To be an Amazon seller, there are many things you need to do. Drop shipping is one the most important and difficult elements of selling online.
This article will provide all the information you need about your company, including 24 of the best shipping companies for 2019.
A quick guide to
- Drop shipping: What does it mean?
- What is Amazon’s drop shipping process?
- The Pros & Cons of Amazon Drop Shipping
- How can I locate a reliable drop shipper?
What is dropshipping?
Drop shipping, for those who don’t know, is a method of distributing products directly from a manufacturer or wholesaler to customers or Amazon warehouses.
Simply put, an Amazon seller will order products online from a supplier. Then they will transfer the sale to their drop shipping company. They will handle processing and delivery.
Drop shipping is crucial for Amazon sellers, especially if they sell large quantities of product.
Drop shipping has many advantages. To begin with, there is very little cost and low-performing products can be dropped shipped by vendors. Drop shipping is a way to simplify the selling process, but it can also have its downsides. It may require some practice to avoid costly and time-consuming mistakes.
How does Amazon drop ship?
This step-by-step guide will help you avoid many common mistakes made by drop shippers when they start.
First, you must define your product and the provider of that product.
Once you have decided that this product is what you want to sell you can contact the provider to discuss your requirements. It is important to confirm that the provider will be happy to take orders and deliver the products to your client.
You will then need to negotiate rates with your provider. You will need to carefully review your pricing. To make a profit the price you pay your provider must be significantly lower than what your end-customer paid you.
Once you are satisfied with the item and all conditions, you can start selling it.
Here’s a guide to help you understand the Amazon drop shipping process:
- Find your product, and connect with your preferred supplier.
- Start promoting your product by listing it on Amazon
- The Seller receives the order from customer.
- The Supplier will receive the order from you.
- Your payment details will already be known to the supplier and payment will then be taken per order.
- The supplier will then ship directly the product to the customer. The package will be sent from The Supplier. However, all paperwork detailing the origin of the product will show that it is from you.
You must ensure that funds are available to ensure that payment can be made by the provider for each order.
The client will only have your contact details. You will be responsible for communicating with the provider about any issues such as delivery delays or damage.
Amazon’s Pros and Cons of Drop Shipping
Drop shipping is like any other option. You need to weigh the pros and cons of drop shipping carefully before you make a decision.
Time-Drop Shipping saves a lot for Amazon sellers, especially for those selling large quantities. This allows you to focus your efforts on marketing your product.
This is the blog author’s own service.
Experience- Usually, your provider will have a lot of experience and will know the fastest and most efficient ways to package and deliver your item professionally.
Finances – Your initial economic outlay will not be significant as you only pay per item instead of buying inventory in advance.
Space saving –You don’t need to buy bulk stock. You don’t even have to have enough space to store large quantities of items that are just waiting to sell.
Flexibility- If a product doesn’t perform, it can be stopped being sold with minimal fuss and cost. However, if bulk inventory was purchased in advance, it may end up being thrown away or stored if it doesn’t sell.
Volume- Without worrying about storage space or economic outlay, you can ship a large number of distinct goods.
Profit- You’ll have to pay the supplier to get this service, which will eat into the sales earnings.
Control- You will need to rely on the Supplier to pack the product for you and deliver it correctly.
Rules –Amazon has many rules and guidelines regarding drop shipping. You must adhere to these guidelines or you will be penalized.
Reputation-If the supplier provides a poor service, it will affect your reputation.
How can I find a dropshipper who has a good reputation?
When choosing drop shippers, it is important to ensure that the company you choose is reliable, trustworthy, and qualified. This is a crucial decision you will make.
Fake drop shippers and wholesalers are popping up as Amazon sales become more popular. It is important to recognize these and avoid them.
- Fake drop shippers can be unscrupulous individuals, who often offer very low prices and claim to provide Amazon sellers drop shipping services. Fake drop shippers will often ask for a front-end payment, which they call “administration fees”, often claiming that it is for identity verification and to set up your account.
- It is not easy to identify fake dropshippers. is, in fact, a website that has a payment portal. This can be kept for a few dollars by anyone.
- Fake drop shippers will often ask for large upfront fees that should immediately be flagged. A legitimate drop shipping company will only charge for each order.
- Fake drop shippers will often send your payment to a PayPal Account, as it is relatively simple to set up a PayPal account with very little business name verification.
Drop shippers who don’t require that you set up an account prior to starting a company are not trustworthy. Drop shippers are wholesalers, and so each vendor must have an account.
You should verify that you are not a drop shipper.
- If the number is recognizable as a company number, you can call it to verify if it is.
- A quick Google search will reveal a lot of red flags online if the company is a fraud or scam.
- You can check a company registration number online. This can be checked at Companies House (UK), or equivalent U.S. authorities.
There are many reliable drop shippers. Directories such as Salehoo keep you updated with drop shipper listings. A $67 annual fee is all it takes to get data about the top drop shippers.