Amazon’s WAR with DROPSHIPPERS – Fulfilled by Merchant VS Fulfilled by AMZ
Today’s video is about Amazon’s ongoing war against drop shippers.
Okay, Amazon sellers, those of you who are doing drop shipping as your entire business model, those of you who are doing drop shipping as a portion of your business, and anybody considering getting involved in drop shipping, you need to know this…
Amazon has not only religiously suspended drop shippers when the products have arrived at consumers’ doorsteps with somebody else’s packaging, but they’re taking other steps against you now as well.
What Amazon is doing against sellers who are engaged in drop shipping, both those who have products of their own and drop ship and those just doing drop shipping is they are killing your fulfilled by merchant status and compelling you to go FBA. Now, this is really brilliant by Amazon and their team because it compels you to actually buy inventory, send it to Amazon’s warehouse so that it can service Amazon’s consumers, and stop you from drop shipping. So this is what you need to be aware of. It’s not happening to everybody. The switch from FBM to FBA is not fatal. It allows you to pivot into another business model.
And overall, long-term, while there are boatloads and boatloads of Amazon sellers absolutely crushing it by drop shipping, I don’t believe it’s a great long-term business model. The best long-term business models on Amazon are to develop your own brand, source your own products, and then develop intellectual property rights while you’re selling the products on Amazon.
If you want to learn more about Amazon’s WAR with DROPSHIPPERS or developing your own private label brand: