How To Start Dropshipping On Amazon #1

 

What Is Dropshipping on Amazon? before entering the discussion topic about dropshipping, it is better if you know the process that occurs in the world of buying and selling on Amazon. Starting from the Affiliate to the completion stage, see the explanation below.

What Is Affiliate?

Speaking of affiliation, to put it simply, performance based marketing and advertising. Affiliates perform marketing and advertising activities on the sites they operate, and when customers purchase products and services, affiliates receive a performance fee as a fee and a fee.

Typical affiliates are available in major grocery stores such as Amazon, Rakuten, and Yahoo Shopping. Among them, the most well-known is Amazon Affiliates, and this type of performance-based reward affiliation has become popular all over the world.

On this occasion we will introduce Amazon affiliates. For more details, see the explanation below.

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Amazon Affiliate Step

With Amazon Affiliate, you can easily start a sales activity even if you are a beginner or only have low funds.

The steps to earn Amazon affiliate commission are as follows.

1. Choose a specialty market

Create products for sale that target specific markets and sales content for your own online store. The product you choose must fall into Amazon's bestseller category. One of the characteristics of using Amazon Affiliate is a variety of support tools for researching products and markets.

Synccentric: New product information analysis tool

Ecomspy: A tool that lets you analyze competitors and find the best new products

SellerChamp: A tool that can search for new products and process orders automatically

BigTracker: A tool that collects and analyzes sales and supports products and market niches

E-com solution: Inventory management, sales / profit calculation tool

2.Build EC sites and create sales content:

You will be able to build and operate an EC site using Shopify. After developing your own site, we aim to create sales content to attract potential customers. Choosing a niche market and taking advantage of the SEO optimization tools introduced on Shopify are likely to be effective.

3. Collaboration with Amazon affiliates Through advertising

Development knowledge is usually required to implement Amazon affiliates. However, to take advantage of Shopify, you can easily register an Amazon affiliate without development by setting up a support application for affiliates on the Shopify app store. (For example, SpreadrApp)

After that, select a product on Amazon and add it to your online store. When an order is placed via advertising, Amazon takes care of the ordering, shipping, etc. This will be reflected in reports such as orders and awards on the company dashboard management screen

4. Get commission

Once your order has been approved, you will be rewarded. There are usually three ways to get a prize. Those are gift cards, transfers to designated bank accounts, and checks.

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Amazon Affiliate Benefits

1. High reliability and safety

If you are a beginner looking to take advantage of affiliates, Amazon Affiliate is the perfect model. First of all, Amazon is the largest sales site in the world, and everyone knows it as an EC site selling high quality products. Furthermore, Amazon Affiliate has been operating effectively for decades. Throughout 2019, 50% of Western online sellers were Amazon affiliates, and it seems that the monthly site PV has hit more than 600 million. And if you are an Amazon affiliate, you will be confident and safe.

2. Easy to follow trend changes with abundant products

 Amazon is a site that offers a wide variety of products, so you can search for sales of products that you are good at. In addition, we are constantly working to respond to changing customer needs, so that Amazon has a wide range of the latest products. It seems that the more popular and the variety of products you choose today, the more rewards you will get.

3. User-friendly functions

It is known for the ease of use for most of the features for sellers. Especially when operating your own blog via SNS, you can approach more subscribers.

4. Can also be used as dropship

 Apart from receiving gifts from Amazon affiliates, it can also be used as drop shipping via the Shopify support app.

 Amazon Affiliate Disadvantages

1. How to calculate the prize / commission

Only products ordered from your company URL will be counted for earning prizes. For example, if a customer is interested in a product through their own advertisement, but a few days after considering it, they won't be able to charge if they go straight to the Amazon homepage and buy the product. Another example is if you buy the first product through your site, but then go directly to the Amazon site to buy another product, you will not be rewarded for it. ..

Fulfillment

What is fulfillment?

First of all, fulfillment is the entire business from the occurrence of a product order on the EC site to delivery to the buyer.

If you use Shopify, you will be able to use it to cooperate with various services.

For startups large and small, they often run their own fulfillment business. That is called self-fulfillment.

On the other hand, many regular EC site operators appear to be outsourcing to specialized fulfillment operators. The reason is to reduce human resources and costs for the fulfillment business, and to fully manage sales strategy and customer acquisition activities.

Fulfillment Flow

The flow of normal fulfillment is as follows.

1. Buy

Purchase products from suppliers for arrival.

2.Product storage / inventory management:

After receiving the goods, they are sorted and stored in the warehouse. Goods are also clearly tracked on a regular basis. Since you can manage arrivals and deliveries, you can operate them smoothly using an inventory management system.

3. Process the resulting order:

Order processing involves sending order confirmation emails to buyers, checking inventory, and receiving products. It said errors were less likely to occur because the order processing process was carried out by the fulfillment central management system.

4. Packing and shipping:

Before packing, it is important to check the product. After the product is in good condition, the product will be packaged immediately. Later the goods will be sent to the shipping company.

Completion

There are a variety of payment methods today. For example, credit cards, cash on delivery, convenience store payments, electronic money, etc. We support various payment methods according to the needs of the buyer.

5. Customer service (returns, exchanges, complaints, etc.):

When operating online sales, product exchanges and returns often occur after purchase. At that time, it is necessary to take actions such as receiving the product from the buyer and sending it back. In addition, it can be said that prompt response to complaints is an important task. This directly affects your credit.

Fulfillment Benefits

1. It is possible to optimize human resources and costs

When you use a fulfillment service, a professional fulfillment company will perform operations such as inventory management and shipping on your behalf. And, the operation of the entire sales business is running steadily.

It also allows your company to focus on important tasks. For example, we can do our best to implement sales strategies and marketing activities to increase sales. Additionally, if you outsource pre- and post-order inventory management problems and services at a reasonable cost to your company, you can run your business at low cost in the long run.

This is the biggest advantage.

2. Can increase customer satisfaction

If you use a fulfillment service, the product will be delivered to the buyer safely. At the same time, you can transfer the settlement business to your company upon request. This will increase buyer satisfaction in responding to the speed of delivery and arrival of products and various payment methods. Therefore, the evaluation of the company's business brand has also increased.

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3. Useful for marketing and advertising activities

If you use the fulfillment services of a large EC site company, you will be able to receive services such as postage and free shipping. For example, Amazon's FBA provides services such as urgent delivery, free delivery, and gift wrapping, so I thought this would be useful for marketing and advertising activities by increasing customer attention.

Fulfillment loss

4. Difficult to understand customer feedback and needs

Because the fulfillment business is outsourced, many fulfillment companies are also in charge of handling customer complaints. As a result, there is very little opportunity to hear directly with the customer, and it becomes difficult to understand the voice and needs of the customer.

5. It is difficult to judge and evaluate the quality of fulfillment work.

If you leave a lot of work to a fulfillment company, it will be difficult to assess and evaluate the quality of the fulfillment service process against an appropriate standard.

Those are some explanations about the buying and selling process on Amazon, if there is an unclear statement please comment.

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