All You Need To Know About Amazon Drop Shipping, And How To Profit From It

amazon-dropshipping

We live in a golden age of commerce. Entrepreneurs are lucky to live in a time when we can connect and sell with anyone in the world. Plus, platforms such as Amazon ensure that there are customers ready to buy. In recent times, Amazon drop shipping has increased exponentially. This is partly due to the fact that more people are choosing to shop with Amazon.

What Is Drop Shipping?

Drop shipping is when you sell products without handling any of the inventory. You list an item on the Amazon marketplace, a customer purchases it and it is sent to the customer directly from the supplier. The seller makes a profit on the difference. Due to the fact that the dropshipping model reduces the cost of running an commerce business, it has become wildly popular. Moreover, it has given entrepreneurs the freedom to work from anywhere. It is a classic form of “buying low and selling high”.

Saying this, there are certain rules you have follow in order to drop ship on Amazon or risk having your sellers account banned. As a general rule, it is best to deal directly with a supplier. Don’t order from other retailers, and then have it forwarded to buyers. This is likely to get your account banned.

Advantages Of Drop Shipping On Amazon

The lean startup costs aside, there are many more benefits to Amazon drop shipping:

  • You don’t have to handle anything. As a result, you don’t have the issues which come with storing products and fulfilling orders.
  • It is easier to change your inventory according to current trends. For instance, you can switch to selling sunglasses in the summer and jackets in the winter. A “traditional;” seller can’t do this so easily because they have to clear the stock they have first.
  • Amazon is a trusted brand with millions of visitors per day. Therefore, a key part of selling – exposure – is done for you. As a result you don’t have to manage the advertising side of the business.
  • You don’t need a lot of money in order to get started. In the past sellers had to take out big loans from the bank. As a result, you are able to reduce risk.

How To Get Involved

Now that you know what drop shipping is plus the excellent advantages, you might be wondering how to get involved. Fortunately, it is fairly straightforward to get started. With drop shipping, you make money from the difference between the cost of the item and your final selling price. Therefore, it is in your best interest to find reputable, fast shipping and inexpensive suppliers. The first place most people check is the prices listed on drop shipping websites. You can get a much better del by doing some groundwork.

  • Visit trade shows and check the quality of goods and ask suppliers whether they drop ship. In order to be a successful drop shipper you must guard your reputation and offer excellent customer service. It is challenging to determine the quality of an item just by looking at some images. Moreover, speaking to suppliers in person enables you to negotiate and under cut competitors.
  • Register for an Amazon account and register a company or register as self employed. This ensures that you meet the fundamental legal obligations of doing business online.
  • Ensure that any items you list have clear images, you provide the buyer with as much information as possible and the description is persuasive. Many sellers make the mistake of thinking that the product will just sell itself. This is often not the case. It is worth offering a free, inexpensive gift in order to stand out from competitors. People seek the best deal so make sure that you give it to them.
  • Amazon’s rating system means that it is in your best interest to manage any buyer conflicts as quickly as possible. Make sure that buyers are aware that you aim to offer excellent customer service and will sort out any issues as quickly as possible. A 1 star rating can cause your product to plummet down the listings. Moreover, sellers with a record of good ratings have future products rank higher in the search results.

In conclusion, it is fairly simple to drop ship through Amazon. Developing your customer service and sales skills will set you apart from other sellers on the platform.

Chris Conway

Chis Conway is the Managing Director of Accounts and Legal. Accounts And Legal provides accounting services to small and medium sized businesses with entrepreneurial aspirations. And aims to do it in a way that translates into growth. Their Commercial Managers typically have an industry specialism, so you can be sure you are dealing with someone who understands your business and your industry.