If you want to learn how to start dropship on Amazon in 2024; you have landed in the right place. Here, we wrote about the best way to start dropshipping on Amazon and get paid easily.
All the hacks and strategies we shared here in this Amazon dropshipping guide are from Amazon dropshipping business experts.
This simple and step-by-step guide on how to dropship on Amazon without money will teach you;
- A short and quick brief on what is dropshipping.
- Core benefits of drop shipping.
- Benefits of dropshipping on Amazon.
- Useful steps to follow while selling on Amazon.
- Additional hacks to be a success on Amazon dropshipping.
- Helpful tools that you can use on Amazon dropshipping.
- Common Questions & Answers on Amazon dropshipping.
- Examples of dropshipping that are not permitted.
What Is Amazon Dropshipping?
Form of dropshipping is a way of trading goods without taking liability for transport and inventory of the products.
In the dropshipping method, only the mother company is liable for production, inventory keeping, and delivery of the products to the customer. As a third-party drop shipper, you’ll get dropshipping margins and profit as well.
As an online retailer or drop shipper, you just need to keep up an online store. You’ll maintain all the procedures including product listings, order generation, finding suppliers for those orders you took, and ensure the best customer service. If you need more guidelines on how to start a dropshipping business click here.
Benefits For Dropshipping Business
For your further understanding of why and how to start an Amazon dropshipping business, let’s look at a few of the benefits of dropshipping.
Minimum starting cost
Here are a few examples of the low-cost starting business model of dropshipping:
- No need to pay any inventory storage fees as you haven’t any warehouse or inventory counts.
- After having an order from a customer, you just need a product with the lowest price.
- No workers needed to carry the goods to the customer’s doorstep.
- You just need a website along with a very negligible advertising cost.
Don’t need any physical inventory
This is one of the sexiest benefits of the dropshipping business. Dropshippers don’t need to work at the inventory levels. Resulting in saving inventory costs and making the business more profitable with minimum risk.
As a result, you can run the entire business with less overhead costs as there’s less effort involved in the dropshipping model business. Even, you don’t need to pay long-term storage fees to keep the inventory.
Very easy to test the products you sell
As you don’t maintain inventory, you can start branding and run advertisements on the goods you tend to sell and see which merchandise exchanges the best. Therefore, you can remove low-performing goods from your store.
However, if you finally buy an inventory, you’ll see which goods sell well and how many of them you can sell effortlessly.
Benefits of Amazon Dropshipping
Is dropshipping on Amazon worth it? Or, is Amazon dropshipping profitable? At a glance, of course! Here are the details in reply to your queries;
No storage cost
The greatest advantage of Amazon dropshipping is you do not need to pay for any storage costs.
Yet, few Amazon professional sellers choose to make their goods FBA (Fulfilled by Amazon) where sellers send their goods to Amazon, and Amazon ships them to the customer.
Various products categories
Amazon has over 30 multiple product groups that you can target. You can choose to sell in two, three, five, or more niches whatever you want.
There are no restrictions on how many types and niches you can tailor to with the exact products and dependable suppliers.
You can retail in the kitchen equipment & sports gear categories altogether, for instance, as there’s nothing to stop you from helping numerous audiences.
Huge prospective customers
Amazon has over 300 million lively users. So, using Amazon as a sales network for your business can ensure sufficient returns. You can appeal to new customers by selling the precise product at the actual price.
Besides, Amazon is the best way to reach fresh clients effortlessly whereas your store wouldn’t have touched on its own.
This will benefit you by increasing your selected audience. And, you might even find out an entire first-hand viewer that you never even knew was interested!
Amazon Suppliers
Huge quantity of products Amazon purchases from many suppliers worldwide. They store the products and make them ready to deliver to customers. The company also maintains returns and customer service for all Amazon suppliers.
Contractors or suppliers can grow fast and operate business internationally with Amazon. Amazon account managers also monitor and help suppliers for long-term profit.
Handy steps to follow while selling on Amazon
Since you decided to start a business with Amazon dropshipping suppliers, here are some handy steps that will help you reach your desired goal;
Pick an eCommerce platform
Surprisingly Shopify just joined Amazon. So it is perfect for you to use their eCommerce platform. Shopify lets its users add Amazon as a sales network to simplify handling orders and delivery.
