The Ultimate Guide : How to Dropshipping on Amazon
The creation of dropshipping fulfillment model is a innovation of supply chain management business.
However, the dropshipping business can be difficult to scale and earn profit, even though you are getting dropshipipng price and your product cost would be almost the same as other sellers.
Yet, you are here to learn and discover how to make your dropshipping business work, indeed, only few dropshippers are able to turn their dropshipping business to be competitive and well-scaled.
In this article, we are going to share the ultimate guide for dropshipping with operational aspects, to equip the growth of your dropshipping business.
The Benefit of Dropshipping
You might heard about dropshipping’s advantages on cost-saving or even no cost. In fact, this is a “Everyone” business and literally no entry requirement. You do not need to invest on stock in advance and you can create your selling channels by free platform (Example : Facebook, ebay) or a e-commerce website (Shopify, Woocommerce, Prestashop).
All you need is Internet and your laptop.
As you do not need to purchase any stock until its been sold. You do not need any stock management skill and no stock risk at all. Dropshipping is a great starting point for you to start your e-commerce business.
However, at the same time you will not have the Wholesale price as you are not buying in bulk. You will need to find a dropshipping supplier , who is willing to give you “resell” price and under No MOQ terms, or you can source from dropshipping marketplace that consists of different dropshipping suppliers.
The Best Dropshipping Product on Amazon
First of all, we have clarify the how traditional e-commerce process works, before moving into this part.
Indeed, dropshipping is a new way of e-commerce fulfillment method, but apart from the fulfillment management, dropshipping procurement concept is similar to the traditional e-commerce process.
We realized some of the dropshippers are using automation tools to find the best selling product on Amazon, and find the supplier afterward. But, this is not the good way to do with it.
Our suggested approach for dropshpppers – To find supplier before looking for your winning product. The basic of a business is to find a reliable supplier, but not a product. Beside, you should grow with your suppliers but not a specific product.
As the great part of dropshipping is its very easy to scale your product catalog this is the advantage of using dropshipping model – diversify your product categories and SKUs and lower your risk and grow your customer base.
So, what is the best product for you to dropship ?
Stick with something you are familiar with and interested into, it makes sense and better help you to establish the network with your potential customers and suppliers, when you are expertise at that product category. For example, if you are K-beauty lover then you can dropship Korean Cosmetics product.
How to find the best dropshipipng suppliers with high-margin product?
Indeed, high quality suppliers with high-margin product is hard to find, however, Super Chain as a dropshipping marketplace allows dropshipper to dropship and resell international brands and high-ticket items.
Imagine, its hard to get high margin if you are selling low-priced item (USD$ 3 as product costs), however, if you are selling USD$ 300 product with 20% margin, than you have USD$ 60 margin.
If you are looking for a general store and you need multiple suppliers to support you, then you can search on dropshipping marketplace with different types of products as your supplier source.
Is it Legal to Dropship ?
Again, dropshipping is a retail fulfillment process and you are reselling the product through internet. As long as you are selling genuine product and able to proof your supplier source, Amazon or another platform will allow you to sell on amazon.
The dropshipping on Amaozn process is actually simple and easy to do it. You can send your Amazon-Generated shipping labels to your dropship suppliers and they will attach the labels on the parcel when they deliver it.
If you have any hard time on getting Amazon approval, you should contact and discuss with your supplier and sort it out together.
Amazon FBA VS. Dropshipping
No matter you are currently using Amazon FBA service or Dropshipping on Amazon, both of the model has ability to make money.
However, we can compare both fulfillment model by cost.
Logistic cost might be really high based on the location and weight, if you are using dropshipping model, make sure you consider the shipping cost before getting into it. Most of the dropshipping supplier has their shipping cost rate card sent to their customer and some of them even offer free shipping.
However, for Amazon FBA cost is not only shipping but also storage, you can estimate your cost for using Amazon FBA at their pricing plan.
Dropshipping can be applied on different selling channels, no matter you are selling on Amazon, Ebay or your own online shop (by Shopify, Preatshop or WooCommerce).
However, you should be aware on your cost, not only the product cost but also the shipping or storage cost.
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