How much does it cost to start a dropshipping business in India

Starting a dropshipping business in India is one of the most affordable ways to begin an online store without holding inventory. With this model, you only pay suppliers after customers place an order, making it a low-risk option for beginners. 

According to Statista (2025), India’s eCommerce market is expected to reach around 550 billion USD by 2035. As you can see, it shows massive growth potential for new entrepreneurs. In this blog, we’ll break down the real costs of starting a dropshipping business in India, including setup, apps, marketing, and hidden expenses, so you can plan your budget wisely.

Is Dropshipping a Low-Cost Business Opportunity in Indian Market?

Dropshipping is a low-cost business opportunity in the Indian market because it requires minimal upfront investment, just from ₹10000, by eliminating the need for inventory, storage, and complex logistics, allowing entrepreneurs to start with relatively low costs for platforms, domain, and marketing. India's growing internet penetration makes it an ideal environment for this scalable, flexible business model that minimizes financial risk, with a booming e-commerce sector and a large customer base.

(Source: Grandview Research, 2023) 

1. Market Growth: The numbers are clear. Because the Indian dropshipping market touched USD 20.78 billion in 2023, experts anticipate it to grow at a 25.6% CAGR through 2030 (Grandview Research, 2023). There are such a lot of statistics to fuel this growth:

• 850+ million internet users
• Affordable smartphones
• Platforms like Shopify, WooCommerce, and Meesho are making setup simple

I’ve seen many sellers start with just a social media page and grow into full-fledged stores.

2. Current Impact: Social commerce apps such as Meesho have empowered women and rural entrepreneurs to become business owners.

• Valmo, Meesho’s logistics arm, scaled from just 5% of shipments in 2023 to over two-thirds by 2025 (Markets and data, 2023).
• Partnerships like TRIFED with Meesho are helping tribal artisans reach urban buyers.

Dropshipping is reshaping how small businesses enter e-commerce, not just about profits.

3. Challenges: Around 10-30%, profit margins are often slim because competition is high. Reliable suppliers and strong marketing decide who survives. That is why only 10-20% of new ventures succeed.

4. Opportunities Ahead: There are many niches waiting to be tapped:

• Fashion and apparel
• Wellness and Ayurvedic products
• Eco-friendly and sustainable items
• Tech accessories

With 67.5% of Indian internet users active on social media (Qikink), viral growth, and hyperlocal delivery in tier-2 and tier-3 cities create huge potential.

Final Word: Dropshipping in India is accessible, fast-growing, and full of opportunities. Success comes to those who treat it as a real business: build strong supplier ties, master digital marketing, and keep customer trust at the center.

The cost of starting a dropshipping business in India

Starting a dropshipping business in India can range from ₹10,000 to ₹50,000, depending on your chosen platform and marketing strategies. Key initial costs include platform subscriptions (like Shopify), domain name registration and hosting, marketing and advertising, and payment gateway fees. You can start with less by using free platforms and organic social media marketing, but a higher investment allows for better scalability and a quicker path to profitability. 

1. Website & platform costs

One of the first costs you’ll face when starting a dropshipping business in India is setting up your website and platform. From my experience, this expense can range anywhere between ₹3,000 to ₹10,000+ per year, depending on whether you go for a free or paid setup.

#1. Domain Name: Your domain is your brand’s online identity. On average, this will cost ₹700-₹1,200 per year. It’s a small investment, but essential to look professional and build trust.

#2. E-commerce Platform

• Paid Options: Platforms like Shopify India start at around ₹3,200/month, which includes hosting, security, and easy setup. This is the route I’d recommend if you’re serious about scaling because it saves you a lot of technical headaches.
• Free or Low-Cost Options: WooCommerce is free but requires you to set up your own hosting, which can add extra work. Also, some beginners test dropshipping using just social media to keep costs minimal.

#3. Hosting & Website Setup: It’s easy to see that if you use WooCommerce or another self-hosted option, hosting costs can add up. Paid platforms like Shopify, on the other hand, already bundle this in, making setup smoother.

#4. Logo (Optional): While you can design a logo yourself, a professional logo or branding package can cost around ₹5,000. It’s optional, but it helps you stand out in a competitive market.

If you’re just starting, you can keep costs low with free tools. But if you want a store that looks professional and can grow with your business, investing in a paid platform like Shopify is usually worth it. 

