The State of Dropshipping in India
Dropshipping has become one of the most popular low-capital business models in India. By acting as a middleman between buyers and suppliers, dropshippers can sell goods without holding physical inventory. However, scaling a dropshipping business in India requires navigating specific payment structures, supplier quality, and tax laws.
Legal and Tax Requirements
Before launching your Shopify store, ensure you meet the legal requirements:
- GST Registration: Even though you don't hold stock, GST is mandatory for inter-state e-commerce transactions in India. You must register to legally collect tax.
- Business Account: Set up a current account to receive payments from gateways like Razorpay or Cashfree.
Fulfillment & Real-Time Sync is Key
The biggest pitfall for dropshippers is stockouts. If your supplier runs out of inventory but your store still takes orders, your brand reputation suffers. Integrating your store with an inventory sync engine ensures supplier stock profiles are updated on your website in real time, preventing orders for out-of-stock products.