If you are planning to get into e-commerce or want to expand an existing commerce business, then Dropshipping by Amazon will be a very right direction. The following article will help you understand what Amazon Dropshipping is and how Amazon FBA works for your business. Let's explore together!
What is Amazon Dropshipping?
The Amazon Dropshipping service or Amazon FBA (short for Fulfilled by Amazon) is a process of selling a product where the seller will not be responsible for the storage, packaging or delivery to customers. Dropshippers themselves can set product prices. The manufacturer will be responsible for producing the product, delivering the goods to the customer and maintaining stock.
How it works
As an Amazon Dropshipping seller, you do not need to process or fulfill orders. Instead, just focus on building your business and how to attract customers. So, you buy products to sell and then ship those products to Amazon for storage in one of Amazon's warehouses.
You list your products on the Amazon marketplace and Amazon takes care of all order processing and fulfillment. Orders will be packed and shipped from Amazon's warehouse to your customer. Amazon will charge a fee related to fulfillment, shipping, and delivery handling.
Benefits of Amazon Dropshipping
In fact, there are many reasons why you should dropship products with Amazon. Here are 5 reasons why Amazon FBA is worth it:
expanding the business
With Amazon's ability to store, pack, and ship goods, you can easily scale your business
Let's say you are running your eCommerce store and not using any fulfillment services. This means that you will be solely responsible for the entire process. Packing and shipping products alone takes up a large part of the day and limits the amount of products you can sell. However, these hassles are completely eliminated when you use Amazon FBA because you can ship as many products as you like to Amazon's warehouse. Freeing you from the hassle of packaging and shipping products.
large customer file
Currently, Amazon has around 300 million monthly active customers. So by selling on Amazon, you will have the opportunity to reach millions of Amazon users every day. Using Amazon as a sales channel will help your business to be favorable and generate great revenue. Sell your product at a price customers can accept, and you'll always have new customers. At the same time, your online store can attract many different Amazon customers. This gives you the opportunity to connect with new customers to increase sales.
increase competitiveness
By becoming Amazon Dropshipping, your customers will also enjoy all the benefits of Amazon shipping. So your products are eligible for the Prime program and Amazon customers paying for the Prime program will have two-day shipping. At the same time, it also helps to increase your competitiveness with other competitors when the majority of customers choose to purchase products with the Prime program instead of products that do not qualify.
Lower advertising costs
To get orders and build a reputation on Amazon, you can use advertising. However, Amazon is a large marketplace with a large customer base, so you can fully leverage this source of organic traffic. By optimizing your product pages, you can increase organic traffic to your site. At the same time, you can also set your own ad costs and control how much you want to spend on ads as Amazon has no minimum requirements.
How to begin
Create an Amazon Seller Account
Let's start by setting up an Amazon seller account. When using Amazon's dropshipping service, you will have to pay a fee. These costs will be determined based on the number of items you stock as well as the number of orders you receive. Once in your Sales Hub account, add the “Fulfillment by Amazon” option to your trader account to get started.
Create listings for your products
Creating product listings is an important job because it can make your Amazon Dropshipping business flourish or fail. So always follow Amazon's regulations to create the best product listings. On the other hand, optimize listings with the exchange and Amazon search engines to increase visibility when customers search for products. At the same time, focus on investing in content and images in the product description to provide the best customer experience.
Market
Despite the huge number of customers available on Amazon, if you don't use advertising, your target customers will never find your products.
In fact, social media, content marketing, and PPC advertising are perfect options to help target your audience. At the same time, Facebook ads are also a great way to increase traffic to your Amazon listing.
Conclusion
Dropshipping Amazon is a new ecommerce business model that has attracted the attention of many people lately. Dropshipping Amazon offers you the opportunity to do business in the international market with low capital and initial investment costs and many other practical benefits. I hope the above sharing has helped you understand what Amazon Dropshipping is, how it works and its benefits. If you have any questions about Amazon Dropshipping, please leave a comment below.