How to Start a Dropshipping Business in India: 2026 Guide

Have​‍​‌‍​‍‌​‍​‌‍​‍‌ you ever thought about starting your own online store? Maybe you want to sell T-shirts with cool graphics, funny phone cases, or interesting gadgets for the kitchen. But then, you think of the problems. First, you would have to spend a lot of money on the goods. Second, you need a big space where you can keep the products. And, third, you will be going to the post office every day to send the shipments.

What if it were possible for you to operate a store without any of those things?

Welcome to the dropshipping world. It is a business model that allows you to create an online store with little money. And what is more? India is among the top five places globally to do it right now.

Let us take a glance at some figures to understand how big of a chance this is: Indian internet users are more than 950 million. Think about it! That is the total number of people who can be your customers. More than 260 million people in India are currently buying goods online. This figure is increasing rapidly, especially in small towns (Tier 2 and Tier 3 cities). Dropshipping market in India is expanding very fast at the rate of 22-25% annually. That is, a large number of people are getting into this business and are making it work.

This tutorial will take you through the how to start a dropshipping business in your home in India. We will write in very simple language. No complex words. Let’s get started.

What is Dropshipping & How Does It Work in India?

Dropshipping is an idea that is very simple. You offer products via the internet, but you do not handle or keep the products yourself.

If a customer purchases a product from your website, you accept their payment and send the order details to a third party. This third party is termed as a supplier. The supplier then gets the product, packages it, and ships it to the buyer’s address.

You are the “middle-man” or the storefront. Your work is to create a stunning website, promote the goods, and provide excellent customer support. The supplier’s work is to manage the goods, pack, and ship.

Your gain is the money that remains with you after the expenses are met.

Allow me to explain with an Illustrative Example:

• You Build a Store: You make a website called “Rohan’s Cool Mugs” and put up a listing for a humorous coffee mug priced at ₹499.
• A Customer Places an Order: Priya, a resident of Mumbai, goes to your site. She likes the mug and decides to purchase it. She makes a payment of ₹499 to you via Paytm or Google Pay.
• You Send the Order: You get the order. Then, you send the order details (Priya’s name, address) to the supplier (the company that makes the mugs) and pay them their price, which is, say, ₹200.
• The Supplier Ships: The supplier picks the mug from the inventory, packs it in a box, and ships it directly to Priya’s address in Mumbai. Perhaps, the box has your store’s name (“Rohan’s Cool Mugs”) on it.
• You Earn the Profit: Priya gave you ₹499. You gave ₹200 to the supplier. So, you have just earned ₹299 as profit.

All this you did via your laptop without Priya and you meeting or you ever touching the mug. That is dropshipping. It is the same in India as it is anywhere else.

Why Dropshipping Makes Sense in the Indian Market

Dropshipping is not just a fad; it is the most suitable business model for India at present. The reasons for that are:

• Extremely Low Cost of Starting: This is the main reason that is most talked about. In a traditional business, one would need several lakhs of rupees to purchase products (known as “inventory”). With dropshipping, one only purchases a product after receiving a customer order. Hence, a business of a few thousand rupees would be enough to kick start one’s store, website, and marketing.
• Simple Digital Payments: Ten years ago, online payments were a pain. But now everyone has UPI (Google Pay, PhonePe, Paytm). This has made buying online very easy and safe for all Indians.
• Better Shipping in India: Shipping companies (logistics) like Delhivery, Blue Dart, and Ecom Express have become very efficient. They can take products to almost every pin code in India, whether it be a big city or a small village, and are also quick in their deliveries.
• “Make in India” & Local Suppliers: It has never been more simple to get Indian suppliers than now. This basically means you can sell products that are made in India, ship them quicker (2-5 days), and be free of worries about customs or import taxes from other countries.
• Work From Anywhere: You can keep running your dropshipping business at your home, a coffee shop, or even while you are on a trip. The only thing that you require is a laptop and proper internet connection. This is great for students, homemakers, or anyone else who desires a part-time job or extra ​‍​‌‍​‍‌​‍​‌‍​‍‌income.

Step-by-Step: How to Start a Dropshipping Business in India

This​‍​‌‍​‍‌​‍​‌‍​‍‌ section is basically our roadmap. We will detail each and every move you have to make here.

