6. Choosing a sales platform
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Pros of dropshipping on Amazon
It exposes your products to an enormous audience.
By listing your products on
Amazon, you’ll instantly get in front of
millions
and millions of people
. This is the
kind of attention you’d have to spend years to achieve on your own. And since
many Amazon shoppers
buy from third party merchants, you’re almost guaranteed
a colossal amount of free traffic no matter what you’re selling.
It’s trustworthy.
These days, people treat Amazon like a local big box store.
Shopping on Amazon has become a casual affair, and it’s
often where people go to
buy any number of products. That means your customers might already regularly
browse Amazon to purchase items they need.
You get access to Fulfillment by Amazon (FBA).
With FBA, retailers ship products
to Amazon, who then ships out the orders. If you have
products of your own to sell,
FBA can give you an additional revenue stream. This isn’t a huge perk, but it’s nice
to have.
6. Choosing a sales platform
135
Cons of dropshipping on Amazon
The listing fees are substantial.
Like eBay, Amazon
imposes hefty listing fees
that are typically in the neighborhood of 10 to 15 percent. And that’s on top of the
monthly $39.99 base fee. If your margins are already low,
this will cut into your
profits quite heavily, but it’s the cost you’ll have to pay if you want that potential
exposure to millions of buyers.
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