28 Ago Dropshipping with Amazon: what is it and how to make the most of it?
Dropshipping is a business model that involves selling a product by acting as an intermediary between the consumer and the supplier. In other words, it’s a type of commerce where the seller doesn’t have the inventory or directly handle the shipments. Instead, they manage the payment process and establish an indirect channel of communication between the customer and the supplier, ensuring that both parties fulfill their roles or responsibilities (payment and shipping).
Next, we will explain how it works and how you can leverage it to establish your business.
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Dropshipping methods on Amazon
Just like any type of selling on Amazon, you have two possibilities for handling shipments:
- Dropshipping FBA: In the Fulfillment by Amazon (FBA) method, the supplier of the products you sell sends the inventory to Amazon’s logistics center, and Amazon takes care of shipping, returns, and direct customer support.
- Conventional Dropshipping: In this case, the supplier is responsible for the shipments. Amazon solely functions as a sales channel.
Choosing one method over the other depends on the type of agreement you can reach with your supplier and the needs of your business.
How to Do Dropshipping on Amazon?
Now that you understand what this selling method entails, it’s time for you to learn the best way to do it through Amazon. Here’s a step-by-step guide:
1. Create a seller account: The first step is, of course, to have an Amazon account. However, it shouldn’t be a traditional buyer account. Instead, you need to create an account through Amazon Seller Central. The registration process is straightforward; you only need an email and a password. Later on, you’ll need to provide official identification, a bank statement, a credit card, and a mobile phone. Once your information is verified, Amazon will approve your application, and you can begin setting up your seller account.
2. Understand Amazon’s dropshipping policy: You must understand the terms under which you can carry out this type of sales on Amazon. It’s essential that when you embark on this business, you have a clear agreement with the supplier whose products you want to sell. Additionally, you must demonstrate that this agreement exists and that you have both the permission and the right to conduct those sales. You can find all the information about Amazon’s sales and shipping policies.
3. Select the products you want to sell: Another necessary aspect is to analyze the market to understand which products are in high demand on the marketplace. Amazon Best Sellers can provide you with a compilation of the most successful products. Selling these products might be the most suitable option.
4. Choose your supplier: The foundation of your business lies with the supplier, so you need to choose the most suitable one for your industry or the type of sales you want to conduct. It’s important to establish clear roles and responsibilities for both the seller and the supplier. This way, it will be easier to reach a satisfactory agreement for both parties to start marketing their products.
Other factors to consider when choosing a supplier are prices, delivery times, and customer service. Ensuring these aspects will help guarantee that end customers have a comfortable and user-friendly experience.
5. List the products on Amazon: You can manage your inventory through Seller Central and list your products there. This is where the flow of your store begins, as users on the marketplace can start making purchases. Using high-quality, eye-catching images and appropriate product descriptions is crucial for reaching your target audience.
6. Invest in advertising: Whether externally or internally, investing in good advertising for your online store can boost your product visibility and, consequently, increase your sales. In this regard, Amazon offers an Advertising platform with easy-to-follow steps.
You now understand what dropshipping is and how you can start establishing yourself as a seller. If the topic has intrigued you, you now have the tools and knowledge required to begin selling using this system through Amazon. Are you up for it?
If you need expert advice on managing your Amazon account, don’t hesitate to reach out to us! At Nozama, we will assist you in entering a market with millions of potential customers and kickstarting the growth of your business.