DropshippingAmazon is a common quest among entrepreneurs looking to start an online business with little money. If you want to start selling online professionally, the following guide will help you learn more about the subject.
He has become a business model that Mexican entrepreneurs turn to see frequently. The reason? The ease that this business model offers to start a brand without having to worry about inventories or product shipments to the end customer.
More and more tools and providers are concerned with offering better user experiences to the owners of this type of business. If you don’t know where to start, here is a guide that will help you dropship with amazon. Will you accompany me on this journey? 🚀
Amazon dropshipping: how does it work?
The dropshipping on amazon It works in the following way:
The seller creates and publishes on Amazon a catalog of products – for example, cell phone accessories – from a supplier. When a user makes a purchase, the seller contacts the supplier to send the product to the customer or to the Amazon fulfillment center, so that they can take care of getting it to the buyer.
Although it seems like a complex process, you should know that it is not. In fact, it’s the opposite. You, as a seller, will not have to worry about shipping logistics or inventories, you just have to have good communication with your supplier and create a catalog with attractive prices for customers.
Amazon offers two processes for dropshipping:
- traditional dropshipping
- FBA Dropshipping
Here I explain what each one is about. 😀
1. Traditional dropshipping on Amazon
In this case, Amazon plays its traditional role: being a marketplace where you can display your products in exchange for paying a monthly subscription and referral fees for each transaction.
During each sale, you must ask the supplier to send the product to the final customer and have a conversation with both parties to resolve any questions that arise during the process. Once the shipment is made, you make the payment to the supplier and to Amazon.
💡Tip to be a dropshipping professional on Amazon: Traditional dropshipping is allowed on Amazon, as long as you have an agreement with your supplier in which you identify yourself as the seller of the products. This includes invoices, proof of shipment, external packaging, etc.
2. Dropshipping FBA on Amazon
The acronym FBA stands for By Amazon and is the simplest model for dropship with amazon.
Here, you must ask the supplier to send the product to the Amazon logistics center so that they are in charge of making the delivery, processing any type of return and keeping in touch with the customer before, during and after the purchase.
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Why should you dropship on Amazon?
Now that you have the general aspects of this process, it is time for you to know the reasons why you should start Dropshipping with Amazon Mexico. 😉
- You will have a presence in the largest marketplace company in the world.
- You will forget about storage costs.
- Shipping will no longer be a headache.
Here I explain more about each point.
1. You will have a presence in the largest marketplace company in the world
Amazon has more than 300 million active users, offering security to sellers and buyers during each transaction. If people trust the company to make purchases, your brand needs to be there.
2. You will forget about storage costs
By not having to worry about inventory, you can invest more in marketing strategies that help you sell and stand out from other brands that offer products similar to yours.
3. Shipping won’t be a headache
One of the main problems for entrepreneurs in Mexico comes with product shipments. For many, the costs are very high and involve a lot of management time; by leaving this in someone else’s hands, logistical efforts will be focused on other activities.
Is it profitable to dropship with Amazon?
At this point you are probably wondering if dropshipping with Amazon is profitable. The direct answer is: it depends. Yes, everything will depend on the pricing strategy you have, the treatment you may have with your provider and the number of orders you receive monthly.
For example, in Mexico you should consider investing in it –which includes advantages such as the option to sell in the United States and Canada, manage your inventory with spreadsheets, customize shipping rates, etc.– which is priced at $600 per month; plus you will have to pay referral fees for each product you sell.
Taking into account all of the above, they can be from 10% to 30%.
Guide to dropshipping with Amazon
Now yes, the moment of truth has arrived. From this moment on –and with the context quite clear– you will discover how to dropship amazon mexico like an expert. Are you ready to enjoy the guide? 😮
- Create a seller account.
- Read the Amazon dropshipping policy.
- Analyze the products you want to sell.
- Choose a reliable provider.
- Create a product listing on Amazon.
- Optimize your product descriptions.
- Invest in advertising.
- Create an online store to increase your income.
If you want to delve a little deeper into each point, read on.
1. Create a seller account
Without a seller account you will not be able to start dropshipping on Amazon. Be careful, you should not confuse it with the traditional account that you create to buy, although you can use it to make sales.
The first thing will be to click and enter your email and password to advance.
Once you’ve logged in or have your new account, it’s important to have the following information handy and complete your business information:
- Official identification document.
- Account statement or credit card information.
- Credit card to make payments online.
- Cell phone.
Amazon will review all information provided for accuracy and notify you when your request has been approved. Until that approval arrives, you can move forward with the configuration of your product catalog in the marketplace.
2. Read the Amazon dropshipping policy
This point is, without a doubt, the most important of the entire guide. Amazon does not allow a third party to handle shipments on your behalf unless you can verify that you are the seller of each product. The reason? They will be unclear on how orders are handled and who to contact in case of problems, returns or questions.
To be able to do Amazon dropshipping you will have to reach an agreement with your supplier to be able to identify yourself with proof of shipment, invoices, external packaging and any other document as the official seller of the products.
If you want to know more about the direct shipping policy – or dropshipping – .
3. Analyze the products you want to sell
One of the keys to achieve dropship with amazon successfully is to analyze the market and the products that are best positioned in the marketplace.
Remember that you are not the only person thinking of selling online, but it is in your hands to achieve a differentiator that makes consumers prefer you.
To do this analysis and identify which products are most in demand on Amazon, technological tools play a very important role in your favor. The most prominent are:
💡Tip to be a dropshipping professional on Amazon: All the tools on the list have a similar operation, so I recommend that you try each one before purchasing a plan and stick with the one you feel most comfortable with.
4. Choose a reliable provider
The Amazon dropshipping providers they are very important and have a crucial role in the success of this business model. By not having control over shipments or inventory, communication with them must be as fluid as possible to clear up any doubts and provide quality customer service.
Remember that you must identify yourself as the seller of the product in order to dropshipping on amazonif you do not make this point clear with the company that will make the shipments, you can lose your account as a seller.
In your search, compare prices, delivery times and, if possible, schedule calls or visits to their offices so that you can create a lasting relationship with them.
💡Tip to be a dropshipping professional on Amazon: do not let yourself be guided by the low prices of the products. If a product is not shipped within the agreed time or arrives in poor condition, you risk losing credibility.
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5. Create a product listing on Amazon
Once you have your seller account and an agreement with your supplier, it’s time to make the product lists.
To create one, log in to your account from Seller Central, go to the “Inventory” option and select “Add Product”. Here you have the option to add a product that is already selling on Amazon or list one from scratch.
In the following Amazon tutorial you can learn more details about this process, which is very simple and will take you a short time to master:
6. Optimize your product descriptions
Just like in an online store, the descriptions of the products in a product that is sold on Amazon are important to convey security to the buyer and leave nothing to the imagination.
The product details page is where you should put all the information and it is made up as follows:
- Title of maximum 200 characters. The first letter of each word must be capitalized.
- Images. Your product photos must be 500 x 500 or 1000 x 1000 pixels to be displayed in good quality.
- variants. If your product has different colors or sizes, you should mention it here.
- Characteristic. You should not confuse them with the description. This part uses short sentences with the highlighted features of the product. Use short and clear sentences to get the user’s attention.
- BuyBox. The featured offer box allows users to add the product to their cart or purchase in one click.
- Other offers. If a product is sold by multiple sellers, all available options will be displayed here.
- Description. The product description should be as clear and detailed as possible, you can add from key functions and measures, to benefits of using it.
In the following image, which you can find in the Amazon Seller guides, you will better understand the position of each element:
💡Tip to be a dropshipping professional on Amazon: There are tools like Sellery that will help you optimize your…
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