percentage of sales as paid by the wholesaler. Although Dropshipping may sound like a walk in the park but it is not that simple.
How Dropshipping Can Be Profitable in India?
Dropshipping is a profitable concept in developing countries like India for the following reasons:
Risks Involved That Can Harm Your Dropshipping Profitability in India:
Dropshipping in India is not all rewarding. In spite of the profitability, there are a few risks involved which should be paid attention to.
With the exponential growth of the E-Commerce sector in India, Dropshipping has become very popular as it is an outstanding format for new business faces. Keeping in mind the above mentioned pros and cons, you must find the suitable niche and the right drop shipper for your business. Ideal coordination between you and your drop shipping partner and proper heed to customer satisfaction are the prerequisites. With correct evaluation and research, Dropshipping might work wonders for you. To let us help you with the same, please visit our website.