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Why dropship on Amazon?

Posted: Mon Jan 06, 2025 7:03 am
by asimd23
Now that you have the general aspects of how to sell on Amazon without inventory , it's time for you to learn the reasons why you should start dropshipping with Amazon .

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 we tell you more about each point.

1. You will have a presence in the largest marketplace company in the world
Amazon has over 300 million active users, offering security to sellers and buyers during every transaction. If people trust the company to make purchases, your brand should be there.

2. You will forget about storage costs
By not having to worry about inventory, you can number library 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 comes with product shipments. For many, the costs are very high and involve a lot of management time; by leaving this in the hands of someone else, logistical efforts are focused on other activities.

Learn more:
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Top 30: Winning dropshipping products for your online store
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Is dropshipping with Amazon profitable?
At this point you're probably wondering if dropshipping with Amazon is profitable. The answer is: it depends. Yes, it will all depend on your pricing strategy, the deal you have with your supplier, and the number of orders you receive each month.

For example, in Mexico you should consider investing in the Professional Sales Plan (which includes advantages such as managing your inventory with spreadsheets, customizing shipping rates, etc.) which is priced at $600 MXN per month and $39.99 USD per month if you want to sell in the United States and Canada. In addition, you will have to pay referral fees for each product you sell (between 8 and 20%, depending on the category).

Taking all of the above into account, Amazon's profit margins can range from 10% to 30%.

Entrepreneur working with Amazon and dropshipping for his business.

How to sell on Amazon with dropshipping?
Now that the context is quite clear, it's time to tell you how to do dropshipping on Amazon like an expert.

Create a seller account.
Read Amazon's dropshipping policy.
Analyze the products you want to sell.
Choose a reliable supplier.
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 go a little deeper into each point, keep reading.