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Amazon Service : Drop Ship by Amazon. What is the benefit?

 
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  #1  
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Join Date: February 13th, 2005
Posts: 69
Amazon Service : Drop Ship by Amazon. What is the benefit?

Hello, I just read at amazon.com about their service, drop ship by amazon. I've read all the info but fail to understand, what is the benefit of this service compared to their affiliates program.

Can somebody give an insight?

Regards,
Sjarief
  #2  
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Join Date: December 29th, 2006
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Hello Sjarief:

The Amazon drop ship program is where Amazon will fill your orders and ship your items when they warehouse your items. The orders can come from anywhere. They do not have to be from Amazon. You have to pay a monthly fee for storage based upon the volume your items take up.
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  #3  
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Join Date: February 13th, 2005
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hello jonathan,

I understand how the drop ship work, what I don't understand, what is the advantage when you can sell the same stuff using Amazon associate program? With amazon associate program you don't have to pay a fee and you don't need to provide customer service.
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  #4  
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Join Date: January 17th, 2005
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I guess , in the case that you want to have your own store and build your own name. Amazon would appear to be your supplier and your customers would not know who your supplier is, since the products appear to be delivered from you.
does that make sense?

so the difference would be....you build your own trust and loyalty for your store...etc, not like refering to amazon and customers go to amazon after that one sale...
  #5  
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Quote:
Originally Posted by DIMSUMGIRL
your customers would not know who your supplier is, since the products appear to be delivered from you.
Except for the fact that they're delivered in Amazon.com boxes (according to their FAQ).

Seems hard to find a benefit.
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  #6  
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Join Date: January 17th, 2005
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oh!
I didnt read it.
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  #7  
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By the way, Michael
I notice that you have joined abestweb same day as me
you must have been an active one.
  #8  
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Join Date: January 18th, 2005
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With someone drop-shipping for you, generally it's your products they're shipping out. With an affiliate program, affiliates are promoting other people's products.

One advantage I can see with Amazon doing product fulfillment is that their shipping and delivery is blazing fast.
  #9  
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webworker and ohtoy: You're confusing their fulfillment service with their drop shipping service.

With their fulfillment service, they'll warehouse your products and ship them out for you.

With their drop ship service, they'll let you sell anything on their site and they'll ship it as if it comes from you (but in Amazon.com boxes--doh!).
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  #10  
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Join Date: January 18th, 2005
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I would figure you could run the orders through your own shopping cart, meaning you get near instant payment rather than waiting for ages like you would as an aff.

But despite that, this particular program has far more bad points than good. There's the problems mentioned above: Amazon can't resist sticking their name on the box. Their idea of customizing the packing slip is actually merely adding a "gift" message. Etc.

Oh, and get this, (sarcasm) woooOOooo what a deal! (/sarcasm) Here's the total deal-breaker:
style="margin:20px; margin-top:5px; ">
Quote:
Originally Posted by Amazon Drop Ship Program Pricing Page
With Drop Ship by Amazon, you get the same competitive prices offered on Amazon.com. We offer consistently low prices on most items in our store. All prices are listed in U.S. dollars.
So, in order to make any profit off the deal, you have to price "your" items above their onsite offerings--effectively pricing yourself out of the market except for sales from the few rubes who haven't found Amazon already!

That program is for clueless n00bs. Paying for stuff at FULL RETAIL and then reselling it for "super"-retail isn't good business. Someone (who has a clue) who wants to be a merchant would want to get true wholesale pricing for themselves, and the profit comes from the gap between wholesale and retail. Customers, for the most part, have an idea what things should cost, and if you can't get your prices within that band, forget it! And the only way I know of to reliably do that, AND make money, is to be buying the stuff wholesale.

Amazon's serving out Kool-Aid by the gallons when they imply that their prices are cheap from a merchant perspective. They're nowhere near wholesale and any would-be merchant using Amazon retail prices as their COST price is going to get stomped all over the place.

Considering the above--being an affiliate for Amazon would be better than using their so-called drop ship program. At least as an aff, you can push the stuff at Amazon's regular price and get a commish off of it.

I give this one two big thumbs down.
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Last edited by Leader; January 4th, 2008 at 03:24 AM.
  #11  
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Join Date: December 6th, 2006
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Without going in to detail, let me just say that you can easily sell stuff from Amazon on ebay, and get more then it sells for on Amazon.

Trust me - I tried it b/c I didn't believe it either but it worked...

That being said - I do affiliate marketing b/c I don't like dealing with customers - it was just a gag to see if it would work, and it did..

my .02.

oziman

style="margin:20px; margin-top:5px; ">
Quote:
Originally Posted by Leader
I would figure you could run the orders through your own shopping cart, meaning you get near instant payment rather than waiting for ages like you would as an aff.

But despite that, this particular program has far more bad points than good. There's the problems mentioned above: Amazon can't resist sticking their name on the box. Their idea of customizing the packing slip is actually merely adding a "gift" message. Etc.

