We are willing to bet that you have heard of Amazon and the retail empire created by Jeff Bezos at minimum once. Do you know that Amazon customers spend $280,000 per minute?

Wow! We believe that you have a great opportunity to make money selling on Amazon.

You might not want it to cost you a lot of time or money. Dropshipping is available on Amazon

Dropshipping is a great way to start selling products online.

This article is for that reason! Here’s a quick guide to dropshipping on Amazon. Let’s explore!

What is Amazon dropshipping exactly?

Dropshipping, as the name implies, is a business model that allows you to list products on Amazon and then sell them. You don’t own the inventory nor ship the items.

You can run a business on Amazon with no upfront investment or stock purchase. Instead, you get an order from a customer and pass the information to a distributor, manufacturer, or third-party supplier who fulfills the order for you.

It is very similar to regular Dropshipping. Dropshipping on Amazon is a legal requirement. You could be banned if you don’t follow the rules. Amazon requires that you fulfill your products only from authorized wholesalers and not other retailers. These details are provided in the next section.

How does Amazon dropshipping work

Dropshipping at Amazon is possible through three simple steps:

1. A customer places an order listed by a seller (you) on Amazon
2. Upon receiving the order, the seller (you) purchases the product from the supplier
3. The seller (you) submits the order information to the supplier, who then sends the product to the customer

You can make a profit as a seller by comparing the Amazon price to the manufacturer’s. This allows you to act as a broker between the buyer and manufacturer.

Amazon’s Drop Shipping Policy must be adhered to by sellers.

Dropshipping Policy at Amazon

You will need to establish relationships with wholesalers before you can be considered the “seller-of-record” for your products. You will also need to print custom packaging slips and receipts. These slips should be sent to the supplier for them to place on your products.

Finally, you must manage returns. This requires communication with both the customer and the supplier. Sometimes, you may have to pay shipping costs to send the product back to the supplier.

Dropshipping on Amazon can be complicated and difficult. Amazon claims that there is another way. Dropshipping via Fulfilled By Amazon (FBA). This program allows sellers the ability to ship products to Amazon warehouses. Amazon then delivers the inventory for a fee.

Imagine that you’re enrolled in FBA and that a customer orders an item from your website. Amazon will pack and ship your order directly to you. Amazon will handle returns and customer service, as well as provide tracking information.

Amazon Prime Shipping is the main benefit of Amazon FBA. Prime Shipping is a highly-respected service known for its speed and reliability. FBA allows you to delight customers with flawless deliveries that increase the chance of returning purchases.

This program has a major cost. Sometimes, you will have to pay seller’s fees for certain product types. You may also be charged a long-term storage fee if your item is left in Amazon’s warehouse longer than six months.

What is the cost of dropping shipping on Amazon?

Dropshipping fees for Amazon vary depending on the product, but they are usually in the 10% to 15% range. Dropshipping fees can be quite high if you have small margins.

A selling plan is also required. You will need to choose a selling plan. The Professional Plan is $39.99/month, regardless of how many products are sold.

Amazon Dropshipping: The pros and cons

Dropshipping to Amazon has both benefits and disadvantages. This section will provide key information to help you make the best decision for your business.

Amazon Dropshipping:

• Zero warehouse fees. Dropshipping through Amazon allows you to ship products directly to customers, without having to hold any inventory. You don’t have to worry about maintaining a warehouse, no matter whether you ship directly from third parties or via Amazon FBA.

• A loyal and large customer base. Amazon has over 310 million users. This makes it a trusted and well-known brand. You can expect significant views and the right marketing strategy to reach the right audience.

• Diverse product categories. Amazon dropshipping offers more than 30 product categories to choose from, allowing you to explore different product niches and offerings. It is a good idea to focus on the most profitable product categories.

• You will receive faster deliveries and better customer service. Dropshipping with Amazon FBA will allow you to handle all customer service and returns. Customers will receive their packages quicker because Amazon drop ships these products via expedited Prime shipping.

• Lower costs. Dropshipping allows you to eliminate the need for inventory and warehouse space. Dropshipping can lower your operating costs, increase your profits, and simplify your life.

Amazon Dropshipping:

• Competition is stiffer. Dropshipping is easier to enter because of its low cost. Competition increases as there are more sellers on the market. You should also remember that Amazon sellers can sell exactly the same products as you.

• Profit margins have fallen. Due to Amazon sellers selling many products, there may be a “race for the bottom” when it comes to pricing. Sellers can lose their bottom line if prices have to be adjusted down in order to remain competitive.

• Slow delivery times. Dropshipping on Amazon often means that items are shipped from overseas manufacturers and suppliers. Shipping times can sometimes take several weeks, or even months to reach the customer.

