Have you ever thought of Amazon dropshipping?
It’s a sound idea. Amazon is a well-known brand.
With 150.6 million users accessing Amazon App on their mobile devices, it leads the list of most downloaded shopping apps in America.
Are you ready to build and manage your own stock? Shopify’s wholesale marketplace Handshake allows you to buy wholesale products.
Amazon customers are loyal and trustworthy. Dropshipping on Amazon can help you leverage that trust to build your brand.
It’s even easier to sell on Amazon if your Shopify store is online.
Although it might seem overwhelming, dropshipping with Amazon can be easy once you understand the basics. This is exactly what this Amazon dropshipping guide will do. Let’s get started.
Dropshipping: What does it mean?
Let’s start by briefly reiterating the basics of dropshipping before we get into Amazon dropshipping.
Dropshipping refers to the selling of a product without having to ship the goods or carry inventory.
Product manufacturing, inventory management and shipment to customers are the responsibility of the product manufacturer.
Dropshipping is the job of a person who manages an online shop. You will take orders from customers, place those orders with suppliers, and handle customer service.
What is Amazon?
Amazon is the largest ecommerce website in the world. Because it allows retailers to sell products on Amazon, it gained popularity.
Amazon is an additional channel that allows brands and manufacturers to sell their products.
Once you have been approved for an Amazon seller account you will be able start selling on Amazon. Keep in mind, not all products and brands are approved.
What is Amazon Dropshipping?
How do you dropship on Amazon? Dropshipping on Amazon is possible through the Fulfilled by Amazon program.
This program allows you to ship your products directly to Amazon, where they will ship the inventory to your customers.
Amazon’s fast shipping speeds make this program a great option for customers who want to get their products sooner. We have learned one thing from the 21st Century: Customers love quick delivery times.
Is it legal to dropship on Amazon?
Amazon allows merchants to dropship products on their platform, provided they follow a few rules.
Always:
Your products will be sold by you.
All packing slips, and any other information that may be attached to them, should identify you as the seller of your product.
Accept and process customer returns.
Respect all terms and conditions of your seller agreement, as well as any applicable Amazon policies.
Dropshipping is prohibited in these examples:
You can order products online from an alternative retailer and have them shipped directly to your customers.
Shipments orders should include packing slips, invoices or any other information that indicates a seller’s name or contact information.
What is the cost to dropship on Amazon?
Dropshipping on Amazon requires that everyone sign up to become a seller through Amazon’s website. The Individual plan is $0.99 per unit, while the Professional plan is $39.99 regardless of how many products you sell.
Dropshipping fees charged by Amazon vary depending on the product, but they are generally between 10% and 15%. For those with small profit margins, this might not be possible.
Is Amazon Dropshipping Profitable
You can. Dropshippers typically sell products at a 10%-30% margin. Dropshipping via Amazon will result in a 15% reduction in their top-line revenues.
Your net margin after selling products on Amazon at a 30% margin will be 15% if you sell at that margin. This is quite reasonable, especially considering the large audience you can reach.
Note: Although your Amazon dropshipping margins may be higher if the Amazon Buy Box is won, it’s still highly competitive and should not be your primary focus.
What are the benefits of Amazon Dropshippers?
This section of our guide will show you some of the advantages of Amazon dropshipping.
There is no warehouse cost
Dropshipping on Amazon is a great way to save money. Amazon sellers may choose to ship their products FBA (Fulfilled By Amazon). FBA allows sellers to ship their products directly to Amazon, and Amazon will send the products out for them.
Amazon Suppliers
Amazon purchases products in bulk from many European suppliers. This supply is then stored in Amazon’s warehouses and ready for customers to receive. Amazon also offers customer service and returns in many languages.
Amazon allows suppliers, even small businesses, to grow rapidly and expand internationally. Amazon suppliers also have access to account managers who can help them to guide their business in a strategic way to maximize profits over the long-term.
