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Dropshipping as an online business has gained a lot of popularity in the past few years. Now everyone is thinking of trying it as their side hustle or main business. Today there are a lot of platforms that provide dropshipping services, including some site-building options. One of them is Amazon, and in this comprehensive guide, you will learn everything about dropshipping on amazon.
Dropshipping means you are only taking orders and giving your supplier the responsibility of fulfilling your orders on your behalf. So, the supplier has to manage inventory, store, and produce the products. However, dropshipping on Amazon is a little different. It needs you to meet a few rules, including:
Any products that you dropship will be sold under your name, so you may only choose private-label dropshipping suppliers.
All the invoices, packing, and slips will have your business information
There must be no information about any third party on the product, packing, invoice, etc.
You are responsible for the returns and not your supplier
Along with these rules, you have to follow the terms of the seller agreement from Amazon about its dropshipping policies.
Dropshipping on different platforms is a free experience where you only must pay for the supplier. However, dropshipping on Amazon offers a different experience. Here you have to pay Amazon a minimal fee. There are different plans, including:
The individual plan costs $0.99 for every unit you sell
The professional plan costs a $39.99 monthly fee, and there are no limits or requirements about the sold count.
The dropshipping fee varies on Amazon depending on the product that you are selling. Usually, it only costs 10 to 15 percent of the profits, but if your margins are very small, the Amazon fee will seem like a huge chunk of your profit. So, finding highly profitable and well-selling products is a must.
If you are beginning to dropship with Amazon, make sure to follow all these 8 steps in this checklist for a straightforward experience and higher chances of success.
Your first step will be creating an Amazon account, and you will need to sign-up as a seller on Amazon. Here you will need to provide all the business details, including tax information, address, payment information, etc. So, go to salecentral.amazon.com and sign up today.
Ensure to provide all the correct details about your business to avoid issues later on.
Amazon is the platform where sellers sell products from different categories, niches, and types. So, whenever a seller signs up, he must get approved for his specific product category if necessary. You may need to approve if you are selling products related to the following categories:
Fashion
Music
Jewelry
Grocery, etc.
As these were the few categories needing approval, you may sometimes need no.
Your next job will be hunting for the right product. You need to go for a product with a high demand in the market that you are targeting and is sellable on Amazon. In this part, you may refer to the market gaps you are filling or benefit from the customer data available on search engines and social media platforms to know the products that will provide you with a good customer base.
After you are done with product hunting, you need to find the right supplier. There will be several suppliers, including famous and fake ones. It is one of the most important parts of Amazon dropshipping because you will be dealing with returns, so you don't want to go with an unreliable supplier. After finding the right supplier, create your dropshipping account and pay any service fees they will be charging.
You need to sign up with the supplier to ensure you don't face any issues while listing products on Amazon. Some suppliers either take some subscription fee or you must sign contracts with them that ensure there will be no issues from either end regarding the products you are dropshipping.
If your dropshipping supplier supports automation, you will need to integrate that supplier with an amazon account. Doing so will automate all the orders for you. In this case, whenever a customer places an order, that will be forwarded to the supplier without input from your end, and the supplier will supply the product to the customer. You will get the payment, and you only have to process payments.
Create listings of any products that you are looking to dropship. Make sure to highlight all the attractive aspects of the product and add clear and valuable images that will attract customers. Also, ensure that you are adding all the details and valuable information. The better your listing is, the more customers will rely on buying your product.
To make your Amazon dropshipping venture successful, you must work on marketing you're listing. Going for affiliate marketing, social media marketing, or influencer marketing will be your best options with higher ROI.
You may find a lot of dropshipping suppliers compatible with requirements from Amazon. Here we have shortlisted the top 10 choices you can rely on.
1. SaleHoo
2. Doba
3. CJ Dropshipping
4. Hustle Got Real
5. Wholesale2b
6. Sunsky Online
7. Worldwide Brands
8. Petra Industries
9. AE Wholesale
10. Banggood
With these dropshipping suppliers, it will be easier for you to meet all the Amazon’s seller and dropshipping terms.
Amazon dropshipping can bring a great head start to your entrepreneurial career. However, for this to happen, you must leverage the process by following all the rules and going with the right products from the right supplier. Otherwise, you may not get a lot of sales on your listing, and paying the Amazon dropshipping fees will cause a loss instead of a profitable dropshipping business.
More Articles:
Reselling on Amazon: How to Work with Big Brands
Amazon PPC Strategies to Grow Your Dropshipping Business
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