Ever thought about selling on Amazon? Amazon is one of the most recognizable online marketplaces with 310 million active users. This means that whenever someone buys a product that is featured on Amazon’s marketplace, they’ll trust they it will be just right because they trust the brand! A great way to sell on Amazon is by dropshipping model, so in the following post, we will be covering how to start dropshipping on Amazon.
Start a business without breaking the bank!
- What is Dropshipping?
- How does Dropshipping on Amazon Work?
- About Fulfillment by Amazon
- Amazon Dropshipping Guide
- A Note on Amazon to eBay Dropshipping
- Ready, Set, Start Dropshipping!
What is Dropshipping?
Let’s begin with what is dropshipping. Dropshipping is a form of selling goods without the responsibility of having an inventory. Your job as a dropshipper is to handle orders, customer service, and product promotion!
Because this is such an accessible business model it is gaining more and more popularity among entrepreneurs!
Benefits of Dropshipping on Amazon
Less risk for your business, plus fewer overhead costs!
As opposed to other methods like wholesaling and private labeling, dropshipping does not require you to one an inventory. The way it works is you get paid by your customers and you pay your supplier.
There are tons of plugins available to optimize your work process.
Products Easily Tested
To test a product’s quality all you have to do is place an order for it and evaluate the products, shipment time, congruence with product description, etc.
Amazon’s large audience allows you to sell to millions of potential customers.
Sell the right product at the right price
How does Dropshipping on Amazon Work?
Dropshipping is an ecommerce method, where sellers use manufacturers, suppliers, or distributors to fulfill their orders.
Now you have two main options: use Amazon as a supplier or an external one.
- Using Fulfillment by Amazon (FBA) means Amazon would handle your orders and your shipping.
2. Using another supplier, they would be in charge of your products and shipping as they would on any other dropshipping eCommerce.
About Fulfillment by Amazon
This program allows you to ship your product while Amazon carries your storage and shipments. Choose the best fulfillment program for you according to the size of your inventory:
- FBA Small and Light: Reduce the cost of fulfilling orders for low-cost, small, and lightweight FBA inventory.
- FBA Subscribe & Save: Offer discounts on eligible FBA products for repeat customers.
- FBA Pan-EU: Offer fast delivery in Prime-eligible European countries.
- FBA Export: At no extra charge, expand your FBA business to more than 100 countries—minus the complexities of international selling.
- Multi-Channel Fulfillment: Sell from your own or third-party ecommerce sites, with Amazon picking, packing, and shipping to your customers
Pro Tip: Keep in mind Amazon’s FBA might not be the best option for slow-moving products.
Benefits of Amazon FBA:
- The biggest benefit is that Amazon carries the fastest shipment times including Amazon Prime. Customers will appreciate fast deliveries!
- Picking, packing, and shipping your items.
- Providing tracking information for customers.
- Provide customer service on your orders (if there are any returns, Amazon will process them, but they might forward highly specific product inquiries to you).
There are a few prohibited products you can’t sell if you will be using Amazon’s FBA.
So to sum up, if you are planning on using Amazon’s FBA consider:
- Be the seller on record for your products
- Identify yourself as the seller of your products on all packing slips and information provided
- Remove any marketing labels on your packing slips, invoices, external packaging
- Be responsible for accepting and processing customer returns of your products
- Comply with all Amazon policies, which brings us to our next point:
Amazon Dropshipping Policy
Keep your brand on the good side of Amazon’s dropshipping mode by sticking to their dropshipping policy. We advise you also read the Amazon dropshipping guidelines to get your business model as straight as possible.
Ok so with that said, we are now ready to start up your Amazon’s dropshippers account, so let’s get right into it!
Amazon Dropshipping Guide
1. Set Up Your Amazon Seller Account
Get into Amazon’s sellers central and start your account. Choose between an individual or a professional account.
Typically, individual Amazon seller plans are for sellers who will likely sell 40 units (or less) of their product each month, while professional Amazon seller plans are for sellers who plan on selling more than 40 units per month.
After you’ve created your account you’ll need to get approved for your products category. You can see the specific requirements for each category here.
2. Choose an eCommerce Platform
As Shopify has partnered up with Amazon, using their ecommerce could be ideal. However, you can choose any eCommerce you prefer for your shop.
Dropshipping from Amazon to Shopify
On the left panel of your Shopify, scroll down to sales and channels and click on the “+” sign and add your Amazon channel. Then click on connect with Amazon.
3. Research for High Demand/Low Competition Products
Dropshipping competition is fierce! In other to choose the right products, it’s important to check for high-demand products that can easily be sold but at the same time, have low competition. This will give you the best chances.
Always remember to take a look at Amazon’s list of restricted products.
