Retailing on eBay India Using Dropshipping

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India has about 210 million internet users and 10 million users buy online. There are approximately 360 Ecommerce portals offering services in India. The industry is witnessing a 30 to 35 per cent growth per annum. How can small and medium retailers become e-retailers or get into the Ecommerce business? The simplest way of getting into the internet marketing bandwagon is go with giants in the space. The major players in the market who allow users to sell on their websites are eBay, indiatimes, rediff, Junglee etc..

eBay India has about 3 million strong community and 23000 sellers currently. It has approximately 62% of the online retail trade in India. In online retail price is a major factor as all are vying for the same set of buyers. Retailers having access to major wholesale markets procure the products cheap and sell them online. This involves quite high capital investments as they need to procure products in bulk. However it doesn’t mean that small retailers or work from home opportunists cannot enter the fray.

They can use a simple solution called dropshipping.It’s a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price.

Dropshipping is not a ‘get-rich-quick’ scheme. As with any business, it takes dedication and hard work to be successful. However, there are distinct benefits to using dropshipping in your online retail business.

You can start a retail business without needing to invest large amounts of money and with very little risk, as you don’t have to carry inventory or pay for it upfront. If the product doesn’t sell, you don’t have to buy it. Neither do you buy packaging materials and shipping labels, nor will need a shipping account.

You purchase products at wholesale pricing and set your own retail prices and your customers needn’t know where you are sourcing your products from! You get all the descriptions and pictures from the dropshipper and create your own listings or use ready built listings.

For the negative aspects of the dropshipping you don’t see or feel the product and are totally dependent on the dropshipping company for the quality and timely delivery of the products. Some will charge high setup and maintenance fees which are not refundable. Many a times they sell you products at extraordinary cost which makes it difficult to sell in a competitive online environment.

When you are using dropshipping check the price you are getting, factor in shipping costs, paisa pay charges, eBay final value fees, and listing fees. You should be left with at least 10% profit after this. List these products and let your sales go viral.

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