What is Dropshipping | 5 Essential points About Dropshipping

Last Updated on August 31, 2021 by Sagar

The global eCommerce market has taken a revolutionary shift in the year 2020. From mainstream selling to online stores, the transition has been seen in every kind of business sector or business model. Of the many business models that exist, dropshipping is one of the most economical and profitable business models with very few limitations. As we continue reading, let us understand – What is Dropshipping?, who can do Dropship? What is a dropshipping business? How to get started with your own dropshipping business? What is dropshipping on Amazon? and the top dropshipping companies in India?.


What is Dropshipping?

The term drop shipping refers to a commission-based model, wherein, a dropshipper sells and indirectly ships a package. Here, the dropshipper sells a product from the supplier/retailer to the customer without stocking the product himself or managing the inventory. The dropshipper plays the role of a middleman/intermediary for the order fulfillment of the product.

What the dropshipper focuses on is the scalability and growth of the business by acquiring customers on a daily basis. By selling the products via the supplier, the dropshipper earns a commission which in turn is the profit earned.


Dropshipping Process

As mentioned above, the process of dropshipping is pretty simple. It is a 3-step method which can be explained as:

  • Step 1- The dropshipper receives an order placed by a customer
  • Step 2 – He/She then forwards the order to the concerned supplier/wholesaler/retailer
  • Step 3 – The supplier packages the product and fulfills the same via shipping it to the customer

Here is an example of how the dropshipper earns a commission for selling a supplier’s product. For instance, the dropshipper has tied up with Ali Express, which is a marketplace of thousands of suppliers.

A supplier from Ali Express sells the product to the dropshipper at ₹70. The dropshipper, while marketing the product sets the selling price as ₹120. In this manner, the dropshipper earns a profit of ₹50 without owning, stocking, or shipping the product, rather than just generating leads for the supplier.


Who can Dropship?

What is dropshipping? How anybody can do it online?

Now that we know what is dropshipping and its process, here are some people who can easily choose to drop ship to generate profitable revenue.

New Business Entrants – Owners who have just stepped into the eCommerce market, well dropshipping is for them.

Business owners who work within a Budget – Those businesses that have a fixed allocated budget to carry their own eCommerce, well dropshipping is for them, since everything is about calculations.


eCommerce Owners – Those who prefer online selling for their business have a different mindset. Targeting potential prospects and customer acquisition are part of their game plan, and hence dropshipping can suit their business.

Part-time job holders – Those business owners who work part-time, dropshipping is for them. Since there are minimal investment costs incurred, it can be a suited business model.

You! – You heard that right! You can also easily learn how to dropship without any worries. All you need are trustworthy online reselling apps that can help you get started.

If you fit right into the above categories, dropshipping can be your game. Now, let’s understand how you can start a dropshipping business of your own? Here are 6 steps to keep in mind:

  • Selecting A Niche that surrounds tour interest
  • Perform a Competitive Analysis
  • Tie-up with a supplier that will help increase profit margins
  • Go ahead and create your very own eCommerce website (free or paid)
  • Market right to gain customer attention and conversions
  • Perform a customer acquisition analysis to alter your marketing strategy

These 6 steps act as a perfect guide to start a dropshipping business of your own.


However, given the current situation and the impact of the global pandemic upon various markets, is dropshipping a smart plan for 2020? Let’s find out.

Now that you have an idea of the dropshipping business, you may consider this as the best business plan. No doubt! It is! However, getting started to dropshipping may draw you to the higher profits that can be earned through this business model, and hence may overlook the smaller nitty-gritty of the business.

This, in turn, may impact customer experience and this may lead to low or no profit margins.

In regards to 2020, dropshipping is a good idea. The reason being, the eCommerce industry is on a rise with most of the shoppers and sellers switching online. With higher demands, your dropshipping business gets a great kickstart.

There will be much traffic generated to your website, leading to higher profits. Additionally, brand awareness is created and much of your brand will gain attention via social media and other online marketing tools, provided you market right.

What is dropshipping on Amazon?

Amazon is incredibly powerful. First, you have got all this incredible amount of traffic already there, and in the process is somewhat more simplified. Amazon dropshipping can be done by either

  • Online arbitrage – Essentially what you’re doing here is you find products that are underpriced and then you sell on that listing on Amazon for a higher price
  • Private label – It means the products are being marketed on your site and marketed without the company’s name that’s actually manufacturing, instead you are basically creating your own brand and this is a brand that lives separately from your eCommerce store.
  • Wholesale dropshipping – It is a dropshipping model where you are working with a wholesale company and then they’ll drop ship out of your orders to your customers. Most wholesalers have some form of an MOQ (Minimum Order Quantity) to ensure that any of the retailers that they are working with are going to purchase a certain amount and the wholesalers will still make money

Here is another idea start an online business and make money that is Online Reselling

Best Dropshipping Companies in 2020

Best Dropshipping Companies in 2020

It is amongst India’s best dropshipping companies, Bluember is a fully automated drop shipping service. Bluember, allows resellers to browse through different categories and sell via the website hassle-free.

IndiaMART is a huge online platform for your dropshipping business. This wholesale marketplace works within competitive prices, giving one of the best product pricing in India.


It is a B2B marketplace where online retailers and resellers can find the drop shipping service. Through ExportersIndia, one can directly contact the suppliers based on the requirements, to thus fulfill the orders placed on a dropshipper’s website directly.

Dropshipzone is an Indian drop shipping company that specializes in providing specialized services to drop shippers; with a wide range of selling products sourced directly from the manufacturer. It also allows one to gain high-profit margins.

Wholesale box is a dedicated dropshipping platform. It caters to a wide range of products including women and men’s fashion, home, and furnishing products. The platform allows one to place an order either as a supplier or a wholesaler.


Well friends, now you might have a basic idea about What is Dropshipping?. Online selling can be a lucrative option. Undoubtedly, it helps to increase the higher number of profit-margins.

However, when you speak about dropshipping, more than just online selling, it’s more about tying up with the best suppliers. What you need to keep in mind as a dropshipper is that it’s all about the product and customer experience.

So, the right supplier can make or break your dropshipping business thus increasing or decreasing profit-margins. Happy Dropshipping!

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