The global dropshipping market is projected to reach a staggering $476.1 billion by 2026, growing at an impressive CAGR of 28.8%. This remarkable growth has piqued the interest of aspiring entrepreneurs worldwide, including in India, where the e-commerce landscape is rapidly evolving.
But what exactly is dropshipping, and why has it become such a popular business model?
Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This means the seller doesn't have to handle the product directly.
How does Dropshipping Work?
Benefits of Dropshipping
The Indian e-commerce market is expected to reach $200 billion by 2026, creating ample opportunities for dropshipping businesses. However, entrepreneurs must navigate specific regulations, including GST registration and compliance with e-commerce rules.
Platforms like IndiaMART and Meesho have emerged as popular choices for those looking to start a dropshipping business in India.
Many thriving businesses have embraced the dropshipping model. For instance, Mooshe Socks, a Canadian brand, has created a unique selling proposition by offering monthly sock subscriptions.
What is dropshipping?
Dropshipping is a retail fulfillment method in which the seller doesn't keep inventory but instead transfers customer orders to a supplier, who ships directly to the customer.
How to do dropshipping?
To start dropshipping, choose a niche, find reliable suppliers, set up an online store, and market your products effectively.
What is the meaning of dropshipping in simple terms?
Dropshipping means selling products online without holding inventory, where the supplier handles storage and shipping directly to customers.
