Amazon slashed your affiliate rates? here is a solution

The only problem I see in the strategy is the fact that Amazon cross-sells and they know this (this is why they keep pressuring up the affiliate commissions).

Most of the times you won't be earning by selling the product you affiliate, unless maybe certain more specific niches.

Amazon is a proficient seller while a Shopify dropshipping site tends to a mediocre seller with an increasingly bad reputation (younger people start to detect the classic patterns that make Shopify... Shopify) for just 15% profit.

The big question is: with a 3% in Amazon vs 15% shopi site, do you really think you could outrank (1/5+ sales) the Amazon process?

I'm not 100% sure.

Don't forget that the Amazon affiliate site generally is looking for an autopilot method to scale on what he already masters (content). But going "vertically" is including more steps on where mastery doesn't exist

Example: I have an ice cream shop... and buy the product to an ice cream manufacturer which has been increasing the costs in the past few years. Now I've bought an ice cream machine, I've rented space near my shop to start creating that ice cream and I don't have enough budget to have a guy creating that product, so I have to split my time between selling and making product... I'm really good at selling icecream but I suck hard at making icecream (the machine gets stuck constantly, I forget to purchase some of the ingredients or I miss the control of which are about to be depleted).

Although it is true that despite my errors, I have reduced my costs by 30%, also my sales will be reduced (I have less time to spend on the counter).

Personally I don't think dropshipping for an affiliate site is a great idea unless you can leverage your time and you don't have anything else great to do or you are the kind of guy that loves to do like 10 different things. But I know a ton of affiliates that are just good at that: developing tons of affiliate contents.

I think that is a way better option, to chase for businesses that give good alt affiliate commissions and eventually start replace Amazon for them (aliexpress? 8%, 30-day cookie...) and A/B test which reports better profits.
 
Why will they pay extra to buy from you than Amazon?
 
You didn't address the part where you piss off your buyers for reselling an Amazon product to them that they could have gotten at a cheaper rate directly from Amazon.

I already do this and can confirm it works, but to address your point directly, amazon only hold something like 30% stock, the rest are the 3rd party marketplace sellers. So they won't necessarily be receiving amazon packaging, but so what if they do, many sellers across multiple marketplaces use amazon fulfillment.

Basically, don't knock it till you tried it.
 
It will cost him more money & time to return the package back to you. and he already has in his hands what he was looking for, would you return it for a couple of bucks? some will, some not. but most of them will not. chill

I hope it helps you

Thanks for the idea my man. I really appreciate all these Amazon posts right now, as it is saving me having to work out what the hell I am going to do in the future with these sites!

My current philosophy is to not worry about it, and wait for helpful people like you suggest a few alternatives. Let them percolate a little in the old noggin, and then make a decision on Monday.

This idea has been floating around my head for several months already, but like @SirLouen says, one of the benefits of an Amazon site, is that you only have to focus on content and SEO, they do the rest. Probably why I have not moved forward until now.

Will make a decision on Monday, but I think it will be different approaches for different niches.
 
Anyone tried this? Seems promising but there are few concerns.
 
There are some Amazon exclusive product which are available only on amazon. Will i face any issue if i dropship them?
 
Will i face any issue if i dropship them?

The only issue, is that you get too many returns, for deceiving they can file you a dispute. Or the fact that a client contact straightly to amazon in your name since they have your info in the postal package (at least in my country, not sure how they operate in other countries).

Be aware that this is a blackhat technique so you could face issues at some point although, it's unlikely if you don't sell too much.

I think it may work better if you only sell marketplace sellers (not amazon FBA), because the client won't be expecting from where it comes from (And the FBM don't send with Amazon packaging). Technically is similar as doing this with any other marketplace like eBay or Aliexpress.

one of the benefits of an Amazon site, is that you only have to focus on content and SEO, they do the rest.

Also, the automation is seriously limited. There is plenty of manual work in the process although some plugins can slightly help. As you may see in most plugins they suggest going for a big % for selling. It will be a massive work to keep prices updated constantly based on Amazon pricing. As I said, possible but unlikely.
 
