This is a complete guide to one of the most profitable eCommerce companies: Amazon Dropshipping.
Ever since the concept of dropshipping emerged, eCommerce gurus have always tried to connect dropshipping with Amazon.
For this reason, we have brought you a detailed guide that explains dropshipping on Amazon step by step.
In this guide, you will learn how to dropship on Amazon, the advantages and disadvantages of Amazon dropshipping, and other tips to do it legally and efficiently.
So if you are involved in the field of dropshipping, we highly recommend staying tuned throughout this article as we embark on finding ways to sell dropshipping items on Amazon.
Let us begin.
1What is Amazon Drop Shipping?
2How does Amazon Dropshipping work?
3Is Dropshipping from Amazon legal?
4How to start a dropshipping business on Amazon?
5Is Dropshipping better on Amazon or Shopify?
6Can you dropship on Amazon from AliExpress?
7How much money do you need to start dropshipping on Amazon?
8Is Amazon Drop Shipping Profitable?
9Do you need a business license to dropship on Amazon?
10What are the pros and cons of Amazon dropshipping?
11What are the pros and cons of Amazon dropshipping?
What is Amazon Drop Shipping?
dropshipIt's a smarter way to sell things online without having to carry inventory and ship the items.
It has a simple formula for taking orders from your online store and having them fulfilled by other stores, which are primarily product sourcing platforms.
Dropshippers operate their own online stores to get orders at a higher price and place the order at the original source with the customer's shipping address.
This is how they pocket their margins and run a profitable dropshipping business.
However, running your own store will be challenging with little to no traffic, as your newly launched store would have poor credibility and following with online shoppers.
Because of this, the idea of Amazon dropshipping came into the minds of cool dropshippers. That is, using the Amazon platform for dropshipping purposes.
How does Amazon Dropshipping work?
Amazon dropshipping works on the same concept as traditional dropshipping. It's just that you would use Amazon as a selling platform.
Open an Amazon seller account and register your products. When you receive orders from Amazon, you receive those orders from other sellers.
This is how Amazon dropshipping works.
While the Amazon dropshipping process seems very simple, there are some guidelines for selling on Amazon through the dropshipping model. We will discuss these limitations and techniques in a separate section of this article.
Is Amazon Drop Shipping Legal?
Yes. Amazon dropshipping is legal and does not account for any financially or commercially illegal activity.
New dropshippers often ask this question: "Is dropshipping allowed on Amazon?"
The answer is yes. Amazon itself allows dropshipping on its platform.
But Amazon dropshipping is not as easy as other forms of dropshipping. There are some Amazon dropshipping rules and regulations that you need to follow.
To fully understand the answer to this question, you need to understand Amazon preferences.
You have to put yourself in Amazon's shoes to get the real idea of why dropshipping on Amazon should be legal or illegal.
Consider yourself an Amazon owner for a moment. What would be your preferences for Amazon to flourish more?
Would you allow sellers on Amazon to open their Amazon stores under one name and have their customers receive their products under a different name?
Won't your customers be offended too if they receive orders after 45-60 days of payment?
Won't these factors affect the credibility of your gigantic e-commerce platform?
But at the same time, you don't want to give up selling products that are not available on your platform, since the main goal of your online business is to be more profitable.
So you would have to set some rules so that your customers don't get an invoice, a label, or anything else that shows the product was shipped to them by another seller.
Similarly, you would need to set up another rule that your sellers must deliver their orders within a maximum number of days.
To address these issues, Amazon has developed some dropshipping rules that Amazon sellers must follow. These rules are calledAmazon Drop Shipping Policy.
While this Amazon dropshipping policy may be self-explanatory, we've reiterated its points in simpler language.
- Show yourself as the true seller of the products you sell.
- The product and its relevant documentation must be shown to you, the seller, and no one else.
- The delivered package must not contain anything that is disclosed by a third party between you and your customer.
- Must be responsible for handling customer complaints and returns, etc.
- Please follow all other Amazon policies and rules regarding non-drop shipping items.
So, you must have understood by now that dropshipping on Amazon is legal and can be possible by following the above rules and regulations.