Step 1: Choose Your Niche & Products

This is the most crucial initial step. One can’t sell everything. You have to decide which type of goods or customers you will focus on. This is known as a “niche”.

A niche is your own tiny market space.

•  Bad idea: “I sell clothes.” (This is way too big).
•  Good idea: “I sell humorous T-shirts for college students.”

What is the reason for a niche being so important?

A complete range of goods puts you in competition with big names like Amazon and Flipkart. That battle, you’ll lose. On the other hand, if you deal in a unique product, people who want it will find you. Besides, it is also easier and cheaper to promote.

You Might Like: Jewelry Dropshipping

How to decide a good niche and product

A good product should have:

•  High Demand: The product must be a subject of real searches.
• Good Profit Margin: The product should be sold for at least two or three times the buying price.
• Low Competition: The product should not be sold by every other stores.

Idea Generation Tools in India:

• Google Trends India: It is a no-cost tool. By typing a product name (e.g. “yoga mat”) you can learn whether people in India are searching for it. The tool also provides information about the different states (e.g. Maharashtra or Karnataka) searching for the product.
• Amazon India Bestsellers & Flipkart Trends: Visit Amazon.in or Flipkart. Check out their “Bestsellers” or “Trending” pages. What are the hot sellers? Avoid copying the top product. Instead, get the ideas. If “air fryers” become a trend, perhaps you could sell “air fryer accessories” or “air fryer recipe books”.
• Think about problems: What kind of problems do people have? Is the case that their phone chargers always break? Then sell a charging cable that is strong and unbreakable. Does somebody want to make his/her home look nice even if s/he is on a tight budget? Then sell cool wall stickers.

Products to Choose (Good for India):

• Light and Small: Phone cases, jewelry, T-shirts, makeup, kitchen gadgets. All these things are inexpensive to ship.
• Trending: Keep an eye for new things. One of the trends in the past was the fidget spinners. As of now, it might be a special kind of water bottle or a new phone accessory.
• Evergreen: These are the products which are always selling, all year round. Examples of such products are Yoga mats, pet supplies (like dog leashes), baby products, or kitchen tools.

Products to AVOID:

•  Heavy or Big: For instance, Furniture, gym equipment. The cost of shipping will be high.
•  Fragile: Like Glass cups and mirrors. During shipping, they break, and thus, you end up losing money.
•  Regulated: Medicines, supplements, chemicals. For these, you need special permits.
•  Complex Electronics: Items with many parts or batteries may have high return rates.

Finding your dropshipping niche India is your first big task. Look for the best products for dropshipping India 2025. Do not rush to decide how to choose dropshipping products in India but rather spend time and research ‌ ‍ ​‍​‌‍​‍‌​‍​‌‍​‍‌properly.

Step 2: Find Reliable Suppliers (Domestic & International)

Your​‍​‌‍​‍‌​‍​‌‍​‍‌ supplier is the partner that matters the most. A quality supplier ensures great products and satisfied customers. However, a poor supplier will ruin your business.

You can choose suppliers in two major ways:

Indian Domestic Suppliers (Recommended for Beginners)

These are companies or wholesalers inside India.

Pros (Good things):

•  Fast Shipping: The delivery to your customer can be done by them within 2-7 days. Indian customers are known to be impatient and they love it when the shipping is fast.
•  No Customs Duty: You don’t have to pay any import taxes.
•  Easy Returns: Returns are much more easily managed within India.
•  “Made in India” Trust: It is possible for you to brand your product as “Made in India,” a label that is preferred by many customers.

Cons (Bad things):

• The products may be a little bit more expensive.
•  There are fewer product options than if you were to choose China.

Where to find them:

• You can locate them by searching on various platforms such as IndiaMART, Udaan, or other wholesale marketplaces India. Besides, you can use Google to look for “wholesalers in Delhi” or “T-shirt manufacturers in Tirupur.” After that, you will need to phone them or send them an email and ask them, “Do you offer dropshipping?”

Moreover, there are Indian dropshipping platform services that provide a direct connection between you and Indian suppliers.

Global Suppliers (like from China, e.g., AliExpress)

Pros (Good things):

•  Extremely Cheap: In most cases, products are very cheap.
•  Almost Limitless Products: You can think of any product and there will be millions of variations of it.

