Is it possible to make Amazon do all the heavy lifting when I receive an order? As in, can I list a new product on my website, for this example, lets say it's an XBOX 360.
Then when a customer buys this item, can an email be automatically sent to Amazon. Amazon then sends the item to the customer and the money gets deducted from my account?
Is this possible at all?
There are a few popular "courses" out there that teach how to use Amazon as your drop shipper and I have to say this sounds like a terrible idea to me... the margins are simply not there and what happens when you have to deal with returns or the customer finds out you simply purchased the item from Amazon? IMO this is a quick way to get negative feedback and unhappy customers.
I think you should always go direct to the source when it comes to drop shipping. Obviously this means you won't be selling Xbox's (bc companies like Microsoft do not drop ship) but there are seriously millions of others products that you can sell.
I agree with Anton, the margins you will get from using Amazon as a dropshipper/fulfilment house is going to be so low it's not worth it. If you want to test out a product niche and want to do it through Amazon you might as well sign up as an amazon affiliate and get a 5-8% commission for each sale but have them deal with the entire thing including shopping cart, checkout, payment and fulfillment.
If you were to import your own products from China, you can use Amazon as a fulfillment house however I have heard that since amazon keeps track of what sells well, they use that information to take over niches themselves once they see it is profitable. Listen to Anton's advice and go straight through the manufacture where you can get 25%-50% margins by dropshipping instead of 5-8%. I personally used Anton's Method and created a dropshipping business that brings in around $20k a month in sales on my shopify store.
Let me just share my experiences with Amazon FBA. They solicited me years ago asking that I try out their FBA. I was hesitant but did it. I did well. I grew, I was moving incredible product and my disbursements were up to $30K a week at one point(once you start having high volume they change you from two week disbursement to once a week). A customer service employee warned me about this and I was wary, but didn't think it would be as bad as it ended up being....amazon used my sales data to determine what they should offer themselves cherry picking my best performing items and contacting the manufacturer to obtain the items directly. Their buy box algorithm was not supposed to act in their favor, or so they claimed, however I quickly noticed regardless of my account status, inventory levels and price, I would RARELY win the buy box when Amazon was also selling the same product. Then they started upping the fees as well. I got stuck with tons of inventory in their warehouses and went from $30K a week to not using their FBA at all and only managing a couple hundred dollars a week on their site now with the same products. I've dropped entire manufacturers that were supposed to be independent store owner friendly because they didn't resist the lure of Amazon's million dollar initial stocking orders.
I see others still using FBA for their products. Some products retail price costs less than the fees associated with FBA and I have no idea how or why they are selling these items because 99% of my sales were single item shipments there. I see others where I know exactly what the product costs and when you factor in shipping to their warehouse, sticker fees, storage fees, picking fees, weight fees, per item fees, commissions, there is no way these people are making more than a few cents per item (easily negating a hundred sales with one return) and I have no idea for the life of me why they are still doing it, why it's worth it to them, or how they manage to keep afloat.
Really investigate Amazon's FBA before you make a move.