How to start a dropshipping business on Amazon?
Let's learn the Amazon dropshipping process step by step.
There are two main ways to dropship on Amazon.
- Amazon Dropshipping a través de Shopify
- Amazon Dropshipping through Amazon FBA
Let's discuss both ways.
1. Amazon Dropshipping a través de Shopify
If you're a Shopify dropshipper, you probably already know that Shopify has this.Added Amazonas one of its sales channels.
To understand the complete Amazon dropshipping process through the Shopify store, we've broken it down into 6 simple steps below.
1. Register as a seller on Amazon
Please log in to Amazon.com and try to click "Sell" on the home page as shown in the screenshot below.
Another page will open that says "Become an Amazon Seller" and asks you to log in.
Click the Register button to proceed with the registration as a seller.
On the next few pages you will be asked to provide the following information:
- business information
- Seller information
- save to computer
Attention: It is recommended to provide real information about your business and personal data, since you cannot change any part of the information after the update.
Important Note: Never use your personal email address to register as an Amazon seller. This is because you may need to sell your Amazon store in the future, and in order to do so, you will need to provide the buyer with your email username and password.
When setting up your Amazon seller account, you must choose from the following plans:
- Individual plan
- professional plan
There are no monthly fees in the Individual plan, but there are limited options like free choice of some product categories, etc. Amazon also charges $0.99 per sale.
On the Professional plan, there is no limit on the selection of product categories, but there is a monthly fee of $39.99 that Amazon will charge you.
Amazon does not charge you per product on a Pro plan.
2. Choose the right and profitable products to sell on Amazon
The next step is to select products that are likely to sell on Amazon. This should be a different but extensive product research practice as you are about to sell on a different platform.
Obviously, you would need to find and list products with high profit margins but little competition on Amazon.
At first, you feel like all the other products you want to sell already exist on Amazon. But if you dig deeper, you'll come up with some great product ideas that can jumpstart your Amazon dropshipping journey.
Pro Tip: Try to find AliExpress products online that are new to the field and check their availability on Amazon. Even if you find a potential winning product with low availability on Amazon, you can still do it.
But remember, syncing a product to the marketplace is everything in ecommerce.
3. Integrate your Amazon store with Shopify
Sign in to your Shopify account and try to find the Sales channels option. Click the "+" button to add Amazon as one of your additional sales channels.
If you can't find Amazon by clicking the "+" button, go to the Shopify Marketplace and search for "Amazon".
You can find the result as shown in the screenshot below.
Install this Amazon Channel app in your Shopify account and you can start creating product listings on Amazon.
4. Create your Amazon product listing
The next step is to create your Amazon product listing. You can access this option in two of the following ways:
- Amazon-Kontos Product List
You can find the product listing option in your Amazon account in the top left corner by clicking on "Inventory" and then "Add Product".
- Product listing from your Shopify account
On the left side of your Amazon sales channel, try to find the "Create an offer" option. Follow the process shown in the video below to add products to Amazon directly from your Shopify account.
5. Sync your Amazon store with Shopify
It's very important that you sync your Amazon store with your Shopify account. You would have some benefits like Shopify to keep your Amazon up to date on your stock levels.
This is an important step towards what we callauto send. Although it might not be fully automated, it would be the right step to achieve it.
6. Promote your Amazon store
Having a store on the world's leading e-commerce platform doesn't necessarily mean you can make a lot of sales. This is because there will be many other sellers from around the world trying to sell their products through Amazon.
So, to stand out from the crowd, you need to promote your Amazon store the same way you promote your Shopify dropshipping store.
The main goal of promoting your store should be to generate more traffic. The more traffic, the higher the chance of success on Amazon or any other dropshipping platform.
Some of the most popular advertising methods are listed below:
- amazon advertising
- Search engine optimization (SEO) through keyword optimization
- Use of the social network
- Junk mail
Tip: Amazon dropshipping is different from Shopify dropshipping. With Shopify, traffic is limited to just reviewing the products your store offers. There is no internal competition.
