28 Aug Dropshipping with Amazon: what is it and how to take advantage of it?

Posted at 13:43h in Nozama Blog by
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What is Dropshipping?

Dropshipping is a form of business that consists of selling a product by fulfilling the role of intermediary between the consumer and the supplier. In other words, it is a type of commerce in which the seller does not have the inventory or ship it directly, but simply manages the payment and establishes an indirect channel of contact between the customer and the supplier, ensuring that both parties fulfill their role or responsibility (payment and shipping).

Below we will tell you how it works and how you can take advantage of it to establish your business.

 

Dropshipping modalities on Amazon

Like any type of sale on Amazon, you have two possibilities to carry out shipments:

  • FBA dropshipping: In the Fulfillment by

    Amazon mode, the supplier of the products you sell sends the inventory to the Amazon fulfillment center and ends up being the one that takes care of shipping, returns, and direct customer service.

  • Conventional Dropshipping: In this case, the supplier is the one who takes care of the shipments. Amazon functions solely as a sales channel.

Using one modality or another depends on the type of agreement you can reach with your supplier and the needs of your business.

How to dropship on Amazon?

Now that you know what this type of sale consists of, 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 account on Amazon. It wouldn’t be a traditional buyer’s account, but you have to make an account through Amazon Seller Central. Registration is very simple, you just need an email and a password. You will then need to enter a government ID, a bank statement, a bank card, and a mobile phone. Once all of your information is verified, Amazon will approve your request and you can start setting up your seller account.
  2. Learn about Amazon’s dropshipping policy. You should know under what terms you can make this type of sale on Amazon. It is important that when you start this business you have a clear agreement with the supplier whose products you want to sell. In addition, you must show that such an agreement exists and that you have both the permission and the right to carry out those sales. Here’s everything you need to know about Amazon’s sales and shipping policies.
  3. Choose the products you want to sell. Another necessary aspect is to analyze the market to know which products are the most sought after in the marketplace. On Amazon Best Sellers you can find a compilation of the most successful products. Selling these products may be the best option.
  4. Choose your provider. The basis of your business is in the supplier, so you must choose the most suitable one for the sector in which you operate or the type of sales you want to carry out. It is also important that the roles of vendor and supplier are clear, as well as the responsibilities that each must perform. In this way, it will be easier to reach a satisfactory agreement for both parties with which to start marketing your products.

 

Other aspects to consider in choosing the supplier are prices, delivery times, and customer service; This will ensure that end customers have a comfortable and easy user experience.

  1. List your products on Amazon. To do this, you need to manage your inventory from Seller Central. This is where the flow of your store begins, because by publishing your products, marketplace users will be able to start buying. In this sense, using quality, eye-catching images and appropriate texts is very important to reach the audience you are interested in.
  2. Invest in advertising. Whether externally or internally, investing in good advertising for your online store can boost the visibility of your products and therefore increase the number of sales. In this sense, Amazon offers an Advertising platform with a few simple steps to follow.

 

You already know what dropshipping is and how you can start consolidating yourself as a seller. If you have been interested in the subject, you now have the tools and knowledge necessary to start selling through this system through Amazon. Are you up for it?

If you need the advice of experts in the field to manage your Amazon account, contact us! From Nozama we will help you enter a market with millions of potential customers and start growing your business.