How to develop a dropshipping business selling Amazon products?

Dropshipping's success is based on communication, quality and the diversity of the products on sale. Amazon is the ideal marketplace for finding winning products, in other words, products that sell very easily. How can you ensure the development of dropshipping by offering Amazon products for sale? Read on for details. 

Methods of selling on Amazon dropshipping

If you want to start an online business with Amazon, we recommend dropshipping, which is a popular and lucrative method of wholesaling. Amazon becomes your wholesaler and distributor and gives you a number of advantages that you may not find with other wholesale businesses. 

• Attractive start-up costs

Unlike other online sales processes, dropshipping avoids any storage constraints because your products are stored at your supplier's premises. It is therefore Amazon that will take care of shipping your dropshipping products to your end customers. The products you sell do not go through you and your stock is zero. 

• A quick set-up

Since dropshipping on Amazon, as with all other suppliers, does not require stock, setting up your business is very quick. You don't take a time margin as your product is ready to be shipped as soon as the order is placed. 

• An automated company

There are many free online applications with which you can fully automate your dropshipping process on Amazon. This saves you time to work on other aspects of your business. 

• Easy to search

On Amazon, products are linked to dedicated tools to measure the behaviour of internet users in relation to a specific product. You will have some important elements when you start your dropshipping business.  

Dropshipping on Amazon: the disadvantages 

Although dropshipping on Amazon has many advantages, there are a few disadvantages to consider. 

Competition is fierce, because the barriers are almost non-existent with this sales system. Even if dropshipping products can be compared, this doesn't prevent your competitors from selling the same product using the same Amazon products. Your only weapon in the war will therefore be the price, which will obviously force you to lower it. 

When you dropship with Amazon, your products are shipped directly from the manufacturers. This means that deliveries are not handled by Amazon, which means that the delay to the end customer can be anywhere from a few weeks to a few months. 

The same applies to quality control. Marketplaces such as Amazon or Bigbuy do not have control over the quality of products delivered directly from the manufacturers. The shipping could damage the product and your dropshipping shop will have to bear the consequences. However, Amazon is constantly looking for ways to improve the experience of dropshippers who decide to work with them. Recently, it replaced the Amazon MWS with the Selling Partner API, an upgrade to its system for more efficient and automated data flow. The marketplace on Amazon and dropshipping on its API will see a particular evolution. This upgrade has also enabled the deployment of Amazon dropshipping automation, a tool to automate the actions you need to take including monitoring the price of a product to update your selling prices... 

How can I dropship with Amazon?

To put all these theories into practice, you can start dropshipping on Amazon by creating a seller account on their site. Go directly to sellercentral.amazon.com, where you'll be asked for your address and type of business (entrepreneur, company...). You'll then search for your product, the one with high demand and low competition. It's advisable to use solid, effective criteria to find THE product: an item with between 100 and 300 sales per month, "very" low competition, an average price between $20 and $35, and with a niche up to 7+. With these criteria in hand, you'll have every chance of finding a winning product on Amazon. 

Check other marketplaces to see if your product is on sale, giving priority to B2B sites that list e-commerce companies looking for dropshipping players. On these sites, you'll find detailed information on all dropshipping suppliers: products on sale, delivery times, user reviews, which are always full of important information... Create an Amazon product listing from your seller account, which will give you even more information on your business, including commissions. Don't forget to promote your product on the most popular social networks. Focus on your target customers' needs, just as you should focus on your brand. Make sure you have a sample of every product so you know what you're selling. Go broad by offering a number of products for sale. 

Conclusion

It is possible to do dropshipping with Amazon products. You can benefit from several advantages, but there are also some disadvantages to avoid unpleasant surprises during the launch of your business. Let Minea, the dropshipping specialist, guide you through the entire process until the first sale.

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