But on Amazon, there's a chance a visitor might buy the same product from a different seller, even if you're the one who brought the traffic. This is because Amazon itself suggests that each visitor check out similar products from other sellers.
So, to attract your visitors and link them to your products only, you would have to beat your competition on Amazon in terms of pricing, service, and reviews etc.
2. Amazon Dropshipping through Amazon FBA
The other method is a bit ahead of traditional dropshipping. This method is known as dropshipping with Amazon FBA.
Fulfillment by Amazon is fulfilled by Amazon. This method requires you to ship your products to Amazon, which is Amazon's responsibility to store and ship them to customers when Amazon receives orders for those products.
The Dropshipping FBA model is shown below in 7 steps.
- You buy products from third parties.
- You ship these products to Amazon.
- Amazon stores its products in its own warehouses and continues to bill for this facility.
- You update your Amazon store with your product details.
- Amazon customers order your products.
- Amazon picks up the products from its warehouse, packs them, and ships the products to the customer's address.
- Gets the value of Amazon sales after Amazon deductions.
The FBA model is not really dropshipping as such, as once you have purchased the products and shipped them to Amazon, it is no longer dropshipping as you have become the rightful owner and custodian of the products.
But you still wouldn't store, pack, and ship products to your customers. It is Amazon who would do it for you.
Tip: If you are confused to find the best products at the best price, Niche Dropshipping is for you. you must use oursProduct Supply Servicesfrom China with cheapest rate and reliable quality.
Is Dropshipping better on Amazon or Shopify?
This is one of the most common questions asked by dropshippers struggling or aspiring to dropship. The answer to this question is quite relative.
Once you enter the dropshipping space, there is only one key to success: never leave a stone unturned.
While it can be debated which platform has the best chance of success when it comes to dropshipping in general, it's always a good idea to see for yourself which one is best for your business.
Dropshipping beginners are recommended to start with Shopify dropshipping with more freedom and convenience.
You should pay more attention to Amazon drop shipping items as they have some strict rules that may even ban your Amazon account.
Is it possible to dropship on Amazon from AliExpress?
Yes. Technically, you can ship directly to Amazon from AliExpress, but you have to be very careful when doing so.
So how do you dropship to Amazon from AliExpress without getting your Amazon account in trouble?
We share some tips for dropshipping on Amazon from AliExpress. You need to follow the tips below if you want to successfully send items from AliExpress to Amazon.
Choose reliable suppliers on AliExpress
Choosing the right suppliers on AliExpress is key to running a successful Amazon dropshipping business. It would be ideal if your supplier already has experience in dropshipping on Amazon.
In this case, your supplier would already understand how to legally dropship on Amazon.
If your supplier isn't clear on Amazon's rules, you should talk to them at length and agree to the shared points in Amazon's drop shipping policy.
It would be great if you could let your supplier know about other Amazon rules so that your supplier does not ship products that are not on Amazon's allowable list.
AliExpress supplier rating and the number of years the supplier has been with AliExpress should be the most important factors to consider before choosing a supplier for Amazon drop shipping.
Suppliers must have warehouses in the countries of their customers
AliExpress has many suppliers who have warehouses in Western countries such as the US, UK, Spain and France etc.
Choosing these suppliers gives you the added benefit of being able to deliver your products in shorter timeframes, which is one of Amazon's top priorities.
Ask your suppliers not to include anything in the package that identifies you as the seller
You may have remembered the points shared earlier in this article about Amazon's dropshipping policy after seeing this tip.
You must strictly force your supplier not to include anything that shows that you are not the true seller of their products.
This is a point every dropshipper should keep in mind, whether they are dropshipping through Amazon or Shopify.
Experienced suppliers on AliExpress know this very well, but you should still check with your supplier and ask them not to include receipts, promotional material or the AliExpress store logo on the package.
Select the services of an agent
The smartest move to get your products serviced by AliExpress would be to hire the professional services of an agent.
The main goal of AliExpress Dropship is to earn higher margins. A professionalAgent in Chinayou are already familiar with such techniques.
