Why You Shouldn't Dropship on Amazon

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Let's start with the fact that dropshipping on Amazon is prohibited by the rules of the platform itself. It would seem that we can finish here. But the Internet is full of "tempting offers" on how to bypass this ban and start "earning money on the American platform without investment, just having a phone." Why shouldn't you resort to this sales model, even if you really want to?

What is Amazon Dropshipping?
Dropshipping is a fairly simple and profitable sales scheme that is popular all over the world. It cannot be considered a scam, but in fact, you sell something that you do not have.

How does it work?

1. You find a supplier and create conditions for sales: an online store, a profile on social networks, a page on a marketplace.

2. The buyer places an order through your store/profile/page.

3. You process the order (clarify the details and wishes of the client) and transfer this data to your supplier.

4. The supplier sends the parcel to your buyer.

Thus, you, as a seller, are not involved in logistics. Your task is marketing, i.e. finding customers who are ready to buy. You do not need to rent a warehouse to store inventory, spend money on packaging and branding. This is what makes dropshipping on Amazon attractive - you can launch a working business without investment.

Why SHOULD you NOT do this?
It would seem that here it is - the ideal sales scheme on page seo service with a minimum of costs and headaches. But there are a number of reasons that will not allow you to build a stable and prosperous business using the dropshipping model.



1. You do not control the quality of "your" products. Often, sellers "have not seen with their own eyes" what they offer to the buyer. That is, you have absolutely no confidence that the product meets the stated characteristics, because you have to rely only on photos and the manufacturer's promises. In this case, the reputational risks fall on you, not the supplier. And your store also receives negative reviews.

2. It is difficult to build trust with buyers. Selling is easy only when people are confident in their choice. But what if the buyer starts asking additional questions? Or asks to send real, unedited photos/videos? You will not be able to satisfy their needs and provide such information.

Amazon's attitude towards buyers and sellers is similar to that of a favorite and unloved child. For the former, they are ready to fulfill any whim, while the latter constantly have to prove that they are worthy.

Therefore, when you go to the site, remember: THE BUYER WILL ALWAYS BE RIGHT. And it is in your interests to do everything possible so that he is satisfied with your cooperation.

3. You do not influence the speed and quality of delivery. You have no guarantee that the supplier will send the goods on time, that the packaging will be intact, that the buyer will receive exactly what he wanted, and not a defective or counterfeit product. Plus, there is a mandatory requirement from Amazon - you must enter the tracking number of the parcel after it has been sent. The supplier may forget to provide it to you or send incorrect data. Particular difficulties arise when the buyer demands a return, and the supplier does not agree to make it.

4. You don't control your business. At any time, the supplier can raise prices. And then you will have to either buy the product at a higher price, depriving yourself of profit, or make a cash refund to the buyer, depriving yourself of a rating on Amazon.

Also, your manufacturer may announce that the product for which you already have a queue of orders is no longer produced. And in general, there are dozens of other situations that you cannot influence, but which will have an extremely negative impact on your reputation, rating and finances.

It is quite possible that you will spend a lot of effort to create a positive image of your Amazon store, invest in SEO promotion, buy advertising. But just one unsuccessful batch from the supplier and a dozen negative reviews from buyers will "merge" your entire business.

To sum it up: Dropshipping business requires constant personal control and is very difficult to scale. With this approach, you will not be able to ensure customer loyalty and return. This is a short-term model.

So how do you build a business on Amazon?
The Internet promises that if you find a good, reliable manufacturer, you will eliminate all the risks associated with dropshipping on Amazon. Ukraine, for example, is very rich in local brands with which you can build cooperation.

However, we strongly advise against testing this hypothesis and putting your business at risk right from the start. It would be more correct and much more promising to start with the Private Label model . You can read more about it in our article.