A guide to dropshipping
Dropshipping is the process of selling products without having to carry and inventory or having to worry about shipping what you’re selling. Dropshipping is on the rise, and Amazon is one of the easiest ways to start a dropshipping business from the comfort of your home and make some money on the side.
How to Start
Dropshipping with Amazon starts by going through Amazon’s Fulfilled by Amazon (FBA) program. This program will do everything for you – pick the products, pack them, and ship it off to your customers. They also take care of customer service issues, which includes returns.
Dropshipping from Amazon to eBay
Selling from Amazon to eBay is possible, but if you aren’t careful, it could hurt your reputation as an Amazon seller. This article covers dropshipping from Amazon to eBay and provides a more in depth look on how to do it properly, just make sure your eBay products don’t show up in Amazon packaging.
Your own Store in your Name
When you sign up for the program and become a seller, your products will be marked with “Sold by (your name) and Fulfilled by Amazon.” Sellers can offer prime shipping on their products, but traditional dropshipping from China is still possible. You’ll notice you’re dealing with an international seller if shipping takes 7-14 days to arrive.
Since Amazon is providing a service for you, it isn’t free. The amount you pay depends on what you store and how long you store it. If you want to know how much you’ll owe them before you start your business, Amazon provides you with a calculator. To help with the costs, you can use software to help you sell more, like MoneyNomad.
Pros of Selling on Amazon
Amazon is an easily recognizable and trusted brand, which means more people are likely to buy from you. With over 310 million active users, it will be easy for others to see your product.
Marketing is an integral aspect of your business succeeding, but because Amazon is so big, you won’t need to worry about advertising, relationship building, or SEO. There is already a ton of organic traffic on Amazon.
You won’t need to keep any inventory either; Amazon will hold it for you if you’re a part of FBA. The shipping and customer service is taken care of, too; you just need to pay their fees.
Cons of Selling on Amazon
The biggest con is all the red-tape and rules, which can be suffocating for some dropshippers. For example, you’re not permitted to buy products from other online retailers and have that retailer ship directly to your customers.
Most of the profit goes to Amazon, so depending on how much you sell, you might be left with little profit. Along with that, you have high expectations of selling. If you don’t sell enough, you could risk suspension or closure. Negative reviews amplify this.
Finally, you still need to make sure that your inventory is well stocked, even if you’re not housing it yourself. It can sometimes be challenging to keep track of product if you aren’t directly responsible for it. Just keep that in mind before you set your limit for purchasable items.