2. Supplier costs

When starting a dropshipping business in India, supplier costs are not something you pay upfront. Instead, they are tied to each product you sell. From my experience, this is where many new sellers underestimate expenses, so it is important to break it down carefully.

#1. Per-Item Cost: The biggest supplier expense is the actual product cost. You see, you can purchase the item from your supplier at their price every time a customer orders from your store. I’ll take an example of if a product sells for ₹1,000 online, the supplier’s cost might be ₹500-₹700, depending on the category and quality.

#2. Dropshipping Fees: Some India dropshipping suppliers add a small handling fee on top of the product price. It can range around ₹20 to ₹100 per order. It may seem minor, but when you scale to hundreds of orders, these fees add up quickly.

#3. Import Duties and Quality Checks: If you are sourcing internationally (from China, the US, etc.), import duties and taxes can add 10-20% to the product cost. For example, a ₹600 item may attract another ₹60-₹120 in duties. Product inspections for quality assurance usually cost ₹500-₹1,500 per batch if you hire a third-party service.

#4. Product Sampling: Before listing items in your store, it is wise to order samples. A single sample can cost ₹300-₹1,000 per item, depending on category and shipping fees. Consider this an investment, not a loss.

Key Consideration: Supplier costs are more than just product prices. When you add per-item costs, small dropshipping fees, import duties, sampling, and optional app subscriptions, the “real cost” of a ₹500 product could easily reach ₹600-₹700 before you even factor in your marketing spend. Managing these wisely is what separates a profitable store from one that struggles.

3. Dropshipping apps/plugins

When you start dropshipping in India, apps and plugins are the tools that connect your store with suppliers and make your business run smoothly. From my experience, many new sellers forget to account for these costs, but they are a core part of your setup.

#1. Shopify

Shopify is one of the most popular platforms. It is easy to use and saves you from technical headaches. What is included here is hosting, security, and access to the Shopify App Store. The basic plan starts at around ₹3,200 per month after a free trial; however, if you add premium apps for product sourcing or advanced features, expect extra charges.

#2. WooCommerce

WooCommerce is not completely cost-free, but it is free as a plugin for WordPress. You will still need to pay for:

• Hosting (₹2,000-₹5,000 per year for decent speed)
• A domain name (₹400-₹1,600 annually)
• Premium themes or add-ons, if you want a professional look

#3. Other Platforms: There are BigCommerce and Wix also have options, too. Wix Business plans usually cost around ₹1,400 to ₹3,000 per month, depending on features. These platforms bundle hosting and support but may still require add-ons for dropshipping integrations.

#4. Payment Gateways: Usually, around 2% to 3% of the transaction amount, most payment gateways charge a small fee on every sale. Some may also have one-time setup fees. These costs can cut into your margins, so they need to be factored in from day one.

#5. Product Sourcing Apps: If you use apps like Spocket, DSers, or Syncee to import products for dropshipping directly from suppliers, you may start with a free version. But for scaling, paid plans often cost ₹1,000 to ₹3,000 per month. These apps save time by automating product imports, stock updates, and order fulfillment.

Start with the free or lowest plan to test your niche. You can probably guess that once you confirm demand and sales flow, then upgrade to paid apps and premium plugins. This way, you avoid overspending before your store is profitable.

4. Marketing & advertising budget

Marketing is the fuel that drives a dropshipping store. In India, you can build a store quickly, but without marketing, it is like having a shop hidden in a narrow street where no one passes by. From my years of helping entrepreneurs, I have seen that smart marketing spend is often the difference between success and failure.

So, how much to start with? A realistic starting budget for marketing in India is ₹8,000 to ₹15,000 per month. This covers basic ads and some tools. As sales grow, businesses usually scale to ₹20,000 to ₹50,000 monthly, but only after testing and proving which products actually sell.

