Amazon Dropshipping Business

Amazon Dropshipping Business

is a great business idea for those who want to eCommerce business but don’t have enough resources like a warehouse for the products, shipping, and billing mechanism, etc.

However, the concept of Amazon Dropshipping Business is not new for the western world but in USA in its infant stage.

Recent surveys showed us that eCommerce businesses penetrated 74% market in the festive season of October 2020.

SO, there is a huge growth opportunity in the eCommerce business expected in the upcoming years in the World.

The future of dropshipping is bright in online business if you do it genuinely and smartly. Along with the benefits of dropshipping business, there are flaws in it, if you don’t do it smartly.

One wrong step takes you to a bad reputation and capital loss so read this guide carefully before heading over to dropshipping business.

I will show you how to do dropshipping in USA smartly and make it a long career for you.

What is Amazon Dropshipping Business?

Amazon Dropshipping Business is a form of retail eCommerce business model where the store doesn’t keep the products in the inventory it sells on their website

If you have just encountered the word “dropshipping” then I would like to share with you its definition. Those who already know the concept of dropshipping can skip this section.

Instead, after every sale, the online shop purchases the same product from the third party who then processes and ships the product to the customer on the behalf of the online shop. 

Sounds complicated?

How Does This Business Model Work?

Suppose, you have a physical shop where a customer came to buy something but you don’t have that product right now.

He impresses with the product and made a purchase order to you and pay you in advance.

You contacted the wholesaler and they send you the product at the wholesale rate. After receiving the product you delivered it to the customer.

I know, it’s not so common in a physical way. However, it’s already in work in the field of construction material such as plyboards, bricks, sand, etc.

It’s not common in a physical way because the customer visits your shop and demands the actual product the right way.

BUT, in the online world where the showcase of a physical product is not possible, you can do it easily.

Is Dropshipping Profitable?

When you try a business like that you haven’t backtested before or seen your friends doing it, it’s normal to be uncertain regarding the profits.

However, people are indeed making millions by dropshipping. It’s also true that 95% of people drain their money in dropshipping hoping for a quick success and don’t get the profit they expected.

The chance of success in dropshipping always depends on two things.

  • Strong management
  • Vision

 If you don’t have a clear vision regarding your business and your management is not good then there is a big chance you would not be successful in any business.

Why Should You Start Dropshipping Business worldwide?

Why Should You Start Dropshipping Business worldwide?

Here comes the question, why should you start dropshipping in USA?

Before, discussing this, let’s have some more stats.

According to the Government of USA’s Ministry of Commerce & Industry, the USA e-commerce market was over USD 38.5 billion in 2017 and is expected to reach USD 200.0 billion by 2026, at a CAGR of 51%.

If you don’t know about CAGR then I would tell you it’s the compound annual growth rate. And a 51% CAGR is great for a sector.