The lockdown induced by coronavirus in India resulted in the closure of the offline retail store and in this scenario, eCommerce has emerged victoriously. It is not shocking that the retail market saw a shrinkage and on the other hand, the eCommerce industry saw a growth of 25% in 2020-21. Even though many sectors have seen the impact of COVID in the business, surprisingly the fashion industry managed to stand tall. In fact, according to a report by Unicommerce, the industry had a huge growth in FY21 in comparison to the previous FY. If you want to become an entrepreneur and are looking forward to starting a business that involves small investment, online fashion businesses may be the right fit for you.
Dropshipping Provides An Ideal Low-Investment Business Model
A successful fashion eCommerce can be started with just an investment of INR 10,000 by following a simple DIY that requires dropshipping. Dropshipping refers to the process where online orders are accepted on behalf of the manufacturer and the shipment details along with the order transfer is provided either to manufacturer or logistic partners like YunExpress. The best aspect of dropshipping is that it does not require the business owner to keep anything in stock and hence, it totally eliminates the finance of spending apparel or renting a warehouse to store the apparel.
Basic Steps For Starting A Small business
Firstly, the budding entrepreneur should open a bank account and then file for a GST certificate and the incorporation needs to take place. This can be done by the entrepreneur as well as one can go for a consultant too. The second step involves acquiring a trademark to become a sole proprietorship eCommerce business. After the paperwork of the business is managed, one needs to engage in website building. One can build their website without any help as website building has been super-simplified by WordPress and Wix. If you still want additional changes in the theme or are looking for plentiful customization, you can hire a freelance web developer or designer who can further create a brand logo for you.
The third step involves a product photoshoot that can be included in the website which then needs to be listed on the website. Lastly, the entrepreneur needs to integrate a payment gateway in the website along with involving logistic partners like ePacket to pick the order from the manufacturer and deliver it to the customer.
Which Platforms Should Be Used For Drop Shipping?
In addition to using one’s own platform for dropshipping, one also has the option to include their products in traditional eCommerce websites like Myntra, Amazon and Flipkart. However, this is not usually recommended by experienced drop shippers. Many top drop shippers prefer to sell their products via their own brand with the help of ties with the logistic partners for managing the delivery. It is because when third-party delivery partners are involved from other eCommerce websites, it becomes difficult to manage the delivery which in turn might impact the experience of the customers.
Addition Costs Of Starting A Startup
In addition to the cost explained above, one will also have to invest in packaging. A small business can use the basic laser printer for printing labels and invoices. As the business flourish, one can go for more sophisticated devices. Further, one can include the cost of a good internet connection and laptop. However, most aspiring entrepreneurs will have these as basic essentials.
Marketing is important
After ensuring all the aspects of your business is functional including the supply chain, website and delivery network, one needs to work on marketing it on different social media platforms. For promoting the products online, the basic knowledge will prove to be sufficient. However, one can engage in free online classes to further improve the visibility and the impressions of the product. Facebook marketing can prove to be useful for it.
If the costs explained above are outsourced, the investment price can rise up to INR 50,000. However, if an entrepreneur has time and is willing to learn and perform the task themselves, the entire model of dropshipping business can be fitted within INR 10,000. With no costs involved in procurement, inventory or warehousing, dropshipping is one of the cheapest ways to start a business with hardly any risk.