Amazon FBM Dropshipping

How does dropshipping on Amazon work?

Dropshipping is an e-commerce method in which the seller takes orders on behalf of a manufacturer, distributor, or supplier. Then, when a customer buys the product, the seller uses their supplier to fulfill those sales.

Often, dropshippers reposition the sold goods as their own and the end consumer is never made aware that the goods came directly from the manufacturer. This practice is popular on e-commerce sites like Amazon, Ebay, and Shopify.

Here is a diagram that explain this Dropshipping Model in a simplest way:

  1. First, an Amazon customer (on the left-hand side of the diagram) purchases the product you’ve listed on Amazon. 
  2. Second, once the transaction is finalized and you receive the funds, you purchase the product directly from the supplier (on the right-hand side of the diagram) and give them the customer’s information. 
  3. Lastly, with the buyer’s information in hand, the supplier then sends the product to the customer.

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