4. Check Out Suppliers Availability
So this is a pretty easy one, whether you decide to go with Amazon or some other supplier, you have to check for product availability. Check out sites like Ali express with big stock and a variety of products.
Pro Tip: Order samples from the suppliers you’ve chosen to make sure you are selling great quality. Check the quality, the time for shipping, and in general, the whole buying experience you customers will go through when buying from you.
5. Create an Amazon Listing
Go to “Inventory”, add a product, and create a new product listing. Next, click on “Select Product” you will see two options. As a dropshipper, you’ll click on the second option this product is made by another brand.
Once you are done click on “Publish”.
If you are using Shopify, make sure it is tracking your inventory to avoid customers making orders out of stock which in the end leads to bad user experiences.
Amazon has over 30 different categories you can sell in. research each niche to decide what to sell. If you can’t find your product on Amazon you’ll have to add a product detail page, but more on it here.
6. Set a Price
When setting a price remember to keep in mind Amazon’s fees. If you are a professional seller you will be paying a fee of 8-15% depending on the category. Individual sellers pay an additional $1.00 per sale.
You can use this Revenue calculator to test your prices.
Use tools like Sellery to help you set adequate, competitive, prices for your products.
7. Start Selling!
Dropshipping on Amazon involves selling pre-existing products from manufacturers that anyone else could reach. You might end up selling the exact same product as other sellers. This is why is important to set yourself apart from the rest with a few promotion strategies. Let’s go over a few!
Promote Your Listings
You can use Amazon’s internal sponsorship PPC (pay per click). Amazon will create ads for your products to appear high on a specific keyword search. Find popular keywords for your products to optimize your ads and your pages. This means optimizing your product’s name, descriptions, and so on. This way you can rank higher organically and target the right people with high intent of buying!
Be Descriptive as Hell
Be super descriptive about your product listed. Describe the model, dimensions, color, quantity. Naming your product as follows can help you get better results:
Brand / Product line / Material or key feature / Product Type / Color / Size / Packaging / Quantity
Use this amazon keyword tool to predict better keywords in your descriptions.
Invest in Your Customer Services
Since you won’t have to produce or ship any of your products, you can really invest your time into delivering excellent customer service. Focus on great customer reviews! Feedcheck is a tool that allows you to see all your product reviews on a single page.
The more reviews you have, the more trustworthy your product becomes. You can ask for a review in a personalized email.
Whenever you get a negative review you can answer with a public response. Take that opportunity to express your apology, assure your customer that you’ll be solving the situation, and finally offer a replacement or refund.
Also, Feedback Express is a tool to help you get more reviews while filtering negative ones to avoid damaging your rating.
Use Your Social Media
Use your social media to promote your product too! You can create beautiful posts, stories, and videos! Get people interested in your brand and redirect them to Amazon.
Blogging is also a great opportunity to promote your products and direct potential customers to your shop. Use valuable and interesting content to attack high intent buyers.
Work on Your Brand
Remember when choosing between two of the same products, brands have a lot to do with that decision. People buy brands rather than products so working on your brand’s image and popularity can really get your scores up.
Keep Track of Your Products
it’s super important that you keep track of your products. Are they being sold? Which are performing better? How are your numbers doing? When you are constantly evaluating your business you can make updates to make it better!
Experiment with manual campaigns and automatic (Amazon’s keywords) campaigns to try them both. Experimenting like this will help you find your best-performing keywords.
Win the Buy Box!
In order to be featured on the win box (which can really help you to upscale your sales) Amazon takes into account:
- Negative feedback
- A-to-Z guarantee claims
- Late shipments
- Buyer-initiated messages
Having a 95% or higher seller rating improves the likelihood that you’ll win the Buy Box. A high seller rating can push your products up, which means having a low refund rate, fast customer response time, and high feedback, among others.
A Note on Amazon to eBay Dropshipping
Normally this means selling at a higher rate on eBay. This is not a recommended practice because after all buyers will receive the package from Amazon. This leads to a bad user experience. They will realize they could have bought it from Amazon and for a cheaper price.
Although this is not illegal, your suppliers could realize you are selling on some other platform to make more profit and that won’t look good. So in order to keep a good reputation for your brand, you should stay away from this option.
Ready, Set, Start Dropshipping!
So there it is! A complete guide to help you set your Amazon seller business in just a few easy steps. Remember tons of other sellers can offer the same products so it is important that you take your time to differentiate your brands from theirs. stand out with the best promotion strategies.
Hopefully, it is all very clear to you now, any questions no hesitate to contact us. Happy selling!
How to Start Dropshipping on Amazon Complete Guide
Learn how to start dropshipping on Amazon like a pro with this complete guide. Follow each step to set up your seller account in just a few minutes. Remember promotion is super important to set your brand apart from the rest. Get the best tools for your business and start selling right away!Promote Your Products with Mockups