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Can you dropship on Amazon? (Find out about this in 2023)

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Are you looking for a way to start an online business? If so, you may be wondering if you can do shipping on Amazon.
According to statistics, Amazon has more than 300 million active users and more than $280 billion in sales from its sales channel.

But have you also thought about this:
•       Can you do dropshipping on Amazon?
•       Is dropshipping legal on Amazon?
This guide will walk you through the do's and don'ts of dropshipping on Amazon, Amazon's dropshipping policy, how to avoid account suspension, and much more.
Let's Begin!


What is Amazon dropshipping?


You may have an idea about Amazon and what dropshipping is. But what about Amazon dropshipping?
It is a business model where you list your products on AmazonAnd sell them to earn revenue without owning inventory.
Your supplier is responsible for maintaining and shipping inventory to your customers on time. Your mission is to create an excellent product listing on Amazon.

In short, Amazon dropshipping worksIn the same way as dropshipping through your Shopify store. However, instead of selling products on your website, you list them on Amazon!

 

Can you use Amazon for dropshipping?


Amazon is an e-commerce platform that you can use to sell your own products. From statistics, we know that AmazonIt has more than five million active sellers, and about 50% of all sales are on AmazonComes from third party vendors.



However, can you also do shipping on Amazon

Technically, it is possible to do shipping on Amazon. However, Amazon's dropship policy makes Amazon one of the most difficult platforms to use for dropshipping.

In the image below, you can see the requirements for dropshipping on Amazon:

As you can see, dropshipping on Amazon is generally accepted, but you will have to find a supplier that:
•       identifies your dropshipping store as the seller of the product (on all packing slips, invoices, outer packaging, etc. ).
•       Removes any associated product information.
•       Takes responsibility for accepting and processing customer returns on your behalf.
•       Complies with all other applicable Amazon policies.

In short, dropshipping on Amazon is technically possible, but it would be really difficult to find a supplier that complies with Amazon's shipping policy.
Amazon also says that dropshipping by purchasing products from another online retailer (such as AliExpress) And having this retailer ship directly to your customers is not allowed on Amazon.
If you are intent on doing dropshipping on Amazon, you will have to find some type of special dropshipping supplier who can identify your business as the seller of the product and accept customer returns for you.



So, what do we recommend here?


Well, there are two main ways you can go from here:
•       Start dropshipping by creating an online store
•       Sell on AmazonUsing the Amazon FBA (Fulfillment by Amazon) form.



How do you sell products on Amazon?


Amazon FBAIt is one of the most popular business models used to sell products on Amazon.
It has some similarities to dropshipping, but there are also differences.

The main difference is Amazon FBAAnd dropshipping it with Amazon FBA, you must purchase inventory and send it to the Amazon warehousepre. Meanwhile, dropshipping allows you to start selling products without investing in inventory first.

Amazon FBAIt is a service that allows third-party sellers to store their products in Amazon fulfillment centers.

 

When using Amazon FBAAmazon takes overManage product warehousing, shipping, and customer service.
Like dropshipping, Amazon is FBAA great option for sellers who want to focus on growing their business without worrying about fulfillment logistics.

In addition, FBA service may help youIn reaching more customers because customers trust Amazon's shipping and customer service.


Pros of selling on Amazon


For some, selling on Amazon may be an ideal business model. This is mainly because of these professionals!

1. Large
Amazon customer baseIt is a giant and popular e-commerce platform that has millions of unique visitors who come to shop online.

Being an Amazon seller will allow you to reach a large audience. 63% of online shoppers start their search on Amazon!

2. Customer Trust
Any business will tell you that customer trust is essential. People are more likely to buy from companies they feel they can trust, and this is especially true when shopping online.
Amazon has earned its reputation as a reliable and trustworthy online marketplace, which gives sellers a huge advantage. Since shoppers know they can expect a certain level of quality and service from Amazon, they are more likely to take a chance on new products and sellers.

As you can see below, the level of trust influences the purchase decision of a large portion of the survey participants:

3. Hassle-free sales
With Amazon, you don't have to worry about customer service, handling, shipping, and returns. That's because AmazonYou take care of all that when you use Amazon FBA!

Amazon team trainedOn handling all types of customer inquiries, including returns, refunds and product questions. They are also experts in troubleshooting any issues that may arise during the purchasing process. Above all, they are available 24/7!

As a result, you can focus on growing your business, knowing that your customers are in good hands.

4. Scalable
FBA system is designedFrom Amazon so you can scale your business quickly and effectively.

For example, they have software in place that allows you to:
•       Reduce the cost of carrying low-cost, small or lightweight inventory.
•       Offer discounts to repeat customers.
•       Offering fast shipping from Amazon Prime.
•       Sell your products in more than 100 countries.


5. Cost-Effective
It goes without saying that Amazon achieves significant economies of scale through its FBA programHer own.

Because AmazonProcessing many parcels, it can offer its sellers a cost-effective fulfillment solution.
As a result, two-day shipping on Amazon FBA costs $72% lower per unit compared to shipping options offered by major US carriers:


Disadvantages of selling on Amazon


Selling on Amazon has some downsides as well.

1.  Fulfillment fees
when using the FBA service, you have to pay for storage, shipping and other associated costs.

These fees can add up quickly and can eat into your profits if you're not careful.
As a result, it's important to do your research and make sure you're aware of all fees before listing your items for sale on Amazon. Otherwise, you may end up paying more than you expected, and that could affect your bottom line.

2. Tough Competition
You might think that by doing dropshipping on Amazon, you will expose your products to a wide audience, and your chances of success will be higher. But the truth is that every coin has two sides.

With millions of products available for sale, it can be hard to get noticed. And even if a potential customer finds your listing, they may be immediately turned off by the number of other options available.


This intense competition can make it difficult to sell even the most unique, high-quality products. Additionally, many Amazon sellers are constantly looking for ways to undercut the competition, which can result in razor-thin profit margins.
3. Requires large investments
It requires selling a product through Amazon FBAUsually a fairly large investment.

In fact, it is usually much more compared to the investment you need to start dropshipping.
When selling a product through Amazon FBAThere are two main investments you will need to make.
First of all, you will have to purchase stock of your product to send to the Amazon warehouse. This means not only paying for the products themselves but also the shipping costs to the warehouse.


Secondly, you will have to invest a little in Amazon advertising to increase your product listing ranking. You'll start on one of the last pages of your main keyword, and the primary way to increase that ranking is to get orders and reviews on your product listing.
Therefore, it is common to see Amazon sellers running their business at a break-even or even a loss in the beginning just to increase their product listing ranking!


Why is an online store great for dropshipping business?


If you are interested in dropshipping, having an online store is definitely great.
Not only does it provide a convenient way for customers to browse and purchase products, but it also offers a number of advantages over selling on Amazon.

One of the major benefits of running a dropshipping business is that you don't need to carry any inventory.
When a customer places an order on your website, you simply contact your supplier, and they ship the product directly to the customer. This significantly reduces risks as well as startup costs.
With an online store, you can control the look and feel of your website and create a powerful branding strategy that will set you apart from your competitors.



common questions


Who can dropship on Amazon?
Anyone can dropship on Amazon as long as they comply with Amazon's dropship policy and any other applicable policies.


Can you dropship on Amazon legally?
Dropshipping _On AmazonIt is legal, but there are strict policies that must be adhered to. Doing so will prevent your account from being suspended.

 
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