Shopping Cart

DROPSHIPPING AND AMAZON

DROPSHIPPING AND AMAZON
Indeed, Amazon was founded in 1994 and has become in the last few years a worldwide reference e-commerce site. Amazon has over 130,000 employees worldwide and is one of the largest databases for selling goods on the Internet. It can be said that when you are planning to open an online store without inventory, that is, when you want to do Dropshipping, it is sometimes worthwhile to learn how to sell Amazon products by Dropshipping.

Amazon is the most famous e-commerce site in the world.

Indeed, Amazon was founded in 1994 and has become in the last few years a worldwide reference e-commerce site. Amazon has over 130,000 employees worldwide and is one of the largest databases for selling goods on the Internet. It can be said that when you are planning to open an online store without inventory, that is, when you want to do dropshipping, it is sometimes worthwhile to learn how to sell Amazon products by dropshipping.

When it comes to Amazon’s dropshipping business

It is necessary to distinguish two ways of doing business with the famous American e-commerce website:

Use Amazon’s direct marketing plan to sell products on your own website:

You sell products on your own website and, once the deal is done, the supplier (Amazon) will be responsible for sending the product.

Selling products on Amazon dropshipping:

You sell your products on Amazon, and once the sale is completed, your supplier will send the products that have been sold. Then, it is necessary to specify two cases. How does it work?

For you to start using Amazon for dropshipping, I have two pieces of news ( one bad and one good ):

Amazon for dropshipping does not exist

This is the bad news of this article:

Amazon & Dropshipping are not compatible.

The reason is simple:

Amazon is increasingly developing its marketing activities. This means that Amazon offers third-party merchants (for example hp or Sony) the possibility to sell their products directly on their website and charges a commission for each sale.

Selling in the marketplace means that Amazon does not hold inventory of most of the products sold on the site.

Therefore, it cannot guarantee the logistics associated with most product sales and therefore cannot provide dropshipping. Therefore, if you are considering using Amazon for dropshipping, it is a non-starter! Now to the good news.

However, there is another system called commission-based

Amazon does not provide dropshipping service, but there is a membership plan, if you want to earn money on the Internet without spending a lot of money, it will be a good choice.

The relationship is very simple:

You place the redirect link on the Amazon page of your website, and every time a user buys from the link on your website on the Amazon website (tracking link), Amazon will send you the revenue generated by commission.

Basically, you have a blog dedicated to clothing

You’ve published an article about current fashionable swimwear and added a link to the Amazon product board for each product you’ve highlighted. Once the user has purchased that famous swimsuit, Amazon will pay you based on the commission rate.

The biggest advantage of Amazon is that the conversion rate of the website is very attractive for you.

Since the site is already known and recognized by Internet users, many people already have an account and are confident enough to keep their bank details there. Therefore, linking with Amazon allows you to have a large number of Internet users who generate commissions for you.

Do you want to sell dropshipping services to vendors on Amazon?

You may not intend to use Amazon for dropshipping (selling Amazon products on your own website), but you do plan to sell on Amazon by dropshipping, which means selling for the benefit of a supplier.

Is it profitable?

It depends … The answer is vague, but not always profitable. I explain why.
Indeed, be aware that if you have already considered this idea, others will include your supplier before considering it.

Therefore, if you consider selling directly on Amazon,

You will be competing with everyone else who has the same idea as you but also has their own supplier. The problem is that the commission is less than that of a merchant who buys and resells their products.

To make a sale, you will have to have the best price and therefore necessarily reduce the markup.

This means that you won’t sell, because others will be cheaper, or you will sell, but you will earn very little commission. However, to sell on Amazon, there are two main costs:

Professional sellers who order must pay monthly.

Currently, the subscription fee is 49 euros per month. The commission rate is charged by Amazon for each transaction. The commission rate varies depending on the business.

Therefore, if your supplier offers you a price of 200 euros

The commission is 25%. This means that you will earn 50 euros per transaction.
In order to get the best price on Amazon, you need to reduce the selling price to 170 euros. As a result, you will only benefit from a 20 euro margin.

However, if Amazon bears 13% of the revenue generated by each transaction

Amazon will charge you 13% x €170 = €2.1. Therefore, every time you make a transaction on Amazon, you lose €2.1. Therefore, this is not a profitable dropshipping store.

How can you make money?

You will certainly understand that it can be profitable, but you have to be careful when calculating to take into account Amazon’s order and commission rates. Except for these fees, you will see the commission rate you need to enable you to sell your shipping business at a profitable price on Amazon.

Sometimes the best solution to make money through dropshipping is to start a dedicated store.

However, before you start, I recommend you get free drop shipping training (I give you tips on how to get the free method). I also wrote an article that offers various solutions available to create a dropshipping site, do not hesitate to inquire.

My opinion

I will also give you my opinion on the subject, I will not change my mind for me dropshipping remains the best possibility to gain financial independence on the Internet.

You can however learn more about Amazon and its services,

Nevertheless, be aware that on the one hand, your margins will be very low compared to the products you sell in dropshipping. Moreover, the purchase process is very long, because you will have to redirect your prospects to an Amazon page.

Be careful, this is my opinion,

I am aware that several hundred or even thousands of people have already gained their financial independence with Amazon. It remains a very powerful lever, but again, I invite you to compare the two models.