Dropshipping on Amazon
Amazon has a strict policy regarding drop shipping. If you miss even one rule, you lose the chance of dropshipping on Amazon.
On Amazon, the conventional style of dropshipping is not acceptable – in which your suppliers deliver the product.
Also, the supplier’s information should not be included anywhere on the product. On the slip, invoice or on any document your name should be included as the seller, not suppliers. Otherwise, Amazon will shut down your operations before you can ask, “Why?”
Amazon offers an FBA program that would store, pack, and ship the product. Your supplier’s only responsibility is to deliver the product the on Amazon fulfillment center.
Get product category approval
You need Amazon’s approval to sell a certain kind of product. You can view the approval requirement of each category individually.
Integrate Amazon with Dropshipping Store
you can sync the dropshipping website with your store on Amazon.
How to Add Amazon Account on Shopify
Go to the left sidebar and click sale channels
Multiple options of sales channel would pop-up, come to Amazon and click it.
Then click ‘Connect to Amazon’ to continue your product listing on Amazon.
Create Product Listing on Amazon
Now your ecommerce store has been connected to Amazon. Here is what you need to do next.
Click on the Amazon sales channel link and go to Shopify left panel.
Click ‘create listing’.
Click Select Product.
Two options will pop-up.
As a dropshipper, you will click on the second option ‘This product is made by another brand.’
Now, you will be able to search for the product to become a seller for that SKU.
Once you find the product click ‘select’.
Lastly, click ‘publish’ for the process to be completed.
Although Amazon showed some restriction on dropshipping, still allows integration with an ecommerce store.
Amazon Dropshipping Pros & Cons
The pros and cons are nearly similar to eBay
Amazon has a large market to penetrate where you can easily find the customer for your product. Getting traffic on the store is always the primary concern of every online seller. Amazon takes care of most of the traffic issues. Millions of people come to Amazon every day, that significantly increases the chances of your store to get a potential buyer.
Easy to set up
For newbies, it is tough to set up and handle the hassle of an ecommerce store. Amazon makes it much easier to sell online by setting up store and list product by following an easy process.
When you sell on Amazon, you get hassle-free from all the after-sales services. Amazon provides 24/7 customer support to everyone who sells on its platform.
Hard to build a brand
When you sell on Amazon, you are not selling as a separate store; you sell as an Amazon’s brand that makes it difficult to dropshippers to build their brand on Amazon. You need to have your own dropshipping website then you can develop your brand; otherwise, it is not possible by solely selling on Amazon.
No Data of customer
Having a target audience makes it much easier to retarget and create a loyal customer base. But, it is not possible if you are selling on Amazon, as it does not provide any emails of customers and also restrict the seller to contact directly to the customer. Not being able to create an email-marketing list is the major downside of Amazon dropshipping.
Amazon does free marketing and provides a large audience for your store, but it all comes at a cost. Even after you buy Amazon professional account, you will still have to pay 15 – 20% fees each item sale, which would surely impact your overall profits.
No Store Control
Amazon has the right to shut down your store anytime without even bother informing you. You either break one rule or come close to breaking the rule you will never know what made your store closed.
Tip: Amazon strive to fast deliveries and using Chinese suppliers usually takes 2 – 3 weeks to deliver the product, so to dropship on Amazon you’d better have US-based suppliers for fast deliveries. You can check the list of drop shipping supplier USA Here.
Dropshipping on eBay
Before anything, let’s address the elephant in the room – Is dropshipping legal on eBay?
You can dropship on eBay; there are no hidden laws or illegal element involved in dropshipping on eBay. You can drop ship anything that is allowed to sell on this platform.
How to dropship on eBay?
Dropshipping on eBay is similar to sell anything on eBay
- Setup your seller account
- Select the product to dropship on eBay
- Create listing
- Manage listing
That’s it when your customer place an order you tell your supplier and your supplier will ship the product. Similar to Amazon you can also integrate your Shopify store with eBay.
Pros and Cons of Dropshipping on eBay
Easy to Setup
It is easy and simple to use. Dropshipping on eBay is as easy as signing up for an account and listing the products. No technical knowledge required.
Less Effort on Marketing
On eBay, you get free marketing for your listings. You do not have to worry about marketing your listings, as eBay will put your listings in front of millions of buyers on their platform.
Cash-in the Goodwill of eBay
Customer trust is already available for eBay. All customers trust eBay when it comes to purchasing online, so you get to enjoy that free trust.
The listing fees can cut into your profits. The first 50 listings are free, but after that eBay charges you a small fee per listing. The profit margins are already slim when dropshipping and eBay’s fees can quickly chew into your profits.
Hard to Build USP
Dropshipping on eBay is a great way to start a business, but there are not many customization options available for you, which make it difficult for sellers to differentiate themselves from the competition.
To stay in the competition on eBay, you need frequent monitoring to outrank your competition. Multiple software is there to automate monitoring, but the manual analysis is always required.
Cannot Build a Brand
Similar to Amazon, you cannot build your dropshipping brand on this platform as eBay is structured to focus on its brand and not on merchants (you).
What to do?
In my understanding, these marketplaces provide dropshippers the exposure of market by having a broad audience, but on the other hand, they snatch all the control of the store and the chance to build a potential audience.
So, it is better to have your dropshipping website and sync it with these marketplaces to generate maximum profits for your dropshipping business.