Pros & Cons
of Amazon
Droppshipping
Business
Dropshipping on Amazon
The basic in's and outs of dropshipping
don’t really change when you transfer the
concept to Amazon, other than you have
to take into consideration the quirks of
dealing with that particular marketplace.
Rather than really explore what makes it
so unique, let’s just take a look at the
pros and cons of dropshipping
on Amazon.
Pros for Amazon
— As mentioned before, you don’t have to
worry about the nitty-gritty of buying and
selling. Forget about things like ordering,
stocking, storing and shipping, and just
focusing on passing on the order and
address to the supplier.
— You’ll have a ton less overhead to pay for
with no products to store.
— You’ll also save money on shipping
because you won’t have to do it!
— Time will become more plentiful because
there’s no order fulfilment to worry about.
— you can focus on growing your business
in other areas.
— A limited product inventory is of little worry
because you can ‘present’ huge selections
by teaming up with multiple suppliers or
manufacturers. Variety, in this sense, can
really help broaden your appeal.
— Doing dropshipping on Amazon means
you’re privy to their search engines and
marketing tools so you can piggyback
on the work that other sellers have
already done.
— You have immediate access to a
potentially HUGE audience.
Cons for Amazon
— Having to eat an automatic 10-15% sell fee
on every item (Amazon’s rules, not the
seller’s) can really hurt, especially if the
profit margin for an item is already slim.
— The seller might tack on another ‘fee’ for
you to use their services, making your
end profit margin even slimmer.
— You don’t have much — if any — control
over how an item is marketed and
advertised because of what Amazon
says a product has to have.
— You might have to deal with more
customer support because you’re now
dealing with two points, the buyer and
the supplier, instead of just the buyer
as without dropshipping.
— Buyers won’t care about what’s going on
at the supplier/manufacturer’s end; you’re
their only point of contact, so you’ll have
to reassure them, even if your supplier
manufacturer is having the issues.
— You also can’t really develop any sort
of warm or lasting relationship with your
buyers because of the restrictions
imposed on you.
👍🏻👍🏻
ReplyDelete