What is a Dropshipping Wholesaler and Why Do You Need One?
A Drop Shipping Wholesaler in India is a third party company that handles the production, packaging and shipment of the product sold under the name of an online ecommerce store. A seller sets up a store online and displays products but does not have readily available inventory for the same. Only when there is an order placed, the seller reaches out to a Drop Shipping Wholesaler in India and buys the product from them. Hereafter, the drop shipping company looks after the fulfillment process.
A normal business model would look like this:
- Customer places an order on the website.
- Once the order is placed the owner of the website (seller) finds the stock
- The product is packaged and shipped to end customers by the seller
- Payment is made by the end customer to the seller
A dropshipping model would look something like this:
- Customer places an order on the website
- Once the order is placed, seller informs drop shipper
- Drop shipper makes the product
- Product is packaged and delivered to end customer by drop shipper
- Payment is made by the end customer to seller which is cumulative of drop shipping charges
The process may seem longer but collaborating with a Drop Shipping Wholesalers could be of great benefit to you. Here is why:
1. No stress about inventory
In a regular retail eCommerce business model, there’s an obvious requirement of maintaining a huge inventory of products. This is because the product needs to be manufactured/prepared in bulk and order fulfillment has to happen by itself. Dropshipping technique has eased this process by dividing the work.
The term ‘Inventory’ does not exist here. You don’t have to amass the products in bulk, and worry about them getting damaged over time. You don’t have to track your inventory which could take up most of your time and resources. You can sufficiently focus on expanding your business instead of looking after the products for which you don’t have buyers as of now.
2. Low budget for business
For any business in India, especially eCommerce, entrepreneurs need to have a huge budget in place which they use for manufacturing/preparing the product, packing it, maintaining the records, delivering it to the customer and also managing returns and refunds.
But, dropshipping has significantly cut down the cost of these processes as well as initial investment. The seller does not have to invest into anything until there’s an order placed and finally paid by the customer. So, the risk involved gets minimised enormously. The little money that’s needed is only for marketing the business and paying taxes to the Indian government.
3. Numerous products and varieties
eCommerce websites that run successfully in India have this in common – they offer variety. And, dropshipping has come to India at the best time when people are willing to explore products online and look for varieties so that they can have something that matches closely to their tastes.
With no mandatory need of maintaining an inventory and low setup cost, the added benefit that tags along is that the seller can provide huge number of variations for a single product. Moreover, a lot of other products can also be added very easily to the eCommerce website without thinking about the overhead. So, a wide range of products and immense varieties in each product type, this is such a great opportunity for every creative person who wishes to be an entrepreneur.
4. Low risk involved
The dropshipping online store has nothing running in the background that would produce harm of any kind. The inventory in normal retail online stores tend to pressurize the seller to get it moving on a regular basis, otherwise the products would become worthless soon. If it happens, it’s a big shock for the seller as all the money goes down the drain at once when the inventory is emptied.
In dropshipping, the seller doesn’t buy the inventory, in fact, he pays for the product only when he gets an order from his online store. This is such a safe and secured system where the seller is in no way at risk. If, by chance, he’s not able to market the product well and doesn’t get any orders, still he doesn’t have to pay for anything except the bad marketing he did. So, relatively, it’s a much safer side.
5. Location independent
The one amazing dream of today’s entrepreneurs – Work From Anywhere! Dropshipping offers this benefit as one of its characteristic that it won’t really matter from where the seller is operating unless he has a bad WiFi connection. So, a Drop Shipping Wholesalers in India can cater to clients across the globe.
The seller can actually travel with his laptop and build his dropshipping eCommerce store and also scale it. He only has to take care that there’s no broken communication with his customers and manufacturers/suppliers, and this business can thrive easily.
How will you earn profit with Dropshipping In India?
Dropshipping is a hit concept and a profitable one in India because there is so much scope of growth and experimentation in the market here. Considering Chennai specifically can be an advantage since there is a readily available port. Here are a few reasons why dropshipping will work for Indian companies:
Cost effective: For new businesses, drop shipping can help in saving the initial costs as well as later costs. It is a budget friendly and easy on the pockets business model can sail your business to new heights. For developing countries, this is a good option.
