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Have you ever wanted to do Amazon dropshipping in India? If dropshipping has ever been a thought you have nurtured, you can now start selling on Amazon too. It could in fact be one of the best decisions you would ever make. Why not! Amazon is one of the most respected brands and a leading online retailer in the world. To have a smooth drop selling experience, all you need to know is to understand some fundamentals and dropshipping policies. laid down by Amazon. Shoppers have the utmost trust in Amazon and deep customer loyalty. As a drop shipper, you can benefit from that trust and grow your dropshipping business manifold. Amazon sellers have created many success stories through dropshipping in countries like the US, Spain, Germany, and now in India. These drop shipping services are available in all these countries. In this article, I will share details on dropshipping on Amazon India to help you grow as an online seller.
Pros and Cons of Amazon dropshippingThere are some clear benefits of dropshipping which includes:
- Lower overhead costs: The overhead costs are almost nil because you don’t store or ship the products, or maintain a storage facility to send products to customers.
- Minimal starting costs: Dropshipping offers an opportunity to entrepreneurs to start a business with minimal investment since they need no invest in facilities or resources to process orders.
- Multi-channel selling: Entrepreneurs can use dropshipping to sell on Amazon, on your own online store, or even on social media channels. So, you can sell your products across multi-channels.
- Work from anywhere: As a dropshipper, you can fulfill orders regardless of your operating location, which opens up a possibility to work from home or anywhere.
- Scalability: Dropshipping entrpreneurs can leverage suppliers making it feasible to accept more orders without increasing the inventory, storing, packaging, and shipping
- High Competition: On account of the low investment and cost to get started, everyone wants to start dropshipping which makes it a highly competitive field.
- Quality Compromise: Due to non-involvement of the dropshipper, your ability to monitor and guarantee product quality gets curtailed.
- Branding: Because your product may not be unique as there will be other dropshipper selling the same products, building a brand around your dropshipping product may be challenging.
- Profit margins: Because there is high competition due to the fact, similar items are on offer, lowing the prices can impact profit margins.
- Order Fulfillment: Because you do not have control over order selection, packaging, and shipment, the fulfillment process gets delayed.
- No inventory: As you do not store items, items may run out of stock with the supplier when you receive an item. It may discourage buyers from buying in future.
How to start dropshipping on Amazon in India?Before we start, you need to understand what dropshipping model is. Under dropshipping, when you receive an order from a buyer, you will inform your dropshipping supplier who will then ship the order directly on your behalf to the buyer. In order to start dropshipping, you need to follow these 3 steps:
1. Dropshipping PolicyThe very first step is understanding the dropshipping policies very clearly. Under the policy, you need to bear these points in mind:
- The items that your dropshipping company ships to the buyer, must identify yourself as the seller. That means, you should appear as seller on packing slips, invoices, or external packaging.
- The seller name or contact information should be yours only on customers orders with packing slips, invoices, external packaging. Your supplier should not appear anywhere.
- Seller only is responsible for customer service.
2. Register as a SellerYou will need the following information to register:
- Your business details
- Your contact details – email and phone number
- Basic information about your business
- Tax Registration Details (PAN and GST). GST Details are mandatory if you are listing taxable goods and need to be provided at the time of registration
3. Partner up with a dropshipping supplierTo do dropshipping, you need to partner up with a reliable dropshipping suppliers. It is important that there is a special agreement with your supplier partner to make sure they do not appear to the buyer on packing slips, invoices, or external packaging. Remember even a small miscommunication with your dropshipping supplier can result in a disaster to your dropshipping business.
Tips to Win Market Share on AmazonWinning on Amazon is not as tough as many might think. You can easily win with these easy-to-follow-tips:
Optimize your product listing page for Amazon SEOOptimizing your listing page can play a big role is showing off your items on first page in Amazon search results. All you need to do proper keyword research and competitor research.
Keep your shipping times shortestEven while you do not directly control shipping times as a dropshipper, you can have an agreement with a reliable supplier who always ships on time, without fail.
Sell White Label productsSell white label products and become a seller of your products. This will show your name everywhere on your orders including invoice and packaging with your brand name. It will encourage buyers to send you more future orders.
Sell high-profit margin productsSell high-ticket products to keep your profit margin high or have an agreement with a manufacturer to procure products at lower costs.
Choose to do Amazon FBAYou can choose to change your business model a bit and opt for Amazon FBA (Fulfillment by Amazon). It will ensure 100% product availability, Amazon Prime badge with added perks.
Pro-tip: You can use Amazon FBA (Fulfillment by Amazon) to boost your business. This can be a good alternative to dropshipping on Amazon and is highly successful