When you decide that you want to launch a dropshipping business online, the first sale brings an exciting feeling. If you havent launched a dropshipping business yet, but you think about doing it, we are happy to share the pros and cons of doing it via Amazon. Dont waste time, visit RameshDontha.com and learn more about dropshipping and doing it via Amazon.
Before we begin, it is important to mention that dropshipping is an online business model suitable for those who dont have a lot of money to invest in the beginning. It is also a good business model for those who are not interested in creating their inventory line. Dropshipping allows you to act as a middleman without having to deal with the products at all. When you receive an order, you then forward it to a supplier or a manufacturer and have them ship the product to your customer. Of course, the profit isnt as high with this model, but at least you have the opportunity to launch an online business with ease and simplicity.
Turning our attention to dropshipping via Amazon, the biggest online retail store of the moment, you should know that there are both pros and cons to it.
Pros:
- One of the biggest pros of dropshipping via an online retail store such as Amazon is that you dont have to worry about the complications of buying and selling. You dont have to order products, manage the stock, store or ship the products. All that you have to worry about is to focus on passing the order to a manufacturer or a supplier.
- You save money on shipping because you are not the one who does it.
- Since there are thousands of manufacturers and suppliers who accept to work with Amazon, you dont have to worry about a limited product inventory. You can team up with multiple manufacturers and suppliers, and offer variety. It is a huge advantage when it comes to attracting numerous customers.
- If you choose to dropship through Amazon, there are search engines and marketing tools that other people already brought to perfection for you. You can piggyback on the work of other sellers.
- You get immediate access to a big audience since Amazon is already popular and famous worldwide.
Cons:
- Keep in mind that if you already have a slim profit margin for certain items, that margin will get even slimmer. Amazon takes anywhere between 10-15% of your sell fee.
- You dont have much control over how the items are marketed and advertised. It falls into Amazons power of decision, so you dont get to say anything in this respect.
- Amazon imposes certain restrictions, which means that you wont be able to establish a warm and lasting relationship with your buyers.
- Buyers have you as their only point of contact, so they dont care what is happening on the suppliers end. You are responsible for what the supplier does without being directly involved in any incoming issues. However, in the buyers eye, you are the source of the problem.