• Quality control is lacking. You, as the seller, have no control over product quality when products are shipped directly to customers from the manufacturer or supplier. It is possible for products to be damaged on the way to the buyer.

• Rules. Dropshipping on Amazon has many rules and guidelines. If you want to avoid being penalized, you should follow these rules.

You might be asking:

Is Dropshipping on Amazon profitable?

Dropshipping is becoming more popular because it saves many businesses money. However, profits are not a standard. Dropshipping should be considered by everyone to determine if it is the best option for them.

Finding reliable wholesalers or suppliers that can sell your products at a low price is key to profitability. After securing this partnership, price your products so that you can cover Amazon fees, any other expenses, and your margins. You must have sufficient margins to make a profit on every product shipped. It is possible to enter niches that are less competitive and still be profitable by avoiding price wars with competitors.

Dropshipping on Amazon is a profitable venture if you price the product correctly.

Six Steps to Get Drop Shipped on Amazon

Here’s a detailed walkthrough of how to dropship on Amazon.

#1. Create an amazon seller account

You must first create an Amazon seller account before you can dropship on Amazon. Sign up for an Amazon seller account by accessing Amazon Seller Central.

Register for an Amazon Seller account

First, decide whether you want to sign up as an Individual or Professional seller.

Individuals do not pay a monthly fee but can sell up to 40 items per month.

Professionals will pay $39.99 per month, but they don’t have to pay per-sale fees and can sell unlimited items. You can also set your own shipping rates, and offer items not listed on Amazon’s listings.

If you are serious about dropping shipping on Amazon, we recommend that you go for the Professional plan. The monthly $40 fee is worth it.

You will need to enter 5 pieces of important personal information in order to register.

• Your business name, address and contact information
• You want an email account to be dedicated to your store
• Credit card with valid billing address
• An authenticating phone number is required to activate your account
• Information about your tax identity

You will be able to register quickly and easily if you have all the documents and credentials you need.

After you have provided these details, you can finish your registration to become an Amazon seller. Congrats!

#2. Find products to sell

Amazon should have the best products that make money. You don’t want to end up with an item that has barely made any sales. Products that sell like hot cakes, generate large orders each day and bring in substantial revenue are what you want. This is a win-win for both you and your supplier.

To find product ideas, you can use tools such as Google Trends and Jungle Scout. For more information, you can read the following topics:

•  15+ Best Amazon Product Research Tools

•  How do I find products to sell on Amazon?

Remember, however, that Amazon has many restrictions and requirements for merchants who wish to sell their products.

Amazon lists eligible stores so you can open an Amazon store with no approval if your niche is camera & photo or computer & gaming, or electronics. You can sell in about 20 categories without needing to get approval.

You must apply for approval from Amazon to sell products that are not in the above categories. They will ask questions and send you documents. You may also be asked to send photos of the products you wish to sell.

After your category has been approved, you can create your seller profile. Your profile will make it easier for you to dropship on Amazon. Customers will also trust you more if your profile is complete.

You can configure your own profile to manage login settings, notification settings and tax settings. Amazon will also assist you with creating store policies if you don’t know how.

#3. Find the right supplier

Next, find a supplier who will fulfill your orders. We mean a genuine, honest supplier who isn’t just out to make a quick buck.

Dropshipping suppliers are able to offer products at a low price, but they don’t invest much in marketing. Therefore, it’s unlikely that they will appear in the top SERPs.

You can also find dropshipping suppliers even if they are not authentic.

• Don’t be overcharged

• Poorly designed products can lead to customer fury

• Dropshipping suppliers who fail to deliver what customers ordered can be sued

Dropshipping on Amazon is risky. But, there are ways to avoid these issues and still find the right supplier.

#4. List Products 

Customers will see your product listing first when they visit your Amazon store. First, go to the “Inventory”, scroll down to “Add Product,” and then click “Create a New Product Listing.” Once you have completed all fields, click “Publish”.

Customers make purchases based on what information you provide. It must be innovative, creative, compelling, and include all of the key keywords for your product.

It should answer the customer’s question “Why should you pay for this product?”. Additionally, it should be easy to find on Amazon’s search engines. To summarize, dropshipping is about attracting prospects to your listing so that they will buy your product.

Prepare the tone and content that you want to display in your store. In the next step, we’ll discuss what you need to write in order to sell your products.

#5. Write captivating product descriptions and titles 

Here are some tips and tricks that will help you outperform your competition in Amazon’s search engine.

• Keywords that are descriptive and long-tailing rank highly on Amazon’s marketplace. This information can be found in top products. This should also be true for product descriptions.

• Your listing will look more trustworthy if your refund policy is visible to visitors.

