Amazon Dropshipping

Amazon Dropshipping: Ultimate Guide 2020

If you want to earn a decent income by starting your own business, dropshipping is worth it.

This is a process of selling the products without holding the inventory. And Amazon is a great platform to start your dropshipping business.

There are several reasons to start selling on Amazon. The popularity of this marketplace is indisputable.

 It is on the top of the most popular online shopping sites in the United States. With the Amazon dropshipping, you can leverage from the rust.

In this Amazon dropshipping guide, you will learn about the dropshipping, how you can start Amazon dropshipping, the pros and cons of Amazon dropshipping, and much more.

Is Dropshipping Allowed On Amazon?

Amazon allows the merchants to dropship on their platform. And many merchants do this without their customer’s knowledge. Amazon has few rules, which merchants have to follow to be a successful trader.

According to rules, you cannot send a parcel to customers who have been packed by the third party. In case of any dropshipping return or complaint, you will be responsible, not the supplier.

How Does Amazon Dropshipping Work?

Amazon is the biggest e-commerce and accessible website. The retailers can sell their goods on the platform of Amazon.

The manufacturers and brands can also sell on Amazon through their additional sales channels for their stores.

You need to get improved an account from Amazon, and after that, you can start selling the goods on Amazon. Well, it is a fact that all the brands do not get accepted here.

You can dropship from the Amazon through the ‘Fulfilled by Amazon’ program. According to this program, you can dropship your products to the Amazon where they can be stores and then shipped directly to the customers later on.

You can take advantage of the fastest shipping of Amazon through this program. And your customers can get the products sooner.

·   Amazon Dropshipping

Dropshipping is an online business where the seller takes the orders on behalf of the manufacturer or supplier. The customer buys the products and uses the supplier to fulfill those sales.

In dropshipping, the customers never came to know that their products are coming from the manufacturer. This method of trade is trendy on different sites like Amazon, Shopify, and eBay.

This way of the deal may seem complicated, but it is the most straightforward way to start your business and to earn money.

1. The Amazon customers purchase the products that you (dropshipper) has listed on the store
2. Once the transaction is finalized, you can receive the funds.
3. Now you can purchase products directly from the supplier and give information about the supplier
4. The supplier then sends the products to the customer
5. You will send the payment to the supplier, as soon as the customer receives the products

This is the way how to dropship on Amazon.

Suggested reading:AliExpress Dropshipping Guide

·  Print-On-Demand Dropshipping

This way of dropshipping allows you to advertise products like posters, t-shirts, mugs, and even books. And you do not need to store the inventory.

Once you get the order, transfer it to the supplier. The supplier will send the products directly to the customer. This is the way Amazon dropshipping works.

Pros and Cons of Amazon Dropshipping

There are different ways to dropship, but the most commonly used platform for dropshipping is Amazon.

If you want to ask whether it will be the right decision to use Amazon dropshipping or not, you can get through the pros and cons of the dropshipping.

 The advantages and disadvantages of Amazon dropshipping are described just below.

·  Pros

There are many benefits that you can avail of while Amazon dropshipping, and some of them are described below.

a)  Fulfillment by Amazon

It is the sum of total advance fulfillment networks that are created y the Amazon and the expertise provided.

You need to store the items at the Amazon fulfillment centers and left the rest on them. They will not only sell but also ship the products to the customers.

Amazon pick, pack, and deliver the products and even can manage the returns later on. The business techniques can help you to enhance the sales by giving them access to the world-class expertise of the Amazon and trusted customer services.

b)  Very Large Audience

Most people get worried about the traffic and search the ways to drive the traffic toward their channel. The traffic means potential buyers in the e-commerce business.

One of the best things about Amazon is that it has more than 2.5 billion visitors every month and tends to buy.

If you use Google PLAs, it will help you to get a large number of buyers. So, it will be a crucial step towards the success of your business. Google PLAs only triggers those buyers who are already willing to purchase the goods.

c)   Easy Set-Up

While starting your online business, you will face a lot of problems, and technical issues are one of them. Most of the time, people think that they need a web developer to have a beautiful storefront.

With the help of Amazon, you are not registering URLS, working with a hosting company, and doing a bunch of back – end work on your site. Instead, you are using their process and list products on their website.

