How Does Amazon Dropshipping Work?

It is believed that many people who do E-commerce have heard of Amazon. Amazon is a relatively large scale E-commerce shopping platform, which supports people from different countries and regions to buy commodities convenient, and it has accumulated a lot of customer groups since its development. But many people don’t know that Amazon also has a dropshipping business, and we can make profits through Amazon dropshipping.

What Is Amazon Dropshipping?

Dropshipping is the concept of “middleman” selling, where the manufacturer delivers the goods directly to the customer. That is, the intermediary first finds the customer, then places an order with the manufacturer, and the manufacturer delivers the goods to the buyer. On the Amazon platform, you can use this model to complete sales.

Amazon Dropshipping

How Does Amazon Dropshipping Work?

1. A customer (or consumer) finds a product of interest at the seller; in this example, Amazon is the seller.

2. The customer orders the product online on the Amazon website and pays for it.

3. Once an order is placed on Amazon, the “Ship To” information will obviously be recorded.

4. Amazon will transfer the order to the appropriate manufacturer

5. After the order is received, the manufacturer delivers the goods directly to the consumer on behalf of the seller (Amazon); all paperwork (i.e. invoice, packing list…) looks as if it was sent from Amazon because he is known to the customer seller.

6. The manufacturer advises Amazon to deliver the goods to the customer

7. The manufacturer sends the invoice to Amazon, who then transfers the payment based on the delivery of the goods and the pre-agreed price.

Amazon Dropshipping Work

What Are The Benefits Of Dropshipping On Amazon?

1. Low startup cost

Contrary to other popular e-commerce methods such as private label and wholesale, dropshipping does not require you to own your own inventory. Instead, when you get paid by consumers on a sale, you just turn around and use a portion of the proceeds to buy the product from the supplier and let them ship it to your buyer.

2. Quick setting

Because you don’t have to own your own inventory when dropshipping on Amazon, it’s quick and easy to set up. After all, you don’t have to wait for your inventory to be manufactured and/or shipped to fulfillment locations. It’s ready. All you need is a sale!

3. Fully automatic business

There are plenty of apps and plugins online that allow you to fully automate dropshipping on Amazon. For this reason, you can (almost) give up your dropshipping business entirely.

4. Amazon allows direct selling

According to Amazon’s dropshipping policy, dropshipping is “generally acceptable.” Just make sure you follow Amazon’s specific guidelines for dropshipping.

How To Start Dropshipping On Amazon?

Dropshipping is an e-commerce method where sellers accept orders on behalf of manufacturers, distributors or suppliers. Then, when customers buy products, sellers use their suppliers to complete those sales.

Often, dropshippers repurpose the items they sell as their own, and the end consumer never realizes that the item comes directly from the manufacturer. This practice is popular on e-commerce sites like Amazon, eBay, and Shopify.

While this may sound complicated, we’ve broken it down for you to help you better understand how it works and how to start dropshipping in 2022.

Here’s a chart that will teach you the basics of dropshipping on Amazon (more on that below):

How To Start Dropshipping On Amazon

First, an Amazon customer (on the left side of the chart) buys your product listed on Amazon.

Second, once the deal is done and you receive the funds, you buy the product directly from the supplier (on the right side of the chart) and provide them with customer information.

Finally, after mastering the buyer’s information, the supplier send the product to the customer.

A complete dropshipping procurement process is over.

5 Best Dropshipping Suppliers For Amazon Sellers In 2022

1. Chinabrands

Dropshipping Suppliers

Chinabrands is the world’s leading B2B direct selling company with access to many countries and regions in the world. In addition, Chinabrands is also an expert in logistics and distribution, and can provide us with ideal direct selling services. Chinabrands is committed to making full use of APIs to connect modern technology, ensuring the assimilation of end systems into its direct selling platform.

2. SaleHoo

Suppliers For Amazon

SaleHoo offers affordable shopping with over 2.5 million items available in the Amazon. And the suppliers from SaleHoo have lower prices, which can help us obtain higher profits. With SaleHoo, dropshippers can send items from your products on Amazon directly to consumers and have them delivered to their doorsteps in a timely manner.

3. Honest Fulphilment

Best Dropshipping Suppliers

Honest Fulphilment is one of Amazon’s most effective dropshipping businesses supplier.

Honest Fulphilment not only delivers your products to your customers’ door, but also offers warehousing solutions for a wide variety of items.Honest Fulphilment is completely free, and you don’t have to pay a monthly fee until you get paid.

Once your store is associated with Honest Fulphilment, your customers can see what you’re marketing, and once they’ve purchased those things, Printful will take their orders, fulfill them, and ship them directly to the customer’s doorstep .

In the dropshipping business, choosing high-quality suppliers can not only guarantee the profit of our goods, but also provide high-quality products and services. Honest Fulphilment can help us compare suppliers in order to choose better suppliers.

The timeliness of logistics is also a problem that dropshippers need to consider. Timely logistics can allow buyers to quickly get the goods they have ordered. Honest Fulphilment provides a third-party logistics service model to ensure the timeliness of commodity transportation and ensure that commodities can reach consumers in time. you can get details here:https://origin.honestfulphilment.com/third-party-logistics/

4. Inventory Source

Inventory Source is a comprehensive website where you can publish product details for free on Inventory Source and distribute products from suppliers provided by Inventory Source, and the entire process is free.

5. Dropshipper

Dropshipper

Dropshipper has a very powerful system. Even if you don’t have a store or branch, you can register as a merchant on Dropshipper. Because Dropshipper will provide you with everything you need to register your store. You can select products from different suppliers to sync to your own store. However, Dropshipper is charged, $29 per month.

Conclusion

Running a Dropshipping business through Amazon has become a trend, and many people make money using Amazon advantage, so if you want to do this business, please feel free to contact us. Honest Fulphilment can provide a complete service process to help your Amazon dropshipping business.

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