Cons (Bad things):

•  Extremely Slow Shipping: This is the biggest problem. Shipping to an Indian customer’s home from China can take 15 to 40 days. Your customer will be irritated, and the order will be canceled.
•  Customs & Import Duty: Your package may be held up at Indian customs. The customer might get an extra tax bill (import duty), thus making them angry.
•  Quality Issues: The end product might be vastly different from what the picture shows.

What to check in a supplier (Ask them these questions):

•  “How long is your shipping time to Delhi? To Chennai? What about a small town?”
•  “Do you have a return policy”?
•  “Can I get a sample product?” (ALWAYS order one for yourself first to check the quality). 
•  “Do you reply to emails quickly?” (If they take 3 days to reply, they are a bad supplier).

You must find a dropshipping supplier for India e-commerce who is fast and trustworthy. For beginners, finding good dropshipping suppliers in India is the safest bet.

Step 3: Set Up Your Online Store & Choose Platform

This is your online “dukaan” or shop. It must be attractive, user-friendly, and customers should be able to trust you.

Your Platform Options:

1. Shopify: This is the most popular and easiest choice globally. It is a platform designed for dropshipping. They even have a special plan for Shopify India.

•  Pros: Very easy to build (no coding), lots of beautiful designs (themes), easy connections to make payment gateways and dropshipping apps.
•  Cons: You are required to pay a monthly (subscription) fee, which can be around ₹1,500 – ₹2,500 per month after your trial.

2. WooCommerce (with WordPress): This is a free tool that works as a plugin for WordPress websites.

•  Pros: Using the software is free. You get full control over your store. In the long run, it can be cheaper.
•  Cons: It is a more technical process. You need to buy your own domain (your shop’s name, for instance “rohansmugs.in”) as well as hosting (the space on the internet for your website). You also have to take care of security and speed.

If you are just starting and do not have much technical knowledge, Shopify would be the fastest and simplest way to create an e-commerce store ‌ ‍ ​‍​‌‍​‍‌​‍​‌‍​‍‌India.

Must-Haves for Your Indian Store:

Good​‍​‌‍​‍‌​‍​‌‍​‍‌ Domain Name: It should be brief, simple to recall, and indicate the nature of your business. The best “in” or “com”.

• Design Friendly to Mobile: The site should be visually perfect on a small screen of a mobile phone. Verify it on your own.
• Payment Gateways for Indians: This is a must-have. Indians should be given the freedom to pay in the way that suits them. You have to bring in a gateway like Razorpay, Paytm, or Cashfree. These will allow you to accept:
  
  • UPI (Google Pay, PhonePe, etc.) – This is the most important!
  • Credit Cards & Debit Cards
  • Net Banking
  • Wallet
  • COD

Suggestion: Go for prepaid orders only in the beginning. Give a small discount (for instance, “Extra 5% off on all prepaid orders”) to attract people to pay online.

Must-Have Pages for Your Store:

They are the pages that make your store look like a real, legitimate business:

• The Home Page: Your store’s front page.
• The Shop/Product Pages: With nice pictures and easy descriptions.
• About Us: A brief story of your brand.
• Contact Us: An email of yours, a telephone number, or a contact form.
• Legal Pages: Return Policy, Privacy Policy, Terms of Service, Shipping Policy. (You can get the templates for these from the Internet). These are required for Indian legal compliance.

The dropshipping website India setup is like the base of a building. Select a good dropshipping store platform India so that your work becomes easy.

Step 4: Legal, Taxation & Financial Considerations in India

This stage seems tough but it is indispensable. You should not skip it. To operate a real business, you are obliged to adhere to the rules.

1. Business Registration:

•  Begin with the Simplest: At the time of your business start, you may operate it as a Sole Proprietorship. This is the simplest of all. It is associated with your personal PAN card. All that is required of you is to open a bank account in your business’s name.
•  When You Get Bigger: Subsequently, when you earn a substantial amount of money, you may register as an LLP (Limited Liability Partnership) or a Private Limited Company. This will offer better protection to your personal assets. However, a Proprietorship will do just fine for the beginning.

2. GST (Goods & Services Tax):

•  This is the most significant legal segment.
•  The law in India mandates registration for GST to anyone selling goods (products) online.
•  It is of no consequence that your sales are minimal (the ₹40 lakh threshold is not applicable to most e-commerce). A GSTIN (GST Number) is required for online sales.
•  A GSTIN is required for the registration of payment gateways such as Razorpay.
•  You have the option to register for GST by yourself over the internet or a local Chartered Accountant (CA) can do it for you. It is an essential part of dropshipping GST India rules.