The only problem I see in the strategy is the fact that Amazon cross-sells and they know this (this is why they keep pressuring up the affiliate commissions).

Most of the times you won't be earning by selling the product you affiliate, unless maybe certain more specific niches.

Amazon is a proficient seller while a Shopify dropshipping site tends to a mediocre seller with an increasingly bad reputation (younger people start to detect the classic patterns that make Shopify... Shopify) for just 15% profit.

The big question is: with a 3% in Amazon vs 15% shopi site, do you really think you could outrank (1/5+ sales) the Amazon process?

I'm not 100% sure.

Don't forget that the Amazon affiliate site generally is looking for an autopilot method to scale on what he already masters (content). But going "vertically" is including more steps on where mastery doesn't exist

Example: I have an ice cream shop... and buy the product to an ice cream manufacturer which has been increasing the costs in the past few years. Now I've bought an ice cream machine, I've rented space near my shop to start creating that ice cream and I don't have enough budget to have a guy creating that product, so I have to split my time between selling and making product... I'm really good at selling icecream but I suck hard at making icecream (the machine gets stuck constantly, I forget to purchase some of the ingredients or I miss the control of which are about to be depleted).

Although it is true that despite my errors, I have reduced my costs by 30%, also my sales will be reduced (I have less time to spend on the counter).

Personally I don't think dropshipping for an affiliate site is a great idea unless you can leverage your time and you don't have anything else great to do or you are the kind of guy that loves to do like 10 different things. But I know a ton of affiliates that are just good at that: developing tons of affiliate contents.

I think that is a way better option, to chase for businesses that give good alt affiliate commissions and eventually start replace Amazon for them (aliexpress? 8%, 30-day cookie...) and A/B test which reports better profits.

The only issue, is that you get too many returns, for deceiving they can file you a dispute. Or the fact that a client contact straightly to amazon in your name since they have your info in the postal package (at least in my country, not sure how they operate in other countries).

Be aware that this is a blackhat technique so you could face issues at some point although, it's unlikely if you don't sell too much.

I think it may work better https://apps.shopify.com/supersds-amazon-dropshipping (not amazon FBA), because the client won't be expecting from where it comes from (And the FBM don't send with Amazon packaging). Technically is similar as doing this with any other marketplace like eBay or Aliexpress.



Also, the automation is seriously limited. There is plenty of manual work in the process although some plugins can slightly help. As you may see in most plugins they suggest going for a big % for selling. It will be a massive work to keep prices updated constantly based on Amazon pricing. As I said, possible https://apps.shopify.com/amazone-dropshipper.

Sir... by reading your replies, It's obvious that you have no experience with dropshipping from Amazon. So at least, don't spread false information. people need to wake up and understand ... that the next move of Amazon will be to wipe them out completely from the business. Working for 3%? this is nonsense. Amazon is not looking for affiliates anymore.

I appreciate your detailed replies, don't get me wrong. But... don't try to be smart when actually you are not. also, when you claiming for too many returns, back it up with some proofs. no one really knows what motivates you to decline this method. ;)

Have a good day
 
when you claiming for too many returns, back it up with some proofs.
As I said, this is probably the minor of the problems you will find.

The one that should be backing this, is you, who proposed it.

My reasons to put in doubt this strategy, are mostly explained in the second post: I don't clearly see the strategy to keep it right according to prices for that 15% profit you mention.

Also, are you 100% confident that this is not against Amazon TOS?

Also thinking: With a good affiliate site, with 100+ orders per month, how can you automate all the dropshipping process? Are you going to manually place the orders from your Amazon account to hundreds of different addresses across the country?

I'm not saying that this strategy is not viable, I'm just having a ton of doubts that maybe shall be rethought. Or maybe it's easier than I think... who knows.
 
As I said, this is probably the minor of the problems you will find.

The one that should be backing this, is you, who proposed it.

My reasons to put in doubt this strategy, are mostly explained in the second post: I don't clearly see the strategy to keep it right according to prices for that 15% profit you mention.

