Advantages and disadvantages of Amazon Dropshipping
Posted: Mon Dec 23, 2024 6:11 am
Advantages of Amazon Dropshipping
The advantages of selling on Amazon are similar to those of any other major online marketplace. Here are the three biggest advantages of Amazon Dropshipping:
1. Carefully selected dropshipping suppliers
Amazon buys products in bulk, usually from European suppliers, and stocks them in its warehouses until they are ready to ship. Thanks to these basic quality requirements, new sellers can advertise decent products to a huge international audience.
2. Greater discovery capacity
Amazon gives you instant access to a huge potential audience and puts over 30 product categories at your disposal. You can start selling in as many dropshipping niches as you want, which means you can target very specific markets.
3. You don't need external marketing or SEO
It's a good idea to use ads to promote the items you sell on Amazon, but you don't have to worry about driving traffic to your products through expensive external marketing campaigns or search engine optimization (SEO).
Disadvantages of Amazon dropshipping
As with any other dropshipping model, canada phone number the advantages of convenience and low initial investment have to be balanced against disadvantages such as lack of control over products and potential difficulties that may arise in customer service.
Here are some disadvantages of Amazon dropshipping:
1. Presentation of sales data
One of the requirements for using the Amazon platform is that the company can access all of your sales data, from best-selling items to overall numbers.
Amazon has been accused on several occasions of using this data to optimise its own sales opportunities and strengthen its market share in this niche, so that other sellers would be eclipsed in the marketplace.
2. Fewer connections with customers
When dropshipping on Amazon, you're likely to find it harder to build long-term relationships with customers. Amazon is designed to help suppliers sell products, not to build brand loyalty. You'll have to accept working within a number of limitations that will affect your business's branding, how you list your products, and how you communicate with customers.
3. No customization
Amazon is a very restrictive platform when it comes to customization. Everything that has to do with branding, user interface and experience, and marketing is under Amazon's control.
4. Initial investment
To qualify for Amazon, you need to have some of the supplier's products in your inventory. This means that you need to invest some money at the beginning to be able to start dropshipping on Amazon.
AmazonSellerCentral
How to start dropshipping on Amazon in 6 steps
1. Register as a seller on Amazon
To sell on Amazon, you must register and open a seller account. Go to sellercentral.amazon.com to register. You will need to enter your business information, so have the following ready:
Your business email address
A credit card that allows international transactions
Your national identity document
Your tax information
Your phone number
The bank account in which you will receive the earnings
2. Obtain authorization for your product category (if necessary)
Amazon requires sellers to apply for authorization before they begin selling certain product categories.
Collectibles, music, and watches are popular categories that require authorization to create an Amazon store. See the overview of products you can sell .
Please note that there are some products that may require authorization even though their category does not require one. To see which individual products require you to request an authorization, please refer to this list and click on “view limitations.”
3. Log in to your Shopify store
If you don't have a Shopify store, sign up to start dropshipping on Amazon through Shopify.
The advantages of selling on Amazon are similar to those of any other major online marketplace. Here are the three biggest advantages of Amazon Dropshipping:
1. Carefully selected dropshipping suppliers
Amazon buys products in bulk, usually from European suppliers, and stocks them in its warehouses until they are ready to ship. Thanks to these basic quality requirements, new sellers can advertise decent products to a huge international audience.
2. Greater discovery capacity
Amazon gives you instant access to a huge potential audience and puts over 30 product categories at your disposal. You can start selling in as many dropshipping niches as you want, which means you can target very specific markets.
3. You don't need external marketing or SEO
It's a good idea to use ads to promote the items you sell on Amazon, but you don't have to worry about driving traffic to your products through expensive external marketing campaigns or search engine optimization (SEO).
Disadvantages of Amazon dropshipping
As with any other dropshipping model, canada phone number the advantages of convenience and low initial investment have to be balanced against disadvantages such as lack of control over products and potential difficulties that may arise in customer service.
Here are some disadvantages of Amazon dropshipping:
1. Presentation of sales data
One of the requirements for using the Amazon platform is that the company can access all of your sales data, from best-selling items to overall numbers.
Amazon has been accused on several occasions of using this data to optimise its own sales opportunities and strengthen its market share in this niche, so that other sellers would be eclipsed in the marketplace.
2. Fewer connections with customers
When dropshipping on Amazon, you're likely to find it harder to build long-term relationships with customers. Amazon is designed to help suppliers sell products, not to build brand loyalty. You'll have to accept working within a number of limitations that will affect your business's branding, how you list your products, and how you communicate with customers.
3. No customization
Amazon is a very restrictive platform when it comes to customization. Everything that has to do with branding, user interface and experience, and marketing is under Amazon's control.
4. Initial investment
To qualify for Amazon, you need to have some of the supplier's products in your inventory. This means that you need to invest some money at the beginning to be able to start dropshipping on Amazon.
AmazonSellerCentral
How to start dropshipping on Amazon in 6 steps
1. Register as a seller on Amazon
To sell on Amazon, you must register and open a seller account. Go to sellercentral.amazon.com to register. You will need to enter your business information, so have the following ready:
Your business email address
A credit card that allows international transactions
Your national identity document
Your tax information
Your phone number
The bank account in which you will receive the earnings
2. Obtain authorization for your product category (if necessary)
Amazon requires sellers to apply for authorization before they begin selling certain product categories.
Collectibles, music, and watches are popular categories that require authorization to create an Amazon store. See the overview of products you can sell .
Please note that there are some products that may require authorization even though their category does not require one. To see which individual products require you to request an authorization, please refer to this list and click on “view limitations.”
3. Log in to your Shopify store
If you don't have a Shopify store, sign up to start dropshipping on Amazon through Shopify.