How To Dropship On Amazon
Before we get into how to dropship on Amazon, let’s define what dropshipping actually is. Dropshipping is an e-commerce business model in which an online store doesn’t maintain any inventory or stock any products. Instead, a dropshipping supplier handles the logistics of storing, packing, and shipping the items to the end consumer. In other words, the online retailer never sees or handles the products.
How Does Dropshipping on Amazon Work?
Dropshipping on Amazon is a very straightforward process. Here is how it works:
- You sign up as a seller on Amazon.
- You import your products to list them on Amazon.
- The customer places an order on Amazon.
- You place the order with your dropshipping supplier, such as GreenDropShip for example.
- Your dropshipping supplier then packs and ships the product to the end customer.
In reality, dropshipping on Amazon is not that much different than dropshipping with your own e-commerce store on Shopify or WooCommerce. Ultimately, you’re just using Amazon’s tremendous reach and a high level of brand awareness to your advantage. You can more easily tap into Amazon’s huge customer base.
What Are the Benefits Of Dropshipping On Amazon?
Dropshipping on Amazon offers plenty of benefits, including:
1) Low startup costs
Dropshipping on Amazon is not expensive for the merchants. All you have to do is invest in an Amazon professional seller account for $39.99/month and choose a dropshipping supplier.
2) A huge network of suppliers
Amazon has a huge network of suppliers who buy items in bulk. The company then warehouses these products until they’re ready to ship to customers. Another great thing is Amazon employs a huge team of account managers to guide a dropshipper’s business and help develop profit.
3) Access to an extensive customer base
The biggest benefit of dropshipping on Amazon is the massive customer base. The online retailer has over 300 million active users and counting. This can mean incredible profits for a dropshipping store In fact, Amazon offers the chance to connect with customers that would not be possible if you opened your store on another platform.
4) Access to various niches
Choosing the right niche is crucial to your success. This allows you to hone in on a target audience and focus on specific consumers. With the right supplier and a good selection of products, you can target multiple niches and enter numerous new markets. Because Amazon is the type of retail store where online shoppers go to find just about anything, they won’t bat an eye at an online store that carries various types of items. Just be sure you use these tools to find the right niche.
How To Be A Dropshipper On Amazon: A Step By Step Guide
Learning how to dropship on Amazon is a smart move and a potentially huge boost to your profits. And here’s better news: you can learn how to sell on Amazon for free. It’s easy. Let’s start here with a step by step guide on what you need to do to start dropshipping on Amazon.
1) Create an account
The first thing you’ll want to do is create a seller’s account on Amazon. You can open an individual seller’s account or a professional account. However, with the individual account, you’re going to be charged $0.99 per item sold. But with the professional account, you pay a subscription fee of $39.99 each month and are exempt from the $0.99 per item sold.
For a dropshipping store, the professional account is definitely the way to go. The $0.99 per item fees can eat away at your profit margins. Plus, most dropshippers have the goal to sell in high volume anyway. So it’s just a better investment to sign up with a professional account.
Registering an account with Amazon is easy. Just go to Amazon Seller’s Central and follow the prompts that will tell you what information to input.
2) Find a supplier
The next thing to do is find a dropshipping supplier who would store and ship the products to your customers. You can do a Google search and look for your niche such as “organic products dropshipping supplier”. There are also many tools you can use to find a supplier. However, you have to make sure your dropshipping supplier can work with Amazon. Plus, dropshipping on Amazon is distinct from Amazon FBA (Fulfilled by Amazon), so be sure you don’t confuse the two business models.
3) Pick the right products
In order to be successful as an Amazon seller, you’ll need to find the right products. We already discussed the importance of a solid niche and how you can go about finding one, so let’s take a look at another useful tool. Jungle Scout’s Opportunity Finder can be used to find both the right niche and profitable products to list on your Amazon dropshipping store. Of course, you’ll have to make sure that the products you find overlap with the inventory that your supplier has available.
There are various metrics you can use to determine the right products for your dropshipping store, but you can start with these general criteria in the Opportunity Finder tool:
- A competition level that is “low” or “very low”.
- Have a niche score of at least 7.
- At least 100 unit sales per month.
4) Import Products into Amazon
To add your supplier’s products to the Amazon catalog, you need to import them first. If you’re using an external supplier such as GreenDropShip, you just need to:
- Sign up for a dropship membership on GreenDropShip.com
- Download the product feeds and select the items you want to sell
- Upload the product feeds into Amazon
5) List your inventory
The next step is to create Amazon listing by adding the information specific to the products in your inventory. Make sure to select the shipping method and remember that your customers won’t know that your dropshipping supplier is the one shipping the products. That’s the benefit of dropshipping.
Always makes sure that your product listings are accurate and informative with high-resolution photos. In fact, your supplier should give you all the relevant information and images you need to create the best product listings possible.
Keep in mind that Amazon has strict guidelines on product images. More information can be found on the Amazon Seller Central page.
6) Start Selling
After entering the product details, click “Save and finish” and you are ready to sell your products!
Once you get sales, you’ll want to make sure Amazon is charging you correctly for shipping fees. Sometimes item descriptions like the color on an identical product can cause Amazon to charge inaccurately for shipping the item. Weight information could also be incorrect. So it’s important after selling a product to make sure shipping charges are correct.
In conclusion, there is plenty of money to be made on Amazon as a dropshipper. This retail giant makes dropshipping easy and the sky is the limit in terms of earning potential for an online retailer. With its massive customer base and brand recognition, Amazon is an excellent dropshipping partner that will most definitely help you grow your online business. For more details check out Amazon’s dropshipping policy.
Want to start dropshipping on Amazon with GreenDropShip as your supplier? Contact us now or view our product catalog and get started!