An agent like NicheDropshipping may be your best option to fulfill your products more efficiently and cheaply.
An agent not only searches for the desired item on AliExpress, but also checks the availability of the product on other Chinese platforms.
In this way, you can increase your Amazon dropshipping sales, reduce fatigue, and earn more margins.
So you can dropship on Amazon from AliExpress andSites like Alibabaand DHgate etc? Yes, you can drop ship on Amazon from these websites as long as you follow the rules outlined above.
How much money do you need to start dropshipping on Amazon?
It depends on how big you want to make your Amazon dropshipping business.
obase ratesYou must bear when you start an Amazon dropshipping business as mentioned below. You should calculate your total cost after adding the following Amazon direct shipping fees.
Amazon asks you to choose between two selling plans, called the Individual Plan and the Professional Plan.
The Individual Plan costs $0.99 per unit sold, while the Professional Plan costs a fixed monthly fee of $39.99 with no per unit fee.
The referral fee, or Amazon commission, is the percentage that Amazon charges for selling products on its platform. Reference fees vary from product to product.
Reference fees for most items sold on Amazon range from 8% to 15%.
Amazon's highest benchmark fee is charged for sales of Amazon device accessories (45%), while it charges 8% for consumer electronics and 15% for home and garden products, including pet supplies.
There are fulfillment fees for the Amazon FBA program, as Amazon is responsible for storing your inventory in their warehouses along with packaging, shipping, customer service, and returns, etc.
Amazon charges per cubic foot of space occupied by products in its warehouse. To get an idea of Amazon's storage fees, see the fees below.
- Amazon charges $0.75 per cubic foot from January to September.
- Inventory fees peak at $2.40 per cubic foot from October through December. This is due to the high demand for products at this time of year.
Advertising fees are highly dependent on the seller, whether or not they advertise their products on Amazon.
Advertising on Amazon works pretty much the same as on other platforms like Google and Facebook, etc.
You are responsible for the cost of advertising. You set the maximum spending limit of an amount for your ad. If your competitor Amazon offers a higher price, your ads will appear on top.
Please note: Like storage costs, advertising costs are highest during Amazon's peak sales season, i.e. (October to December).
This is because sellers are at war with each other due to back-to-back events like Halloween, Black Friday, Christmas, and New Years.
So, to remain profitable with Amazon direct shipping, you need to factor these costs into the price of the product; otherwise, you may not be as profitable as you would like.
Are Amazon dropshipping profitable?
Yes. Amazon dropshipping is profitable as long as you plan for the long term.
amazon is out215 million unique visitors from the US per month. This makes it a great ecommerce opportunity for all online sellers, including dropshippers.
But what's the problem with getting it right when selling on Amazon? It's the recurring customer base you need to grow by creating your Amazon seller profile.
This is necessary to keep regular customers as shopping on Amazon has become the norm in Western countries, especially following the trend of online shopping from mobile devices.
Sellers come and go on platforms like Amazon, but a truly successful entrepreneur or seller is someone who shows consistency and continues to fulfill orders with total focus on delivering quality products.
Given Amazon's huge customer base, you need to attract the maximum number of Amazon visitors by showing them unique products that offer real customer value and exceptional customer service.
Because of this, Amazon dropshipping is considered a tough decision for most dropshippers.
Tip: The keys to Amazon dropshipping success are ultra-fast delivery and medium margins, as well as increasing the number of packages.
Tip: You should try to sell 1,000 items at a profit of $5 per item to earn $5,000 per month instead of trying to sell 500 items at a profit of $10 per item.
Do you need a business license to dropship on Amazon?
NO. No business license is required to dropship on Amazon.
You don't even have to have a formal business to start selling on Amazon.
In fact, Amazon itself encourages new sellers on its platforms. That's why Amazon encourages buyers to sell on Amazon if they've purchased a similar product. This type of sale is known as "Me Too Listing" on Amazon.
While a business license can give you credibility in the eyes of Amazon, it is not required for regular sales or drop shipping on Amazon.
What are the pros and cons of Amazon dropshipping?
There are some pros and cons of starting an Amazon dropshipping business that you need to take care of.
