Drop Shipping on Amazon – The Basics
Amazon is among the giant e-commerce platforms known today. It allows retailers to sell products from consumer goods to digital media. Many retailers find Amazon the perfect additional sales platform that brings in more revenue for their company. In the era of internet technology and cloud computing, Amazon continues to provide great e-commerce services to the retail industry.
How To Start Drop shipping with Amazon?
Drop shipping is a process that allows retailers to sell products without carrying the burden of maintaining inventory or even shipping out the goods purchased. Sellers in the drop shipping business can set their own prices based on a specific source price while considering other fees and expenditure. While the drop shipper sells and markets the products, the manufacturer creates the products, maintains the inventory, and ships the orders directly to the drop shippers’ buyers.
Drop shipping on Amazon marketplace is generally acceptable. You can start to drop ship on Amazon via their Fulfilled by Amazon (FBA) program. This program allows you to ship your products to Amazon. The program carries out the inventory and shipment of your products so that all you have to do is to market and monitor your sales. The biggest benefit of this program is that it provides the fastest shipping times so that your customers can receive their orders at a faster pace.
Important: While drop shipping on Amazon is acceptable, there are set of certain guidelines that need to be strictly followed. Keep this in mind if you are planning to do drop shipping on Amazon.
The Amazon Drop Shipping Policy
The excerpt below is taken from Amazon’s drop shipping policy. You can read more about the policy here.
For anyone who intends to drop ship on Amazon, the following do’s and don’ts listed below should always be followed.
- Be the seller of record of your products;
- Identify yourself as the seller of your products on all packing slips and other information included or provided in connection with them;
- Be responsible for accepting and processing customer returns of your products; and
- Comply with all other terms of your seller agreement and applicable Amazon policies.
- Purchasing products from another online retailer and having that retailer ship directly to customers; or
- Shipping orders with packing slips, invoices, or other information indicating a seller name or contact information other than your own.
- You can read more about how to dropship with Amazon on their website here.
There are a number of conditions and prohibitions that store owners should adhere to if they would like to sell their merchandise on Amazon. Based on Amazon’s guidelines, eligible stores that can add their products on Amazon include product niches on books, office products, electronics, computer video games, and more. These products do not need to get an approval to add their products on Amazon. On the other hand, Amazon also came up with a list of products that needs to get an approval before being added to the Amazon sales platform. This includes hoverboards, hazardous goods and a lot more.
Read more about categories and products requiring approval from Amazon Seller Central help section.
Amazon has limitations when it comes to drop shipping. This set of limitations prevents many dropshippers to freely sell on the platform. While Amazon allows drop shipping, it is mostly allowed only through the FBA program. So if you are considering to drop ship on Amazon using the dropshipping arbitrage module, know that this may not be possible under certain conditions. Looking through the set guidelines of the FBA program, traditional drop shipping is possible.
Regardless, Amazon is a great e-commerce platform to sell brand and digital products that provides great support as well as customer-seller protection.
About the Author:
Michelle is part of the marketing arm of DSM Tool, a dropshipping marketing tool providing all the required components from finding the top products to listing the products on Ebay. She is also a content curator for the DSMagazine since 2016.