Whether you're an experienced seller or a complete novice selling on any Amazon marketplace here are a few points you should never lose sight of:
- You are selling in somebody else's market with strict rules, never forget this.
- You can't expect to march in as a new seller and list a thousand products right away. Establishing yourself is a process and you would be very wise to fly under the radar at first.
- Understand you are responsible for every order regardless of what dropship supplier you use.
- You are in this for the long run so don't quite your day job until you are making stable income.
If you follow the advice in this article and respect Amazon's Drop Shipping Policy then you'll have a good chance at becoming a successful seller and generating long-term income. Ignore this advice and your e-commerce career may be over as soon as it started.
The best way to break into drop shipping arbitrage is to first mature your account. That means you want to get sales volume through your account in the safest way possible.
What I mean by the safest way possible is to buy inventory up front, send the stock to FBA (Fulfilled by Amazon), and have receipts on hand in case Amazon challenges you on the authenticity of your stock.
You need to use a reputable wholesale supplier from the country you are selling in.
When Amazon requests the invoices, which they most likely will, you need to provide the following details:
- The ASIN codes for the stock Amazon is challenging you with
- The stock quantity needs to match ideally more than 10 units
- Invoices should be dated within in the last 90 days
- Your Amazon registered details need to match what is on the receipt
- The supplier's details must be visible
Remember you are not focusing so much on making a profit because at this initial stage. You just need sales volume and good reviews to build your reputation.
After accumulating a few thousand dollars in sales and building your reputation for at least 3 months with a new account you should be ready to consider adding your first few drop shipped products as merchant fulfilled listings.
You need to be especially careful drop shipping brand name items. There's no particular policy stating you can't sell items purchased through a retailer, but Amazon doesn't like retail receipts. Start out buying from a reputable wholesaler, and after you become a trusted seller your chances of being asked for proof are much lower.
Once you've warmed up your seller account and are ready to move into the higher profit world of drop ship arbitrage, you'll need the right automation software to avoid pulling your hair out.
ArbitrageBoss is designed from the ground up to help you make more profit with less effort in your drop shipping business. It keeps your Amazon listings in sync with your suppliers to protect your reputation and profits.
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