3. Banking:

•  Refrain from operating a savings account of your own.
•  After obtaining your business registration (even as a proprietorship) and GST number, make your way to a bank to open a Current Account in your business’s name (e.g.,”Rohan’s Cool Mugs”). This not only separates your money but also gives you a professional look.

4. Importing (If you use global suppliers):

•  In case you bring in products from China, you are “the importer,”.
•  You might need to pay customs duty and other import taxes. This can frighten you by its complexity.
•  This is one among many reasons why it is a lot simpler to just start with Indian suppliers.

Adhering to dropshipping business legal India rules such as online business registration India and GST will keep you out of trouble and allow your business to ​‍​‌‍​‍‌​‍​‌‍​‍‌grow.

Step 5: Pricing, Costs & Profitability

How​‍​‌‍​‍‌​‍​‌‍​‍‌ do you make money? You have to price your products in the right way.

Your costs (what you pay for):

• Product Cost: The amount that you pay to your supplier for the product. (e.g., ₹200 for the mug).
• Shipping Cost: The cost that the supplier charges for delivering the product. (e.g., ₹50).
• Marketing Cost: The money that you spend on Facebook, Instagram, or Google ads. This is a major cost.
• Platform Fees: Your monthly Shopify fee. (e.g., ₹2,000 / month).
• Payment Gateway Fees: Razorpay/Paytm will take a small part (about 2%) of every sale.

Step 6: Order Fulfilment, Customer Service & Returns

This​‍​‌‍​‍‌​‍​‌‍​‍‌ is your daily work as a dropshipping store owner.

Your Daily Work (Order Fulfillment):

• A customer orders a product on your Shopify store.
• You receive an email informing you of the new order.
• You go to a supplier’s website to place an order (or send an email).
• You make the same order with the supplier. You change the “Shipping Address” to the customer’s name and address.
• You pay the supplier the wholesale price (e.g., ₹200).
• The supplier delivers the product to the customer.
• The supplier gives you the tracking number (for example “AWB No: 1234567”).
• You provide that tracking number to your customer. (Shopify allows you to do this automatically).

Your job is to connect the customer and the supplier.

Customer Service (Very Important in India):

•  Be Fast and Polite: Indian customers want quick answers. The question “Where is my order?” will be asked most frequently. Always be polite.
•  Use WhatsApp: You should be reachable on WhatsApp. Customer service through WhatsApp is the most convenient way for ecommerce India.
•  Speak Their Language: If possible, provide support in Hindi or other regional languages. This creates an incredible level of trust.
•  Handle Problems: If the product is late or broken, apologize. Don’t blame the supplier. Tell the customer “I’m sorry, I will fix this for you”. After that, get in touch with your supplier and agree on a solution (e.g. refund or a new product).
• Handling Returns: You must have a clear returns policy for dropshipping in India.

 Decide your policy. (e.g., “We only accept the return of broken items within 7 days”). When a customer wants to return, you usually ask them to send the product back to your supplier’s address. This is the most difficult part of dropshipping. That’s why choosing good products and a reliable supplier is so important to prevent returns. Your dropshipping order fulfillment India process should be fast and efficient.

Step 7: Scaling & Optimising Your Dropshipping Business

“Scaling” means getting bigger. “Optimising” means improving your store. When you start to get sales, you still have work to do.

1. Look at Your Data (KPIs):

You should keep an eye on your data. No need to be afraid; it’s pretty simple.

• Conversion Rate: How many of 100 people visiting your store make a purchase? (for example, if 2 people buy, your conversion rate is 2%). A good conversion rate is 2-3%. If it is low, maybe your price is too high or your website is too slow.
•  Average Order Value (AOV): What is an average of the bill? (e.g., ₹750). Your goal is to make it higher. You could do that by pre-selling products (“Buy 2 Mugs, Get 10% Off”).
•  Cost Per Acquisition (CPA): How much money needs to be spent on ads to get one customer? (e.g., ₹300). What you want is for this number to be less than your profit margin.
•  Cart Abandonment: How many users put a product in their shopping cart but do not proceed to checkout? (Use Google Analytics to get this data). Perhaps your shipping cost was a surprise for them.

2. Ways to Improve (Optimise):

 If your advertising works, put more money in it.