These precautions and tips will help you progress quickly as a dropshipper. The list of do's and don'ts with Amazon dropshipping is as follows.
Dos de Amazon Dropshipping:
- Deliver as soon as possible.
- try to be thereamazon shopping box. This will get you more sales, but you must have a professional seller account and an outstanding seller record to be listed in this category.
- Be truthful and honest with Amazon and your customers by providing truthful information about yourself and the details of your business.
- As mentioned above, create your Amazon store with a newly created or specially created email id so that you can sell your store at a good price in the future.
What Not to Do with Amazon Dropshipping
You must present a completely professional code of conduct when doing business on Amazon.
Below are the points to avoid when dropshipping from Amazon. These instructions can be followed in Amazon Seller CentralHere.
- Don't get caught up talking directly to your customers on any platform other than Amazon.
- Avoid fake sales and reviews.
- Don't let your customers know you're dropshipping.
What are the pros and cons of Amazon dropshipping?
Starting an Amazon dropshipping business has many advantages, but at the same time, it also has some disadvantages.
Below is a list of the pros and cons of being an Amazon dropshipper.
Amazon Dropshipping Advantages
Large customer base
Amazon is undoubtedly one of the best e-commerce platforms in the world. It has millions of unique visitors who come here just to shop online.
Being on Amazon's supplier list exposes you to a very large audience.
Amazon has become a top-tier e-commerce site, especially in Western countries. Thus, you would also have the opportunity to benefit from its enormous credibility.
Customers will trust your products and see you as a reliable supplier.
You don't have to worry about customer service and processing when you work with Amazon as Amazon prefers to do it itself. That is why Amazon charges a hefty sum for its services.
At Amazon, all you have to do is do your best and enjoy regular sales.
long term business
By becoming a trusted supplier on Amazon, you have a long-term business opportunity with ever-growing customers.
You can also expand your options by adding more products to your Amazon store. you can also startPrivate label dropshippingcon Amazon.
The Amazon SEO Advantage
Like any other megastore, Amazon has its own search engine. This is how you can capitalize on the power of keywords and rank in Amazon search results by applying good SEO techniques.
Amazon Affiliate Benefit
Amazon has its own affiliate programs where it offers a fixed percentage to promote and sell Amazon products. Affiliate merchants are free to choose from the list of products offered by Amazon.
Therefore, it is very likely that an independent partner will select your products and start selling them. It would be a win-win situation for both of them.
Ability to flip your Amazon store
If your Amazon store has consistent and regular sales, you may as well sell your store for a significant amount. It would be a great source of instant earnings for you.
You can sell your Amazon store on sites likeempire finand charges a hefty flat fee for great returns.
Contras Machen Amazon Dropshipping
No company is perfect enough to be free of drawbacks. The same goes for Amazon dropshipping. Some of the disadvantages of Amazon dropshipping are listed below.
Easy customer distraction
You might think that you would be offering your products to a very large audience and therefore your chances of success would be higher. That is true, but it can also be the opposite.
As customers review your products, Amazon displays the list of products similar to them. So if they find a better product or the same product at a better price, they can buy it from other sellers.
With the competition at Amazon increasing by the day, you would need to reduce your margins to remain competitive.
Another factor in the reduced margin is Amazon's high fees, as mentioned above. Adding these fees to the final price of your products leaves you a small markup.
additional storage costs
This is especially true for Amazon direct shipping via Fulfillment by Amazon. You would have to pay for Amazon's warehousing and fulfillment facilities, even if your products don't sell.
Higher returns and refunds
Amazon cares more about its customers than its sellers. Amazon customers know this.
Therefore, you may have to expect higher returns and chargebacks when working with Amazon compared to other forms of drop shipping.
You've reviewed Amazon's most comprehensive dropshipping guide. We've done our best to answer the most important and critical questions about getting started with Amazon Dropshipping.
Let us know in the comments if you enjoyed this article, and let us know if you plan to start shipping Amazon direct in the future. Please contact us if you are not sure or have any other questions about Amazon dropshipping business.
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