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Amazon Dropshipping in 2020

Amazon and Its Services

If you have not heard about Amazon yet, get ready to be amazed. Amazon is one of the most popular success stories in the e-commerce market. Its founder, Jeff Bezos, is one of the richest people in the world in 2020 (and even during the past years). Amazon’s story started at Jeff Bezos’ garage and since its launch, it has grown into a multi-million company that now has a presence in every kind of market there is. Amazon is now a household name in the US, almost everyone uses it for their shopping whether forclothes, for household items, and even for pets. Amazon now sells almost every product you can think of. It is not only a platform for the consumers but for individual sellers as well. Amazon offers services such as Amazon FBA (Amazon Fulfillment-by-Amazon), Amazon Prime, and Amazon dropshipping.

Amazon is known for its superb customer services, fast shipping, and excellent marketing. From selling just a few books when it first started, it is now one of the most widely known and commonly used e-commerce platforms. Amazon makes sure that all transactions are fast and secured, attracting more consumers and sellers to subscribe to their service.

If you have not used Amazon yet and want to experience their amazing service, you need to sign-up for an account. It is easy, just fill up the necessary information and do not forget to set-up your payment method as well. All transactions in Amazon are being done online, making it easy to use. Services such as Amazon dropshipping and Amazon FBA are tailored for individual sellers. Through these programs, you can sell your items via Amazon, but you need to pay certain fees.

How Amazon Dropshipping Works

Dropshipping is a business model that is usually implemented by start-up businesses. Amazon dropshipping lets you find a supplier then have the supplier pack and send the products to your customers. To explain it in detail, your customer will not know the product is coming from a third-party. All they know is that they are purchasing it from you. After they have placed their order, you will then notify your supplier, pay the items, then have it delivered to your customer.

This does not need a huge amount of capital since you will not be purchasing stocks in bulk, you will only pay for the items once it is paid by your customer. It’s all good but there is also a downside to Amazon dropshipping. Since you no longer buy stocks in bulk, the price per item might be higher making your profit lower.

Amazon also do not allow retailer-to-retailer transactions when you are using the Amazon dropshipping service. You are only allowed to source your merchandise from a verified supplier. Make sure you are not violating any of the rules implemented by Amazon or else your account might get suspended.

Conclusion

Amazon dropshipping gives retailers a low-risk way to start a business. Since it is a low-risk and low-capital approach, it can also mean that the profit is not that high. There are other Amazon services you can check out, try to read them all before committing to one.

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