Sell the exact goods
There are numerous necessities and limits for storeholders who want to retail their goods using Amazon.
According to Amazon’s list of entitled supplies, you can start an Amazon warehouse without consent if you’re in a niche like electronics, computers, video games, books, office products, etc.
You just need to take a look at Amazon’s list of limited goods to confirm that you’re not in any of those groups. Any types of hazardous products, hoverboards, for instance, include in this list.
Confirm Amazon Dropshipping signup
Since you are planning to retail huge, it’s better to have a professional seller account. As an individual seller, Amazon will charge you 0.99 cents for each sold item, which is huge.
Don’t forget, you’ll have to fix a very competitive price. You even often need to offer discount prices to boost up the sale, however, not at the cost of your profit, isn’t it? Also, you need to reinvest to increase your profit.
You just need to pay a monthly subscription fee and some extra fees as a professional Amazon seller account holder.
Register with your email on Amazon Seller Central. Fill out your name, email, and password. You’ll also need to give more particulars, for instance, address and tax information on your trade.
Product category approval from Amazon Not all but a few niches and product categories required approval from Amazon. Some of the popular niches like; beauty, fashion, and jewelry need approval earlier beginning your Amazon seller account. See here for details on the category you need approval from Amazon.
Tie up your Amazon account on Shopify
Connect your Amazon account to your Shopify store since you’ve created and approved your Amazon account. Follow the below order to do so;
Scroll down to “Sales Channels” on the left pane in your Shopify account, and click the “+” tab.
After clicking on the “+” button, a “pop-up” will show. Click on the “Add Channel” button. You’re done! Just carry on with “Connect to Amazon.”
Create an Amazon product list On Shopify’s left pane, hit on the “Amazon sales channel link”, then click the “Create Listing” button. Now, click on “Select Product.”
Here you’ll see dual choices:
- If you are a brand/products manufacturer, you’ll certainly require buying UPC (a unique code created by Amazon) codes.
- However, as a drop shipper, click on the “This product is made by another brand” option.
You are almost done! Now you can search for the goods to become a retailer for that SKU (Stock Keeping Unit).
And, whenever you find the product, click on the “Select” tab. Finally, click on “Publish” to get the job done!
Have Shopify hunt down inventory
You’ll make sure Shopify is tracking the inventory levels. This confirms when a client orders on Amazon, the product is available in-store.
Be sure that you don’t let purchasers order goods that are not in the store. It will lead to bad criticisms that make you spend some additional customer service which you might not plan.
Jump endorsing your online dropshipping store
Unless nobody sees your online store you won’t get any sales, isn’t it? this is why your next step should be to generate traffic to it, right?
Therefore jump to endorse your online store on several social channels where you have accounts. Creating Amazon posters will help drive in some new visitors and lift sales.
Extra tips on Amazon dropshipping successfully
Here are some bonus hacks for you on how to dropship on Amazon more successfully. You’ll learn some further tactics for successive Amazon dropshipping.
Improve product title accordingly to user’s search
Never create keyword stuffing other than listing your product’s title according to the user’s intent. Titles that are simple and related to buyer’s search expressions always get preference from Amazon.
For instance, using the brand name of your product starting with the title is worth time thinking about what buyers hope to find. Including the product’s size, quantity, model, and color, for example, in a title that matters to buyers and is healthy for online business.
Fix competitive prices for your products
You should keep in mind a few factors when pricing your products for Amazon. For instance, regardless of cheap products or hot products, you need to pay Amazon fees. You should confirm your margins as high as you can pay Amazon’s monthly and other related charges. You also need to ensure your profit along with high-margin products, right? However, with dropship with Oberlo, you can frequently deal with free or economy shipping, it could be the best way to stay reasonable.
Offer a better gift voucher or discount
Gift vouchers or coupons also can be a great way to drive traffic to your Amazon store. By promoting an appealing discount offer or coupon, you can convert, customers, from traffic to those looking for a sweet deal.
However, never offer or price the voucher that does not make sure your profit. Remember, you need to pay some expenses to Amazon and also others as well.
Ensure keyword research
Ensure keyword research properly to improve your Amazon store’s product pages for search engines. Numerous tools including Ubersuggest can be used to pick prevalent keywords.
