Kinh doanh dropshipping Amazon có dễ dàng không?
Selling on Amazon, the world's largest e-commerce platform, can be extremely complicated for many new entrants to the market. Today, AGlobal shows you another form of selling your business on Amazon to help you get used to this platform, which is dropshipping.
1. What is Dropshipping amazon?
This is a complete form with sales activities on e-commerce floors. Dropshipping is the process of selling products without freight responsibility. The seller will receive orders on the floor on behalf of the manufacturer and transfer the orders to your supplier and manufacturer. Here, the manufacturer is responsible for manufacturing products, maintaining inventory, and shipping goods to customers.
Dropshipping Amazon has a slight difference compared to the usual form of dropshipping. Dropshipping on Amazon follows these 3 steps:
- Amazon customers (on the left side of the chart) buy products listed on Amazon.
- The transaction is completed and the seller receives the money. The seller will buy the product directly from the supplier (on the right side of the diagram). The seller then gives them the customer's information.
- The supplier will receive information from the seller and send the product to the customer.
2. Regulations on dropshipping Amazon
Amazon is a set of strict regulations for sellers when doing business on this e-commerce platform. In the event of a breach, the seller risks being suspended or locked out of the account.
Some things to follow when dropshipping on Amazon:
- Responsible for accepting and processing customer returns of your products
- Comply with all other terms of the seller agreement and applicable Amazon policies
- Verify yourself as the seller of the products on all packing slips and other information included or provided in connection with the product.
Some things to avoid when selling on Amazon:
- Buy a product from another online retailer and have that retailer ship it directly to the customer.
- Shipping orders with packing slips, invoices, or other information indicating a seller name or contact information are not yours.
Read more about Amazon's dropshipping policy here.
3. Advantages and disadvantages of Amazon Dropshipping
Any business form has its own advantages and disadvantages, sellers should research and consider carefully before deciding to enter the market.
3.1. Advantage
Large customer base: Amazon has a large number of potential buyers and it has the largest share of all e-commerce markets around the world.
Easy to set up: Dropshipping does not require preparation or delivery, so it is easier to prepare than other forms of business on Amazon.
Little or no cost: Dropshipping does not cost much such as: storage, packaging, etc., so selling costs are always kept to a minimum.
Low Risk: Can experiment with different products without breaking policy. At the same time, Amazon has a diverse product portfolio to facilitate sellers.
More freedom: Not tied to a specific location. As long as it is possible to work or associate with a supplier that fulfills orders.
3.2. Disadvantage
High degree of competition: Because it is easy to set up, anyone can enter the market, creating many competitors.
No control over product specifications: Because sellers have no control over product quality, customers can easily receive poor quality products and damage reputation.
Dependency on suppliers: Sellers' lack of control over products and the delivery process greatly affects sales on Amazon as even a small mistake can lead to poor customer reviews or major violations. Amazon books.
Unsustainable: E-commerce is increasingly popular, causing many manufacturers to start selling products on e-commerce platforms, affecting the cooperation relationship of dropshipping sellers.
Little profit: Most of the money will go to the manufacturer, the seller can only make revenue due to the price difference as the price can change depending on the market.
4. Note before doing dropshipping Amazon.
Here are some notes for sellers before doing dropshipping business on Amazon e-commerce platform.
Register for an Amazon seller account: Before starting a business on Amazon, it is mandatory for sellers to register for a sales account for this e-commerce platform. Learn how to set up an Amazon seller account here.
Product Research: Amazon is a huge marketplace with a wide variety of products that sellers can choose from. AGlobal's advice to Amazon dropshipping sellers is to choose products that are in demand all year round or are little known but useful and easily accessible on the media.
Searching for manufacturers/suppliers: After deciding on the industry to join, the seller should start looking for product suppliers. It is possible to search from many different sources such as Google, social networks, groups ..., especially sellers should come to the place or order in advance to check product quality and their delivery process to avoid unintended incidents. It is also advisable to create a contract with the manufacturer in case, Amazon requires a contract between the seller and the supplier.
With a wealth of experience in the field of e-commerce, AGlobal will be an effective help to accompany Vietnamese businesses in their business journey on Amazon international e-commerce platform and bring products "made in Viet Nam". Nam" reaching out to the world.
Get a free 1-to-1 consultation from AGlobal here or contact 0888.608.007 for support.
