How to Make Money Dropshipping on Amazon

According to the World Economic Forum, amidst this pandemic 114 Million people have lost their jobs worldwide alone in 2020.

Apart from that various small scale businesses which went unaccountable have also gone from riches to rags. So in this scenario are you looking forward to making money but got no Lump sum investment? Or are you aspiring to be a new gen entrepreneur to make a difference? If yes, then Dropshipping could be the apt choice.

There are high chances that you must have heard of the gen-z trending word “Dropshipping” which is the latest buzz in the market of online retail business. 

What is dropshipping?


Dropshipping is the new form of e-commerce business where the dropshipper acts as a mediator between the manufacturer/supplier/wholesaler and the final customer.

Now this makes the dropshipper nothing but a retailer you think? Wrong. Unlike retailers, the dropshipper does not have to maintain an inventory nor any physical store or any process related to packaging of products.


How does dropshipping work?


Dropshipper maintains a virtual e-commerce store which can be easily set up online in just a few clicks and some details for verification. The dropshipper or the mediator creates his website or sells products on online platforms like Amazon & Shopify.

The manufacturer/supplier/wholesaler is free from the task of setting up its customer base and various ways to increase its buyers as this task is now the responsibility of the dropshipper whereas the dropshipper is free from the burden of maintaining an inventory and initial expense for outstanding products. 

However, the dropshipper has to be updated with the inventory cycle to eliminate the complication of orders being placed when the products are out of stock in the backend. This can be easily resolved by being in constant touch with the manufacturer/supplier/wholesaler regarding the stock which can be updated through an excel sheet or any form of live online database.

The major aspect, i.e returns and cancellations, well this could be handled either by the dropshipper or the manufacturer/supplier/wholesaler. It exclusively depends upon the terms on which both the parties have negotiated upon, but generally the responsibility is taken by the manufacturer/supplier/wholesaler.

How to make money dropshipping?


Here the dropshipper has to provide appropriate images of the product being sold on the virtual platform he/she is selling on. Accurate description of the product along with its dimensions is a vital part. All other remaining details must comply with that of what the manufacturer has officially mentioned. Once this has been set up, the payment gateway is not really a burden as it’s usually set up by the online platform one is selling on. 

The dropshipper’s major expense comes through various forms of advertisements and promotions. Various online marketing strategies are to be implemented for a successful outreach.

Some of the most popular and effective ways are through Google Ads, Mobile Advertisements, Search Engine Advertisements, , Social Media Promotion and many more. These definitely come for a cost, the dropshipper has to wisely calculate the revenue earned through the products vs the amount invested into these advertisement strategies.

The dropshipper earns money based upon the number of sales closed through the virtual e-commerce store.

How to make money Dropshipping on Amazon

Dropshipping can be done through various ways on the online platform, one such convenient way is through Amazon.

The working model of dropshipping through Amazon is quite similar to the conventional nature of dropshipping with some terms and conditions which the dropshipper must abide by at all times. Amazon has also laid some metrics too which must be complied by the drop shipped such as:


In typical forms of dropshipping one sets up their own website to list their products whereas in Amazon Dropshipping the dropshipper uploads the products on the Amazon platform as the marketplace of stores.


Amazon strictly prohibits the business of dropshipping from a different marketplace, eg- Ebay, AliExpress etc


The shipments must be branded in such a way which depicts that the dropshipper is the seller, basically there should be no trace of dropshipper in the packing materials.


Amazon charges the dropshipper it’s shipping cost and handling cost per order.
 

Conclusion


We are now aware of the ins and outs of the dropshipping operation and the exercise of earning through drop shipping through amazon platform; are we good to go for a start in this domain? The answer to it solely depends upon the dropshipper.

The products which are being drop shipped, the category of the products, whether it belongs to the niche market or mass market, whether the revenue generated by the average number of sales and the charges levied by Amazon leave any profits or not.


If these criteria are not of any concern then there is no reason to look behind for the operation. If you are looking for more ways to make money Dropshipping, refer to Zeen blog. 

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