Budget of Dropshipping
The world’s largest e-commerce brand and technology company Amazon has increased the number of users with its pandemic process. However, the number of people who want to earn income by selling from Amazon also increases. Dropshipping is one of the first ways that people who want to sell from Amazon come to mind.
How much capital is required to do dropshipping on Amazon?
So how much money should you have for dropshipping? The answer to this question can never belong to anyone else, and you have to answer this question yourself. You should draw up an investment plan by examining your economic conditions and the conditions Amazon offers.
You should examine the professional supports you can receive according to the country you are in and determine the level of risk. To minimize this level of risk, you should use the resources and products you believe are reliable. For example; Pirahas, with Amazon’s first technology partner in Turkey, product research offers a fully automated solution for you. Let’s examine the factors that determine your investment.
Dropshipping is not free
If you plan to earn income by dropshipping and think that you should have no investment for this method, you are completely wrong. For example; One of the rules of using Amazon as a dropshipping tool is that sellers are not allowed to purchase products from a third-party company and then sell them on Amazon. For this reason, all products must be shipped with your company listed as a registrar and must be your company name.
This means that you have to pay for dropship on Amazon. These fees vary depending on which product you sell and how much you pay. There are two different plans for this; individual plan and professional plan. Under the individual plan, 0.99 cents plus a fee is charged per product sold. In the professional plan, it is $ 39.99 per month and is charged regardless of the sales volume. If you plan to sell less than 40 items each month, it is cheaper than the monthly plan.
How much do you plan to sell from which product?
This question is very important essential for your business and your initial investment fee. These two plans define the initial fees you must pay before selling any product. The actual product cost depends on what product you will sell and quantity. Amazon has a cost calculation application that shows you what the cost of using the services is.
There are many factors to consider, such as the product weight and size, the ‘Realization by Amazon’ fee and the recommendation fee for Amazon to package, store and ship your products.
Determine your conditions and risks
If you aim to start a small business and earn money with e-commerce, you should set your own terms objectively. You must calculate the costs that the system brings to you and determine your initial investment accordingly. The initial investment varies according to your goals and budget. Never forget that there is a great competition and prepare yourself for this competition. Determine your budget planning and strategies in a way that suits you best.
Prepare yourself for risks, as with any system, there are situations where the dropshipping system has advantages and disadvantages. Accept that a certain level of risk always exists. For example, you will send the product you choose to the customer without seeing it. You will be at risk of being unaware of any problems that may occur in the product. Another problem will be cargo. The supplier will deliver the cargo, but if there is a problem, you will be the one to contact the customer.
Build the best business model for your budget
After determining your costs, products and risks, create the model that best fits your budget. Amazon is a great platform to create a dropshipping operation that will bring your business online, but that doesn’t mean the core foundations of business and sales are no longer valid. The initial and monthly costs of running a dropshipping job vary depending on the model you choose. Build your own model and start generating revenue.
One of the most important points you need to pay attention to after creating the business model that best fits your budget is to remain stable. When trading with the dropshipping method, amazon never promises to get rich in a day. Unexpected crisis situations can occur and if you can continue to be stable in these situations it will be an important turning point for your online store. Here, it is possible to be determined, to get out of the current situation with a positive or minimum loss and to ensure the continuity of the business by applying the strategy determined in line with the decisions taken. Because extraordinary situations often cause confusion. In such cases, it is extremely difficult to make decisions and implement them. However, being aware of the situation offers serious advantages. E-commerce is a job that requires patience and effort. The more detailed it is to have a physical shop, the e-commerce has its own challenges. You should evaluate your goals and possibilities correctly, and if necessary, you should not hesitate to take risks and be determined.
As a result, there is no specific entry capital or barrier to do Dropshipping. Your initial capital and the investments you will make after that change according to the possibilities you have. After your investment, what you will earn is completely proportional to your own behavior and strategies. The important point is not how much you need to invest. The criteria that you need to set before; your goals and what you want to do.