Dropshipping on Amazon is a fantastic opportunity for anyone looking to make money online. Amazon, in fact, attracts a massive amount of customers and has a high conversion rate, even for products that typically underperform in other stores.
Furthermore, according to publicly available data, Amazon’s conversion rate increases from 5% if the conversion rate in any store is between 1% and 2%. Therefore, you should seize this wonderful chance. I’ll show you in the next paragraph.
However, there are some things you should know before continuing with this article.
Simply put, dropshipping is a method of selling goods without physically stocking them.
Methods for Establishing an Online Dropshipping Shop
How Does Dropshipping on Amazon Work
Dropshipping on Amazon is similar to dropshipping on your own website, with a few minor differences that need to be taken into account.
First, you’ll need to sign up for a seller account on Amazon and start posting your wares.
How your Amazon account works
Start selling on Etsy with the Individual plan, which is free but has a monthly cap of 40 sales and a per-item fee of €0.99 cents.
Sell a lot of stuff with the € 39 a month professional plan.
Get into the Seller Control Panel and put in your data. Specifically, you’ll need:
Phone number for credit card billing
Information about your company
Information on how to get in touch
A list of the company’s actual bank account holders and any relevant details about those individuals
You can now upload your products. When you open a seller account on Amazon, it’s like creating a small store inside their own website, so you don’t even need your own store to sell with Dropshipping on Amazon (though we do recommend it). The first step after creating a dropshipping account is to add your products for sale.
Transporting items from A to B. When an order comes in, Amazon notifies you via email and your Seller Central dashboard. Once orders are placed, you must coordinate production and shipping with your dropshippers.
When a customer purchases an item from your Amazon store, Amazon will deduct their commission (typically 10% to 15%) before depositing the remaining funds into your bank account once the item has been delivered to the customer.
Pros and cons of dropshipping on Amazon
If you’ve recently opened a store but have little to no online presence, you can still take advantage of Amazon’s massive traffic by listing your products there and taking advantage of the hundreds of thousands of people who visit the site every day. A large number of visitors who have come to trust the site’s reliability also contribute to its high conversion rate.
Dropshipping on Amazon may seem like a great idea at first, but there are some drawbacks that cannot be ignored.
First and foremost, you are solely responsible for your deliveries; as such, you should exercise caution when selecting suppliers and should check the orders every day; if there are any issues with your goods or deliveries, your account could be closed.
Second, you need to be very picky about the products you offer, as competing vendors can offer the same goods at lower prices.
Third, keep in mind that Amazon requires you to pay a commission on all sales.
It’s easy to get started dropshipping on Amazon, but that shouldn’t be all you’re doing. There are a lot of different ways to make money online. Actually, as an Amazon seller, you are totally reliant on Amazon, and there is always the risk that your account will be terminated, cutting off your income.
The inability to tailor your Amazon account to your business’ specific needs prevents you from attracting and retaining a loyal customer base or setting yourself apart from the competition through improved marketing and communication.
However, relying solely on this channel to generate revenue is extremely precarious, despite the fact that it is a valuable one. I think it’s a good opportunity, but you can’t look at it as anything more than a means to an end (making money while you build your own dropshipping business).