Guide to Start a Dropship B2B Business in India
As it is a cost-effective way to start an e-commerce business, you may be interested in starting your own dropship B2B business in India. For this, you’ll need to gather some knowledge about it. Here, we will discuss the benefits, the strategies, and more important things you’ll need to succeed.
However, you’ll need first some basic dropshipping notions, such as dropshipping providers, marketplaces, and so on.
Once that’s fulfilled, in this guide, you’ll find the tools and the information you need to know about dropship B2B.
Table of contents for this article.
What Is Dropshipping?
Dropshipping is an order fulfillment methodology in which a company does not stock the products it sells. Instead, the seller buys inventory from a third-party vendor (usually a wholesaler or manufacturer) as needed to fill orders.
The main distinction between dropshipping and traditional retail is that the selling merchant does not stock or own inventory; instead, they act as a middleman.
What Is B2B?
Businesses and organizations trade goods and services in the business-to-business model. For example, one company may enter into a contract with another company to supply raw materials for the manufacturing of a good.
Another company may require products from another to stock their shelves. Other businesses, on the other hand, hire businesses to promote their products and services, insure their operations, or design their logo.
Consumers aren't a direct factor in B2B transactions, but they are an important part of why B2B companies collaborate.
What Is B2B Dropshipping?
Dropship B2B e-commerce refers to an online business transaction involving two companies. This business, in general, facilitates transactions between a manufacturer and a wholesaler or a wholesaler and a retailer.
In B2B e-commerce, the deal takes place between two businesses. Whereas in B2C (Business-to-Consumer) e-commerce, the sale takes place between the business and the consumer. The seller provides the products directly to the end-user in the B2C business model.
Advantages of Selling B2B
There must be good reasons for focusing on working with B2B customers in India, and there are clearly a number of excellent ones. There may be many more reasons to target B2B customers, depending on the type of products sold, but these are the main ones.
Convenience for Busy Businesses
B2B customers, like B2C customers, want convenience when interacting with other businesses.
They will be able to access your best prices if they can buy directly from your business through your website. Even more, if you offer your products via other sales channels, they will be able to interact with you wherever it is most practical for them.
When dropship B2B customers find the right product and a company that provides excellent service, They are more likely to order from them again.
Of course, any additional customers will help your dropshipping business. However, when you have repeat customers, you are as close to guaranteeing that your business will make more money as possible.
However, B2B companies may reach you to buy what they need in wholesale quantities. This way they don't have to restock as frequently, so they can get a better price for their own customers.
Being able to buy in bulk from your suppliers will almost certainly result in a lower price (which means a potentially higher profit on the order). This will result in a better business relationship with your provider, which may lead to preferential pricing in the future.
Massive Market Potential
The global B2B e-commerce market was valued at $14.9 trillion in 2020, which is over five times that of the B2C market.
If a large number of businesses require the products you sell, the type of possible sales that you can make is probably already clear. As a dropship B2B business owner you can benefit from it.
Of course, people in similar industries frequently share great places to buy from. So expect your sales to boost as your clients share your business with one another.
How Does Dropshipping Work in India?
Now that you know the concept of dropship B2B business and its benefits, It's time to look at how it works in the Indian e-commerce industry:
- The customer places an order on the website.
- The seller then notifies the supplier of the order.
- The supplier may need to manufacture the product.
- The supplier then processes and ships the product to the customer.
- Finally, the client makes a payment to the reseller, which includes the shipping fees.
Dropshipping in India is an exemplary and lucrative concept because it allows for industry experimentation and growth.
B2B dropshipping in India has a long number of additional benefits in addition to this simple business model that is simple and easy to implement.
Suitable for Businesses with a Low Budget
E-commerce businesses in India require a large budget for processing, maintaining, storing, manufacturing, and shipping products. Most businesses must also manage their refunds and returns. This can be time-consuming, tedious, and costly.
Dropship B2B, on the other hand, can significantly reduce costs. With this method, the retailer does not have to pay or spend money on anything until the customer has placed and paid for the order.
This significantly reduces the risk, necessitating only a small amount of capital, which will be used primarily for promoting their products and paying taxes.
Independent Of Location
B2B dropshipping enables you to operate your businesses with only a website. The entrepreneur can be located anywhere in India, and the dropshipping supplier will still be able to serve him. All a dropshipper needs is a computer and a reliable internet connection.
Because the Indian market is shifting toward online shopping, being an online retailer has become a trend, especially in the B2B model. Other businesses find it advantageous to buy things online rather than the traditional way.
Dropship B2B allows new entrepreneurs in India to enter the e-commerce domain and manage inventory orders, and deliveries. Even without a large setup as well as in inventory and shipping management systems.
What to Sell on B2B Dropshipping?
