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5 Things to do before Starting a Dropshipping Business on Amazon

If you want to get the most out of your eCommerce and squeeze everything that the internet makes available to you, do not hesitate, Amazon must be in your sights. However, you can still improve your day-to-day and that of your business with dropshipping, a distribution model that is making people talk wherever it is mentioned. But what would you say if we mix everything up a bit and formulate the magic words?

Amazon’s figures speak for themselves: Black Friday and Cyber ​​Monday accounted for 18 million toys sold worldwide, which also reflects the importance of having a dropshipping provider that has a catalog of toys, let it be said!

But let’s take a break.  Do you know what is dropshipping? Let us explain it to you.

What is it?

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Dropshipping or shipping triangulation is a mode of sale primarily focused on online commerce where the seller is not in charge of managing and storing the inventory of the products of his online store, but a third-party wholesaler or supplier is the one who send the products to the customer on behalf of that online store.

It has become such a popular system, largely due to its low costs and the ease with which it is possible to start a business of this type, although on the other hand the profit margin is smaller and it is not easy to find a place in the market, so it is not always the best option and you should evaluate all the details about how to do it, especially if you intend to enter a platform as competitive as Amazon.

Advantages and disadvantages

Without a doubt, dropshipping with Amazon may sound like a very attractive option for those looking to start a business with the security of a market leader:

It is a platform with a huge potential audience

Amazon has become an electronic commerce giant that grows all over the world. This means that using dropshipping to introduce you to the platform can offer you a large number of opportunities.

Costs and risks are minimal

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Probably the most frequent reason for someone to start this is because the entry barrier is very low, both in economic resources, since it is not necessary to have their own inventory, as well as in human resources since by taking advantage of the power from the Amazon platform you will not need to invest as many technical resources.

It is easy to diversify products

Since you do not need to have stock of any product, it is very easy to try to put new products on sale and launch many more novelties than you could if you had a traditional business.

Obviously, selling this way also has its downsides:

High competition

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The other side of the coin of the powerful Amazon platform for sellers is that no matter how much potential it has in terms of getting new customers, it is a too competitive market with well-established options and where the main differential factor to compete is price.

Lower dropshipping margins make it difficult to stand out

The best option and practically the only one to stand out on Amazon as a seller is a price, since this is the differential factor that most customers look at when deciding where to buy a product. And is that many customers do not even know that there are different sellers on Amazon selling products and think that all items are shipped and managed by the platform itself.

A bad provider can make your business fail

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At the moment of truth, the future of your business will be decided by the number of incidents you have with your wholesaler and the quality of their products, so even if you are very careful when choosing your supplier, if for any reason it begins to drop its quality, that will affect your business and will leave you without control over it. So work just with reliable ones like GoTen.com a leading dropshipping platform, if you want to succeed.

Things to know before starting this business:

With its advantages and disadvantages, the ideal is that you know all the things you should know and do before starting this business. We tell you everything you should know before starting to work with one of the biggest companies in the world.

1. You must pay attention to your reputation

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Amazon has certain controls to certify that the seller is trustworthy, so it places great importance on customer service, product policies, and shipping performance. Therefore, doing dropshipping on Amazon with a good supplier will allow you to control the monitoring of orders at all times and, of course, work with products that meet quality standards.

2. Read policies in detail, to know what you are allowed to sell

Do not post products that are not allowed on Amazon. It is vital that you review their policies if you do not want to risk products that are prohibited from sale. Although many are unaware of it, it is one of the most frequent reasons why they can close your account. Despite the fact that your provider provides you with a very wide catalog, check in detail which products you can publish and which ones you cannot.

3. Pay attention to the shipping times

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Set up the carriers correctly. It is important that you know the shipping times of your provider and configures them properly, without forgetting the order preparation time. Be aware that these details will make your account performance statistics good. It is obvious that if you put shorter shipping times, the conversion will increase, but if you do not fulfill it in more than 4% of your orders, you will have problems with Amazon.

4. Don’t forget to update tracking of orders

Update the tracking of orders. It is essential that you update the tracking of the orders within the period that Amazon gives you for it, if your drop shipping provider is reliable, it must provide that info to you!

5. You can sell all over the world

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Evaluate the option of selling through the international listing. Publish your product’s marketplace of your country, but do not stop there, synchronize that listing with the rest of the countries. Of course, make sure before that your provider offers you competitively priced shipping to those countries.

Conclusion:

For the final approval of your store, Amazon will ask you for several documents that prove your identity and the activity of your company, such as your ID, proof of your bank account, some proof of your address, an extract from the commercial register if applicable, etc. Even before your account is approved, you can already start managing your store and search for providers and start your journey on this platform thanks to the tips in this article.

About Stefania Trtica

Stefania Trtica

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