•  Try out new products. Introduce more products in your store.
•  Work on increasing the loading speed of your website.
•  Test new advertising options (generally, videos are more effective than photos).
•  Automate: Install Shopify apps that automatically inform your supplier about your orders. This is a big time saver for you.

This is your plan for dropshipping growth India. In order to scale dropshipping India, you need to keep an eye on your data and make smart changes. You optimize your dropshipping store India to get more profit from each ​‍​‌‍​‍‌​‍​‌‍​‍‌visitor.

Common Mistakes to Avoid (Especially in India)

Most​‍​‌‍​‍‌​‍​‌‍​‍‌ will to start dropshipping lose their fresh merchant trap. They usually make these simple mistakes. Avoid them.

•  Selecting a Bad Supplier: This mistake is the biggest one. A supplier who ships late, gives you bad-quality products, or ignores your emails will bring your business to zero. Make sure your supplier is perfect by testing him/her/it.
• Selling “Me Too” Products: Don’t sell the product that is sold by everyone (a “saturated” product). The main thing you need is to be different. Find a new angle or a brand-new product.
• Not Taking Indian Shipping Times Into Account: How can you ask an Indian customer to wait for a package from China for 30 days? They will cancel the order. Prioritize suppliers with a delivery time of 2-7 days.
• Disregarding Legal & GST: Thinking that you can avoid GST is the biggest mistake. You will be caught, and your payment gateway will be blocked. Have your GSTIN from day one.
• Bad Customer Service: Not listening to customers’ emails or WhatsApp messages. This leads to your store losing good reputation.
• Quitting Too Early: Maybe your first ad will be a failure. Maybe your first product will not sell. It’s normal. Dropshipping is a real business, not a “get rich quick” scheme. Learn from your dropshipping mistakes India and keep trying.

Tools & Resources For Indian Dropshippers

Here is a short list of tools that can assist you.

Store Platforms:

• Shopify: Most easy for newbies.
• WooCommerce: You have more control, but it’s more complicated.

Supplier Finders:

• IndiaMART: To find Indian manufacturers and wholesalers.
• AliExpress: For worldwide sourcing (be careful with shipping though). Look for new Indian dropshipping platforms such as Cokart, GlowRoad, or Meesho, but note that their models might be different).

Payment Gateways (Must-Have):

• Razorpay

Marketing & Research Tools:

• Google Trends: To find product demand.
• Facebook Ads Manager: To make and run your ads.
• Google Analytics: To find how many people visit your store.

Design Tools:

• Canva: Nice and simple tool, free of charge, to make your ads and social media posts look ​‍​‌‍​‍‌​‍​‌‍​‍‌attractive.

Conclusion

In​‍​‌‍​‍‌​‍​‌‍​‍‌ 2026, dropshipping business in India can be started as a real and lovely opportunity. Customers are available online but the market is still massive, and the tools are quite handy too. It’s not a “rich quick” type of thing, though. A real business is what it is. It requires working. You will need to do product research, communicate with suppliers, develop a store, and learn marketing. Maybe you will fail your first product, but that’s only a lesson.

The steps are obvious:

• Discover a good niche and a good product.
• Have a dependable (and preferably Indian) supplier.
• Create a basic, reliable Shopify store.
• Have your GST and legal formalities taken care of.
• Advertise your products to people who are really interested.
• Offer excellent customer support.

You may begin with a single product and then proceed to broaden your horizons. The path to a thousand sales is paved with one humble step. You possess the manual. It is now the moment to initiate action.

FAQs

Is dropshipping legal in India?

Yes, totally. It is a legal business model in the e-commerce industry. All that is required of you is to have a registered business (e.g. a Proprietorship) and a GST number.

How much money do I really need to start?

If you are to start, ₹15,000 to ₹20,000 would be enough to do so. This amount will take care of the first few months of your store’s fees, and you will have a good starting budget for marketing (ads).

Do I need a GST number for dropshipping in India?

Yes. Anyone selling physical goods online in India needs to have GSTIN (GST number) from the very beginning. This number is a must-have for the registration of Indian payment gateways.

Can I do dropshipping on Amazon or Flipkart?

The answer is “yes,” but with a lot of difficulties. Amazon and Flipkart impose their strict regulations on the matter of fast shipping (FBA, Fulfilled by Amazon).