Amazon is one of the largest e-commerce sites in the world. Once the Amazon seller account is approved, you can start selling enjoys the benefits of dropshipping. You must be thinking what is dropshipping and how to dropship on Amazon?
Dropshipping is the procedure of products selling without having the responsibility and accountability of shipping goods or carrying inventory. This business model has gained incredible popularity over the past five years. Dropshipping on Amazon is usually acceptable as long as it meets the requirements of Amazon. Here is a detailed guide on how Amazon dropshipping works and how to dropship on amazon in 2019.
Dropshipping is not for everyone. A certain type of personality and temperament is needed to succeed at dropshipping on Amazon. Contrary to popular belief, getting rich is not a quick fix, as a major part of the profits will be given to the supplier. However, many providers like the business model seeing it as a stress-free way to earn extra money. Some of the sellers are successfully using dropshipping as a way of market research to test new products. Whether you’re doing dropshipping, private label or doing retail arbitrage on Amazon, it’s important to maintain your products at competitive prices, within the defined criteria.
How does Amazon Dropshipping Work?
Before jumping into how to dropship on Amazon, you should know how does dropshipping works. You can do dropshipping on Amazon through its program made by Amazon. In this program, you send your products to Amazon, where they are stored and sent directly to your customers. The advantage of this program is that Amazon has some of the fastest shipping times on the market so the customers can get their products even before the specified time.
Access to the next level of hands-free automatic delivery requires an integrated platform. You must be connected to all areas of your business, from the vendor to the sales channel. This means that you have better chances of outpricing as well as outselling.
Pros and Cons
Dropshipping on Amazon has some pros and cons. Let’s have a closer look at these
- Well-known brand
One of the primary advantages of dropshipping on Amazon besides other benefits is that it is a well-known international brand.
- No need to worry about inventory
There is no need to worry about inventory; everything will be forwarded to the Amazon stores.
- Quick growth
Suppliers and even small businesses can grow quickly and work around the world. Account Managers help Amazon vendors run their businesses strategically to maximize long-term profits.
- Low advertising expenditure
You have the ability to display Amazon ads to drive sales and create a positive reputation on Amazon. By making the first effort to improve your page, you can increase your chances of receiving organic traffic. In addition, you set the cost of Amazon ads.
- Easy installation
You don’t need to be a web developer to set up a beautiful store. With Amazon, there is no need to register a URL, hosting a company or back end work on the site. Simply use the procedures and list of products on the site.
- Not a sellable resource
This is not a sellable resource. It’s almost the type of structure of the flea market, where you pay for a job. You do not have a flea market, you are just a seller.
- Cannot access customer data
If you’re new to e-commerce, you may not know that customer data is critical to growing your business. You cannot access customer data with Amazon dropshipping leaving you with no way to grow your business.
- Suppliers will not work with you
Because of the nature of the flea market on Amazon, many vendors do not want to associate their brand with you. Instead, if they want an Amazon, they simply create their own store.
To survive and get successful as a dropshipper on Amazon, you have to reach the scale. To increase your sales and purchase volume, you must first lower your costs and then your prices. This requires automated processes, which require data centralization and end-to-end integration.
You cannot rely on manual processes or offline systems. Automate as many tasks as possible so you do not waste time or hire employees as your business grows.