Why I Quit Amazon Dropshipping!

i quit amazon and this is why now we all know that amazon is the king when it comes to e-commerce in fact it's estimated that about half of all e-commerce sales flow through amazon which really explains why jeff bezos is so stupid rich but he's not the only one who's making money from amazon about half of all of amazon's sales come from third-party sellers that's regular people just like you and i so there's a lot of regular people out there making a lot of money with amazon in fact i've been drop shipping on amazon for several years now and have made a lot of money doing it and i have a lot of students in my course all about amazon drop shipping who have gone on to make even more money than i have so it definitely does work and you can definitely make some good money selling on amazon but you saw the title of the video if i made so much money from amazon why did i quit and the short answer is basically just because i'm tired let me explain when i first started selling on amazon even back then drop shipping technically wasn't allowed now i say technically because amazon would allow us to do it they knew we were doing it they let us do it as long as we did things like upload tracking numbers respond to a to z claims ship out our items on time upload tracking numbers you know basic customer service and as long as we did that we were fine and we got along fine and made a lot of money with amazon but over the last few years amazon has made things much more difficult for us and for me this really started with their return policy now if

you sell on amazon using their fba program which is their fulfilled by amazon program then amazon handles all the returns for you so it's very simple but we don't use fpa as drop shippers we are third-party merchants who are doing merchant fulfilled orders meaning we have to handle the returns ourselves now the way that we want returns to happen is the customer requests one then we go to our supplier and say hey we want to return this item they send us a return label that we then give to our buyer and the buyer then ships the item directly back to our supplier so we never have to touch or handle it and that's the way it used to work flawlessly on amazon but slowly amazon has made it more difficult for us because they started to automatically approve returns for buyers and then the items would get shipped directly back to our house and we'd be charged the postage for that return now there are ways around that are ways to kind of circumvent that so that the item does go back to your supplier but it's getting more and more difficult to do that and increasingly we're seeing items returning back to our home which we don't want at all the next thing that

amazon has made more difficult for us merchant fulfilled sellers are a to z claims now if you're not familiar with a to z claims that's basically when a customer on amazon says hey i never received the item or i received the wrong item or the item was damaged or i returned the item and never received a refund they could open up a claim called an a to z claim now fba sellers don't have to worry about that but us drop shippers we do now in the past the way that these were handled were the case would be opened and we would have time to respond we would say oh we actually did ship it here's a tracking number or hey it was damaged let me just refund you or we did get it back let me just refund you know if you worked with them you could always solve them and then these a to z claims wouldn't count against your account as part of your metrics as a part of a negative metric but over time we've seen amazon they start to open up these cases and then immediately close them in the buyer's favor they refund them and we get a hit on our metrics and they never really give us a chance to solve the issue ourselves this is so frustrating because a lot of times it's not our fault we have tracking numbers showing the item's been delivered and it's just really frustrating that amazon won't let us put forth our evidence and really put forward a case proving that we should win the a to z claims now this doesn't happen every time but it's happening enough that it's getting to be pretty frustrating the next thing that

amazon has made harder for us sellers are tracking numbers now i don't want to spend too much time getting into why tracking numbers are getting more difficult because it's a little bit complicated but basically what it comes down to is that even though we upload tracking numbers to amazon for some reason amazon doesn't count them as valid tracking numbers even though they are this has been something that's changed and we're not really sure why and that negatively impacts our count as sellers which is unfair again because we are actually uploading valid tracking numbers for the orders so we're still fine with those we're still above what we need to be but it's just frustrating it feels like we're always just struggling just to keep our metrics high enough when it comes to tracking numbers

and the last big change that has really impacted us as sellers and as drop shippers is amazon's drop shipping policy itself now like i said before amazon has always had a drop shipping policy and it pretty much says that you are allowed to drop ship but you are not from another retail store it has to be white label drop shipping in other words when the buyer gets the item they can't believe or suspect that it came from some other seller it has to look like you are actually selling the item but amazon has always kind of ignored that they've allowed us to sell as long as we're providing good customer service and doing what we're supposed to do increasingly what we're seeing is that if you start an amazon account and start drop shipping right away then within the first two to three months you might get suspended right away for drop shipping if you can survive that time period then you should be fine but it's really the new sellers that are really facing the difficulties because that's kind of when amazon looks at your account and really checks it to make sure you're being a good seller within those first few months of selling once you get past it like i said you're usually fine but if you have poor metrics your account can still get suspended and what causes poor metrics well things like not having valid tracking numbers not handling a to z claims all these things that now we don't have as much control over because of the other things we talked about earlier in this video now when a suspension happens you can overcome them you can get your accounts back so it isn't a huge issue but it's just kind of a pain when it does happen and for a lot of new sellers if you start selling get suspended within the first few months a lot of people just give up you shouldn't give up you should get unsuspended and keep going because once you get past that point you're in much better shape but i can understand why you just want to give up if you get suspended so quickly on amazon

all right so selling on amazon has become more frustrating but a lot of people will see that frustration as an excuse not to get started or not to continue but other people will see the frustration as an opportunity because if a lot of people aren't going to start or continue with amazon because they just find it too frustrating then that creates an amazing opportunity for the people that are willing to deal with the frustrations and are willing to keep selling finding ways to make it work finding ways to work with amazon and continue to sell and we know it continues to work because i see plenty of people doing it plenty of my students are selling on amazon drop shipping successfully so it still works so why if it still works am i going to quit well to be 100 honest i've just been feeling a bit overwhelmed i run multiple e-commerce stores on ebay amazon facebook marketplace i have this youtube channel i have an instagram where i'm giving you guys free knowledge every single day i have three online courses where i teach ebay amazon and facebook marketplace i have a chrome extension that i provide as a service and i also have a second youtube channel so it's a lot and even though i have virtual assistants who are helping me and even though i feel really blessed to be able to do this and have this be my life i still feel like ultimately the responsibility always falls on me whenever there's a big problem it's up to me to solve it and to pick the direction that our business goes in so i'm kind of like a breaking point right to me i just need a break from something i need to eliminate something so i don't feel so overwhelmed and even though amazon is the king of e-commerce it's had the most headaches for me recently ebay and facebook marketplace they're just going so well especially this year if you guys haven't tried out facebook marketplace yet i highly suggest it is an amazing place to be drop shipping right now so much opportunity so little competition and your margins can be really high on it so you're not going to deal with all those headaches that i talked about with amazon in fact guys recently i did a training on how to start a facebook marketplace drop shipping business and i'll have the replay available for a limited time in the description just click the link there and sign up for that free training so because facebook marketplace and ebay

have been doing so well i decided to get rid of amazon for now and kind of take a break from it for a while now because i always try to lead with integrity just want to be honest with you guys i've decided to temporarily close down my amazon course for new students it's closed for enrollment and the reason for that is because even though amazon drop shipping does work and what i teach does work and my students are still getting results with it and still making money with it i just didn't think it was right for me to continue to teach it or to have the course open for enrollment when i don't do it myself what if something changes on amazon i won't be able to update the course at least for now so just to have full honesty and transparency and integrity there i've temporarily closed that course like i said i still believe it works but for now until i start doing it myself i just don't feel comfortable selling it to new people but this is all temporary i'm going to be back on amazon there's just too much opportunity there for me to ignore it so i will be back eventually but for now i'm just kind of happy taking a break from it so i hope you guys enjoyed this video if you did make sure to give this video a big thumbs up and then subscribe to the channel for more videos on e-commerce drop shipping ebay facebook marketplace and eventually more stuff on amazon and then check out the link in the description for that free facebook marketplace drop shipping training i'll see you guys over there in just a few seconds