- 1 Introduction: Amazon Dropshipping
- 2 What is Amazon Drop Shipping?
- 3 Is Amazon Dropshipping Legal?
- 4 How Does Amazon Dropshipping Works?
- 5 Advantages of Amazon Dropshipping
- 6 Disadvantages of Amazon Dropshipping
- 7 Process To Start Selling On Amazon Using Dropshipping
- 8 How To Apply GTIN Exemption
- 9 Amazon Dropshipping Automation
- 10 How To Handle Amazon Returns
- 11 Solution for COD Returns from Qikink
- 12 Conclusion
Introduction: Amazon Dropshipping
Amazon dropshipping is a popular business model that enables online entrepreneurs to start their e-commerce stores without worrying about inventory management.
With drop shipping, a store doesn’t need to keep the products it sells in stock. Instead, the store purchases the items from a third-party supplier that ships them directly to the customer.
Before starting an Amazon dropshipping business, there are some things to consider. We’ll discuss all of Amazon dropshipping’s advantages, disadvantages, how to get started, and some best practices for success.
What is Amazon Drop Shipping?
In the business model of Amazon dropshipping, the seller lists third-party products on Amazon and sells them to customers at a retail price. When a product sells, the third party delivers it to the end customer, and the seller pays the wholesale price.
Is Amazon Dropshipping Legal?
Amazon clearly states its dropshipping policy on its portal, making it a 100% legal business model. Furthermore, as a seller, you must ensure the timely delivery of products in good condition to the customer.
How Does Amazon Dropshipping Works?
- Amazon is the world’s largest marketplace for a wide range of products, offering an opportunity to open a virtual shop.
- To succeed in dropshipping on Amazon, it’s crucial to choose a unique product to avoid competition with thousands of other sellers who sell similar products with numerous reviews.
However, there are two main methods for starting dropshipping on Amazon.
Method 1: Catalog Dropshipping
To start dropshipping on Amazon, follow these steps:
- Register as a seller
- List a product from your dropshipper’s catalog on Amazon
- When a sale occurs, the dropshipper delivers the product to your customer
- Receive payment from Amazon at the retail price
- Pay the dropshipper at the wholesale price.
Method 2: Print on demand Dropshipping
To start custom design dropshipping on Amazon:
- Register as a seller
- List a product from your dropshipper’s catalog on Amazon with your own design
- When a sale occurs, the dropshipper custom prints your design and delivers the product to your customer
- Receive payment from Amazon at the retail price
- Pay the dropshipper at the wholesale price.
Advantages of Amazon Dropshipping
- Amazon Allows Dropshipping: Unlike other marketplaces, Amazon permits dropshipping when you comply with their terms and policies.
- Low Setup Cost: You only need to allocate a budget for advertising your products in the beginning. The rest depends on your research and product selection skills.
- Buyers Already Exist: If you conduct thorough keyword research and sell high-demand products, sales will start immediately. Unlike starting your own store, you don’t need to spend on store setup, maintenance, advertising, or social campaigns to attract customers.
- Utilize the Ecosystem: Countless third-party companies can assist with product listing, enhancing your listing with A+ content, and Amazon advertising.
- Trust Factor: If you’re a graphic designer, customers are more likely to purchase your products on Amazon than on your own online store. Everyone knows and trusts Amazon, giving customers a clear expectation of the buying experience.
Disadvantages of Amazon Dropshipping
- Lack Control Over Quality: Your dropshipper determines the product quality and customer experience.
- Thin Profit Margins: Amazon charges a percentage of your sales plus a fixed fee and shipping cost.
- Risk of Design Copying: When your product sells well, other sellers or Amazon itself may launch a similar product, making it difficult to sell yours.
- Price-Conscious Customers: Amazon customers are always seeking the best deals, so you must price your products competitively.
- Intense Seller Competition: If you sell a popular product, there will likely be hundreds of other sellers on Amazon selling the same or a similar product.
Process To Start Selling On Amazon Using Dropshipping
You can start selling on Amazon India using the following steps.
STEP 1: Sign up for Amazon as a seller, providing required business documents and obtaining a GSTIN.
STEP 2: Research and select a product from the dropshipper’s catalog to sell. Conduct thorough keyword research on Amazon, using Amazon’s auto-suggestion or third-party tools like Keywordtool.io or Junglescout.
STEP 3: Create compelling listing content, including high-resolution images that meet Amazon’s image guidelines, product features, care instructions, warranty terms, usage instructions, and variations in color and size.
STEP 4: List the product on Amazon under the appropriate category to maximize search volume. Listing should only be done under one category.
STEP 5: Advertise the product on Amazon with a minimum budget to appear first on search pages over Prime FBA products.
STEP 6: Respond quickly to customer inquiries, obtain feedback for each sale, and communicate effectively with the dropshipper regarding inventory details, delivery delays, and product specifications.
How To Apply GTIN Exemption
GTINs are unique product identifiers that help Amazon match your products to their catalog. That’s where GTIN exemptions come in handy.
