What preparations are required to start exporting and selling without inventory on Amazon?
In order to start selling without inventory on Amazon (drop shipping), you need to prepare and understand a few things.
1. Create a business plan:
First, you need to plan which products you will sell in which markets, and clarify your customer targets and sales strategy.
2. Market research:
Research the demand and competition for the product you want to sell, and consider pricing and sales strategies.
3. Opening an Amazon seller account:
In order to sell without inventory, you need to create a seller account on Amazon.
A professional account is recommended.
4. Supplier selection:
Find a reliable supplier and set up a system to have them supply your products.
We make business arrangements such as price negotiations, delivery dates, and quality assurance.
5. Decide on the sales method:
Decide on the method of listing on Amazon (individual listing, variation listing, etc.) and whether or not multi-channel sales are possible.
6. Inventory management and fulfillment:
Since we do not store products, we constantly check the inventory status of our suppliers and establish a method to manage the process (fulfillment) of delivery to customers.
7. Understanding of laws and taxes:
A thorough understanding of legal and tax elements of international trade, such as customs duties, consumption taxes, and international laws, is required.
8. Customer Service:
It is necessary to have a prompt and courteous customer support system to increase customer satisfaction.
9. Marketing and Advertising Strategy:
Develop and implement marketing plans and advertising strategies to inform the market about the product and increase sales.
The basis for this business model is that it is possible to sell products without actually holding inventory, that initial investment is low, and that it is easy to access various countries and markets.
However, Amazon's policies can change frequently and regulations on dropshipping are becoming stricter.
Selling without stock requires strict compliance with Amazon's terms and conditions, so it is important to check the latest policies and be careful not to violate them.
For specific rationales, the latest information, and detailed technical operations, please refer to resources such as Amazon's official website's Terms of Sale, dropshipping guidelines, and online seminars.
You may also require expert trade or legal advice.
How can you find suppliers and beat price competition?
Amazon export no-stock sales (or dropshipping) is a way to sell products without having to carry your own inventory.
Products are shipped directly from supplier inventory to customers, eliminating the need for up-front inventory investment.
Below we will introduce how to find suppliers in this business model and the key points to overcome price competition.
### How to find a supplier
1. Online directories: Use directories like SaleHoo and Worldwide Brands to find reliable wholesalers and dropshippers.
2. Industrial exhibitions: Attend exhibitions and trade shows in person to meet suppliers, view products, and build business relationships.
3. Search engines: Use search engines such as Google to search for suppliers by specific product or industry.
4. B2B Marketplace: Find suppliers around the world through B2B platforms like Alibaba and Global Sources.
5. Competitive analysis: Look at other out-of-stock sellers' product sources.
### How to beat price competition
1. Negotiate wholesale prices: Build long-term relationships with suppliers and negotiate better wholesale prices.
2. Selecting a niche market: Focus on a specific niche market with less mass competition.
3. Exclusive Contracts: Attempt to enter into exclusive contracts with suppliers so that competitors cannot sell the same products.
4. Add value: Win the competition by offering customer service and product customization without increasing unit prices.
5. Optimized Listings: Optimize your product listings with strong product descriptions, high-quality images, and SEO (search engine optimization).
6. Advertising and Promotion: Use sponsored ads and social media to increase product visibility.
7. Customer Reviews: Promote good reviews and feedback to increase credibility and sales.
### About the basis
These methods are actually strategies used by many inventoryless sellers, with knowledge gained from sources such as e-commerce industry reports, case studies, business forums, expert interviews, and online courses. is based on.
Finding the right suppliers for your business model is essential to maximizing profit margins and growing your business.
In addition, in order to overcome price competition, it is important to have a strategy that increases value for customers and differentiates products.
Although strategies will need to be tailored to each market and product, the methods above can be helpful as generally applicable principles.
What is risk management in non-inventory sales?
Inventory-free selling is a method of selling products without keeping physical inventory, in which the seller sells the products to customers, then orders the products from suppliers and ships them directly to the customers. .
Risk management when selling without inventory for Amazon export includes the following elements:
1. Supply risk
– Risk: If the supplier runs out of stock or delays delivery, delivery to the customer will be delayed.
– Management method: Secure multiple reliable suppliers and regularly check inventory status.
2. Price fluctuation risk
– Risk: While the selling price is fixed, if the purchasing price fluctuates, profits will be lost.
– Management method: Sign a contract with suppliers to share the risk of price fluctuations, regularly check market prices and adjust sales prices.
3. Quality control risk
– Risk: Product quality control is difficult because we do not directly manage inventory.
– Management method: Obtain product samples to check quality, focus on customer feedback, and respond quickly to quality issues.
4. Customer service
– Risks: Delivery delays and discrepancies in product information are more common with out-of-stock sales, which can reduce customer satisfaction.
– Management method: Provide transparent customer communication and accurately inform customers of the status of their shipments.
5. Operational risk
– Risk: Increased risk of violating Amazon policies and account suspension.
– Management method: Thoroughly learn and comply with Amazon's selling terms.
6. Cash flow management risks
– Risk: A lag in the timing of sales and purchases will affect the financial position.
– Management method: Manage the timing of sales and purchases to maintain appropriate cash flow.
Regarding the basis, these risk management methods are general business management methods based on the characteristics of inventoryless sales, and are supported by many business books, business management texts, and real-life examples such as managers' experiences. .
Additionally, Amazon has strict standards for inventory management and shipping performance, so if you don't properly manage these risks, your account rating may drop, and in the worst case scenario, you may lose your selling rights.
Therefore, these risks must be managed with great care when conducting inventory-free sales.
