Dropshipping has become a very popular way to do business online in the past few years. Now, everyone wants to do it as a side business or as their main business. There are now a lot of platforms that offer dropshipping services, and some of them even have options for building websites. One of them is Amazon, and this guide will tell you everything you need to know about dropshipping on Amazon.
What is Dropshipping on Amazon?
Dropshipping means that you only take orders and give your supplier the job of filling those orders for you. So, the supplier has to keep track of stock, store the products, and make them. But dropshipping on Amazon is different in a few ways. You have to follow a few rules, such as:
- Any products you dropship will be sold under your name, so you can only choose dropshipping suppliers that let you use your own brand name.
- All the bills, packing slips, and invoices will have the information about your business on them.
- No information about a third party should be on the product, its packaging, the invoice, etc.
- You, not your supplier, are in charge of the returns.
Along with these rules, you must also follow Amazon’s dropshipping policies as stated in the seller agreement.
How much does it cost to start selling on Amazon through dropshipping?
On different platforms, dropshipping is free, and you only have to pay the supplier. But things are different when you dropship on Amazon. Here, you have to pay a small fee to Amazon. There are several plans, such as:
- Each unit you sell under the individual plan costs $0.99.
- The monthly fee for the professional plan is $39.99, and there are no limits or rules about how many items can be sold.
On Amazon, the dropshipping fee changes depending on what you are selling. Usually, it only costs 10 to 15% of the profit, but if your margins are small, the Amazon fee will seem like a big chunk of your profit. So, it’s important to find products that make a lot of money and sell well.
Checklist of Steps on How to Drop-Ship on Amazon
If you want to start dropshipping with Amazon, make sure to do all 8 of the things on this list for an easy start and a better chance of success.
Sign up as a seller on Amazon.
Your first step will be to sign up as a seller on Amazon and make an Amazon account. Here, you’ll need to give all the information about your business, such as your taxes, address, payment information, etc. So, sign up today at salecentral.amazon.com.
Make sure to give all the right information about your business to avoid problems in the future.
Get approval for the type of product you’re selling.
Amazon is the place where people sell goods from many different types, categories, and niches. So, when a seller signs up, he must, if necessary, get approved for the category of products he wants to sell. You may need approval if you sell products that fall into one of the following groups:
- Groceries, ect
Since these were the only things that needed approval, you may sometimes have to say no.
Find a product that sells well in that category.
The next thing you’ll have to do is look for the right product. You should choose a product that is in high demand in the market you want to sell to and can be sold on Amazon. In this section, you can talk about the market gaps you’re filling or use the customer data you can find on search engines and social media sites to figure out which products will get you a lot of customers.
Choose your dropshipping provider and make an account with them.
Once you’ve found the right products, you have to find the right supplier. There will be a number of suppliers, both well-known ones and ones that aren’t. It is one of the most important parts of Amazon dropshipping because you will have to deal with returns, so you don’t want to go with an unreliable supplier. Once you’ve found the right supplier, you can set up a dropshipping account and pay any service fees they require.
Sign the deal or contract with the vendor.
You need to sign up with the supplier to make sure that listing products on Amazon doesn’t cause any problems. Some suppliers require you to pay a subscription fee or sign a contract to make sure there are no problems with the products you are dropshipping.
Connect Amazon to your dropshipping provider.
If your dropshipping provider lets you use automation, you will need to link that provider to your Amazon account. If you do this, all the orders will be filled automatically. In this case, when a customer places an order, it will automatically be sent to the supplier, and the supplier will send the product to the customer. You will get paid, and all you have to do is handle payments.
Make a list of your products.
Make lists of the products you want to sell through dropshipping. Make sure to highlight all of the good things about the product and add clear, useful pictures that will draw people in. Also, make sure you add all the important details and information. Customers are more likely to buy your product if your listing is good.
Promote your properties
For your Amazon dropshipping business to be successful, you need to work on getting the word out about your listings. Going with affiliate marketing, social media marketing, or marketing through people who have a lot of influence will give you the best return on investment.
List of Amazon’s Dropshipping suppliers
You might be able to find a lot of dropshipping suppliers that meet Amazon’s needs. Here is a list of the top 10 choices that you can trust.
- Sale”Hoo dropshipcorporation CJ Dropshipping Hustle Got Real”
- Sunsky Online Brands Around the World
- Wholesale Petra Industries AE
- Good job
With these dropshipping suppliers, it will be easier for you to meet all of Amazon’s seller and dropshipping rules.
In the end
Dropshipping on Amazon is a great way to get your business off the ground. But for this to happen, you have to use the process to your advantage by following all the rules and choosing the right products from the right supplier. If you don’t, you might not get many sales from your listing, and when you pay the Amazon dropshipping fees, your dropshipping business will lose money instead of making money.