There are many ways to start selling on Amazon, one of these includes dropshipping.
Dropshipping is a cost-friendly e-commerce method in which the seller undertakes a duty to take orders on behalf of a manufacturer, distributor, or supplier; and when a customer buys the product, the seller uses their supplier to fulfill those sales. The seller basically acts as an agent and more often than not, the customer is not aware that the products are not owned by the seller they are dealing with as it is the seller’s details that reflect on all the transaction materials.
HOW DOES DROPPING SHIP WORK?
The first thing that happens once you have listed the products on Amazon is receiving a notification that an Amazon customer wishes to purchase the product you have listed on Amazon. When the order is made and the transaction is finalized through payment by the customer, you then purchase the product directly from the supplier and give them the customer’s information. Since the supplier has the customer’s information, they are able to send the products directly to the customer once production or procurement is done.
As is evident from the breakdown given, you as the seller cuts down on costs when dropping ship. Instead of experiencing the pressure of having your own inventory, you simply use a portion of the money paid by the customer on the sale to purchase the product from the supplier and have them ship it to your buyer.
All this is done almost completely hands-free as dropping ship on Amazon is a fully automated business.
HOW MUCH DOES DROPPING SHIP COST?
This is probably the most important aspect to consider before venturing into any type of business.
Dropping ship on Amazon has no particular cost. The only cost you will be concerned with is your usual seller fees depending on which seller account you have; individual or professional seller account. These fees are made on every sale you make so you really do not have to worry about them so much.
Another cost to consider would be your fulfilment (FBA) fees if the orders are being fulfilled by Amazon. Fulfilment fees vary depending on many factors especially the weight and size of the products in question.
HOW DO I GET STARTED?
The first thing you must do in order to be able to dropship on Amazon is to create either an individual account or a professional Amazon seller account. This can be done at https://sellercentral.amazon.com Once this is done, you must look out for high demand or low competition products that you could list for sale on Amazon. As a startup, it is best to keep it simple and avoid complex products that will require a lot from you.
Once you have an idea of the kind of products you would like to list, an important part comes in, you must find a supplier/manufacturer to supply those products. With Amazon dropshipping, reselling on behalf of another retailer is explicitly prohibited. Therefore, you are restricted to only suppliers and manufacturers in order to venture into the dropping ship business. One of the best places to find suppliers and manufacturers is Aliexpress as it provides a variety of supplier options for different types of products and most of these suppliers offer free shipping services.
Finally, when your product and supplier are set, you can finally create your listing on Amazon and wait on customers to come to you. But in order to succeed in this business, be sure to promote your listing in order to reach as many customers as possible.
With the current economic crisis worldwide, conducting e-commerce that requires you to have enough capital to order products in bulk and cover their storage and shipping is becoming harder every day. However, with selling options such as dropshipping, you can continue with your e-commerce trade without breaking your bank as you eliminate the responsibilities of managing inventory and also shipping the products to your customers.
We hope this article was helpful! Happy trading!