Lowered risk: The risk of loss isn’t as significant in drop shipping as other companies because there is no stock left. A product is made only when the demand arises. For indian companies, this can be helpful in not attracting huge losses considering the shipping and tax costs are also a lot.
Internet Penetration: In the last decade, internet penetration in India has scaled a very high margin which has made online selling a very big deal. People are using internet on their phones and the convenience has led to them to order things online rather than go buy them.
No Inventory hassle: There is no unnecessary headache about where to keep the inventory and aggressively market to make sure it is sold. It eases the pressure of selling and incurring cost of goods. India has a higher cost of goods and taxation such as GST, so it is better to only produce as much as you can sell.
Automated Functions: If you notice, dropshipping functions can easily become automated which makes it easier to concentrate on other business aspects such as branding, marketing and business development. Functions like- Placing orders, Tracking orders, Setting Prices, Performance review, Promotions, Ads etc can all be automated and don’t require you to manage them on a regular basis.
Purchasing Power: Another major development that has taken place in India is the increase in purchasing power due to more disposable income. People want to buy more and are aware of brands that are popular across the globe. For example- A few years back did you imagine having a closet full of Manchester United merchandise? People are more specific and ready to spend now.
Niche Products Availability: Like the example above, bringing niche products to india is attaining power in your own hands. Electronics, merchandise, clothes, books etc become more of value because it is what the people want. For example- if you are selling t-shirts with popular culture quotes or you are giving signed celebrity posters, it can make your business fly.
Supplier Language benefit: India is a great country for many reasons, one reason being that we are a land that speak multiple languages. English, being one of our greatest strengths, helps us in interacting with many countries, thus, widening our market space. This leads to getting more options for shipment and purchase.
What to look for in an Indian Drop shipping Wholesaler?
It is crucial to decide on an ideal drop shipper because you will be depending on them to run your business smoothly. A reputable and trustworthy drop shipper in Chennai can be found if you follow the steps below:
Acquaint Yourself With The Supply Chain
Before you begin to search for dropshipping wholesale suppliers, you should be aware of the supply chain and how it works.
Manufacturer – Wholesaler – Retailer (You) – End Customer
It is important to understand the industry supply chain because they determine how your product reaches the end customer and the pricing. If the wholesaler is also providing drop shipping services, then the prices might be lower. If they aren’t providing drop shipping services then it becomes expensive because of added factors such as increased shipping costs, extended travel time and longer wait time for customers.
It depends on your product too how the distribution channel will work. If they are fragile products it is advised to directly ship them to the end customer instead of all the middlemen. If they are durable and strong products, a longer distribution channel will be good and budget friendly.
Decide Your Dropshipper Needs
You need to be completely sure of your business goals and how you plan to communicate it to your drop shipper. Write down everything that you will be expecting from your Drop Shipping Wholesaler in India and where you see your business panning out. Anything that does not align with your plan, can be easily dismissed because you are clear about what you want.
If you are expecting a higher profit margin, then your dropshipping and fulfillment process will have different supply chains. If you want to work more on brand image, the stress of product delivery can be shared with a dropshipper who delivers under your brand name.
Some drop shippers are looking to build a rapport and partnership with your company so they are driven in the same direction as you.
Options are many, you just need to know your goal.
Search For Dropshippers in Chennai
You can use a variety of sources like software that list drop shippers or guides that direct you to them. The most convenient option is search engines as you will find drop shippers that are easily discoverable and you can read reviews about them.
Use the correct words with Google to reach what you really want to find. When you want to dig in deeper with your research, you will have to consider multiple questions that would arise in a person’s mind regarding drop shipping. Conversing with industry majors can also be a good way to get recommended dropshippers.
Build A Contact List And Contact Each Dropshipper
Once your research is in place you will have a list of drop shippers that come close to what you want from them. Contact each one of them personally because personal interaction will give you a definite idea of their functioning and if it is reasonable.