Oh, and get this, (sarcasm) woooOOooo what a deal! (/sarcasm) Here's the total deal-breaker:
So, in order to make any profit off the deal, you have to price "your" items above their onsite offerings--effectively pricing yourself out of the market except for sales from the few rubes who haven't found Amazon already!

That program is for clueless n00bs. Paying for stuff at FULL RETAIL and then reselling it for "super"-retail isn't good business. Someone (who has a clue) who wants to be a merchant would want to get true wholesale pricing for themselves, and the profit comes from the gap between wholesale and retail. Customers, for the most part, have an idea what things should cost, and if you can't get your prices within that band, forget it! And the only way I know of to reliably do that, AND make money, is to be buying the stuff wholesale.

Amazon's serving out Kool-Aid by the gallons when they imply that their prices are cheap from a merchant perspective. They're nowhere near wholesale and any would-be merchant using Amazon retail prices as their COST price is going to get stomped all over the place.

Considering the above--being an affiliate for Amazon would be better than using their so-called drop ship program. At least as an aff, you can push the stuff at Amazon's regular price and get a commish off of it.

I give this one two big thumbs down.
  #12  
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Join Date: June 20th, 2007
Posts: 9
The Amazon Drop Ship program is great if your an at home business trying to manage a ton of orders that you can no longer handle to fulfill yourself. It has nothing to do with being an Affiliate of Amazon, its designed and used by merchants who do not want to warehouse their own inventory. Its quite inexpensive when comparing it to the overhead of running your own fulfillment center. I recommend it highly to companies who may be in wholesale now and used to selling large quantities of product vs. b2c orders.
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  #13  
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Quote:
Originally Posted by Oziman
Without going in to detail, let me just say that you can easily sell stuff from Amazon on ebay, and get more then it sells for on Amazon.

Trust me - I tried it b/c I didn't believe it either but it worked...
While I'm sure it's possible, I still would think that to make serious money as a standalone business, it would be much better to deal with a wholesaler.

Quote:
The Amazon Drop Ship program is great if your an at home business trying to manage a ton of orders that you can no longer handle to fulfill yourself. It has nothing to do with being an Affiliate of Amazon, its designed and used by merchants who do not want to warehouse their own inventory.
What Michael Coley said in Post #9. Their fulfillment program is a separate deal.
  #14  
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Join Date: December 6th, 2006
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Trust -

As i Mentioned in my post - it's definitely not my business model - I just wanted to see if it would work.
  #15  
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Quote:
Originally Posted by shilmy
Hello, I just read at amazon.com about their service, drop ship by amazon. I've read all the info but fail to understand, what is the benefit of this service compared to their affiliates program.

Can somebody give an insight?

Regards,
Sjarief

My understanding of the benefit of their new service is that they allow product manufacturers, and other retailers the benefit of using their world-class warehouse, inventory, shipping and logistics facilities.

For a product manufacturer that just wants to focus on his specialty, this means he has a new sales channel from which to sell his good, without having to worry about storing the product, marketing, shipping and or providing service. Normally, those are very expensive functions that a manufacturer would have to outsource. While they would still be outsourcing the tasks to amazon, now they only need one partner company.

I could be wrong, but that was my understanding of the thing.


Happy Selling!,
AmazonDev
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  #16  
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Join Date: January 26th, 2008
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I have filled in the form (amazon dropship) but no reply from them.
  #17  
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Quote:
Originally Posted by oziman
Without going in to detail, let me just say that you can easily sell stuff from Amazon on ebay, and get more then it sells for on Amazon.
And the reverse can also be true. There's a set of out-of-print books I'm collecting that is still popular. When one of the rarer ones comes up on eBay, I sometimes buy it and then sell it on Amazon if I already have it in my collection. Not everyone selling books on eBay checks the books' value first. Call it book arbitrage, I guess.
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  #18  
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Join Date: March 20th, 2008
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You're confusing 2 different programs

Hello All,

You're confusing 2 different programs here. If you have your own products and would want to store them and fulfill the orders through Amazon, you would use their Order Fulfillment Program, NOT their dropship program.

The Amazon Dropship Program works like this. You set up a Corporate account and you obtain a resell license from Amazon. Then they want you to advertise and sell their products. Once you make the sale you have to sign in under your corporate account and order the product and have it shipped to the customer. All these sales get tracked at full price, and you don't make any money until you have sold $500,000 in orders, (within a 12 month period). After you have made the $500,000 in sales they pay you a commision of a whole 3% on those sales, and then you get the same 3% for the rest of the 12 month period. It starts over again every 12 month period. Did I mention you also have to fill out a gift receit with every order to protect your source information?

It's not at all worth it. It's much better to sell as an associate and get a cut from each sale without aggrivation.

For the guy that sold Amazon Products on Ebay for a profit. I usually cut Amazon prices so feel free to use my products to resell. No resell license needed. You can also use this 10% discount coupon code [REMOVED]. That actually goes for any of you looking for a product source.