• Ad Costs in India: The good news is that ads are cheaper in India than in many other countries. On Facebook and Instagram, you can often get clicks for ₹0.50 to ₹2.80 each, and impressions (CPM) cost about ₹9 to ₹10. This makes it possible to test ideas with just ₹500 to ₹1,000 per day. Google Ads are more expensive, around ₹5 to ₹50 per click, but they bring in buyers who are already searching to purchase.
• SEO and Content: Search engine optimization is slower but powerful for long-term growth. Agencies may charge ₹8,000 to ₹50,000 per month, but free tools like Ubersuggest or Google Search Console can get you started with little or no cost. I often advise beginners to learn the basics themselves before hiring an agency.
• Product Research and Tools: Finding the right products matters more than flashy ads. Paid research tools can cost ₹1,600 to ₹4,000 per month, but free tools like Google Trends or AliExpress product centers are enough to begin.
• Conversion Optimization: Getting traffic is one thing, converting it into sales is another. Small apps for checkout design, heatmaps, or email retargeting cost ₹500 to ₹1,000 per month. Even simple changes like adding cash-on-delivery options or speeding up your site can double your conversion rate in India.

Expert Advice: Always treat marketing as an investment, not just a cost. Start small, track your numbers daily, and scale only when you see proof that ads are working. From what I have seen, those who spend wisely and test continuously are the ones who turn small ad budgets into profitable dropshipping businesses.

5. Payment Gateway Fees in India

When you run a dropshipping store in India, one of the costs you cannot avoid is payment gateway fees. These are the charges for every transaction when a customer pays you online. This is not a big upfront cost, but it can quietly eat into your profit margins if you do not track it carefully.

#1. Setup Fees: Most modern payment gateways in India, like Instamojo, Paytm, or Stripe, offer free setup for small businesses. You can usually get started without paying anything at the beginning. Some traditional providers may charge a small setup or annual maintenance fee, but for your information, this is less common today.

#2. Transaction Fees (TDR): The real cost comes from transaction fees; this is what you should be concerned about. Gateways charge a percentage on every sale, and the rate depends on the payment method used:

• UPI or Rupay: usually 0% to 0.4% per transaction
• Debit cards: around 0% to 0.9%, often lower for small amounts under ₹2,000
• Credit cards or net banking: 1.99% to 2.8% per transaction
• Wallets like Paytm: often about 1.99%

#3. GST on Fees: On top of these fees, there is an 18% GST applied to the fee itself. For example, if a gateway charges 2% on a ₹1,000 order, that is ₹20. GST on this fee will be another ₹3.60, so the total charge is ₹23.60.

#4. Annual Maintenance Charges: Some older gateways might add an annual maintenance cost of around ₹1,000 to ₹5,000, but many of the newer providers do not ask for this, especially for small sellers.

When you calculate your product pricing, always include these fees in your margin. Many beginners forget this and end up with thinner profits than expected. You’ll see right away, UPI is the cheapest option and also very popular with Indian customers. Still, offering multiple methods like credit cards and wallets is important to avoid losing sales.

6. Shipping & Fulfillment Costs

From my experience, shipping is one of the trickiest parts of dropshipping in India. You may not pay for it upfront like inventory, but it directly affects your customers’ satisfaction and your profit margin.

Marketing & advertising budget

In dropshipping, the supplier usually handles delivery. Costs depend on product weight, size, and delivery speed. For example:

• Small, lightweight items can be shipped for ₹30 to ₹80 per order.
• Medium items like clothing or accessories may cost ₹80 to ₹150 per order.
• With heavy items like furniture or appliances, it can cost up to ₹300 to ₹800 or more, depending on the distance.

Some suppliers offer free shipping, but this often comes with long delivery times of 15 to 30 days. Faster shipping, like express or same-day services, costs more but improves customer experience.

Who Pays for Shipping? In most cases, the cost is either included in the product price or charged directly to the customer at checkout. As a seller, you must decide whether to offer “free shipping” by adding the cost to the product price or to charge it separately. From my work with Indian sellers, I have seen that customers love “free shipping” offers, even if the product price is slightly higher.

Remember, always test your supplier’s shipping speed before scaling. Order a sample for yourself and track how long it takes to arrive. In India, cash-on-delivery (COD) is still popular, so working with suppliers and logistics partners that support COD can boost your sales.

7. Legal & Compliance Costs

Starting a dropshipping business in India comes with some legal and compliance costs. These are not always very high, but they must be included in your budget.

#1. Business Registration

• Sole Proprietorship: Around ₹1,500 to ₹2,000. This is the cheapest option and good for beginners.
• LLP or Private Limited Company: Around ₹15,000 to ₹30,000 or more, depending on the state and paperwork. Suitable if you plan to grow big or attract investors.