Sell to a large audience
Amazon boasts 300 million users. Amazon can be a great sales channel. You can attract new customers by selling the right product at a fair price.
The ability to reach new customers that your store would not have otherwise is another benefit. This will allow you to reach new customers and expand your customer base. You never know who you might find interested.
- Multiple categories you can target
- Amazon offers over 30 categories you can target.
- You may choose to sell in one, three, five or all of these niches.
- There are many niches and categories you can serve with the right products and trusted suppliers.
You can, for example, sell in both the Electronics and Tools & Home Improvement categories simultaneously. There’s no reason to stop you serving multiple customers.
8 Steps to Dropship Amazon
1. Select an ecommerce platform
Shopify has recently partnered up with Amazon so it makes sense to use their ecommerce platform. Shopify users can add Amazon to their sales channel to make it easier to manage orders on both sites.
2. The right products are sold
For store owners to sell products on Amazon, there are many restrictions and requirements.
Amazon lists eligible stores that you can open an Amazon store. If you are in a niche such as books, computers and video games, electronics and office products, you can open one without approval
To ensure you are not included in these categories, take a look at Amazon’s restricted products list. These items include dangerous goods and hoverboards.
3. Register for an Amazon seller account
A professional account is best if you intend to sell a large number of products. The individual selling plan charges 0.99 cents per product sold. This can reduce your margins.
Remember that you will need to be able to offer competitive pricing, as well as occasional discounts. While still making enough profit to reinvest back into the business. Be careful with your margins. A professional seller account requires you to pay a monthly subscription, along with a few additional fees.
Register with your email address on Amazon Seller Central. Next, fill in your name, email address, and password. Next, you’ll need to enter additional information about your business such as address and tax information.
4. Approved in your product category
Amazon approval is required for certain product types and niches, as I have mentioned before. Popular niches such as fashion, beauty, jewelry, and other products require approval before you can open an Amazon store. The approval requirements for each category can be viewed here.
5. Shopify allows you to create an Amazon account
After you have been approved, your account will be created. Connect your Amazon account with your Shopify store. Scroll down to “Sales Channels” in the left panel of your Shopify account and click the + button.
6. Dropshipping is an option from Amazon that will allow you to shopify
Click the Amazon link to see Shopify’s left-hand panel. Click on ‘Create Listing.
Next, click on ‘Select Product’ to see two options. You will need UPC codes if your brand manufactures the product. Dropshippers will click on the second option, ‘This product was made by another brand.
The next step is to search for the product and become a seller. After you have found the product you want to sell, click “Select” and then click “Publish”.
7. Shopify allows you to track your inventory
Shopify should keep track of inventory levels. This makes sure that the product is in stock when a customer orders from Amazon.
Customers shouldn’t be able to order out-of-stock products. This can cause negative reviews and extra customer service time that you didn’t expect.
8. Promote your Amazon store
If nobody knows about your store you won’t be able to sell any products. Next, you need to drive traffic to your store.
Make sure you promote your store on all social media channels. Amazon ads can be used to increase sales and attract new customers.
Amazon Bonus Strategies to Succeed
This section of the Amazon dropshipping guides will teach you a few strategies to succeed on Amazon.
Get the Buy Box
The Buy Box is responsible for most of Amazon’s sales. Dropshippers should aim to win the Buy Box, so that you can maximize sales like the pros.
You will first need to have a high selling rating. Many people have found that a rating of above 95% is a good indicator of their success.
You must also ship your products fast, preferably within 14 days.
Your shipping and total cost should be lower than the majority of other offers. You will also win the Buy Box by having a low refund rate and a quick customer response time.
Don’t trust Amazon
Don’t rely on Amazon for your sales. You should also explore other platforms. You can increase your chances of sales by having Amazon as one sales channel.
Shopify allows you to add additional sales channels like Instagram Messenger, Facebook Messenger and Facebook Shops, which will help grow your brand’s reach.