• Ask customers to leave reviews. This can be done via email marketing using convincing copy.

#6. Promote your store

You are almost there. You are now ready to launch your product on Amazon. This can be done by creating a strategy that emphasizes social media promotion, giveaways as well as Amazon Sponsored Product campaign.

You should first make your product visible in search results on Amazon, as soon as you have launched it. You can start with PPC campaigns, and then promote your products on Facebook, Twitter or Instagram. It is a good idea to create hype about your product on the market. To get early traffic to your listings, offer discounts and giveaways. Your Amazon sales history will improve, and your position in search results will also improve.

Six tips to dropship on Amazon

Let’s take a look at some ways to attract potential customers now that you are able to dropship on Amazon.

Review the product

88% of customers trust online reviews more than personal recommendations. This is why reviews are important for your online business. If you want someone to buy your products, a review with images and videos is a big help.

Customers who have purchased your products can be contacted. If they are happy with their purchase, thank them. To make it easier for them, please include a link on the listing page in your email.

If you receive a negative review, it is important to investigate the root cause and offer an apology.

Offer merchandise bundles

Bundling products together and selling them as a package deal is another effective strategy. Shipping costs can be significantly reduced if your products are all from the same supplier and place.

You might be surprised at the needs of your customers if a product is doing well but not enough to make a profit.

Do not sell the same product as everyone else

Selling the same product is the fastest way to go bankrupt in business. If there are many sellers selling the same product, prices will drop.

You’ll see why choosing a niche market can be a viable strategy in the next tip.

Cash in on niche products

Dropshipping offers the opportunity to sell assorted merchandise, which is one of the best things about it. As you can see, in traditional retail shops where inventory is bought in bulk and upfront, retailers won’t risk purchasing inventory unless they are certain that they will be able sell it within a reasonable time.

Dropshipping is an option for online sellers. Dropshippers don’t have to inventory and pay only after the product is sold. This minimizes the chance of them trying new products. They lose nothing if it doesn’t sell. Dropshipping allows online sellers to offer products that aren’t being sold by big-box retailers.

Attention to seasonal goods and objects

Online merchants can make a lot of money selling seasonal items through dropshipping on Amazon. This is because most retailers don’t have enough to sell it.

Sellers like you have a lot of potential. Amazon offers seasonal promotions to sellers. These are when they offer flash sales and related products to be promoted right on their front page.

Do not try to compete solely on price

Competing only for price is the most common mistake made by beginners. Low pricing can be your only selling point. However, it is easy to be beaten by someone who has more to offer.

Try to offer more for a lower price. Dropshipping is a way to promote your products better than your competition. You can think of discounts, deals, free shipping and other services as ways to get a higher price without sacrificing sales.

Dropshipping tools for Amazon

This section contains tools to help you get started with Amazon Dropshipping.

• Shopify. Shopify can be used to add Amazon to your online shop as a sales channel. Shopify can be used to monitor your inventory and notify you when you have Amazon orders that need fulfillment. Shopify is a great tool, but you need to ensure that your products are not shipped via FBA.

• Merchant Words. This tool can be used to determine search volume and keywords data. The paid plans start at $29.99/month

• FeedCheck. This software allows you to monitor customer reviews and to respond to them to build relationships with customers in all sales channels. It allows you to easily access Amazon reviews, which will allow you to provide better customer support. It also allows you to monitor and answer questions from competitors so that you can improve your products.

• Sellery. This Amazon repricing tool allows you to create repricing strategies that win the Buy Box and increase sales and profits. The trial version is free and you can then sign up for the paid plan. This works out at 1% of your monthly gross sales. Minimum monthly sales start at $50

• Seller.Tools. This software automates your Amazon dropshipping shop. Access a powerful PPC management tool, keyword manger, product research tools and marketing automation tools made with ManyChat. To grow your business quickly, you can download the Messenger marketing workflows.

• Feedback Express. This software will help you to get more reviews for your Amazon store. You can also delete negative reviews. This software will help you maintain a high rating for your products and online store. Blacklisting customers who leave negative reviews is possible. The paid plan starts at $20 per month.

• Amazon Volume Listing Tool. Amazon offers multiple tools that will simplify your seller experience. Quickly download spreadsheets to view order and inventory information. You can also modify your product quantity and pricing easily.

The final verdict

Dropshipping on Amazon is a great way for businesses to increase sales, regardless of whether you’re a veteran or a novice. You should look for reliable, trustworthy and high-quality suppliers to partner with you. Then, focus your efforts on listing creation, promotion, reviews, and increasing visibility of your store.

Would you like to take this trip? We’d love to hear from you, so please share your thoughts.