Also, are you 100% confident that this is not against Amazon TOS?

Also thinking: With a good affiliate site, with 100+ orders per month, how can you automate all the dropshipping process? Are you going to manually place the orders from your Amazon account to hundreds of different addresses across the country?

I'm not saying that this strategy is not viable, I'm just having a ton of doubts that maybe shall be rethought. Or maybe it's easier than I think... who knows.

I have already backed it up, Sir. with hundreds of clients who use a similar business model. https://i.imgur.com/fMXqDQF.png.

I saw before... you claimed that 15% isn't much.
  • (Dropshipping) 15% @ 5000$ = $750
  • (Amazon) 3% @ 5000$ = $150

Numbers talking. Not me. Not even mentioned the fact that you are under the mercy of Amazon. what will be their next move? maybe from 3% to 1%. Once they can't decrease it anymore... they will simply wipe you out if you don't understand their rumor ... they cannot wake up one day and close the ''shop''. so they doing it in stages 1,2,3.

Also, are you 100% confident that this is not against Amazon TOS?

TOS? you can use Amazon's business account to fulfill an unlimited amount of orders. Prime membership could also help you. (It's against the TOS with Prime)
the name of this forum is not digital point . I am 100% against breaking any law but there is a huge difference between the TOS of a company than Official laws.
at the same time... there are ways to do it without breaking the TOS too.

For example;
You are not sure about the product. At first, you could test if it working out for you. so you dropship 3-4 pcs directly from AMZ. have sales? buy bulk, ship it a Wearhouse who offer fulfillment services. If it's called breaking the TOS, then 90% of Amazon / eBay sellers are breaking the rules.

This is just 1 example. I will not spoonfeed anymore, but you got the point.

Also thinking: With a good affiliate site, with 100+ orders per month, how can you automate all the dropshipping process? Are you going to manually place the orders from your Amazon account to hundreds of different addresses across the country?

There are many tools in the market that can help you automate it. it can become much easier when you have a Prime account and decide to ship only to USA. since shipping is free for all orders and Amazon support services is the best in the world when you need to return an item. you will have to learn more about it.

In simple words, buy cheap, sell high. this is what everyone does.
 
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For my luck, I am not doing Amazon affiliate. But when I have heard that Mr.bezos slashed the affiliates from 8% to 3% and use these funds to pump AMZ INC I was felt bad for my friends. But I guess this is the right time for Mr.bezos to prove to the world that even when the world is at an economic crash - he is still one step ahead of everyone. congrats bro

Anyways... I am not sure if you do know but some people doing dropshipping from Walmart, Overstock, Amazon, etc.

Now, you can take this opportunity to upgrade yourself and truth is... that you don't need more than $5 for a domain to start. because Shopify is offering to their developer's free stores without a subscription that costs you $30. So you can register yourself as developer and start building your store from scratch. It's much quicker than doing it with Wordpress. you can register here as a developer and start your free store - Until you hit 50 sales.

Now, after you registered for Shopify, you can use a Shopify dropshipping plugin and start import products from Amazon to your Shopify store. once your Shopify store is ready, all you have to do is raise the prices by 15% and change the URLs in your money site to your own dropship store. when you got an order - ship it to your client directly from Amazon.

''but bro, my customer will order from my site and see Amazon packaging"'
Sir, your customer does not give a fuck (usually) about a few dollars here and there.

It will cost him more money & time to return the package back to you. and he already has in his hands what he was looking for, would you return it for a couple of bucks? some will, some not. but most of them will not. chill

I hope it helps you

use gift packing or wrapping whatever its called, i was doing this back in 2018. The problem that you will face after some time is that when you will start bulk ordering amazon will start declining your card.
 
use gift packing or wrapping whatever its called, i was doing this back in 2018. The problem that you will face after some time is that when you will start bulk ordering amazon will start declining your card.

Giftcard could be a solution.
 
Thats a nice guide bro. So basically we buy the product from amazon and ship to them. It seems easy. But there is no cost for this right? Except for the domain?
 
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