The Truth About Drop Shipping On Amazon [dropshipping on Amazon]

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hey what’s up guys anton here from dropship lifestyle and i wanted to make a video addressing this right drop shipping on amazon now I get a ton of emails as you could probably imagine to my dropship lifestyle website and a lot of people are asking about this about drop shipping on Amazon how can you drop ship on Amazon and what is drop shipping on Amazon and what does that look like and I wanted to make this video so I don’t have to type out the email every time right now I can send people to this resource and kind of explain how this works and my thoughts on it with that being said I also want to let you know that I’m not you know making this video to try to sell you anything or convince you of anything I just want to show you my experience with this based on ten years of running ecommerce businesses now let’s start by taking a step back right a step back from drop shipping on Amazon and look at three different ways that you can make money with drop shipping anyway and when I say you I mean literally anyone in the world now the first that a lot of people use on Amazon is what’s called arbitrage so I’ll just write ARB for short and we’ll call this number one now with this model arbitrage basically means you’re buying from one place and reselling in another so in this example especially with Amazon what a lot of people like to do is try to sort source products from let’s say Walmart comm and they try to find products that are selling for you know not that much on Walmart comm that are selling for more on amazon.com and then in this scenario Walmart becomes their supplier right so this is the most common way you’ll see people drop shipping on Amazon now what’s the second way to make money with drop shipping well it’s another trend that’s really hot right now and that would be I’m just going to right alley that’s drop shipping from Aliexpress you know drop shipping from China by the way if you’re interested in that I have another video called drop shipping from China and I’ll link to that below but with this model you’re basically sourcing products from overseas that when you get an order Daimon ship again I’m going to keep saying China because that’s where most of the factories are base ship from there to your customer so in this scenario scenario to your supplier would actually be I’m going to write Aliexpress and with this model also I should note that most people are using over low which is like a middleman app again I’ll talk more about that in my drop shipping from China video if you’re interested and kind of want to learn more about that path with that being said guys I said there were three number one is doing the arbitrage model number two method for making money with drop shipping is all the Express model and number three is what I’m going to call us and with this they could like I’m saying us what I really mean is domestic suppliers so I’m from the states my businesses are in the States we sell four suppliers that are in the states so for me that’s the third option us suppliers and if you’re watching this right now and you’re in Australia then this would be Australia right basically you’re not drip drop shipping from overseas you’re not drop shipping from a Walmart com or a site like that but you’re actually selling for suppliers that are in your country wherever that may be so I’m going to write this down and I’ll just write local okay and I don’t mean like down the street local I mean you know geographically in your country local so these are the three different main ways that you can make money with drop shipping there are a lot of different ones and you know if you feel like adding some go ahead and comment below but again like these are the three ways that most people that actually run these types of businesses use drop shipping as fulfillment method now what that being said let me tie it back to Amazon because with all of these you don’t have to use Amazon right but the purpose of this video is to talk about that so method number one here right the arbitrage model is trying to list something for sale on Amazon then once you get the sale you go ahead and you basically dropship it from I’m just going to keep using Walmart as the example now here’s the thing right can this work the answer is yes people do this right and they make some money with it the problem is that first of all it’s not really a business because you’re constantly trying to find products on Walmart that you could sell for more on Amazon and probably you know one of the biggest problems is you have to make sure that these products are always in stock because when your orders are coming in on Amazon and you have to fulfill them you know you’re not like working with a supplier who’s telling you how much inventory they have you’re literally going to another website buying these items and then shipping it to the customer that bought from you on Amazon now you can probably realize what the problems could be with that right how it could be problematic first of all the packaging probably is going to come you know not from the product company they bought but we come from Walmart or wherever else it is so with that what it leads to is really customer service issues okay so for that let me change colors here for that when your drop shipping on Amazon even though I know people are using this method and I know they’re making some quick money here but I’m not going to recommend it because for two reasons first is that customer service thing okay you’re literally using another website that you have no connection with other than you’re buying stuff from it to fulfill orders that’s not a good business relationship okay that leads to my second problem with this model and that problem really is that you know it’s not a business like you don’t have a business you have like a quick thing where you’re trying to flip a product and make five bucks you know maybe you can get ten if you get the big enough gap between the Walmart price in the Amazon price which it’s not a business you know it could be like a hobby it could be something people experiment with but because of that you know I do not recommend this an arbitrage to be honest I don’t recommend to drop shipping with arbitrage anywhere just not something I would endorse not something we do not something that I think is a good use of your time you can make more money for your time okay with that being said though let’s keep going and let’s assume you’re still set on drop shipping on Amazon that’s what you want to do right your next option would be to use a website like Aliexpress now that gives you more freedom than something like drop shipping from you know another website the reason is because you can actually like private label products with this model you’re kind of like saying like oh here’s this you know branded product like here’s this Sharpie flipchart marker alright whereas with Aliexpress you could say you know here’s this whatever it could be private label it could have no label on it you know here’s Anton’s famous orange market right so you have a little bit more control usually inventories a little bit better too because you actually have that business relationship with your supplier I’ll be at their and their side of the world but you know it’s a little bit better than this with that being said if you want to drop ship on Amazon you still are going to run into the issue of long lead times okay even the fastest like be packet shippers on Aliexpress you know and I’ve ordered from them like literally just like to test this and see how long it takes you’re looking at a few weeks and you know how Amazon works right I’m assuming you do because most of the world lies there you know people are used to Prime two items in one or two days if your drop shipping from Aliexpress on Amazon your customers are looking at two three four weekly times guess what you’re going to get negative reviews and honestly another big problem with this is once these products get to the customer the Amazon end user what if they’re not happy with it right they just waited three or four weeks they finally got it what if it doesn’t live up to what they thought it was going to be and they want to return it well it’s not going back to China and Amazon has a very lenient return policy so all these little crap products they’re coming back to you they’re going in your apartment in your garage they’re going somewhere so because of that I don’t recommend this at all either if you want to drop ship on Amazon the way all the expressed drop shippers usually make money and the way it works is they’re actually selling on their own Shopify stores the reason they do that is because they can kind of you know you can get away with having a less than perfect customer service experience basically like if your customers aren’t happy it’s not like Amazon where they could tell the world and Amazon will ban you if your drop shipping on your own store maybe you can get away with not having good customer service so that’s where a lot of these Aliexpress dropshippers you know fall in what category they fit in now the next model right model three this is drop shipping again with those local suppliers so the example I can give you would be if I sold this white board whoever made this white board it’s on a white board this I know what you call a flipchart if I had a business relationship with them where I said okay flipchart board you know what can I sell these for like what’s not what’s my cost what’s my whole style cost what’s my map cost what’s the MSRP and then I sold them and then this company fulfill the orders right now that you know if you think about it if you want the dropship with that model on Amazon it would work now I’m not saying it’s just because it’s what we do you know we just do this because it’s what works but if you think of this right basically like you’re selling these products they’re on Amazon but then your supplier is already in the area right and you could say hey supplier this these people ordered these product today ship them out please okay few days later the Amazon customer gets their product they’re either happy they’re either or they’re not and if it gets returned it goes back to your supplier okay so hopefully you could start to see the benefits with something like that right so if you were going to drop ship on Amazon if you’re going to try that this is how it would work it would be working with what I would call another marker what I would call local suppliers again here in Australia they could be in Australia if an unknown puts Amazon’s in Australia yet and I’ve assumed they are but they be in Australia in the States they be in the States this is how you can actually build a real business with drop shipping on Amazon okay with the HEC being said I know I keep having like all these like things that I’m adding onto what I’m explaining but there’s a reason I told you I’ve been doing this for four ten years now so I’ve kind of learned a lot of things along the way and one of them is that a lot of these brands that would kind of tend to have these business relationships with you where you could sell their products where you could be an authorized retailer to drop ship their products when you get approved with them they’re probably going to tell you and this is like 70 80 percent of the time they’re going to tell you hey guess what we would love it if you sell our products but you cannot drop shipping them on Amazon and it’s that simple the same thing with eBay okay part of the agreements that these good suppliers have the ones you can actually make money with the ones that are real businesses part of that agreement is you’re not allowed to sell on platforms like Amazon like eBay the reason they do that is because there’s really not a benefit for you to you know to sell there right they don’t want 20 different companies like us internet retailers all basically having a price war on Amazon or an eBay so we don’t even sell there so if you’re watching this video and you’re thinking like thanks Anton you know I just watched a 5 minute video about how to drop ship on Amazon and you’re telling me don’t drop ship on Amazon well that’s pretty much true if they do tell you that you can actually sell on Amazon then it’s worth it if not here’s what I’m going to recommend okay I’m going to give you you know for the purpose of this video it’s not a big training this is something quick just to answer this question I always get I’m going to show you like how I would recommend doing this okay remember we’re talking about local suppliers now local brands but you get approved to sell for here’s how a good drop shipping business works okay you have your suppliers and again I’m going to write local now let’s assume you want to sell you know flip charts and whiteboards and that was your your niche okay and let’s just say there was I don’t know five five suppliers you would get approved each supplier individually to sell their products and you would sell them as their brands you would be a retailer think of it when you go to a Walmart or a Target they don’t sell their own products they sell for different brands so you would maybe have five different brands and you would build a Shopify store okay this is where you make your money all of these brands are listed on your website you’re going to drive traffic to your website through Google a little bit different now I’m telling you not to drop ship on Amazon right I’m telling you to drop ship on Shopify but I’m telling you to get your traffic through Google product listing ads it’s as you know the biggest search engine in the world we bring them to our Shopify stores that way we could take advantage of all of the benefits of using these local suppliers and we can still capitalize on big traffic like I think the main reason people like the idea of drop shipping on Amazon is because there’s so many people there well guess what on Google Shopping and Google product within it there’s a ton of people too and we don’t need to drop ship on Amazon to make money okay you could build a Shopify store Shopify’s $29 a month and we actually have like a referral code that gets you 10% off so what’s that like twenty four dollars a month right get your traffic through Google have them go to Shopify sell four local suppliers I’m telling you after ten years in this business this is how we’ve consistently been able to dropship profitably it’s not drop shipping on Amazon it’s not drop shipping on ebay it’s not drop shipping from China it’s not doing the arbitrage model it’s working with legitimate brands developing real business relationships building a real asset here and using Google as a primary driver of sales so listen I hope you found that helpful if I just burst your bubble you’re all excited about drop shipping on Amazon I’m sorry but this is the truth whether you like it or not so hopefully you got value if you did please leave a comment below if you have any questions do the same more than happy to get down there and help you out so thank you everyone again my name is Anton for from dropship lifestyle and I’ll see in the next video but