Here is my site [REMOVED]

Hope this helped, D. Harnden

Last edited by MichaelColey; March 20th, 2008 at 12:20 PM. Reason: Ad Removed
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  #19  
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Join Date: March 6th, 2009
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Hi,

I have been trying Doba to push items to eBay... any comments, feedback, experience with Doba...? Doba was recommended by eBay which is listed on eBay's website as trusted dropshipper.

Bassam
  #20  
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Join Date: March 22nd, 2009
Posts: 1
doba is trash, and not truly a wholesaler. You can only buy for wholesale prices, and sell for retail prices if you are a registered business with a tax id and sales certificate. And any entity not selling for a true wholesale price (amazon) and suggesting dropshipping or retail options for it's members is ridiculous at best. Profit comes from the difference between the retail, and wholesale price.

A good tip is to make sure a wholesaler doesn't "require" you to purchase one of their websites, or pay a monthly fee to sell their products. So companies like doba (registered business) offer you one of their websites for a price and promise. Amazon and doba and others like them are using people who desire to sell products, to do exactly that... sell products.. for them. It's a way for them to push their products for the same exact prices, however now they have more websites, and more people interested in advertising for them because they have people fooled into believing they will make money.

Don't fall for this. Pay the $300 bucks, register an LLC or Corp and start dropshipping from real wholesalers who will offer you actual wholesale prices. A little bit of research can go a long way. Don't fall for the first three links that appear on google when you type in "dropshipping."

oh and ps.. i'm sure some people have made a little bit of extra cash using amazon and doba, but it's never going to be something you can expand or retire on.
  #21  
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Join Date: March 13th, 2007
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Quote:
Originally Posted by greenbizowner
doba is trash, and not truly a wholesaler. You can only buy for wholesale prices, and sell for retail prices if you are a registered business with a tax id and sales certificate. And any entity not selling for a true wholesale price (amazon) and suggesting dropshipping or retail options for it's members is ridiculous at best. Profit comes from the difference between the retail, and wholesale price.

A good tip is to make sure a wholesaler doesn't "require" you to purchase one of their websites, or pay a monthly fee to sell their products. So companies like doba (registered business) offer you one of their websites for a price and promise. Amazon and doba and others like them are using people who desire to sell products, to do exactly that... sell products.. for them. It's a way for them to push their products for the same exact prices, however now they have more websites, and more people interested in advertising for them because they have people fooled into believing they will make money.

Don't fall for this. Pay the $300 bucks, register an LLC or Corp and start dropshipping from real wholesalers who will offer you actual wholesale prices. A little bit of research can go a long way. Don't fall for the first three links that appear on google when you type in "dropshipping."

oh and ps.. i'm sure some people have made a little bit of extra cash using amazon and doba, but it's never going to be something you can expand or retire on.
I know I'm a bit late to chime in on this one, but here goes anyway....

Doba provides a service. They have the relationship with the actual wholesale supplier. They charge a monthly fee for the service that they provide. This service includes data feeds to pre-populate your store, and thus makes getting up and running a quick process. So what you are really paying for is the service, the easy of use.

That being said, it is evident that retailers who opt instead for dealing directly with a genuine wholesale supplier do get the better wholesale prices. YOU represent yourself, and YOU form a relationship with the supplier.

There are plenty of scams out there, and you don't want to be caught by even one of them. Don't be fooled by wholesale lists of thousands of suppliers that cost $15 or less... sure, you may find one or two suppliers among the thousands of junk phone numbers, bad email addresses, and fake names - but how long will that take you?!

So, how do you find a GENUINE wholesale supplier? Do your research. Look at the product packaging, find the manufacturer and call them and ask them for a list of their factory-authorized wholesale suppliers, attend tradeshows, read industry publications - trade magazines are good place to find wholesale suppliers.

There is a lot of education about dealing with wholesale suppliers on the web, so do a search and be skeptical. Be very weary of people who claim to be the wholesale supplier. Here's a hint: If they don't ask you for your Sales Tax ID, they are NOT the wholesale supplier. We've posted a lot of educational content about dropshipping and wholesalers etc. It's all on our YouTube channel.

Colleen Darwent
Affiliate Manager
WorldwideBrands.com
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  #22  
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Join Date: June 3rd, 2010
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amazon drop ship program.thats good.

Last edited by BurgerBoy; June 8th, 2010 at 05:29 AM. Reason: removed image hot link
  #23  
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Join Date: September 7th, 2010
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Does Amazon still have a Drop Ship program?
  #24  
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Join Date: September 5th, 2008
Location: The best place in the world - Internet
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ermm...

where can i find amazon dropship website ? It seems that it's been removed
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  #25  
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Quote:
Originally Posted by superhero View Post
ermm...

where can i find amazon dropship website ? It seems that it's been removed
Fulfillment by Amazon shipping service dropship, FBA drop shipping
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