top of page

How much can you make dropshipping in India?

Writer's picture: Jaana KirstimoreJaana Kirstimore

Updated: Nov 4, 2024

The most frequent question I receive from aspiring young Indian entrepreneurs looking to start their own online stores is, “How much can you make from a dropshipping business in India, or should you consider buying wholesale instead?”


When my husband and I embarked on our journey to open our own online store, we were confronted with the same pressing questions many new entrepreneurs face: How much money can you make from a dropshipping business in India? and Should we buy wholesale instead?

We dove into extensive research, exploring both models to see what would work best for us. While our experiences are primarily centered around bridal linens, the insights we gained can be applied to a variety of products.


Our Exploration and Key Insights:


1. Dropshipping: Initial Appeal and Challenges


  • Minimal Upfront Costs: Like many newcomers, we were initially drawn to dropshipping for its low investment requirement. We could test product offerings without risking substantial capital.

  • Learning Curves: We quickly realized that while dropshipping freed us from inventory worries, it came with challenges—long shipping times and supplier issues sometimes impacted customer satisfaction.

  • Profit Margins: Our profit margins were modest, often between 10-20%, due to reliance on third-party suppliers.


2. Wholesale: Greater Control, Higher Stakes


  • Larger Investment: Switching to buying products wholesale required a larger upfront cost, but it offered us more control over our inventory, quality, and customer experience.

  • Profit Potential: The profit margins increased significantly, often reaching 40-60%, making the investment worthwhile.

  • Stock Management: The need to store and manage stock came with its own learning curve, but it was a trade-off we were willing to make for higher returns and better customer service.


Earnings Potential : How Much Money Can You Make from a Dropshipping Business in India?


In our experience, when starting with a dropshipping business in India, it’s reasonable to aim for earnings of approximately ₹25,000 to ₹50,000 per month. This income range is achievable for new entrepreneurs who approach their business strategically. However, these numbers can fluctuate significantly based on a variety of factors, such as the type of products chosen, the reliability of suppliers, marketing strategies employed, and the overall demand within the niche.


Factors That Impact Earnings:


  • Product Selection: High-demand, niche products often command better profit margins and sales volume.

  • Supplier Reliability: Consistent, high-quality suppliers can make or break a dropshipping business. Issues like long shipping times or poor-quality products can impact repeat business and customer satisfaction.

  • Effective Marketing: A well-thought-out marketing strategy, including social media campaigns, search engine optimization (SEO), and paid advertising, can significantly enhance visibility and sales.

  • Customer Service: Prompt and helpful responses can build trust and foster customer loyalty, contributing to higher sales over time.


When we shifted to buying wholesale, our earnings potential increased substantially. This approach offered us more control over the inventory, which in turn improved our ability to meet customer expectations and build a reliable brand image. The upfront investment was higher, but the potential rewards justified it. On average, our profit margins with wholesale rose to 40-60%, leading to monthly earnings that could exceed ₹1,00,000 or more as the business grew and scaled.


While dropshipping offers a viable entry point for new entrepreneurs in India, understanding its earnings potential and the factors that influence it is crucial for success. Whether you choose dropshipping or wholesale, being strategic in your approach can help you maximize your profits and build a sustainable business.


POPULAR SEARCHES


22 views

Recent Posts

See All

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page