Best Small Trading Business Ideas In 2022 [Trading Businesses]

If you want to start your own business, but don’t know where to start, you could consider trading business in India to be your starting point. To begin with, trading is simple. All you need to do is - source the products and sell them. If you are an absolute beginner, a trading business will help you to learn significant lessons on how to deal with suppliers and customers, and much more.

The best thing about owning a small business is that the business will continue to earn money for you even if you take a week off. You don’t have to start big. All billion-dollar companies of our times like Amazon, Apple, and Microsoft started from their founders’ private homes.

A trading company generally purchases items in bulk from manufacturers and wholesalers and sells them to retailers or consumers.

If you are looking for some lucrative small business ideas, then your search ends here! You don’t need to have crores of rupees in your bank account to start a business.  In this article, we will tell you about some high-paying business ideas that anyone can start.

• Dropshipping Business
• Grocery Wholesale Business
• Beer Distributorship
• Garment Trading Business
• Wholesale Jewellery Business
• Coffee Export Business
• Junk Trading Business
• Soft Drink Agency
• Carpet Export Business
• FMCG Products Trading

1. Dropshipping

Dropshipping is selling physical products online, but you don’t stock them, or ship them to a customer. The items are produced by a manufacturer, and when someone purchases the product from your website, you tell the manufacturer that the product has been ordered. Typically, this happens with the help of automated software, and the manufacturer ships it directly to the customer. This dropshipping business requires only a small investment because storing products and shipping them can be very expensive. You can also have an e-commerce model where you warehouse the products yourself.

To start a business in drop shipping, you have to first do market research, and find products that have good demand. Since there is always a demand for physical products online, this trading business can be very profitable.

Must Read: How To Start a Dropshipping Business?

2. Grocery wholesale business

The grocery wholesale business has low margins but high stock turnover. You act as a middleman, buying food items from the manufacturers, and then selling them to the retailers. You can also sell in bulk to hotels and restaurants at wholesale prices.

You must have a warehouse where you will store food products in large bags or casings. You can offer delivery facilities to those grocery stores that will order a minimum amount. If you want to deal in perishable items like cheese or milk, you must invest in freezers or coolers.

Also Read: How to start a grocery store?

3. Beer distributorship

Want to mix business with pleasure? As a beer distributor, you will act as a middleman between the brewer and the liquor stores. You have to choose the location carefully because it should not be in proximity to educational institutions.

You need to have a truck to transport the beer. You can form a partnership with beer importers, and sell foreign-made beer. The profit margin in this business is high, though it requires hard work.

Also Read: How Does the Beer Industry Work?

4. Garment Trading Business

In this business it is important to know about the fashion trends, and what clothes will sell well in the season. You have to focus on a particular niche like men’s wear or ethnic wear. Then, you have to find a good supplier.

 In this business, you require a lot of capital and a marketing office with a warehouse in a wholesale cloth market. One good option would be Surat, one of Asia’s largest apparel and textile markets. Other major markets are Delhi, Kolkata, and Mumbai. The fastest-growing segment in apparel is kidswear.

Also Read: How to Start a Garment Trading Business?

5. Wholesale jewellery business

Jewellery is one of those few things that never go out of style.  They can be made of diamond, gold, or even artificial jewellery. Look for the best manufacturers in the market, and verify the quality of the products.

You can start this small business from home because you will require less space. You can buy jewellery at wholesale rates and sell it to retailers. Since jewellery is expensive, you have to make a large investment to buy stock.

Note that the prices of precious metals and gems vary widely. To market yourself you have to call up the jewellery retail store owners and tell them about your products.

Also Read: How to Start a Jewellery Making Business?

6. Coffee Export Business

Coffee is the second largest commodity market in the world after oil. Imports of coffee in the United States have increased by over 90 per cent in the last five years. As a coffee exporter, you have to import coffee from producing countries like Brazil and India and export them to countries like the US and UK.

You have to connect with distributors in the importing countries. You can also supply to big coffee chains and restaurants. The demand for Brazilian coffee is the largest.

The coffee trade is a volatile business. Europe is the largest coffee market. If you want to successfully export here, you have to understand the international coffee supply chain.

7. Junk Trading Business

If you are looking for a promising trading business that also cares for the environment, then a scrap trading business might fit your bill. Though it may not be glamorous, it can be extremely profitable. You can buy and sell used items.

You will need the following equipment weighing scales (hanging and platform type), acetylene torch, gas tank, pulley, and tools for handling materials. You need to have a delivery truck to transport the materials. You will also require a warehouse.

You have to actively seek sellers of old things, and also keep an eye for garage sales. You can also post your service online.

8. Soft Drink Agency

All soft drink companies appoint distributors. You can start a soft drink agency, and supply it to retailers. This is a cash business, and you will have a high turnover at festivals. So, this is one of the most profitable business ideas.

You can go to the websites of the big brands and check their requirements. You can start with a low capital of less than Rs 5 lakhs. You need to have a warehouse to keep the stock of soft drinks. Other than this, you would need delivery vans and salesmen.

Also Read: How To Start Soft Drink Business In India?

9. Carpet export business

Carpet trading goes as far back as the Mughal era, and is one of the popular small business ideas in the handicraft sector. . India is the leading producer of handmade carpets in the world, accounting for 35 per cent of the global market. Before starting this business, learn about the carpet industry and the production and quality of carpets.

The carpet production hubs in the country are Agra, Jaipur, and Banaras. You must have contacts with manufacturers and also have an export license. Apply for the Import Export Code (IEC) certificate and be a member of the Carpet Export Promotion Council (CEPC). The CEPC acts as an interface between buyers and companies. Reach out to a shipper for logistics.

Also Read: How to Start the Carpets Export Business in India?

10. FMCG Products trading

FMCGs are those products that have a short shelf life and sell out fast. They can be biscuits, chocolates, soap, detergent, etc.  It ranks 4th among the contributors to the Indian economy. You can be a distributor of popular FMCG brands and stock their goods. You have to supply products in bulk to retail stores or Kirana stores. This can be an exciting and profitable venture.

First, decide on the type of product that you want to stock. Try for those products that are essential for our daily life. Make sure that your business plan includes the target customer, management strategies, and logistics.

Different opportunities require different investments in time, money, and effort. You should consider a small business that is easy to start, and profitable in a short period. We hope this article will help you to choose a trading business in India of your choice.

Further Read: Best Distributorship Opportunities in FMCG

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FAQs on Trading Business Ideas

Q. Why is dropshipping becoming such a popular business idea?

Ans. The drop shipping business is inexpensive because you don’t have to stock products. It is also easy to grow.

Q. The wholesale grocery business had a good time last year. Why?

Ans. This happened because the people stocked up in advance given the Covid lockdown.

Q. How much do I have to pay as license fees to distribute alcohol?

Ans. Depending on the location, the fees can vary between Rs 50 lakhs to Rs 1 crore.

Q. What is India’s market share in apparel exports globally?

Ans. India has a 5% share of the global market, lagging behind China and Bangladesh.

Q. Which is the largest jewellery market in India?

Ans. Sadar Bazar in Delhi is one of the largest jewellery markets in the country.