How to Do Amazon Dropshipping?

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Dropshipping on Amazon

The dropshipping sales method can be briefly summarised as a type of eCommerce without stock. With this trade model, you can place an order to the supplier for the products you have sold, and have them sent directly to the customer. The first step to follow is to open an online store on an online platform. Marketplaces, such as Amazon USA, Amazon Europe, Amazon Canada, and Amazon Mexico are among the options.

After starting your online store, you can pull the list of the products from your supplier manually or via software. One thing to consider at this point is that products should not have any trademarks. In other words, you should not sell any licensed items belonging to big brands. In such cases, Amazon might suspend or delete your account. You can participate in the dropshipping courses provided or Amazon courses offered by different firms to have more knowledge on the matter before starting the dropshipping process.

Top Selling Items on Amazon

The top selling items on Amazon include mainly clothing, electronic devices, toys, cosmetics, and baby products. While defining the product range of your Amazon store, you may consider your own interests as well. As you will follow your interests more closely, you will be able to follow new developments in that specific area and eventually have better sales and marketing experience. You can apply a “niche marketing” strategy, as specific products of interests such as fishing supplies or yoga workout clothes are among the most preferred items. You can target your customers more easily and conduct your marketing activities around a specific interest. While adding products on Amazon for your customers, you can do it both manually or via software. Both of these methods, however, have their pros and cons. As you will control each product one by one while adding them manually, you can make sure that you won’t do anything illegal. Yet it can be tiring to add each and every product manually if you have a big store. On the other hand, adding the products via software can result in adding products with a trademark, in other words adding licenced products. It may be quite hard to trace this, and it may be too late until you realize those products and your account might be under the risk of being suspended or deleted. For this reason, if you want to add the products via software, you should frequently check for the trademarks.

How to Define a Price Ratio?

There are a few important points to consider while doing dropshipping. The most crucial one is doing the pricing right. You need to follow a certain and balanced pricing policy to make profits and sales. First of all, you may want to check out the policies of your opponents who have similar range to yours. After summing up the fee you pay for your supplier, the commission charge paid to Amazon along with the shipping and tax costs, you need to add the profit to the product price to finalize your pricing. Even though the profit ratio will be depended on your product’s industry, your product and the season, sellers doing dropshipping usually prefer to add profit from 10% to 30%. However, this can vary by your product range and the welfare of your target country.

Choosing Suppliers in Dropshipping

Another important point you should consider is the choice of suppliers. If you want to rest assured that your supplier will not cause you any trouble, you should do a demo order before starting working with them to get to know your provider and their system better. By doing so, you can see how long it takes for them to ship the product and the duration of the delivery in addition to the communication skills and resourcefulness and the product quality of your supplier.

This experience is quite important to see the products and check its quality before shipping it to the customer while it is also profitable. You should also make sure that your supplier has a wide product range and will apply the bulk pricing policy.

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