GTIN exemptions allow you to list your product on Amazon without a GTIN. Examples include handcrafted items made in limited quantities, private label products, or promotional items. You can sell products on Amazon without GTIN exemption.
- Log in to your Amazon seller account.
- Navigate to the “Inventory” tab and click “Add a Product“
- Select “I’m adding a product not sold on Amazon” and enter your product information.
- Scroll to the “Product ID” section and select “Does not have a UPC, EAN, or ISBN“
- Enter a reason for why you are requesting a GTIN exemption.
- Click “Save and Finish“
Amazon will review your request and either approve or deny it. They will provide you with the reason if your request is denied. You can always resubmit the request with additional information.
Amazon Dropshipping Automation
Qikink offers an advanced Amazon dropshipping automation system that streamlines the entire dropshipping process, saving time and effort for the seller. This powerful tool has several features that make the process easier and less time-consuming.
- One of the standout features is the automated order tracking system. It allows you to keep track of all your orders in one place and even track their location in real time.
- Another great feature is the future COD payout dates with the automated payment system. With this feature, you don’t need to worry about payment delays or miscalculations. The system automatically remits the payment to you based on your settings on time.
- Qikink also offers a free mockup generator for clothing and accessories. It allows you to create and customize product images easily. This makes it easier to showcase your products and attract buyers.
Overall, Qikink’s Amazon dropshipping automation system is an essential tool for any dropshipping seller. It can help you grow your business efficiently and quickly with its advanced features.
How To Handle Amazon Returns
- One in three COD orders returns. Studies find that a high proportion of cash on delivery orders are not accepted by customers.
- Dropshipping sellers face difficulties with COD. Without physical inventory and a lack of support from manufacturers, dropshipping sellers struggle to manage returns for COD orders.
- Prepaid model with self shipping is an option, but with low sales. Offering only a prepaid model with self shipping on Amazon orders may reduce returns, but sales are likely to be limited.
Nevertheless, Qikink offers a solution. Qikink offers a unique solution to address the challenges faced by dropshipping sellers with COD orders in India.
Solution for COD Returns from Qikink
- Qikink provides a solution for dropshipping sellers to avoid physical inventory and COD losses by offering print on demand and fulfillment for Amazon orders.
- Sellers can design and sell merchandise with COD on Amazon, and Qikink stores the returned products for 100 days without additional charges.
- When a product with the same design is reordered, Qikink sends it from the warehouse without printing it again, charging only for shipping and handling.
- This solution from Qikink enables sellers to sell on marketplaces like Amazon without worrying about COD returns and increase their profits.
If you want to start selling online with safest option possible while being a full time job or just to startout, Amazon dropshipping is the best option out there. With Qikink’s COD solutions, you cannot go wrong, if you find your product and designs correct. Remember, everything starts with keywords research for dropshipping.
Frequently Asked Questions
How to start a dropshipping business on Amazon?
You can start dropshipping business with Amazon in simple steps. There are number of guides available online to learn how to sell on amazon using dropshipping. You can partner with a reliable dropshipping service provider who takes care of product sourcing, warehousing, and shipping for you.
When it comes to finding a trustworthy dropshipping service provider for Amazon, Qikink is one that you can count on. So, how do you get started with Qikink for your Amazon dropshipping business? First, you’ll need to sign up for an account. After registration, you can pick the best product from the catalog you want to sell on Amazon. Then, you’ll need to create your Amazon seller account, set up your store, and list your products.
When you receive an order from a customer on Amazon, Qikink takes care of the rest. They will ship the product directly to your customer, handle any returns or exchanges, and keep you updated on the status of your orders. It allows you to focus only on promoting your business, building your brand, and growing your sales.
Can I dropship from Amazon to Etsy?
You can use Amazon as a supplier to dropship products on Etsy. But it’s important to follow Etsy’s guidelines on transparency and avoid using third-party fulfillment services that could negatively affect your customer experience.
When dropshipping on Etsy, your customers must know about your supplier. Keep an eye on shipping time and product quality. Also, Amazon has specific dropshipping policies that you need to adhere to.
It’s essential to read and understand the policies of both platforms before dropshipping on Amazon to Etsy. It can help you avoid potential issues, penalties, or negative reviews. While dropshipping from Amazon to Etsy is possible, you need cautious and follow all the policies.
Is Amazon dropshipping profitable?
Amazon dropshipping has the potential to be a profitable business model if done correctly.
Conduct thorough research to find profitable products, optimize your listings for search engine optimization (SEO), and develop a marketing strategy to attract customers.
Additionally, selecting a reputable supplier who can provide quality products and fast shipping time is essential. These can increase your profit to the next level to run a smooth Amazon dropshipping business.
This post really helpful to me for knowing about amazon dropshipping. I definitely do the drop shopping process with amazon.
How much time will it take for a 1 Graphic printed T-shirt to deliver by your Courier service.
i dont have GST no, can i register to amazon