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Dropshipping through Amazon – a method targeting a (relatively) untapped market

TL;DR – Made over 44k profit over a single summer as a 20 year-old college student with no prior experience using a dropshipping strategy based around Amazon, a method which I believe to be superior to most every other.

Relevant links/images:

– My overall sales in seller central app (is not entirely accurate as this does not reflect returns/refunds, actual revenue is around 200k) and proof of payouts in bank account: https://imgur.com/a/yiBURon

(Shopping bag with "a" is our company logo)

– Proof of disbursements on Amazon seller central app: https://imgur.com/a/WRQ4dkK

(Keep in mind this is revenue, not profit, as I still had to pay CC bills)

– Our company website: https://students.a2zsupport.net/

(I'm aware the application page is pretty cheesy, but that was my business partner's idea)

– An advertisement campaign we've conducted (sponsoring a car for the Daytona 500!): https://imgur.com/a/MiAejbc

(Feel free to check out our instagram shown in these photos @ a2z.support or my business partner’s page @ a2z.Jackson for testimonials)

I’ve seen too many peers, stories, and posts related to the large and frequent barriers to entry of the “typical” dropshipping method (shopify, woocommerce, etc) and I’d like to share more about the method I used as well as list the reasons that I believe it is superior to all others that I’ve found.

Amazon dropshipping is a relatively new method that utilizes Amazon as the selling platform and reputable third-party domestic retailers as the suppliers. Despite being the king of e-commerce, there exists millions of products not sold/fulfilled by Amazon on their site, and many can be found for a cheaper price on other online stores. This disconnect and Amazon’s status is what the strategy revolves around.

Some pros of the Amazon method:

  • ZERO advertising/marketing costs
  • ZERO pre-bought inventory and associated overhead
  • No limit to number of products one is able to sell on their Amazon store
  • Profit margins can be incredibly high
  • Very straightforward business model, very few and insignificant barriers to entry
  • Has strategies for finding winning products, so guesswork is eliminated
  • No dealing with foreign suppliers and their subsequent issues (delays, quality, etc)
  • Can be used to build an amazing credit score (I believe I hit 780 with no prior credit)
  • In the green from DAY ONE. You don’t fulfill/finance an order until you know that someone has ordered from you.

Some cons:

  • $40/month selling fee on Amazon (this is the only fixed cost)
  • Profit margins can vary by product, but you can calculate this before ever listing an item
  • You technically do not have your “own business”, you are a reseller of other products (though you can register as one if you so choose)
  • Some starting capital is needed for product financing, but instant approval credit cards are an easy workaround for this and profits are returned quickly for reinvestment
  • Amazon has a 6 week probationary period when you first make your account during which they will withhold all revenue. They do this as a cautionary measures meant to prevent fraud/counterfeit sellers. However, this period will begin as soon as your account is made, not when you start selling, so you could feasibly just wait six weeks before listing products, after which your payout schedule will be the normal 2 week cycle.
  • ATTN: THIS DOES GO AGAINST AMAZON POLICY. I’ll be honest, this one completely slipped my mind simply because I and all people I’ve taught have never had it be an issue. Amazon allows dropshipping but prohibits the use of third party packaging, which this method contains. However, after 1000+ orders and over 3 months of selling experience, I have never had an issue with this. Only two customers have ever reached out to me regarding the packaging, and a small refund cleared those situations right up. If the customer gets the item they paid for, why would they care about the box it came in?

At the risk of this sounding like an advertisement, I personally used this method to make 44k PROFIT over last summer (only 3 and a half months) as a 20 year old college student with zero prior experience. I'm posting this with the intent of providing information and education to any of those who might desire it.

I’m not discounting anyone else’s strategies/success, only hoping to show that there are other ways. Amazon dropshipping helped me to avoid a shitty, part-time wage slave job and make significant money at the same time. I know many are facing a similar position or are even out of work entirely, and I can envision this would help them just the same way.

If you have any questions regarding what I’ve said, please feel free to comment or direct msg me!

submitted by /u/Mirratrix
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