Running ads will make you target the customer better than others. And, Amazon ads let you access a source of perfect keywords that you can use to optimize your online store’s product pages. All these things are important to get a higher ranking.
Do not depend only on Amazon
As a dropshipper, you should not rely only on Amazon other than discovering further platforms too. Use plenty of sales channels on Amazon. It helps to recover your possibilities for sales while lessening the threat to your business.
And, with Shopify, you can increase further sales networks including Facebook Shops, Instagram, and Facebook Messenger. It also grows your brand’s presence in numerous media.
It ultimately means nothing but while a customer knows your brand, he/she will be more likely to buy from your Amazon store. So try to be there where your clients are.
Win Seller rating 95%
More seller scores, more chances to get the Buy Box. Eventually, a higher seller rating makes you frequently appear in organic searches. So the target is to win a 95% seller rating.
A top-level retailer ranking also helps to gain customers’ trust. Therefore, your Amazon online store will gain an extra advantage over the low-scoring store.
Get the Buy Box
Winning the Buy Box can maximize your online sales due to the maximum number of Amazon retails generated from it. As A Result, you should gain the Buy Box as a drop shipper.
For that, you’ll require a top seller rating- having a rating over 95% has worked well typically. Besides, you’ll ship goods fast to the customer end. It is best to do it within 14 days.
Eventually, your goods and carrying costs should be lower than most of the other existing offers. Remember, quick customer replies, low refund rates and high response scores from customers are added things to get the Buy Box.
Some helpful Amazon dropshipping tools
Here’s a list of tools to set precise dropshipping strategies that will come in handy when you’re learning how to start dropshipping on Amazon. (Not all the tools are expensive nor free, you need to find the right package that fits you best.)
Shopify – Shopify is one of the best sales networking tools that you can add to your Amazon store. Also, tracking your store inventory, fulfilling Amazon sales, etc. can be done using Shopify.
Keep in mind, that you should not choose Amazon FBA for your product’s shipping. Otherwise, you would not be eligible to get Shopify advantage.
Amazon volume listing tools – Plenty of tools you can use to simplify your retailer experience for your Amazon store. Just download the worksheet for inventory info, order, and adjust product pricing, number, color, or whatever you require.
FeedCheck – If you want to see all of your products in a single place, nothing but FeedCheck is the best option. Good customer experience helps to create a loyal customer base. You can work on customer relationships to increase positive reviews on your product by having the right access to FeedCheck.
It will help you to offer better customer service and ultimately a better drop shipping experience ensuring handsome profit. You can also monitor your competitor’s products using it. It’s great particularly when you have a wide range of Amazon products in your store.
Ubersuggest – You can use Ubersuggest to view the search volume of your selected keywords or you are about to choose. Additional data on keywords including search intent, related keywords, etc. also be seen here.
Sellery – This tool will educate and aid you in setting the right price for your goods. You will maximize profit margins by setting the competitive price of your products. You also reprice your products after having pricing experiments using Sellery.
Common Questions & Answers on Amazon Dropshipping
Here are some of the most commonly asked questions about dropshipping on Amazon.
How does Amazon work?
A. Amazon is the biggest and most popular eCommerce website globally. It permits sellers to sell their products using their platforms. Amazon is often used as a sales hub for product producers and retailers to get some additional sales.
After having an approved Amazon retailer ship, you can start selling on Amazon. However, it’s up to Amazon whether they will approve a seller agreement with you or not. All the products/services/brands do not get approval.
Is Amazon dropshipping legal?
A. Of course, it’s 100% legal! Amazon permits their approved seller to dropship using Amazon online store as long as the seller follows the rules below:
- Be the seller on record of your goods.
- Find yourself as the retailer of your goods on all packing slips with added data involved or provided in association with them.
- You need to be liable for accepting and handling customer returns of your goods.
- Fulfill all further terms & conditions of your seller contract and related Amazon rules.
What are examples of dropshipping that are not permitted?
A. Here are some examples of products/rules that are not permitted to dropship using the Amazon store;
- Buying goods from a different online seller and having those sellers ship straight to clients.
- Delivery orders with the invoice, packing slips, or further info signifying a retailer’s name or contact info except your own.
- Violation of any of Amazon’s dropshipping policy, unable to meet shipping times, unpaid third-party fees, or even negative feedback, etc.
You can read more about how to dropship with Amazon on their website.