WHAT IS AMAZON DROPSHIPPING?
Amazon Dropshipping is a business model that allows you to list products on the global e-commerce giant Amazon and make sales without stock or undertaking product delivery to customers. In this model, third-party sellers, usually wholesalers or suppliers, undertake operations such as sourcing, keeping products in stock and delivering them to the buyer.
Instead of holding physical inventory, dropshippers partner with suppliers or wholesalers who can provide these products on an order-by-order basis.
WHY AMAZON DROPSHIPPING?
The most important advantage of dropshipping is that it reduces costs.
There are also no expenses and requirements that come with a physical store. It saves you from costs such as rent, staff salaries and design.
It is ideal for new entrepreneurs as its workload is low.
It can be easily executed by a single computer and person.
Since the product range can be increased at any time, it is possible to reach a wide customer base.
It eliminates the hassle and costs of production, storage, packaging and shipping.
It allows people who want to start trading to start with very low capital.
It is possible to start without the need for large-scale organizations.
Since there is no need to invest with large capital, the risk of loss is very low.
Since there is no storage effort, it offers the opportunity to work from home and manage the entire process digitally.
Dropshipping has many advantages as well as disadvantages. It is important for sellers to know the disadvantages before choosing this sales model. Disadvantages of dropshipping :
Since sales are made on a commission basis, the profit margin is low.
To stand out in the competition, dropshipping sellers need to reduce their product prices. This causes profits to decrease.
If there is any disruption in matters that are the supplier's responsibility, the customer contacts the seller. In these cases, the party that has to deal with is the seller.
Since the seller is the addressee of the customers, the person who should listen to the complaints is the seller.
Since it is more advantageous and easier than other sales models, the number of entrepreneurs is quite high. So competition is high.
The supplier must constantly check its stocks and keep its product list up to date. So it is difficult in terms of inventory management.
If the supplier makes mistakes in packaging and shipping, the seller is held responsible. Therefore, sellers are negatively affected by this situation.
The seller should be as knowledgeable about the products on sale as the supplier. Otherwise, adequate technical support cannot be provided.
HOW TO DO AMAZON DROPSHIPPING?
IMPORTANT TIPS FOR AMAZON DROPSHIPPING
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