Dropshipping is a quick and easy e-commerce model for starting an online business. In this business model, you can sell products without holding inventory. As a dropshipper, you pass the order to a supplier who can fulfill the order on your behalf.
Amazon is a very popular dropshipping platform and one of the biggest online marketplaces in the world. Selling via dropshipping on Amazon is a fantastic opportunity for anyone looking to earn money online. In fact, Amazon has a decent amount of traffic and a very high conversion rate, and anyone can dropship on it. This goes even for products that normally don't do well in other stores.
Thousands of sellers are dropshipping on Amazon, and so can you! In this guide, we're going to dive into the ins and outs of Amazon dropshipping. We'll also show you how to dropship on Amazon and turn your business into a profitable one. Let's begin!
What is Amazon Drop Shipping?
Before we discuss how to dropship on Amazon, what is dropshipping on Amazon? By adopting this model, there is no need to deal with storage and compliance issues. You are responsible for sales, the vendor takes care of everything else.
Amazon dropshipping is an eCommerce business model where you can sell physical products on Amazon without having to deal with inventory or shipping. When you receive an order on Amazon, simply notify your supplier and they will ship your product directly to Amazon customers on your behalf.
During this process, you do not need to handle any products. Aside from signing up for an Amazon account, the initial cost is next to nothing. And you don't have inventory overload until the product sells.
The low-risk aspect of Amazon dropshipping makes it an attractive business model because anyone can do it and you don't need to be a techie to get started.
Advantages of Amazon Dropshipping
In this part of our guide, you will learn about some of the benefits of running an Amazon dropshipping business.
1.easy to set up
If you aredirect deliveryAt Amazon, you don't have to register a URL, work with a hosting company, or do a lot of backend work on your website. Instead, just designing and decorating your store and listing your products to start selling will save you time and money, especially if you are new to website design. Setting up an online store on Amazon is relatively quick and easy; we'll explain exactly how it works later in this article.
2.Various product categories
Amazon has more than 30 product categories, giving you more options to choose your preferred niche. With the right products and reliable suppliers, you can open and manage multiple stores in different areas with greater ease.
Just be careful, avoid selling products that are in Amazon's restricted categories, which include alcohol, powersports and medical equipment.
3.Massive exposure and large customer base
Amazon serves over 300 million active users, making it a highly recognized and trusted brand. It has a large audience and has the highest market share in the e-commerce market. Compared to the traffic you get from your own online store, the potential traffic is huge. This means that using Amazon as a sales channel for your business can pay off big.
If you are a Shopify dropshipper, you can seamlessly connect it to Amazon and access its huge marketplace. By linking Shopify and Amazon, you can easily manage your orders on both platforms. You can also keep inventory levels in sync across platforms to avoid overselling.
Contras do dropshipping da Amazon
There are also some downsides to Amazon dropshipping. You might need to get to know them before jumping right into this type of eCommerce business.
1.Declining profit margins
One of Amazon's rules is that there should be a 10-15% vending fee for each item. Typical dropshipping profit margins are usually around 10-30%. So even if your profit margin is 30%, you might only make half or even nothing selling on Amazon. This really hurts, especially when the profit margins on an item are already low.
2.No long-term customer loyalty
Amazon prefers to help suppliers sell products rather than build customer relationships. You are less likely to develop long-term relationships with your customer compared to selling in your own online store.
Everything related to building your brand, presenting your products, and communicating with your customers is under Amazon's control. You cannot really build a warm or lasting relationship with your customers.
3.exposed sales data
If you decide to use Amazon's platform, there is a risk that you should be aware of. Amazon can see all of your sales data, from top selling items to overall sales.
Amazon has been accused of using seller data to optimize sales opportunities and strengthen its own niche market share. This makes it difficult for small businesses to sell their products on Amazon.
4.Strict rules for products.
There are many rules and guidelines for dropshipping on Amazon that are very strict for sellers.
Since you are a dropshipper, you are highly dependent on your suppliers and it is easy to have issues outside your control that affect your business. For example, if your supplier is late or ships something that doesn't exactly match Amazon's product listing, you could receive a complaint and be kicked out.
For your Amazon dropshipping business to be successful, your suppliers need to be top notch.
How to Start Dropshipping on Amazon
Once you're familiar with the basics, you can start shipping on Amazon in just a few simple steps.
Step 1. Create an Amazon Seller Account
When you decide to start selling on Amazon, one of the most important things you need to do is choose your seller account.
You can choose between two account plans: Individual and Professional.
Individual Plan: Free account with a limit of 40 sales per month and fee of $0.99 per sale.