#2. GST Registration and Compliance

• GST Registration: Usually included in the above registration cost. Required for businesses selling within India.
• Monthly GST Filings: No fixed cost if you do it yourself, but most sellers hire accountants, which costs around ₹1,000 to ₹2,500 per month.
• Annual GST Return: About ₹5,000 to ₹10,000 if managed by a professional.

#3. Record Keeping: Invoices and Purchase Bills: No direct cost if you use free tools, but accounting software can cost ₹500 to ₹2,000 per month.

Overall Estimate: For a lean setup, legal and compliance costs can be as low as ₹1,500 to ₹5,000. For a more formal setup with professional help, costs may go up to ₹30,000 or more in the first year.

8. Other costs

In dropshipping, there are always extra costs that many beginners forget to plan for. These hidden expenses can quietly eat into profits if you do not manage them well.

• Refunds and Chargebacks: Sometimes customers return products or dispute payments. In such cases, you may lose both the product cost and the payment gateway fee. Setting aside 2 to 5 percent of monthly sales for this is a safe practice.
• RTO (Return-to-Origin) Shipping Costs: In India, cash-on-delivery orders often get cancelled, and the package comes back to the supplier. These RTO charges are usually the same as the original shipping cost, around ₹50 to ₹150 per order. This can quickly add up if not monitored.
• Customer Service Tools: Good support keeps customers happy and builds trust. Live chat apps, email tools, or CRM systems can cost from ₹500 - ₹2,000 per month. Some free options exist, but paid tools save time once orders increase.
• Currency Conversion Fees: If you source products from AliExpress or Chinese suppliers, payment gateways or banks may charge 2 to 3 percent as a foreign exchange fee. It may look small, but on bulk sales, it matters.

Always include these “other costs” in your pricing strategy. Ignoring them often leads to thinner margins than expected.

Others also read: 

• Top 17 Clothing Dropshipping Suppliers in India
• 11 Best Shopify Apps for Dropshipping FREE & Paid
• Full Guide to Start an Ecommerce Business Without Money
• 19+ Best Dropshipping Suppliers India for Your Business 

Dropshipping business startup cost summary (estimated)

How much money do I really need to start dropshipping in India?” The truth is, costs vary depending on the platform, product niche, and scale you aim for. However, if we look at the essentials, a realistic starting budget usually falls between ₹10,000 and ₹50,000.

Here is a cost summary based on all the categories we have discussed:

If you are starting fresh, keep your first-month investment closer to the lower end of the range. Test products, track results, and upgrade tools only when you see consistent sales. This way, your dropshipping journey in India stays affordable and sustainable.

How to minimize your dropshipping startup costs in India

To minimize dropshipping startup costs in India, choose a narrow niche and a few products, start with free trials or low-cost e-commerce platforms, prioritize local suppliers to reduce shipping, and focus on organic strategies for marketing, like social media and content marketing:

1. Start with free or low-cost platforms: Instead of jumping into expensive platforms right away, test your store with WooCommerce or even social media pages. A domain costs only about ₹700 to ₹1,200 per year, and free themes can give your site a clean look in the beginning.

2. Test products before scaling: Do not list hundreds of products at once. Focus on a few trending items, order samples, and check supplier shipping times. This saves money on refunds, returns, and unhappy customers later.

3. Keep marketing lean: Begin with small daily ad spends of ₹500 to ₹1,000 on Facebook or Instagram. Watch carefully which products get clicks and sales. Once you see proof, then increase your budget. Use free tools like Google Trends for product research instead of paid tools in the early stage.

4. Negotiate with suppliers: Suppliers often reduce per-item costs once they see you bringing consistent orders. Even a small discount makes a big difference over time.

5. Handle customer service yourself at first: Instead of paying for expensive support tools, manage emails and chats yourself until sales grow. Later, you can invest in automation.

Minimizing costs does not mean cutting corners. It means starting lean, testing smart, and upgrading only when your business begins to generate steady revenue. This way, you stay profitable from the beginning.

How much can you earn from the initial cost of starting dropshipping in India?

There is no fixed amount you can earn from starting dropshipping in India, as income varies widely based on your niche, marketing, supplier reliability, and market competition, with successful entrepreneurs earning thousands to lakhs per month. While profit margins are generally around 15-20%, they can be lower or higher due to the product and strategy. 

