Dropshipping Amazon is a common search among entrepreneurs looking to start an online business with little money. If you want to start selling online professionally, the following guide will help you learn more details about the subject.
Dropshipping has become a business model that is becoming more and more interesting for entrepreneurs. The reason? The ease that this business model offers to start a brand without having to worry about inventories or shipping products to the end customer .
More and more tools and providers are dedicated to offering better user experiences to owners of these types of businesses.
If you don't know where to start, below number library we will share a guide that will help you know how to sell on Amazon through dropshipping, that is, without having products . Let's get started!
Amazon Dropshipping: How Does It Work?
To do dropshipping on Amazon, the seller creates and publishes a catalog of products on the platform – for example, cell phone accessories – from a supplier. When a user makes a purchase, the seller contacts the supplier to send the product to the customer or to the Amazon logistics center, and they are responsible for delivering it to the customer.
As a seller, you won't have to worry about shipping logistics or inventory. You'll just need to have good communication with your supplier and create a catalog with attractive prices for customers.
This business model is especially easy to implement if you are located in countries such as Mexico, Colombia or Chile, where there are fewer requirements and taxes for importing products than in Argentina. However, it can also be implemented in the latter geography.
Amazon offers two processes for dropshipping :
Traditional Dropshipping
FBA Dropshipping
Here we explain what each one is about.
1. Traditional Dropshipping on Amazon
In this case, Amazon plays its traditional role: being a marketplace where you can display your products in exchange for paying a monthly subscription and referral fees for each transaction.
During each sale, you will have to ask the supplier to send the product to the end customer and maintain the conversation with both parties to resolve any questions that arise during the process. Once the shipment is made, you make the payment to the supplier and Amazon.
Tip for being a dropshipping professional on Amazon: this scheme is allowed on the platform, as long as you have an agreement with your supplier in which you identify yourself as the seller of the products. This includes invoices, shipping receipts, external packaging, etc.
2. FBA Dropshipping on Amazon
The acronym FBA stands for Fulfillment By Amazon and is the simplest model for dropshipping with Amazon .
Here, you will have to ask the supplier to send the product to the Amazon logistics center so that they can be in charge of making the delivery, processing any type of return and staying in contact with the customer before, during and after the purchase.