The second drop shipping option is Amazon. In my opinion, I don’t drop ship on Amazon. However, I do know a few of people that have accomplished it successfully.
What I can say about drop shipping on Amazon, is it’s high-risk, because the window could dwindle rapidly and you could get eliminated by an over-saturation of competitors.
On Amazon, making a considerable amount of sales boils down to who has the cheapest price.
Again, similar to eBay, there’s a plenty of drop ship suppliers that won’t even allow you to sell on Amazon.
I have a piece of advice for people who are interested in drop shipping on Amazon: don’t put all your eggs in one basket. It’s typical that a bigger player suddenly intervenes and starts competing with you.
But I can’t fully encourage you to drop ship on Amazon, especially not as your primary source of income.
However, if your store is doing well, and you’re planning to scale your business, then Amazon is a fine option for an additional income. Even so, it’s just my personal opinion, but you shouldn’t fully depend on all of your income coming from Amazon.
Here’s a wrap-up of the factors why I find drop shipping on Amazon too risky to rely on 100%:
- You don’t own your customers.
- The profit margins are significantly low.
- You can get eliminated easily.