Amazon Affiliate question

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BrokeITguy

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I know this isn't an original idea. But what i want to know is if there is anything wrong with it, do people do it, is it legal kind of thing.

lets say i want to sell tv's from my website. I sign up as amazon affiliate but don't directly link it to my site. Instead i use something like Inventory Source to go out and purchase the item automatically from my store when a person buys the product from my website, and lets say i marked up the product on my website some too. Is that ok?

Scenario: John comes to mytv.com (made up) and buys a tv for $500. I then turn around and buy the product from my amazon store for $400 and send it to him using my information but his shipping information and send it with a gift receipt. I pocket the $100 difference and whatever the crappy commission rate is with amazon on electronics.
 
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Where does amazon affiliate come into this scenario?

Are you basically going to be purchasing through your own affiliate link? If so, you run the risk of loosing your amazon affiliate account.

Either that or I have misunderstood.
 
This is typical dropshipping as far as I can tell. Tons of people are doing it.
 
This is called dropshipping and it is widely done by people, it is allowed as long as you dont use your own amazon affiliate link to buy the products.
 
This is not affiliate marketing what your planing to do, this is reselling.
 
You can't do that because you will be banned on the second purchase. It's against amazon rules.
 
If you want to lose your Amazon affiliate account, give it a try.
 
Ok so let's say I give up the affiliate account aspect and just order from my personal account and send out as a gift and do this purely as a reseller/dropshipper. That is totally fine?
 
BrokeITguy said:
Ok so let's say I give up the affiliate account aspect and just order from my personal account and send out as a gift and do this purely as a reseller/dropshipper. That is totally fine?
Click to expand...
Yes, that's totally fine.
 
Awesome. So why do people waste time building Amazon affiliate store websites instead of this way?
 
BrokeITguy said:
Awesome. So why do people waste time building Amazon affiliate store websites instead of this way?
Click to expand...

Because 1) conversion rates are higher with Amazon as it is more "trusted" in the buyer's eye 2) it's less of a hassle to deal with - a more lazy approach and 3) Many potential buyers are smart enough to compare prices on different sites, including Amazon.

Now, if you're able to find a great product for a cheap price on a site like Alibaba or Aliexpress, where many Westerns probably won't check or find, and you'll presumably make a nice profit, then it makes a lot of sense to do drop-shipping over Amazon affiliates.
 
BrokeITguy said:
Awesome. So why do people waste time building Amazon affiliate store websites instead of this way?
Click to expand...

Whole bunch of reasons.

Firstly, amazon affiliate means you don’t have to worry about dealing with returns or any of the customer side of things.

Secondly, you’re relying on the customer not going to check the price on amazon of their own accord and purchasing from there when they see it’s cheaper - quite likely considering how popular amazon is.

Thirdly, you have to convert the user on your own site, when for many people it is easier to send them to amazon and let amazon get the conversion - that’s their bread and butter.

Fourthly, upsells and cross sells with amazon affiliate. I often get conversions from amazon affiliate sites that aren’t the products I’m actively promoting. This happens simply because a visitor has ended up at amazon and remembered something they needed. Or added something else to their basket along with one of the products I’m promoting.

EDIT: @joseph15 beat me to it.
 
BrokeITguy said:
Awesome. So why do people waste time building Amazon affiliate store websites instead of this way?
Click to expand...

Along with everything users above have said, this also turns into a very passive income after the initial setup so that they can start to work on other projects while their initial site works for them.
 
So it boils down to the idea being plausable but just not a good one over all.
It would maybe only work for a low volume high profit type niche site due to the amount of effort involved and even then not the best idea.
 
It isn't a bad idea. A lot of people do this kind of service. It all comes down to what you are comfortable with. Do you have the time to order every time you get an order. Do you have the time to deal with customers if a package gets lost or broken or they just want a return? Do you have a fall back in case the item that you sold is sold out from your Amazon seller?

If it is something you are going to try, do a lot of research and come up with a good plan. Read through the posts here as there are a lot of people who have posted methods on this and learn from what they have failed and succeeded on.
 
You are effectively choosing if you wish to be an affiliate with no responsibility, or a dropshipper, which means you are 100% responsible for anything ordered and any issues.

Those are completely different business models. The first you are building a referral site the second you are builing a shop, that uses amazon to fulfill orders.

Building and running a shop is a lot more hard work than an affiliate site, yes you can make more per sale but it us a lot harder to build the site to get the sale.

If you have never done it before, i suggest start as an affiliate, then once you have steady traffic that converts you can always phase across to a shop.
 
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