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Dropshipping via Amazon

In the world of e-commerce, you’ve probably heard the term “dropshipping”. It is a fulfillment method in which the seller does not hold stock, but sends the products directly from the supplier to the customer.

Once a customer orders a product, it is not shipped directly from the seller’s warehouse. Instead, the seller will order the product from the supplier and have it shipped directly from there to the customer.

Dropshipping is also possible on Amazon. In that case you can send your products from the supplier directly to an Amazon fulfillment center from where your products are distributed.

But how exactly does dropshipping via Amazon work, what are the pros and cons and what options are there? In this article, we tell you everything you need to know about Amazon drop shipping.

Pros and Cons of Dropshipping on Amazon

Every advantage has its disadvantage. This is no different in the case of dropshipping on Amazon. Still, it is important to be aware of all the pros and cons, so that you can make an informed choice for yourself whether or not to dropship on Amazon.

Advantages

  • Low start-up costs:since you don’t have to buy inventory and don’t need a warehouse, dropshipping start-up costs are very low. You only need to have a sales channel on which the products are offered.
  • No Storage:As a seller, you do not need storage for your products. All products are shipped directly from the supplier to the customer.
  • Time Efficiency:because you don’t have stock, you don’t need staff to pack and ship products. This saves you a lot of time and saves on personnel costs.
  • Less shipping costs:all products are sent directly from the supplier to the customer, so that shipping costs only have to be paid once. Often agreements can even be made with the supplier about the amount of the shipping costs and possibly free shipping.

Cons

  • Long delivery times:dropshipping is generally known for its long delivery times. This is because you cannot guarantee customers that the products will be shipped the same day. In addition, the delivery time depends on which country the products are shipped from.
  • Less control on shipping:If you send products to the customer yourself, you naturally ensure that they are carefully packed and shipped. In the case of dropshipping, you have no control over the shipment and it sometimes happens that packages arrive damaged at the customer.
  • Depending on suppliers:as a seller you are completely dependent on the suppliers from where you have your products shipped. As a result, you have no control over the stock, method of shipment and delivery times.
  • Lower profit margins:with dropshipping, as a seller you often have to deal with lower profit margins, because you do not purchase large quantities from a supplier and pay shipping costs for each product.
  • Responsibility:despite the fact that you have little or no control over the fulfillment process, as a seller you remain ultimately responsible. After all, you are the one selling the products. In some cases this can lead to unpleasant situations.

How does Amazon dropshipping work?

Have you chosen to start dropshipping via Amazon? Then it is important to know exactly how this works. There are a number of things to take into account. Below we explain in a few simple steps how you can start with drop shipping on Amazon.

1. Create an Amazon sales account

Before you can start dropshipping on Amazon, you need to create an Amazon selling account. To create a selling account on Amazon, you need a few things, including:

  • (Business email address;
  • (Business) telephone number:
  • business information and contact details;
  • Chamber of Commerce number (private selling on Amazon is not possible);
  • Taxable (business) credit card;
  • Personal data (ID, driver’s license or passport).

Once you have all the details and supplies you need, you can register yourself through Amazon Seller Central Europe. Congratulations! You now have a selling account on Amazon.

2. Find a suitable supplier

One of the most important steps in making Amazon dropshipping a success is finding a suitable supplier. Once you have found a product that you want to sell, it is important to find a supplier that offers dropshipping.

Before you go into business with a supplier, it is essential to research the products they sell. For example, look at customer reviews and the number of orders. This gives you an idea of the quality of the products.

Also pay attention to the way of communication when you talk to the supplier. The manner of communication can tell a lot about the professionalism and care of a supplier.

Finally, it is important to determine how you will approach dropshipping via Amazon. For example, it is possible to have the products shipped from the supplier or from Amazon.

Dropshipping from supplier

If you choose to have the products shipped directly from the supplier, it is important to make clear agreements about delivery times, shipping costs, method of packaging and any returns.

Amazon customers have the right to return products. This makes it necessary to provide a return solution yourself when you send the products from the supplier. It is wise to make agreements about this with the supplier.

Amazon FBA dropshipping

Do you want to be sure that no problems arise with regard to delivery times, method of shipment and possible returns? Then choose Amazon dropshipping via FBA (Fulfillment by Amazon).

In that case, you ship a stock of your products to an Amazon fulfillment center. You do this, of course, directly from the supplier. This prevents double shipping costs and you do not have to have a storage facility to (temporarily) store the stock.

Once an order is placed, the product is packed from an Amazon fulfillment center and shipped to the customer. In case of a return, Amazon will handle the return process. As a seller, you then remain solely responsible for the refund.

As a seller on Amazon, dropshipping via FBA is a good way to ensure fast delivery times and quality of shipment. All shipments then meet Amazon’s requirements.

3. List products on Amazon

Have you already been able to make a choice whether you want to have the products shipped directly from the supplier or from an Amazon fulfillment center? Then it’s time to actually offer your products on Amazon.

To do this, log in to your Amazon sales account and go to the Seller Central dashboard. Then, under ‘Catalogue’, look for ‘Add products’ and start with the listing of your product(s).

On Amazon you need to add a category, description and photos for each product. It is important to take into account various factors to improve the findability of your products. Read more about this in our article on Amazon SEO optimization.

Start selling via e-tailize

Do you also want to start selling on other marketplaces besides Amazon? Or are you already active on various sales channels? Then the e-tailize platform is what you need.

With e-tailize you centralize and automate product and stock management, and order fulfillment. Thanks to more than 100 integrations, you can manage all your sales channels from one application.

Thanks to our handy PIM system, you can easily edit and update all your products from our platform. It is therefore no longer necessary to manage all sales channels individually.

Start selling via e-tailize today. You can have the entire system working within 15 minutes with just a few pushes of a button. View all options immediately or schedule a demo with one of our employees.

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