Amazon Dropshipping – A Complete Guide

This successful business concept, which has been around for a while, is returning because of some type of pandemic-induced revival, and many novice entrepreneurs are taking advantage of it.  This article explains dropshipping on Amazon and how to get started with it.

Dropshipping: What Is It?

As the name suggests, dropshipping involves selling products without actually keeping an inventory of the goods you are selling (the dropshipper). Rather, the dropshipper sends the client’s purchase to a third-party vendor, who then ships the goods straight to the consumer.

For dropshippers, benefiting from the gap between what your supplier costs and what you charge clients is a viable way to generate money; Dropshipping depends largely on market research and creating new products to succeed.

It’s possible to make money as a dropshipper by profiting on the difference between what your supplier charges and what you charge customers. Dropshipping necessitates a great deal of product development and promotion.

What is Amazon Dropshipping?

Dropshipping on Amazon is similar to traditional dropshipping, except that you sell the items on Amazon’s marketplace rather than on a separate eCommerce website.

It is common for dropshippers to utilize Amazon because of the company’s built-in audience and significant market share. In addition, Amazon may be used as a sales channel in conjunction with your own self-run eCommerce site or Shopify shop. Dropshipping on Shopify or eBay is simple, but it’s a little more difficult on Amazon.

Dropshipping on Amazon

So, what’s the process for providing dropshipping services on amazon? The following are the four steps:

1. Creating an Amazon account is the first step.

Seller Central account registration is a simple process. We’ve put up a comprehensive guide to help you get started selling on Amazon.

When setting up an Amazon Seller account, make sure you have your personal information, billing information, and tax information available. Free individual accounts charge $0.99 per item sold; professional accounts, which are recommended if you intend to sell more than 40 items per month, cost $39.99 per month.

2. Conduct a thorough study.

Next, you’ll need to figure out the product category you wish to sell in or dropship. We’ll get to those tools in a moment, but you can use Amazon data to do some lucrative product research for now.

To get you started, here are some of the most important concepts:

3. Find things that are always in demand.

The best products are either obscure or helpful or a combination of the two.

When it comes to things that need a lot of upkeep, dropshipping is a better option than keeping them in storage.

• Locate your manufacturer’s representative.

Dropshipping vendors may be found anywhere. Doing a Google search Running an online search for suppliers is a lot of effort, but you can typically get in touch with them directly via their websites. Recall that you seek a real dropship provider, not a sourcing agency that can put you in touch with one. There are forms on their website where you may join up to be a dropship retailer, and contact information is provided on their sites. A major red flag is the absence of any way to get in touch with the author.

• Personal attendance at trade exhibitions. 

An excellent method to get started with dropshipping is to meet with your possible supplier in person, which is more difficult than just searching the internet. Attending a trade show is a great way to get to know several vendors in one location.

• Directories for dropshippers. 

You may also pay for a list of suppliers who are willing to deal with retailers or dropshippers.

• Fill out a personal and billing information form.

Verify your vendors at all times. If meeting with wholesalers in person is ideal, doing your research online is an option. Ensure to inquire about the company’s inventory management, fulfillment method, and payment conditions before signing on the dotted line.

A dropshipping agreement with your preferred supplier is also required. If Amazon asks for proof that you are permitted to drop ship their items, you may use this letter of authentication from the wholesaler.

• Selling your stuff.

The last stage is selling your goods on Amazon.com. Integrate Amazon as a sales channel if you’re selling the goods via an eCommerce shop or a Shopify site. Having a stellar listing and focusing on your customers’ needs is important.

As you progress, keep in mind the importance of creating your own brand. After learning the ins and outs of Amazon, it’s simpler to switch to more sustainable business models like private labeling, which are more profitable and environmentally friendly.