What You Need to Know About Amazon and Dropshipping

When it comes to "e-commerce", Amazon is among the first online sales platforms that come to mind. So, why is Amazon so popular? The answer to this question is hidden in Amazon's 2022 data. According to this data, the company achieved sales of $ 11.9 billion. Compared to 2021 data ($10.4 billion), this year the company's sales are up more than 14% compared to last year.

Here, in this article, we have compiled some information you need to know about the world-famous online sales platform Amazon and Dropshipping.

Among this information, first of all, there is the roadmap you need to follow on how to start Dropshipping. We have itemized the information in this roadmap for you as follows:

1. Open a store on Amazon.
2. Upload the products you will sell.
3. Expect to receive orders on Amazon.
4. After receiving an order; send your products to the warehouse and place your store's labels, name and logo through the warehouse and send them to the customer.
5. Wait for your money to be credited to your account after the product has been delivered.  

So, what is Dropshipping?

Dropshipping is an online business model. In this model, a seller partners with a supplier or manufacturer to sell products directly to customers without holding stock or inventory. The seller takes orders from customers and forwards these orders to the supplier, who then ships the product directly to the customer.

In this business model, operating costs are low as sellers do not invest in stocks or storage space. Also, since sellers can manage their businesses over the internet, they have a high potential to reach customers worldwide.

How Does Dropshipping Work?

The dropshipping business model requires sellers to make an agreement with a supplier or manufacturer. The seller creates a list of products provided by the supplier and sets the price of these products. When the seller receives customers' orders, he places an order with the supplier and the supplier ships the order directly to the customer.

In this business model, sellers usually set up a website (seller account) using an e-commerce platform (e.g. Amazon). On Amazon, the seller's specified products are listed and customers can buy these products directly through Amazon. Sellers receive the orders through Amazon and have them sent to the arepos, which then ship them to their customers through the arepo.

Is Dropshipping Legal?

There is no legal obstacle to do stockless e-commerce. There is no article in the current legislation that prohibits e-commerce entrepreneurs from doing stockless e-commerce. There are already some legal procedures that you need to complete in the process of opening a site or store before you start selling. Therefore, since you will legitimize your business with some documents, you are free to sell the products of another supplier. Your task is only to comply with the rules of the platform you are selling on and the terms of the agreement you have made with the supplier.

Advantages and Disadvantages of Dropshipping

Here are some advantages of dropshipping:

- No need for stock management: In the dropshipping business model, sellers do not spend time and money on inventory management or warehousing. This reduces operating costs.

- Low investment cost: The dropshipping business model lowers the investment cost required to start a business. Since sellers don't have inventory or warehouses, the initial investment cost is low. With SellerFlash, you can manage all the inventory on your Amazon store much faster and more efficiently.

- Flexibility: The dropshipping business model increases the flexibility of a business. Sellers can manage their business over the internet and have access to customers worldwide. With SellerFlash, you can manage your orders in minutes.

Here are some disadvantages of dropshipping:

- Competition: The dropshipping business model is a highly competitive type of business due to low entry costs. Many sellers sell similar products by working with a similar supplier, so it can be difficult to differentiate. With the Buy Box Hunter algorithm, one of the privileges of SellerFlash, you can always have an advantage over your competitors.

- Profit margins: In the dropshipping business model, the profit margins of sellers can be lower than in other business models (arbitrage, private label). This is because sellers do not have to sell products at a higher price than their suppliers, and there may be additional costs such as intermediate shipping costs.

- Lack of control: In the dropshipping business model, sellers do not have full control over issues such as product quality or the shipping process, as they do not stock the products. Therefore, sellers have to maintain good communication with their suppliers and resolve customer complaints quickly.  

- Intermediate Warehouse Shipping: One of the prominent advantages of dropshipping software, which has many advantages, is "intermediate warehouse shipping". As SellerFlash, we continue our work with two intermediate warehouse companies named ShippingGarage (Illinois) and ShippingLOT (New Jersey). Thanks to our advanced intermediate warehouse system and business partners, we are able to ship to every country at affordable prices. If you want to increase your sales and have an easy and reliable software, you can check our website: www.sellerflash.com

Things to Consider When Dropshipping

- Work with reliable suppliers: In the dropshipping business model, it is important for sellers to establish a trustworthy relationship with their suppliers. Sellers should make sure that suppliers have a good reputation for product quality, shipping process, customer service, etc.

- Product selection: In the dropshipping business model, it is important for sellers to make the right product choices. Sellers can focus on popular or trending products. However, it is also important for sellers to avoid highly competitive product categories and focus on a specific niche.

- Customer service: In the dropshipping business model, it is important for sellers to be sensitive about customer service. Sellers should answer customers' questions quickly and make an effort to resolve any issues with their orders.

- Fees: In the dropshipping business model, it is important for sellers to carefully monitor fees. Sellers should pay attention to suppliers' prices, shipping fees, and operating costs. Also, sellers should be aware of additional fees such as fees and taxes charged by payment processors.

Documents Required to Sell on Amazon

• A current and used credit card
• Registration number
• Tax number
• Company address
• Information about the type of business
• Identity details of the first person
• Telephone details of the first person
• Bank details of the account where the proceeds will be deposited (Payoneer, wise, mercury or other banks supported by amazon)

Anyone with these documents can easily create an Amazon account. You can also use the "Guide to Creating an Amazon Seller Account" on Amazon's website to help you create your registration.  

CONCLUSION 

Dropshipping is a low-cost business model and a popular option for online businesses. However, when dropshipping, it is important to work with the right suppliers, choose the right products, and be sensitive to customer service. Also, sellers need to carefully monitor fees and consider operating costs. The dropshipping business model can be a low-cost option for entrepreneurs, but profit margins can be low and competition high. Therefore, to build a successful dropshipping business, sellers need to implement the right strategies and continuously improve their business.

To make your work easier on Amazon, you can take advantage of the privileged world we offer you by registering with SellerFlash. What you need to do for this is very simple:

1. Connect Your Amazon Store 
2. Create Your Inventory with Detailed Search Filters
3. Be Competitive, Sell at High Profit
4. Secure Your Account Health with SellerFlash
5. Manage Your Orders
6. Send Your Orders from Warehouse with Advantageous Prices