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Dropshipping internationally: the benefits for Indian business

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Dropshipping internationally is a tempting business idea for entrepreneurs in India looking to search beyond the border for untapped niches. In this article, we will discuss the Indian and global ecommerce markets, the benefits of dropshipping, and how to start.

Ecommerce in India: saturated or worth pursuing?

India has the eighth largest ecommerce market in the world in 2021, according to ecommerceDB. There are mixed reports about the state of India's ecommerce market over the next few years. EcommerceDB states that the compound annual growth rate 2021-2025 is predicted to slow down to 10%, a drop from 26% in previous years. They suggest this is mainly due to the low internet penetration rate in India, among other factors.

eMarketer has similar findings, advising that as long as internet connections improve, there could be an ecommerce boom in the future. As it stands, eMarketer reports that India has an internet penetration rate 15% less than Asia-Pacific.

Low internet penetration rate

Although India has one of the highest numbers of internet users, the online penetration rate (percentage of internet users compared to the country's total population) in India is still fairly low. At the beginning of 2022, only 47% of the total population have access to and use the internet in India, says Data Reportal. eMarketer says this figure is in fact only 30%.

India falling behind other nations

Compare this with the global internet penetration rate of 62.5% and Europe at 98%, as reported by Statista. The map below shows the countries in dark blue with high internet penetration and those in light blue with a low percentage of internet users.

Source: World Bank Data, 2020

Where to find digital buyers

While India's ecommerce market might explode in the next few years, entrepreneurs can take advantage of international markets that are better positioned now.

Opportunities outside of India with a high number of digital buyers include China, the UK, South Korea, Denmark, Indonesia, Norway, the US, Finland, Sweden, and Canada. These countries are named as having the highest percentage of retail sales online in January 2022, as per Statista.

This compares with data from eMarketer in 2021 that found China, the US, and the UK as having a large portion of online retail sales, out-running the smaller markets that include India and Spain.

Countries with the best internet

Taking into account the internet speed of each nation is worth doing when searching for an ideal location to set up your consumer base. The top ten countries according to Ookla in 2022 are Singapore, Chile, Thailand, Denmark, Hong Kong, Monaco, Macau, the US, China, and Spain. Only Denmark and the US are the two nations with both the highest internet speed and the most online retail sales.

The fastest mobile internet speeds

Countries with fast mobile internet are another factor to keep in mind. Online shoppers with high internet are able to access retail websites with more convenience and a higher likelihood to make a purchase. Denmark, Norway, and South Korea are the three countries with both fast mobile internet and high internet shopping sales.

How to sell to international online buyers

The ideal business for selling to international buyers has low startup costs, accessible, has little technical knowledge required, and is easy to manage from India. One of the best ways to obtain all of this is by dropshipping.

What is dropshipping?

Dropshipping is an ecommerce business strategy which allows a seller to trade goods without keeping or handling the stock themselves. Customer orders are fulfilled by a supplier, while the dropshipper focuses their time on their online store, customer service, marketing, and advertising.

What are the benefits of dropshipping?

  • No warehouse is needed. Saving dropshippers money, time, and staffing resources. The supplier manages stock and only ships the orders sold rather than the dropshipper investing in stock to sell.
  • Low startup costs. An internet connection and laptop are the bare essentials.
  • Customer order fulfilment is one less hassle. It's the responsibility of the supplier to ship and deliver customer orders as soon as a product is sold by a dropshipper.
  • Flexibility. Dropshippers choose their niche market, the products they want to sell, the customers they want to target, the hours they want to work, and how to set up their online store. As a full-time or part-time business venture, dropshipping is completely flexible around the entrepreneur.

    • The ideal supplier - dropshippingXL

    Finding a reputable supplier for dropshipping is one of the challenges when starting this business. dropshippingXL is a programme by vidaXL, a Dutch retailer that specialises in a home and garden range, sporting equipment, children's toys, baby and pet products. Established in 2006, vidaXL now boasts 130 million website visits per year worldwide.

    Why use dropshippingXL?

  • Choose from a catalogue of over 90,000 high-quality products in a variety of categories for your store.
  • Sell in one of 34 countries such as Europe, the UK, the US, the UAE, and Australia.
  • With warehouses and fulfilment centres across these countries, dropshippingXL can deliver your customer orders quicker.
  • As part of the dropshippingXL programme, sellers can access marketing materials and business support to help you optimise your store.
  • No commission is charged to the seller, regardless of the volume of dropshipping sales. Instead, pay a flat rate of just €30 per month.

    • Sign up to start making a profit online

    Getting started with dropshippingXL is quick and easy. Sign up on the website, choose a country to start selling in, and begin dropshipping.

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