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Dropshipping Amazon Guide: How to Dropship on Amazon in 2021

April 16 2021 05:08
Winnie

HOW AMAZON DROPSHIPPING IS THE BEST WAY TO GO?

 

amazon dropshipping

 

“Dropshipping is the method of selling an item without having to hold inventory or ship products.”

 

Searching for a way to start selling on Amazon but don't want to put a lot of money or financial resources? Enter Amazon dropshipping!

If you ask an expert e-commerce seller for a better opportunity to start selling goods online without spending a lot of money or wasting a lot of time, they would most probably tell you that dropshipping is the best way to go.

Amazon offers us the amazing privilege of selling to their customers through their website. The more clients they have, the more third-party sellers they require like you! Using Amazon as a distribution platform for your business will result in significant profits.

But how does Amazon dropshipping work? And how can you make it a successful venture for your e-commerce company?

This guide will walk you through dropshipping, including if it is permitted on Amazon, how it can be profitable, and how to dropship on Amazon.

What is dropshipping?

Dropshipping is an e-commerce method in which the seller accepts orders on behalf of a manufacturing company, distributor, as well as supplier. When a customer purchases the product, the seller uses their supplier to accomplish the sale.

Dropshippers often relabel the sold products as their own, and the end-user is unaware that the goods come directly from the seller. This is a widespread method on e-commerce sites such as Amazon.

Is Amazon allowing dropshipping?

Dropshipping is permitted on Amazon's website for traders. If you want to use a drop shipper to deliver goods, you must always:

·       Be the seller of your items on record.

·       On all packing slips and other details used or given in connection with your goods, identify yourself as the seller.

·       Take charge of accepting and handling consumer returns for your goods.

·       Cooperate with all of the other provisions of the seller agreement and Amazon policies.

Examples of prohibited dropshipping include:

·       Buying goods from another online store and making them sent directly to customers.

·       Orders shipped with packing slips, invoices, or other details showing a vendor name or contact information other than your own.

Is Amazon dropshipping worth it?

Though Amazon dropshipping is a simple business model to learn, it is challenging to practice if you want to make a lot of money online.

You can only generate a major profit at scale because your margins are so tiny.

Advantages of Amazon Dropshipping

In this section of our Amazon dropshipping guide, we'll go through some of the advantages of Amazon dropshipping.

·      There is no need for a warehouse

One of the advantages of Amazon dropshipping is that you don't have to arrange for a warehouse. Some Amazon sellers opt to market their goods as FBA (Fulfilled by Amazon). Sellers ship their goods to Amazon, and Amazon ships the products on their behalf. 

·      Suppliers on Amazon

Amazon buys in bulk from a variety of suppliers. Amazon then keeps this inventory in their warehouses, available to ship to customers. For all Amazon vendors, the business also manages returns and customer support in a variety of languages.

Suppliers (even small businesses) will expand quickly and internationally with Amazon. Furthermore, Amazon suppliers receive assistance from account managers in efficiently guiding their company to maximize long-term income.

·      a big crowd to sell to

Amazon now has 300 million active customers. This means that using Amazon as a distribution outlet for your company will result in huge profits. You will attract new customers if you sell the right product at the right price.

Another advantage is the opportunity to quickly attract potential customers that your store would not have served otherwise. This will assist you in broadening your target audience. Who knows, you might even find up an entirely new audience you had no freaking idea!

·      There are many categories to target

You can hit over 30 categories on Amazon. So you can choose to sell in two, three, four, or five, or as many niches as you want.

There is no limit on how many types and niches you can appeal to if you have the right goods and reliable suppliers.

For example, you can sell in both the Electronics and Tools & Home Improvement categories at the same time because there is no restriction on reaching different markets.

How to Begin Dropshipping on Amazon?

Now that you learned a fair bit more about Amazon drop shipping and how it works, here's how you can get started as a drop shipper.

·      Set up an Amazon seller account

To sell on Amazon, you must first create an Amazon seller account. You can obtain one by visiting sellercentral.amazon.com. Amazon will give you two options for the type of account you will begin with: person or professional.

·      Find a product that is in high demand and has no competition.

For shop owners who wish to sell their goods on Amazon, there are many conditions and limitations.

You can open an Amazon store without approvals if you are in a niche such as books, computer and video games, electronics, office supplies, and so on.

Check Amazon's list of restricted items to ensure you don't fall into any of these categories. Hover boards and hazardous goods are examples of such objects.

In addition, when first starting out, we suggest keeping things easy. Housewares, sports & outdoors, and patio, house, & garden are all excellent categories for beginners since they require little upkeep.

·      Check sites such as Aliexpress to see if the product is still available.

Once you've come up with some product ideas, you'll need to find a supplier.

Aliexpress has the most direct links to dropshipping items. It's a business-to-business platform that connects e-commerce companies with suppliers who want to dropship their products.

Simply enter the search words for the product you want to sell, and a range of items will appear, just like on Amazon.

·      Have to see if the goods are priced appropriately.

“You should also ensure that your margins are high enough to generate a profit.”

 

There are several things to consider when pricing goods for Amazon. The first consideration is the cost of Amazon fees. You should ensure that your margins are large enough to cover Amazon's monthly and other related fees.

Keep in mind that you’ll also need to offer competitive pricing and the occasional discount, while still ensuring you make a large enough profit to reinvest in the business. So watch your margins. With a professional seller account, you pay a subscription each month, as well as a few additional fees.

·      Marketing your Amazon store

You can't expect to make any sales if no one knows about your shop, correct? The following move is to direct traffic to it.

Make use of any social media platforms you have to promote your shop. You can also make Amazon advertising to help bring in new customers and increase sales.

Are you ready to start Amazon dropshipping?

If you're a beginner or a seasoned entrepreneur, Amazon dropshipping can be a perfect way to boost your company's profits. This fascinating business model has grown in popularity over the last five years, as shown by the Google Trends graph. Hopefully, this article has sparked your interest in starting your first Amazon company or expanding an existing one. Now that you have all of the strategies to assist you with dropshipping fulfilment, sourcing, pricing, and marketing, you will become a more successful online retailer and live the life you've always desired.

Good luck with your sales!