Common Questions about Dropshipping

Common Questions about Dropshipping

You might have understood what dropshipping is and how it works, but there are few questions that you may have in your mind.

Here we are, to answer some common questions around Dropshipping and clear your doubts that may be clouding your mind or judgment.


How can I start my own Dropshipping Business with no money?

When it comes to starting a dropshipping business, it requires almost nothing in terms of capital investment, making it extremely popular.

For starting a dropshipping business, you only require:

  • A product to sell
  • A supplier to dropship the product
  • A Sales channel(eBay, Amazon, Shopify)


Why should I consider doing Dropshipping? 

Why not consider dropshipping? Let me give you some good reasons to  why almost any e-commerce retailer should consider drop shipping,

  • A Broad offering of the products
  • Low overhead costs
  • Reduce your investment
  • No geographic limitations, the business can be effectively run from anywhere.
  • Risk of Dropshipping as a business model is significantly lower.
  • No up-front inventory costs or shipping logistics


What kind of products would sell the best?

Well to make sure that you select the right product which would actually make a selling, you will need to consider these few points, such as,

  • Not listed on Amazon/Flipkart or not available in local stores.
  • Rated above 4.5 on AliExpress.
  • Not falling under the restricted category. 
  • Trending as per the season, or festival. Not heavy. 
  • Having a unique use case. 
  • Having a high perceived value.


As a store owner, do I need to purchase products for my online store? 

No, dropshipping as a business model is so innovative and efficient that you don’t have to maintain any inventory yourself. All you need to do is focus on getting your customers to place orders.

But as a store owner, it’s always good to have an initial check of your products you plan to sell to make sure your customers are getting the value for their money. 


Is dropshipping profitable in India?

Yes, dropshipping is a pretty profitable business that can earn you decent profits with very low upfront investment minus the hassle of maintaining inventory. Here’s why it is s profitable in India,

  • eCommerce is flourishing in India, therefore, the buying potential is very high 
  • The competition for dropshipping is very low in India
  • CPAs to acquire orders are hardly $3-$7
  • It is budget/pocket-friendly business model
  • Indian eCommerce industry is expanding at a 27% CAGR


Do I need to register as a business entity to Dropship in India? 

Well, yes, you need to register as a business entity to dropship in India. 

However, if you’re a registered business entity in any part of the world then you can Dropship in India via vFulfill. It works in a way that we become the front face of the business and help you fulfill orders across the country. 

It is important for anyone willing to Dropship to register as an individual business (sole proprietor)/ business entity and follow all the legalities of starting a business that are required in India or anywhere else in the world.  

Business registration has its share of benefits. It primarily helps: 
  • In creating a brand name in the market.
  • Increases your credibility in the market as smart customers generally trust registered business entities.
  • In the case of a sole proprietorship, it helps to prove business identity.
  • It helps once you start making sales as payment providers require businesses to provide authentication.
  • Protects businesses and secures their rights against a third party in an event of legal complications.
  • Attract investors as they generally trust their money with registered businesses.
  • Reduces the risk of legal complications.


What is the best strategy to succeed in the  India Dropshipping Scenario? 

As you may know, India is a very different market as compared to the rest of the developed markets due to which people used to stock & ship instead of dropships.

However, when you partner with vFuilfill, we recommend you to follow this strategy,

Phase 1: Testing stage 
  • In this stage you research 3-5 products on a daily basis which you feel that you can promote. 
  • With vFulfill you test these products and run ads for these as to test which products are actually converting for you. 
  • The moment you feel that you are getting 5-10 orders for the product within a week. You qualify for the next stage, 
 
Phase 2: Take off stage 
  • Now that you know which product is converting the most for you, so in this case you tweak the ads and infuse more cash to get more orders. 
  • It is a stage where you aim to achieve 25-50 orders in a day. 

Phase 3: Microscaling Stage 
  • In this stage you raise the budget for your ads and try different angles for the same. 
  • It is a stage where you aim to achieve 100-150 orders in a day. 
  • During this stage, you focus on the following things: 
    1. Delivery percentage should be high 
    2. NDR should be low 
    3. You work with our Account Management team and share your strategy with us for the products you are micro scaling for, so that our team can help you with some advanced stocking. 

Phase 4: Complete scaling
  • The goal in this stage is to achieve 500 orders/ day. 
  • During this stage, you focus on the following things: 
  1. Delivery percentage should be high
  2. NDR should be low
  3. You work with our Account Management team and share your strategy with us and we recommend you to stock with us so that we can buy products for you in bulk, so that your total cost for the orders would drastically decline. 



Note: Also, if you feel that we missed out on something then, please let us know at support@vfulfill.io and we’ll definitely put it up here.

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