The products you can consider offering in a B2B dropshipping business are quite wide. There are no winning items or specific niches to attach to. However, in exchange for that, you have to make your own research on which items other companies may be interested to buy.
Thanks to FindNiche tools, which can turn into an easy task, since you can make a mental picture by searching different items. For example, if you search for “office supplies” you may find some things to dropship B2B:
In which you can take a look at their trends and estimated prices. Of course, you can expect that products that are trendy among consumers will be better accepted by businesses in India as well. Also, you may want to deepen the usage of these tools a little to get better results.
By doing this with different items you can build yourself a potential listing of items to offer to your targets. However, you won’t always match the same products with the suppliers that dropship B2B works.
To deal with this, you’ll have to search among all the suppliers to find the best fitting one for you.
Where To Find B2B Dropshipping Suppliers?
A crucial key to making all this possible is the suppliers, you’ll need to find the best dropshipping suppliers. There are numerous methods for locating dropship B2B suppliers that provide their service in India. For example, you can find them at a trade show or by searching online.
However, we have prepared some of them for you. The following are the top wholesale marketplaces that ship to India, which are home to hundreds of international buyers and sellers:
Alibaba was founded in 1999 as a way of connecting Chinese manufacturers with buyers from around the world. It has grown to become one of the world's most successful corporations.
This company is among the most important platforms for obtaining the necessary products. Even if they don’t sell in small quantities, you can reach them if you are interested in purchasing a large number of products.
You can also reach them if you want to buy products personalized made for you or branded with your company's logo, and it may be a viable option for you.
ECVV is one of the top B2B marketplaces, and many business owners rely on them for their business. Since its inception in 2003, the platform has assisted thousands of dropship B2B companies.
The website strives to build stronger relationships with global buyers and suppliers. Aside from that, the website provides the best business-to-business market strategies. As a result, they have established a strong online presence.
This B2B platform has been recommended by the American International Business Council and the Shenzhen Government.
They work with a wide range of products, including Bluetooth speakers, electronics, and a variety of other fashion accessories such as sunglasses and watches.
The main reasons why you should dropship with the ECVV are:
- They guarantee excellent product quality.
- Their price list is cost-effective when compared to other marketplaces.
- They provide an effective and safe method of payment.
- They also provide shipment tracking and prompt delivery.
DHGate is the Chinese company that is best and leading the operations of Alibaba's competitors to promote local businesses online. They offer over 30 million products for purchase.
The site's goal is to assist Chinese manufacturers and suppliers in connecting with international traders. This market leader has assisted 5 million users from 227 countries.
Customers can purchase electronic goods, clothing, decorative items, sports equipment, and many other items on this website.
DHGate is a well-known online marketplace that deals with Chinese-made goods. It provides a diverse range of products at a reasonable price. As a result, the sellers can earn a sizable profit margin.
The following are their main characteristics:
- The business offers a buyer protection plan.
- They provide a secure refund policy.
- They offer express delivery.
- Finally, you can obtain shipment tracking services.
Here we have one of the first dropship B2B online marketplaces,Global Sources. The platform first appeared in 2000. It is based in Singapore and aims to attract sellers and buyers from all over the world.
Large numbers of online marketplaces pay lots of money each year to have their brands spotlighted on this site. Global sources provide a comfortable as well as a friendly platform for traders to connect.
One of the best aspects of the site is that all users are genuine and verified. As a result, if you're looking for top-quality brands, this marketplace is the best option.
The website functions as a directory of manufacturers and suppliers from all over the world. There are numerous Chinese businesses available at Global Sources.
The website provides the following benefits:
- The website offers dependable suppliers.
- At trade shows, you can meet the suppliers.
- The company assists buyers in the event of a dispute.
- The website has the top 94 stores in the world.
Made In China
The company operates one of the most effective B2B marketplaces. Focus technology launched it in 1966. You can trust the site because it competes with Alibaba in the B2B Chinese market.
The main goal of launching this platform on an international scale was to connect local smaller businesses with foreign buyers.
Made In China is a well-known company due to its ability to provide high-quality products. The company also assists small businesses in gaining international recognition. The website also assists other traders in getting their products listed in a top ten list.
Here, sellers can get packaging and printing services. Aside from that, the company manufactures products for a wide range of product lines.
The following are some of the appealing characteristics of Made In China:
- They provide high-quality labeling, packaging, and printing services.
- Their products are centered on innovation.
- The final products are intended to protect the environment.
You now have a couple of tools and resources to get started with a dropship B2B business in India, but you have a long way to go yet. Building the trust that your clients will need, learning about the process, and ultimately which products to offer will take some time.
However, it can grant you huge income and economical stability once you have consolidated business relations. Even further, you can inspire by success stories to learn about what made them successful.
It is a matter of time, and with the niche finder tools, your success will be even quicker.
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