Also, it’s worth noting that customers who recognize your brand are more likely to shop from you on Amazon. Be there for your customers.
Try to get a 95% seller rating
A 95% seller rating or higher will increase your chances of winning the Buy Box. This is also great as it increases your chances of appearing in organic searches.
A high seller rating is important as it gives you the opportunity to earn trust from potential customers. This gives your Amazon store an advantage over other stores with lower ratings.
Keyword research
You would optimize your product pages in your store for search engines. When you learn how to dropship on Amazon you should optimize your Amazon product pages.
Merchant Words can help you find the most popular keywords. Amazon Ads will give you access to keywords that you can use for optimizing your product pages.
This will allow you to rank highly organically. It will help you target customers more effectively if you run ads.
Price your products according to their value
There are several factors that you should consider when pricing products on Amazon. The first is the cost of Amazon fees. Make sure that your margins are sufficient to cover Amazon’s monthly fees and any other associated costs.
Coupons with a higher discount than the competition
You can encourage customers to shop with you by creating an Amazon coupon. Promoting the coupon on coupon sites can drive more traffic from people looking for sweet deals.
Remember to price your coupon so that you can pay your expenses while remaining profitable.
Optimize your product titles for user intent
Amazon prefers listings that are relevant to buyers’ search terms than those that are stuffed full of keywords.
Simply put, titles that are focused on user intent attract people’s attention. It’s worthwhile to think about what buyers are looking for when they search for your products.
Buyers value information such as product attributes like model, size, color and quantity.
Pro tip: Make the brand name the first word of the title. Blueboard discovered that 93% of Amazon’s best-selling products were named after the brand. Dropshipping products from China is an option, but don’t forget to include the brand name of your local company in your titles.
Amazon Dropshipping Products
This list contains tools that can be very useful when you learn how to dropship on Amazon.
Merchant Words – Merchant Words allows you to see the search volume and data for keywords. $30 per month for the pro plan
FeedCheck – FeedCheck lets you view all of your product reviews in one location. This is a great tool for stores that sell a lot of Amazon products. You can improve your customer service and reviews by having easy access. You can also monitor the products of your competitors. They start at $19 per month.
Shopify – Shopify allows you to add Amazon to your store as a sales channel. Shopify can be used to monitor your inventory and notify you when you have Amazon orders that you need to fulfill. Shopify is available to you if you do not select FBA shipping.
Sellery – This tool offers repricing strategies that will help you win Amazon’s Buy Box. This tool allows you to conduct pricing experiments that will allow you to remain competitive while maximising profits. This one is free to try.
Feedback Express – Feedback Express can help you get more Amazon reviews. You can also remove negative reviews to maintain a high rating for your products and store. Blacklisting customers can be done if they leave negative reviews. Prices start at $20 per month
Amazon Volume Listing Tools – Amazon provides many tools that will simplify your seller experience. Download spreadsheets to manage order and inventory information. It is easy to modify product quantities and pricing.
Dropshipping from Amazon to Ebay
Dropshipping from Amazon and eBay has been a popular dropshipping method for many years. This model allows sellers to buy low-priced products on Amazon and then sell them on eBay for a higher price.
This means that end users who purchased the product on eBay will get it in Amazon packaging – which can be a frustrating experience.
Dropshipping from Amazon to Ebay is legal, but manufacturers aren’t happy with it. This is because dropshippers make more money without the manufacturer being aware.
Additionally, eBay isn’t a fan of dropshipping from Amazon directly to eBay. This may be why it banned thousands of Israeli merchants from using the model in 2017.
If you want to establish a reliable dropshipping business, this is not the right model.
Dropship to Your Brand instead
Are you not interested in selling on Amazon? Spocket and DSers are two apps that allow you to dropship your own products.
Products are available in fashion, beauty, watches and jewelry as well as home improvement and decoration.
With just a click, you can add your product to Shopify Store and start selling immediately. To get started, learn more about dropshipping vs Amazon.