How to dropship on Amazon: All the keys to know

How to dropship on Amazon

When you have an online business, it is normal to think that you should not only be in your online store waiting for customers to arrive, but that you should bet on other sales channels. One of them may be the case of Amazon, but not only by having the products but also by sending them to their warehouses. How about we explain how to dropship on Amazon?

This is one of the least known ways of selling (at least relative to Amazon), but it can give you many advantages. Shall we talk about her?

Why the trend is now to dropshipping

Warehouses

You may have your online store. Or maybe right now you are considering setting one up. And surely you will have made a business plan in which, one of the sections, are the expenses that you are going to have in terms of the website, its promotion and storage of the products (as well as the investment that you must make of them). But, What if we told you that there is a way that you don't have to worry about inventories, shipments and so on?

Well yes, dropshipping can be understood as a form of business in which you put the web, the products and the prices, but you don't have those products yourself, but rather you hire a company that has a warehouse for them, in such a way that, when a product is received, they are in charge of sending it and you only have to pay a monthly fee for it.

How dropshipping works on Amazon

In the case of dropshipping on Amazon, it works in a similar way. The first thing you should do is create your own store on Amazon, with the products you are going to sell. However, these would be part of your provider's catalog.

In this way, when someone buys you a product what you do is contact that provider to send it to the client, or to the Amazon logistics center, and they are the ones who send it to the final person.

What does this imply? Well, you don't have to worry about shipments at all, just having communication with your suppliers and manage that online store on Amazon to attract more customers.

Types of dropshipping on Amazon

Online sales

In case you are interested in the idea of ​​dropshipping on Amazon, you should know that there are two processes to do it, different from each other but with the same base. We tell you:

traditional dropshipping

This would be the first option you could choose. SIt is based on using Amazon as a marketplace and paying your monthly fee and the rates that they ask you for the different sales that you make.

Now, this implies that, when you hear that someone has placed an order for one of your products, you have to contact the supplier to send the product to that customer. And you must be aware that everything is done well (and in the shortest possible time). Thus, once the transaction has finished, you have to pay the supplier and Amazon.

FBA Dropshipping

Before proceeding, you should know that the acronym FBA stands for "Fulfillment By Amazon", or what is the same, "Totally managed by Amazon". And what does it imply?

In this case, the supplier is not going to send the product to the final customer, but must do so to one of Amazon's logistics centers. There, it is Amazon that is in charge of managing the shipment. But also to maintain contact with the client, either for questions, for returns, etc.

In other words, Amazon is in charge of the entire sales process and you only have to see that the sales are carried out correctly.

How to dropship on Amazon

If all of the above has piqued your curiosity and you want to try your luck, maybe you should do it and, for this, the steps you must take to register are the following:

  • Create your seller account. Remember to read the dropshipping policy to know for sure what you are signing up for. Also, if you have any questions, we recommend that you contact Amazon for clarification.
  • Choose the supplier you want to have and the products it sells. Imagine that you are a mobile specialist. And yet you are going to sell computers. You may know something about them, but not everything. And that can cause you to not offer security in purchases.
  • Choose the products. Once you have the supplier you will see that it offers you many products. But you can choose only a few, they do not have to be all. These are the ones that will be part of your products for sale.
  • Edit the descriptions, price, etc. Next, you will have to take time to improve the descriptions, make them more attractive and complete the sheets of each product with which to tempt users when they come to you.
  • advertise yourself Finally, you will have to invest in advertising. For example, through social networks or even through Amazon (on its advertising platform).

This is not going to be overnight, and neither are sales and profits. But if you work at it, it is possible that you will achieve that goal and have a profit every month.

Is it worth dropshipping on Amazon?

product warehouse

Perhaps after everything you have read you are wondering if everything is "pink" and worth it. It really is that? The truth is that it depends a lot.

There is no doubt that we have multiple advantages of working with Amazon. We are talking about the largest marketplace in the world, and that makes your visibility very high. But is that you will also save the costs of storage and inventory of the products (because you will depend on a product) and you will not be aware of the shipments either.

Now, not everything is good. And one of the biggest obstacles you find is the impossibility of personalizing those shipments. The products will arrive without any type of personalization, thus losing the possibility of customer loyalty.

In addition, the price for belonging to this service is not cheap, it implies losing money from the sale and perhaps the benefits obtained are not as high, or as sustainable as it may seem at first. In fact, the profit margin is only between 10 and 30%, much less than what you get with other sales options.

Is it clear to you how to dropship on Amazon?


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