If you’re new to dropshipping on Amazon, you may come across several hurdles besides the obvious issues with Amazon dropshipping policies. We’re not just talking about finding the right suppliers, products, or prices here. You should also factor in some of these obstacles:
Startup Costs
As you draft your dropshipping business plan, consider your initial costs. Budget for things like Amazon seller fees, bearing in mind that many FBA fees have risen this year. If you’d rather stick with MFN, you should still be able to cover your selling plan, referral fees, shipping expenses, refund fees, ad costs, etc.
FBA Integration
When it comes to Logistics and Customs, you don’t need to hand over the entire fulfillment process to your supplier. Some suppliers can send inventory straight to Amazon through the FBA or EFN network. Others may require you to sign up for Multi-Channel Fulfillment (MCF) if you sell on multiple marketplaces. If your supplier is based in Asia, you could even outsource international shipping and customs to Amazon Global Logistics (AGL). But these all come with added costs.