Amazon business

Eircom_Sucks

Has anybody set up an online business to sell on amazon using drop shipping ( not actually holding stock but getting a % if each sale ) ? If so how is it working out

Whats involved in setting one up ?

ironclaw

The vast majority of people dropshipping from Amazon loose money in the long run.

e.g. https://www.google.com/search?q=amazon+dropshipping+lose+money&source=lnms&tbm=nws&sa=X&ved=0ahUKEwiDiOzz85bkAhWUVBUIHbagDSIQ_AUIESgB&biw=1680&bih=847

It's an absolute gold rush but it favours two camps:

- Those that are selling courses on how to Dropship.

- Those that are astute enough to spot a trend, ride it and ready to move on once others hop on it.

This is not to mention companies that have hundreds, even millions, of dollars at their disposal to either corner stock or advertise. And this is a cost most people don't anticipate, you have to shout very loud in a market place that is already crowded.

Another aspect is customer retention, your lead times will make or break you. If you can't match Amazon Prime, forget it. You need stock ready to roll and in Amazon warehouses. Customers won't come back if it takes you 3 weeks to deliver an item.

Now, that said, if you have a very good niche (Read: Not another white label make up brush brand) then you may have a shot, but that assumes industry knowledge of your niche already.

In short, if you want some business experience or perhaps modest pocket money, it's perfect. But as a serious business, no. You'll more than likely lose money in the long run.

Eircom_Sucks

ironclaw wrote: »

The vast majority of people dropshipping from Amazon loose money in the long run.

e.g. https://www.google.com/search?q=amazon+dropshipping+lose+money&source=lnms&tbm=nws&sa=X&ved=0ahUKEwiDiOzz85bkAhWUVBUIHbagDSIQ_AUIESgB&biw=1680&bih=847

It's an absolute gold rush but it favours two camps:

- Those that are selling courses on how to Dropship.

- Those that are astute enough to spot a trend, ride it and ready to move on once others hop on it.

This is not to mention companies that have hundreds, even millions, of dollars at their disposal to either corner stock or advertise. And this is a cost most people don't anticipate, you have to shout very loud in a market place that is already crowded.

Another aspect is customer retention, your lead times will make or break you. If you can't match Amazon Prime, forget it. You need stock ready to roll and in Amazon warehouses. Customers won't come back if it takes you 3 weeks to deliver an item.

Now, that said, if you have a very good niche (Read: Not another white label make up brush brand) then you may have a shot, but that assumes industry knowledge of your niche already.

In short, if you want some business experience or perhaps modest pocket money, it's perfect. But as a serious business, no. You'll more than likely lose money in the long run.

Have a business already , retail and online , but looking at other avenues to expand without forking out a fortune

Appreciate the reply