The word ‘dropshipping’ keeps getting mentioned in many business discussions lately. But what is dropshipping, after all?
Dropshipping is an online business method. It is special because it allows the seller to sell products without having to keep them stocked. The seller does not have to manufacture or store the products, and just displays and sells them. Where do the products come from, then?
The products are provided by the dropshipping supplier or vendor. This vendor also has the duty to ship the products to the customers.
This is just the basic definition of what is dropshipping business basically. There is a lot more to what is meant by dropshipping. You should know all the details, especially if you plan to start a successful online business in India 2026.
What is Dropshipping?
Dropshipping is an online business model where you sell products without keeping them in stock. When a customer places an order on your website, you purchase the product from a supplier, and the supplier ships it directly to the customer.
You don’t handle inventory, packaging, or shipping. Your main role is marketing the products, managing the online store, and providing customer support. This makes dropshipping a low-investment and beginner-friendly way to start an online business, especially in India.
- Simply put, the seller shows the products on an online platform, be it their own website or a platform like Amazon, Flipkart and know what is Meesho.
- Customers then visit this online platform and see the products.
- After this, the ones who want to buy the products place orders on the dropshipper’s digital store.
- Then, the dropshipper gives the order to the dropshipping supplier or vendor, who is keeping the products in stock.
- Finally, the vendor sends the products to the customer and the order is completed.
- In short, the ‘seller’ is not the manufacturer or owner of the product, simply the mediator between the owner and the buyer.
Therefore, dropshipping is a great business model for beginners or entrepreneurs. It has very low starting costs and allows the dropshipper to focus on marketing and growing their business instead of investing time and money into inventory and shipping.
There is also zero risk of unsold stock because the dropshipper does not have to purchase the products and keep them ready in advance. Mostly, the dropshipping business will only have to pay for the products once sales start coming in.
How Does Dropshipping Work in 2026?
Now you understand what is dropshipping so, lets moves on how it works? Dropshipping works in a very simple way, but you should know all the steps of how to dropship, if you plan to start your online business in 2026.
1. Do Market Research and Select Your Dropshipping Niche
Your chances of success as a dropshipping business rely heavily on the market niche you choose. You’ll have to do proper market research and select a niche where there is enough demand and a level of competition you can handle.
Finding a trending niche is a good idea, because you will have a lot of sales while the niche or product is popular. You can also choose a niche with only a few sellers, so you can fill a supply gap.
The best dropshipping business ideas are making all the difference for online businesses in 2026.
2. Choose Your Products
After deciding the category of product (which is also called market niche), get more specific and ask yourself which exact products you’d like to sell.
For example, if your niche is women’s accessories, you can choose products such as luxury hand bags, silver jewelry, studded belts, etc. Choose a product that is more likely to bring customers to your storefront, whether the product is trending or always in demand.
3. Find a Dropshipping Supplier
Next, you need to find a good supplier who has the products you want to sell, and does quicker shipping. Finding the right supplier is very crucial for the dropshipping business, because customer satisfaction mainly depends on the quality of the product and order fulfilment.
There are some other things you should keep in mind when choosing a supplier for dropshipping, like how much they are charging you for the product and their payment system. The price of the products should be less than your estimate of how much your buyers would want to pay for them. Your profits come from the price difference between what you pay the supplier and what the customer pays you, so be careful while setting prices.
4. Pick Your Dropshipping Platform
You have to decide which platform you want to sell your product on. Here, you broadly have two options. The first option is that you can build your own website and/or app. The second option is being a seller on an existing platform such as Amazon, Flipkart and Meesho.
There are specific things to know about both the options. If you choose to sell on an existing platform, each platform will have its own advantages and disadvantages. Make sure you know about the pros and cons.
For instance, Amazon has a large number of customers, but it charges its sellers some fees based on the products sold. Meesho dropshipping, on the other hand, charges zero commission. Selling on your own website might have a few extra charges during the website development stage, but gives you more control over your brand.
5. Fulfil Legal Requirements
Register your dropshipping business, and fulfil the compliance requirements depending on the platform. You have to get all your documents in order and make sure that all business legalities are taken care of. For example, if you have chosen Amazon India dropshipping, you need to have a GST number.
6. Set Up Your Online Store
Now comes the fun part where you get to build your own online store. Once the store is up, list your products on it. But don’t just leave it there. Make sure that you increase the chances of your listings showing up when people search for your product (this is called optimization). If you have a seller account, you should also optimize it.
