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If you were to decide that you want to open a store on Amazon, how many many hours do you think it’ll take for you to get your store up and running?

A month?

Two weeks?

How about one day?

As unbelievable as it sounds, you can get your Amazon store set up, and be ready to accept orders in 24 hours.

(Just so we’re clear, I’m talking about 24 hours of work put in on your end. You’ll encounter some downtime when you’re waiting for Amazon to approve your account, but that aside, the actual time you spend setting up your Amazon store shouldn’t take more than 24 hours!)

But what’s the hurry? Shouldn’t you take your time to do things properly?

Well, I’m glad you asked.

First things first:

Consumers are spending $88,000 on Amazon every single minute.

Forget delaying the opening of your store by a day - even if you delay it by a single minute, you’re missing out on tons of revenue.

Secondly:

You can set up an Amazon store in a short period of time, without it being a shoddy job.

The secret is to think about how to outsource certain processes, and simplify your responsibilities.

That’s where dropshipping comes in!

How does dropshipping on Amazon work?
Dropshipping is an e-commerce method in which the seller takes orders on behalf of a manufacturer, distributor, or supplier. Then, when a customer buys the product, the seller uses their supplier to fulfill those sales.

Often, dropshippers reposition the sold goods as their own and the end consumer is never made aware that the goods came directly from the manufacturer. This practice is popular on e-commerce sites like Amazon, Ebay, and Shopify.

And while this may sound somewhat complex, we’ve broken it down for you to help you get a better handle of how it works and how you can start dropshipping in 2020.

amazon dropshipping

Amazon explicitly states in their dropshipping policy that purchasing products from an online retailer and having that retailer ship directly to customers is not allowed.

What you can do, however, is purchase items from retailer A, and have fulfilment center B ship out the orders on your behalf.

(Just so you know, this doesn’t fit into the traditional definition of dropshipping, but there you have it.)

Even though Amazon technically doesn’t allow traditional dropshipping, there are plenty of sellers who still do it anyway…

How does dropshipping compare to other methods of selling on Amazon?
Dropshipping is just one of many methods of starting a business on Amazon. Other popular — and arguably more lucrative — methods of selling products on Amazon include wholesaling and private label.

Wholesaling is when you purchase goods at a bulk rate from a supplier to resell to another retailer or distribute as a retailer yourself, and private label is a method of manufacturing your own products to sell on Amazon. 

However, there are a number of advantages dropshipping on Amazon has over wholesaling and private label.

Low start-up costs
As opposed to other popular e-commerce methods like private label and wholesaling, dropshipping does not require you to own your own inventory. Instead, when you get paid by the consumer on the sale, you simply turn around and use a portion of the proceeds to purchase the product from the supplier and have them ship it to your buyer.

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

Fully automated business
There are a lot of apps and plugins online that allow you to fully automate dropshipping on Amazon. For this reason, you can be (almost) completely hands off with your dropshipping business. 

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

Easy to research
Dropshipping on Amazon involves selling pre-existing products from manufacturers. For this reason, you can use tools like Jungle Scout — an all-in-one platform for selling on Amazon — to see how well other sellers of that particular product are performing on Amazon. This gives you an edge when you start your dropshipping e-commerce business.

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Shafiq Armani
I'm Shafiq Armani, an expert in selling group buying tools. With more than 10 years of experience in the digital marketing industry
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