Discuss extensively on your business goals and if you see sync in their response with your activities, you are good to go.
Order A Sample
The business is yours and you have to do everything in your capacity to seek out the best for it. Before you finalize on a drop shipper, we recommend you order a sample first to get a fair idea of how their customer experience will be and the quality of their products.
You may read more about ordering a sample here.
Order From Competitors
Find out competing Drop Shipping Wholesalers in India and order samples from both so you know the difference from a customer’s point of view. This will help you make an informed decision and give you a solid base for comparing and decision making. Do not make “price” as your only decision-making factor; instead, look at the product quality, the packaging, the branding, and the complete experience.
Be A Part Of Social Media Groups And Forums
Social media is much bigger than we estimate it to be. Over the past decade, its growth has skyrocketed in all spheres of communication which includes marketing and customer relationships too. Join Facebook groups related to your products and you will receive the latest news updates on your industry and easily make contacts that will lead you somewhere.
It would be good for you to also participate on discussion forums about your industry or check out forums of Drop Shipping Wholesalers in India and see what the existing customers have to say.
You will know the common opinion and also learn a lot about how this industry functions.
Attend Trade Shows
Being present at relevant events is extremely crucial to businesses because people might forget about your existence. If your presence is felt in trade shows and events, you will build more personal contacts and learn more about the industry than you could have ever expected.
It will help you understand which kind of people you can work with and establish a better relationship with them. It might be expensive but the time investment will be good.
These are some tips that you should keep in mind when you are looking for a dropshipping wholesale supplier.
Look for Order Management Process and Transparency
It is extremely important for you to be in sync with your Drop Shipping Wholesalers in terms of order processing, order fulfillment and cost factors.
Look for companies that are giving you real-time updates on the orders, for example- orders that are shipped, still in progress, previous orders etc.
The progress can be updated in stages like ‘Received’, ‘Processing’, ‘Ready to dispatch’, ‘Shipped’. This way you have more control over managing your orders.
Find how returns are managed
It can be difficult to manage returns on products since there is a third party involved. Your customer experience is already compromised since they didn’t get what they wanted.
Nevertheless, look for a Drop Shipping Wholesaler in India that has a fair return policy and it is cost effective too. It shouldn’t hamper your profit margin vastly.
If it is a print on demand company, inquire about their replacement procedures, if there are added expenses to print again or would they do it for free, reverse shipping charges etc.
Custom Shipping Notifications
Your overall brand experience needs to be perfect and for that, you need to choose the best services that are available. Most times once the product is shipped, the end customer receives SMS from the delivery company and not the seller website. This can confuse them and question the authenticity of your brand.
Check with the supplier if they are sending custom branded emails and SMS notifications or the generic ones about the tracking updates.
We are a Drop Shipping Wholesalers in India
We are a Dropshipping company based out of Chennai, India and we have a wide variety of niche products for you to choose from. We print on demand and also offer a mockup generator that will help you view your design on the product in reality and then make the necessary adjustments. Our website is integrated with Shopify and WooCommerce to make the process of selling easier and there is no hassle of payments. We have a well designed and user-friendly merchant panel where you can place an order, track the order and manage your orders. We believe in communicating with our clients on a regular basis so you will be informed about any new development that happens at Printrove.
We sell the following products:
Women’s clothing
Men’s clothing
Hoodies
Pop Grips
Phone Cases
Notebooks
Coasters
Posters
Mouse Pads
Button Badges
Mugs
You just need to upload your designs on our website and we do the rest of the work. The branding and packaging are of the selling company as Printrove offers white label services.
Our variety of services are:
- Free Shopify Store
- Bulk Mockup Generator
- Integrations
- Branding Services
- Managed Woocommerce store
- Print in Bulk
Drop shipping business model relies heavily on a qualitative factor of trust and quality. It is of utmost importance that you choose to associate yourself with a brand that is equally concerned of business’ reputation. The product quality cannot be compromised and there needs a be a trustworthy relationship established between you and the drop shipper. Communication is key to any successful business.
If you are a new business or an existing business and are choosing to take the less risky business model option, get started here.