June 19, 2024

Dropshipping amazon with shopify: the complete guide 2021

Amazon dropshipping can be very tempting. Indeed, Amazon is the undisputed leader in e-commerce and its reputation is well established. It is the number one site in France and in the world, with an ever increasing number of users.

Thanks to the Amazon sales channel on Shopify, Shopify store owners can easily sell on Amazon. In this guide, you’ll find out if it’s possible to dropship with Amazon, the benefits of Amazon dropshipping, strategies for success, selling techniques and tools at your disposal.

What is Amazon dropshipping?

Amazon dropshipping is a form of dropshipping, which focuses on the Amazon platform. If you have an online store, this can be a complementary sales channel for your products, allowing you to reach more consumers. Amazon dropshipping is a strategy that should remain complementary, as it is actually difficult to set up and make profitable. To learn more about dropshipping in general, check out our article on the complete guide to dropshipping France.

Why do Amazon dropshipping?

Whether you try dropshipping on Amazon or not, either way, it’s worth selling on Amazon. Why should you do it?

Amazon’s trust rate
According to our Amazon statistics, 89% of customers say they prefer to buy there than elsewhere, for reasons of trust.

Amazon’s super-powered logistics
With Amazon’s Shipped by Amazon service, you can take advantage of their unbeatable warehouses, logistics and delivery times.

Amazon’s visibility
Even if the competition is tough on this marketplace of more than 3 million active sellers (don’t worry, not all of them are that active), you benefit from Amazon’s unmatched infrastructure, advertising and showcasing tools.

Why not sell on Amazon?
If you can sell elsewhere, think of it as just another sales channel. Nothing prevents you from having your own online store and other sales channels. In fact, it is strongly recommended.

Translated with www.DeepL.com/Tr

Amazon dropshipping: what is possible?

The advantages of dropshipping in general are: no stock, low start-up costs and the possibility to test and experiment different approaches.

The classic dropshipping scheme is the following: you offer a product on your online store, but you don’t have it in stock. When a customer places an order, your supplier (with whom you are in contact) sends it directly to your customer.

But how does it work on Amazon?

The problem is that Amazon is a marketplace and wants to position itself as a supplier, but with its logistics and promises. The company offers the service Shipped by Amazon or Amazon FBA (Fulfilled by Amazon). This means that you can send your stock to Amazon and have it shipped by them on the next customer order, just like a supplier would do in the classic dropshipping scheme.

And this is precisely why Amazon prohibits classic dropshipping using its platform.

To take advantage of Amazon’s logistics, there are two options:

Either you send your stock to Amazon and this way, your products will be packed and sent by Amazon ultra quickly.
Or you declare that you own the stock and you send your products yourself.
But if you sell your products via Amazon, then you must commit to shipping them within a few days, which is rarely possible in dropshipping. If you don’t respect the deadlines, you will be sanctioned and your seller account will be blocked.

In both cases, if you still want to bypass the rules (at your own risk), you will have to find a supplier near you, who can deliver the products very quickly.

That said, if you’re just starting out in Amazon dropshipping and you choose the option of buying stock and participating in the FBA program, you’ll enjoy some definite advantages:

No storage costs

One of the benefits of dropshipping in general is the fact that you have no storage fees. The good news is that Amazon encourages beginners with the New Selection Shipped by Amazon program.

With this program, you get several big benefits:

Limited free shipping (up to $90) to an Amazon distribution center
Free monthly storage for the first 50 products shipped, for 90 days after receiving the first product
Free pickup of these products for 180 days after receipt.
The benefits are even better for smaller products: clothing, shoes and bags.

Basically, you benefit from free Amazon dropshipping conditions, which allows you to test your products, and possibly reposition yourself afterwards.

These conditions are valid for the markets in Germany, France, Italy and Spain.

For non-starters, all this comes at a cost, which depends on the type and size of your goods.

The storage fee ranges from 15,60 € to 25 € per month depending on the product category and the time of year. Optional services (packing, customs fees, returns, etc.) vary considerably between 0.15 cent and 10 € per unit. These pricing conditions change regularly, so please check the Shipping by Amazon pricing details on this page.