Amazon has been rolling out dropshipping from its humble beginnings as an online bookstore. For those who may have no idea what dropshipping is, this is an order fulfillment method in which an online seller buys products from a distributor and then the distributor packs and ships these products to online store customers. The retailer does not need to stock the specified products.
Considering Amazon’s current status as an online retail giant, it’s no surprise that they attracted over five million sellers in 2021, some of whom most likely use the drop-shipping model. integrated company to meet customer orders. However, some Amazon shipping companies have come and gone for years after being listed by their owners. Of course, you don’t want this to happen to your business if you are planning to start. First of all, you will want to know what are the pros and cons of such a drop shipping service.
Benefits of Amazon drop shipping
- You can spend more time managing aspects of your business that are unrelated to customer order fulfillment.
Setting up an online retail store on Amazon is hard enough to do it yourself; Would you also like to take responsibility for purchasing the raw materials for your products, creating them yourself, personally delivering them to customers and replenishing them? Otherwise, you can take advantage of Amazon’s drop shipping service to ease the burden of fulfilling customer orders and make it easier for you to run your business.
- You do not need dedicated storage space for your
You can sell large items through Amazon, such as furniture or maybe some sort of sports equipment. Unfortunately, your home may run out of storage space for, say, 50 bulky items. You may have considered buying a storage unit that you can store them in, but your store’s current income may not allow it at all.
With Amazon’s dropshipping service, you no longer have to worry about where to store your large items as each Amazon warehouse is spacious enough to hold tons of large items from different sellers like you.
- You don’t have to deal with excess inventory.
You will find that your business is not doing well when the number of customers who buy from you begins to decline. This can lead to the fact that you don’t want to take them with you in boxes of unsold products if you decide to shut down the store for good and do something else.
If you don’t feel good as a seller on Amazon and use their dropshipping service, you don’t have to worry about taking your excess items with you. Just let Amazon decide what to do with all of your unsold products and move on to what your next business might be.
Cons of Amazon drop shipping
- You have no control over how your products are packaged.
You may want to have unique packaging for each product you sell on your online store as this can help increase customer satisfaction. You might want to add a hand-drawn piece of art that you created yourself to your packaging, or just a simple handwritten note on stationery congratulating your customers on their purchase.
However, if you set up an online store in an Amazon store and at the same time enjoy the drop shipping service, you may forget to squeeze in scribbles and letters in the packaging of your products because Amazon is wrapping them up. in branded boxes, and you it is not allowed to forge them. Product packaging process.
- You are still responsible for handling customer complaints due to Amazon’s shortcomings.
Imagine a glass table that a customer ordered from your Amazon retail store, your customer probably won’t think it’s Amazon’s fault, even though their name is on the shipping box and the staff at the warehouse must have handled it incorrectly. Instead, your customer might think you are responsible for letting this happen to your product.
Drop shipping has made Amazon the online retail giant it is today. Maybe that is why you decided to start an online store on Amazon and use the drop shipping service. However, before you move on to the latter, you should first find out the pros and cons of serving them, as described above, so that you don’t have to put your business up for sale later when the going south.
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