Professional Plan: It has a monthly subscription fee of $39 that allows you to sell a large number of products.
Go toAmazon Seller Centerrecord. You will be asked to provide details about your business, such as address and tax information, as well as other identification and credit card information.
Step 2. Find Products to Sell
Then you need to think carefully about theproductsYou want to sell directly on Amazon. Given intense competition and reliance on margins to sustain your economy, the product you choose must strike a good balance between popularity and price. Fortunately, some products that are often out of stock are in considerable demand. You need to keep an eye out for the sought-after products that are missing from the market.
You can refer to various tools likegoogle trendsojungle explorerto find product ideas. However, please note that there are somerequirements and restrictionsfor dropshippers to sell their products on Amazon.
Step 3. Find a suitable provider
Once you've selected your product, it's time to find a dropshipping provider to fulfill the order on your behalf. Whenchoose a provider, you should pay attention to factors such as reliability, product cost, quality control, and shipping service.
The most convenient way is to usegoogle search, or you can search on social platforms. Alternatively, if you want to save some time, you can also consider working with a reputable dropshipping service provider likeSuper dropshipping. Sup manages the entire supply chain responsibly and is committed to the highest standards through competitive pricing, quality and reliable delivery.
Once you've found the right dropshipping provider, you can estimate your price based on the provider's price and compare it to competing stores. This is how you can determine if your profit margin is adequate.
Step 4. List your products
After that, you can start listing your products on Amazon. To add your product to Amazon Seller Central, you can access your seller account's Inventory and create a new product from there. Make sure you optimize your listings if you want to generate as much online traffic as possible.
Your product listing is the only reference for your customers when they visit your Amazon store. They will make purchasing decisions based on the information provided here. So, you need to write catchy product titles and upload high quality product images. Most importantly, make sure your title covers all of your product's popular keywords.
Step 5. Optimize Product Listings
Amazon has its own search algorithms, just like Google, and if you want to drive more traffic to your listings, you need to optimize accordingly.
- Product title:When writing your headline, think of keywords that answer questions your customers might have. And the keywords must have a high search volume and be relevant.
- Product pictures:Show the product from multiple angles and include photos of the product's packaging. To avoid comments that the product is smaller than expected, please ensure that the image shows the size and proportions of the product.
- Main product features:It will take 1000 characters to describe the main features. Think of the customer's shoes to help them visualize and try on the product.
- Product description:You have 2,000 characters to show your customers what your product is and how it works. Use as much space as possible to detail key features and benefits, highlight uses, and support your claims.
- Key words:When it comes to keywords, you need to think like your customers, thinking about the words and phrases they use to find your product. Amazon has a backend keyword feature that makes it easy for people to find your products.
Step 6. Promote your Amazon store
Amazon is a competitive market. To stand out from the competition, you need to market your business to help drive traffic to your product listings. You can do this by developing a strategy focused on social media promotions, giveaways, and Amazon-sponsored product events.
You can participate in Amazon's internal sponsorship program, Amazon Pay Per Click (PPC). With PPC, you can create ads for your products that appear higher in Amazon search results for the keywords you set.
You can drive traffic to your Amazon product listings through external methods such as Facebook ads, social media, blogs, email marketing and more.
frequently asked questions
1.Is Amazon dropshipping legal?
Amazon dropshipping is 100% legal as long as you have the seller's license and adhere to Amazon's Terms of Service. According to Amazon, its platform allows dropshipping. However, you must ship from a legitimate wholesale supplier and not another retailer.
2.Is dropshipping on Amazon profitable?
Dropshipping on Amazon can be profitable. You can increase your items by 30-50% for a decent profit. You can also increase sales by offering products in niche markets with less competition. By avoiding price wars and competition, you can focus on selling more.
3.What is the difference between Amazon FBA and Amazon dropshipping?
In short, the main difference is the ownership of the inventory. The essence of dropshipping is that you don't own any inventory, you just act as an intermediary between the supplier and the customer. And when you use the Amazon FBA program, you need to ship the products to them and store them in Amazon's warehouses. In return, Amazon handles all of your local shipping and returns.
Whether you're a newbie or a seasoned veteran, dropshipping on Amazon is a great way to increase sales for your business. While Amazon dropshipping may have slightly stricter rules than regular dropshipping, the benefits it offers are worth it. Try to find reliable, reliable, quality suppliers while focusing your resources on building listings, promotions, getting reviews, and increasing your store's visibility.
We hope you found this guide useful and we wish you the best of luck getting started. Share your thoughts with us and we'll be there for you!