If you are selling through your own website, make sure your web pages are SEO-optimized so that more people find your business online. Set up your payment gateways properly, and decide whether or not you want to offer cash on delivery option.
7. Launch and Promote Your Store with Marketing
Once your store is ready, launch your dropshipping business and start doing marketing to make people aware about your store. Once you start to get an audience, build trust by demonstrating the strengths of your business. Good marketing is perhaps the most important skill for a dropshipper.
8. Forward Orders and Provide Customer Support
When you get an order, you have to forward it to the supplier, and stay updated on the progress of the order. Shipping is not your task but you need to know about the order status in case your customer has any query.
If the customer faces any issues, they will seek support from you because they only communicate with you, not the supplier. Make sure to provide good customer support. This will make your customers trust you more.
9. Start Making Profits and Growing
When things start going well, you can easily add more products or suppliers. This will give you even more customers. As profits rise, you can spend more on marketing too.
Dropshipper Duties in One Glance
A dropshipper handles product selection, store management, marketing, customer support, and order processing, while the supplier manages inventory and shipping. Their main duty is to attract customers, ensure smooth communication, and deliver a great buying experience without holding stock.
Advantages of Dropshipping in 2026 India
Dropshipping is profitable in India. An amazing fact given by the Press Information Bureau (PIB) is that India had 1,002.85 million internet subscribers as of April-June 2025!
Online business and dropshipping are always going to have customers and the number of customers will just keep increasing.
But what are the specific advantages of dropshipping over other business models?
1. Dropshipping is Flexible
Dropshipping has a lot of flexibility. You can become a dropshipper without having to be present anywhere near the supplier, products, or customers. All you need is a device and an internet connection, and you can manage your online store and order flow from anywhere, at any time.
2. Dropshipping is Profitable
Dropshipping is profitable in India 2026 due to the huge number of potential customers and tremendous growth of e-commerce. Dropshipping also gives you the specific advantage of very low start up costs and minimal hassle.
Therefore, you get more time, money and energy to focus on acquiring customers. Due to the high flexibility of dropshipping, you can also start selling more products when you start making profits, thus growing your business quickly.
3. Dropshipping Lets You Sell a Variety of Products
Dropshipping makes it easier for you to offer an impressive variety of products to your customers. All you need to do is add more products from the supplier, or increase the number of suppliers you are working with.
In a regular e-commerce business model, increasing the variety of products would involve a lot more time, money and effort. There would be considerations such as production cost, additional staff hiring, warehouse cost, etc. Dropshipping lets you avoid all of this and increase your product variety with ease.
4. Dropshipping Has Minimum Risk
One of the best things about dropshipping is that it completely cuts through the risk that other entrepreneurs and online businesses have to take. You do not risk buying extra stock that does not get sold, putting money into production, unexpected costs, or overhead expenses.
5. Dropshipping Keeps You Connected to Customers
Aside from marketing, one of your main duties as a dropshipper is to provide good quality customer support. This means that you directly interact with your customers, which gives you the opportunity to build trust and relationships that keep customers coming back.
Therefore, instead of just focusing on one-time sales, dropshipping lets you focus on customer retention.
Conclusion
Now you are clear about what is dropshipping and how it works in 2026. Dropshipping is the perfect business model for any beginner who wants to have a successful online business. Now that you know what is meant by dropshipping and how to dropship, start your dropshipping on Amazon India.
Frequently Asked Questions
1. Is dropshipping still profitable in India 2026?
Yes, dropshipping is still profitable in India 2026. With the growth of internet usage and e-commerce, dropshipping has become a great way for new businesses to become profitable.
2. How do I start dropshipping?
You can start dropshipping business in India by choosing a market niche, selecting your products, finding the right dropshipping supplier, choosing the platform where you want to sell, getting the legal and compliance work done, setting up your online store or storefront, listing the products, marketing your online store, and accepting customer orders.
3. Why do 90% of dropshippers fail?
90% of dropshippers fail because they do not understand dropshipping. Misunderstandings and half knowledge cause more failures than anything else.
4. Is dropshipping legal in India?
Yes, dropshipping is legal in India. You just have to make sure your business is properly registered, all the legal paperwork is done, and that you are following the compliance procedures of the platform you are selling on. If you are dropshipping internationally, you also have to follow export regulations.
