How to Scale Your Amazon Dropshipping Business to New Heights

Boasting its average monthly statistics of 4.8 billion visits, it’s no surprise that Amazon is a goldmine for individuals aiming to start an e-commerce business. While there are several business models one can opt for on Amazon, a dropshipping business emerges as the best option for individuals with a low start-up budget.

In this article, we’ll explore the top tips for scaling your Amazon dropshipping store and finding the top-selling items on the platform. So let’s get started!

How to Scale Your Amazon Dropshipping Business?

Once your dropshipping store is live, you need to ensure it can win the rat race of the fierce competition of the marketplace. Here are a few tips for scaling your Amazon dropshipping business to unprecedented heights:

Optimize Product Listings

Thoroughly optimized listings are essential to improve your product visibility and attract customers who are searching for those items.

Start with optimizing your title and product descriptions with the keywords you’re ranking for to enable Amazon’s search engine to display your products when shoppers search for those keywords.

Secondly, ensure your product descriptions are as detailed as possible, communicating to potential customers the benefits they can achieve by purchasing them.  

Promote Your Listings

Only when you can drive traffic to your product listings can you enjoy maximized sales, and what better way to do this than by promoting your listings?

Amazon features its sponsorship program known as Amazon Pay-Per-Click (PPC). This enables you to create advertisements for your product catalog, allowing your products to achieve a higher ranking in Amazon’s search results for the keywords you’ve selected.

Another way to achieve this feat is by leveraging external methods such as social media platforms, email marketing, paid ads, blogging, etc. While this strategy requires considerable effort to build a following for your brand, it can be incredibly fruitful in making your products visible to a broader audience.

Monitor Your Pricing and Product List

Remember that several other sellers on Amazon are selling the same items as yours.

Market research can help you get a transparent idea of competitive pricing for each product.

On the other hand, your product catalog must be updated regularly depending on the changing trends and consumer demands. For instance, if you’re selling mirrors and suddenly there’s a surge in demand for curly mirrors. Adding these items to your dropshipping business would be a great idea to benefit from its swelling demand.

Focus on Enhancing Your Customer’s Experience

With Amazon dropshipping, the best part is that you’re not involved in the hassle of manufacturing your goods or shipping them. Instead, you can direct that energy toward enhancing your customer’s shopping experience.

This includes quick and informative replies to customer queries and efficient handling of product returns and refunds. Ultimately, this can help you secure positive reviews for your dropshipping store, establishing you as a trusted business in front of new customers.

How to Find Top-Selling Items on Amazon?

Another way to scale your Amazon dropshipping business is by picking the top-selling items with low competition to introduce to your product list. Here’s how you can do this:

Analyze Consumer Demands and Market Trends

Staying updated on market trends and changes in consumer preferences helps you add the most promising products to your dropshipping store.

A pocket-friendly way of doing this is by taking help from platforms such as Google Trends to see what your target audience is searching for. Similarly, you can participate in online forums or groups where your target market discusses their preferences and interests.

In contrast, Amazon’s best-seller list features the top-selling products in every niche. That’s one place you need to visit regularly to see the hottest items of the season.

Another tip to keep in mind is to eliminate seasonal products from your list. While you may be able to generate tremendous sales from them, it would only be for a specific duration. Instead, settle for evergreen products with a steady demand for the entire year.

Frequently Asked Questions

Is Dropshipping on Amazon a Profitable Business?

Amazon dropshipping is indeed a profitable venture. Dropshippers average around 10%-30%. One thing to note is that Amazon takes 15% of your profits. This means that if your profit margin is at 40%, in reality, you’re earning 15% more profits through dropshipping.

How Much Does a Dropshipping Business Cost on Amazon?

To start your dropshipping business on Amazon, you need to create a seller account on the platform. The cost of their Individual plan is $0.99 for every unit sold. On the other hand, the Professional plan charges a fixed fee of $39.99 each month, regardless of the number of units sold. Apart from that, Amazon charges a dropshipping fee, which is different for every product but usually ranges between 10% to 15%.

Does My Business Need to Be Registered to Get a Dropshipping Supplier?

While you can start your dropshipping store without the need for a business license, issues may later arise as a result of this. Instead, you can register as a Limited Liability Company (LLC) or some other formal entity to minimize your liability and show your legitimacy to potential suppliers.

Can Amazon Dropshipping Be Risky?

As with any other business, dropshipping on Amazon has its risks involved. However, they can be mitigated through strategic planning and effective execution. Some of the risks include the supplier reporting out-of-stock items, price fluctuations impacting profit margins, and difficulties in handling returns or refunds.

Who Manages Customer Returns with Amazon Dropshipping?

The return policy on Amazon is consistent for anything you sell on the marketplace.

However, where Amazon itself manages customer returns in an FBA model, for dropshipping, you, being the seller, are responsible for returns and not Amazon. These returns are required to be packaged back to the supplier.

What Upfront Investments Should I Prepare For?

Your initial investments depend on your plans for the dropshipping business. While Amazon boasts an extremely low barrier to entry, there are other costs you may need to account for. These include:

● Amazon Professional account – $39.99/ month

● Product samples from the supplier to ensure your customers get the highest-quality products

● Amazon PPC advertising

● Costs associated with keyword research, market research, product research, etc.

Conclusion

With that, we conclude our discussion on how to scale your Amazon dropshipping business to new heights. From best practices to the importance of picking the top-selling items for your dropshipping business to appeal to your audience’s interests all year round, we’ve shed light on it all.

While we’ve already stressed the significance of selecting reliable suppliers for your business, we must reiterate the same point before bidding farewell. To make your hunt for such suppliers easier, Doba dropshipping presents a vast range of attested and dependable suppliers to ensure a hassle-free dropshipping journey.

From broad categories like clothing to more focused ones like home, Doba features countless categories to bring your dropshipping business to life. Browse the website today and find the best suppliers and products for your niche today!