Dropshipping is a process of selling products where the seller is not responsible for carrying inventory or shipping goods. Manufacturing the products, maintaining inventory, and shipping the products are all responsibilities of the product manufacturer or distributor.

Dropshipping on Amazon is no different than regular dropshipping. Dropshipping on Amazon is against Amazon’s terms of service and should not be practiced in 2020 unless you are dropshipping directly from the manufacturer. Do NOT dropship from local retail and internet stores like Walmart, Target, and Overstock.

Pros of Dropshipping are listed below: 

  1. No Need To Hold Inventory: The biggest benefit of dropshipping is that there is no need to store any inventory. This makes the business less risky. It also costs less for the seller because there is no need to pay for a warehouse to store inventory.
  1. Low Start-Up Cost: The dropshipping business model is low cost. You only purchase the product when the order is confirmed from the customer. Second, for inventory, there’s no warehouse needed. Third, there is no need to hire employees to manage shipping the products. In the dropshipping business, your main expenses are the cost of goods, websites, and advertising.
  1. Large Audience to sell: Amazon has more than 300 million active users and it will be tempting to dropship to make easy money. Don’t do it (on Amazon). Create your own website for dropshipping. All you need is to sell the right product at the right price.
  2. Few Skills Needed: You don’t need a lot of skills to have a successful dropshipping business. A dropshipper just needs to be great at administrative tasks, marketing, and providing excellent customer service.
  3. Select Product Easily: One of the great benefits of dropshipping is that you can easily select products. Since you don’t carry any inventory, you can run ads on products to see which products are in great demand. If certain products aren’t high demand, you can remove them from your store easily.

One of the biggest e-commerce platforms is Amazon. It is the most popular because it allows retailers to sell their products on their largest platform. If you are passionate about ecommerce, then you need to become your own boss and it is easier for you to start on Amazon.

If you have any questions regarding Dropshipping (and why you shouldn’t do it) let me know and I’ll help you start or scale your Amazon e-commerce business. To find out the details please join my Facebook Page/Group and connect with me.

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