One of the most common questions I hear from beginners is, “If I invest around ₹30,000 to ₹50,000 to start, how much profit can I actually make?” The answer depends on your product choice, marketing, and how well you manage costs.

General Formula: Net Profit = Selling Price - (Supplier Cost + Shipping + Payment Gateway Fees + Marketing Spend)

Most dropshipping stores in India work with a profit margin of 10 to 30 percent per sale. For example, if you sell a product for ₹1,000, your net profit after costs might be ₹100 to ₹300.

Here is a simple example: Let us say you start with a ₹30,000 budget in the first month

• Website and apps: ₹5,000
• Marketing ads: ₹12,000
• Product testing and samples: ₹3,000
• Other expenses: ₹2,000
• Balance for ongoing costs: ₹8,000

If you spend ₹12,000 on ads and generate around ₹36,000 in sales revenue (which is common with a 3x return on ad spend in India), your net profit at a 20 percent margin would be about ₹7,200 for that month.

*Expert Advice: Treat the first three months as your learning phase. Profits may be small at first, but if you reinvest them wisely, your earnings can grow to ₹50,000 or more per month as you scale with proven products.

3 Successful dropshipping business examples in India

There are many successful dropshipping business examples in India, like The Mortal Soul, Fully Filmy, and Wooden Twist. These three businesses are real proof that with smart planning, you can grow from a small budget into a strong brand.

1. Fully Filmy

Connecting movie lovers with fun merchandise is how Fully Filmy began in 2015 with a simple idea. It’s easy to see that they sell t-shirts, hoodies, posters, and phone cases inspired by films and pop culture. What makes them successful is their print-on-demand model, which means they do not need to stock products. Designs are printed only after someone places an order, keeping costs low. 

Their biggest strength is marketing through social media. With lakhs of followers across Instagram and YouTube, they turn fan excitement into steady sales. From what I have found, it’s pretty obvious that their growth shows how tapping into passion-driven niches like movies can lead to long-term success.

Website: fullyfilmy.in

2. The Mortal Soul

The Mortal Soul focuses on wall art and home decor. They use print-on-demand too, offering trendy, minimalistic designs that appeal to urban customers. Personalization is their unique strength, letting people order custom prints like maps or posters. 

In my work with decor brands, I have seen that success comes from following design trends and offering high-quality finishes. They also build trust with good customer support, often using WhatsApp for quick replies. Despite heavy competition in decor, what you’ll find is that their creative edge helps them stand out.

Website: themortalsoul.com

3. Wooden Twist

In 2020, with a focus on furniture and home items, Wooden Twist entered the market, and it made a big impact on the India dropshipping industry. They managed to handle bulky products like sofas, shelves, and tables through partnerships with suppliers such as CJdropshipping, unlike many small dropshippers. They even allow partner sellers to list products on their platform, almost like a mini marketplace. 

As far as I researched, their success comes from variety and accessibility, especially with their mobile apps that make shopping easy. Their focus on customization and handmade style has won them a wide customer base, while scaling has brought some service challenges.

Website: woodentwist.com

Final Words

Starting a dropshipping business in India does not require a huge investment because, on average, you can begin with ₹10,000 to ₹50,000, covering website setup, marketing, legal basics, and other small expenses. The key is to start lean, test products, and spend carefully on areas that bring real results, like ads and customer service.

Dropshipping is not a model to get rich quick, but with patience and smart planning, it can turn into a reliable and scalable online business in India’s fast-growing e-commerce market.

FAQs

1. Can I start US-based dropshipping from India?

Yes, you can run a US-based dropshipping store from India. You only need a reliable supplier that ships to the US, a platform like Shopify, and payment gateways that accept international customers. Marketing is the real key.

2. How to start dropshipping in India?

Start by picking a niche, building a store using Shopify or WooCommerce, and finding suppliers through apps like Spocket or Meesho. Keep your costs low at first, test a few products with ads, and slowly scale once sales grow.

3. What licenses are required for an eCommerce drop-shipping business in India?

At a minimum, you need a business registration, like a Sole Proprietorship, and a GST number if you sell in India. For international-only sales, GST may not apply, but basic compliance like invoices and record keeping is still required.