It is a lot less daunting to the people who believe the myth that you need to know about the technology to create the store, which looks appealing and professional.

d)  Less marketing

It is a fact, at the platform of Amazon, you can address a large number of audiences. You can catch their attention and sell them your products. Therefore, you do not need to waste time on marketing. Focus on customer services.

You do not need to pay for the SEO or paying for the traffic. It will save you time. Marketing is the biggest challenge associated with launching a dropshipping business.

·  Cons

After getting through the pros, it’s time to have a look at the cons of the Amazon dropshipping. And they are given below.

a)  Listing fees

The biggest downside to the Amazon dropshipping is that you will have to pay the large amount as fees. The fees may become an issue for beginners. And they not can pay the fee and left the dropshipping business.

In the dropshipping, your profit margins are already meager. There in this scenario, you may not be able to pay the fee.

b)  Exposure Of Sales Data

One of the significant problems you will face at Amazon is that they can see your sales data. They can quickly know what you are selling, which your best selling product is and above all, how much you are earning.

Amazon uses all this data to identify the excellent selling product opportunities and strengthen its involvement in the niche. And this ultimately pushes the customers to sell through this marketplace or Amazon.

c)   No Long-Term Connection With Customers

You may have only a few repeat customers. And the remaining will not buy from you ever again. The only way to force the customers to purchase from you again is through excellent customer services and high quality of goods.

The marketplace is constructed to serve itself and to attract the customers. So the maximum number of products can be sold.

The platform does not consider the importance of merchants. In this way, you may feel restricted while communicating with the customers. They may limit you in branding yourself or the design of your store.

d)  No Customization

On Amazon, the lists of your products should follow the Amazon template. It can make it challenging to create a professional value, and value-adding a page for your items.

How to Dropship on Amazon?

Amazon dropshipping has continued to grow. The platform also offers opportunities to other people, so that they can build their e-commerce business by selling the product.

Well, if you want to take benefit from this platform, you need to get register on the site. So, you can get an account.

The following are the steps you need to follow while dropshipping on Amazon.

·  Set Up An Amazon Seller Account

Once you have decided to sell the products through Amazon, you will need to get through the Amazon selling registration process so that you can create an account. It is quite an easy process to follow.

To sign up, you will go through different self-service options:

1. First of all, go to the services.amazon.com, and then select one of the starts selling links.
2. Go to the sellercentral.amazon.com, and then click the register now option. Here, you can also choose the selling on the Amazon link. Both of these options will take you to the services.amazon.com.
3. In the end, go to the end or bottom of the Amazon.com home page; click on the sell on Amazon, under the make money with us section.

It does not matter which page you have selected to get register. All of them will take you to the same registration process. And you will take you to the same signup page on the services.amazon.com.

·  Find A High-Demand And Low-Competition Product

The key to success on Amazon is to select a product that is high in demand but low in the competition.

Well, it is the same fact for everyone who is selling online. For the success of your business, you will have to keep yourself with high demand and low supply.

Once you have done the private labeling of your products, you can find the demand immediately without competing against too many other sellers.

The catalog of Amazon offers you a lot of products to sell. To summarize your product research,  a few key factors have been provided here. You need to stick to them; they will let you get the best products.

1. Choose the product with a retail price between 25$ to 50$ USD
2. Products with low seasonality
3. Products with less than 200 reviews and for top sellers products with less than 100reviews are best
4. Try to choose those products which are light in weight and small in size. So, you can fit them in a shoebox.
5. The products which offer a margin for improvement, are one among the top-selling goods
6. The products should be easy and quick to manufacture

·  Get Approved In Your Product Category

There are many products that you cannot sell on Amazon and need special permission to sell them on the store. There are many third-party sellers on Amazon, which can sell prohibited products.

Therefore there is a risk for Amazon’s reputation. If the customer receives the faulty or counterfeit or inferior quality goods, the customers will blame the amazon rather than the seller.

To protect the customers and Amazon, they restrict various product categories that are deficient in quality or can be counterfeited.

If you want to sell any product from such a type of category, you will need approval from the Amazon.

To get permission, sellers provide information regarding their business and their products. From this, Amazon can assure that only genuine sellers are selling authentic products at their marketplace.

The following are the product categories, which are restricted at the Amazon. You will have to get a permission letter if you are willing to sell anyone of them.

1. Automotive and Powersports
2. Fine Arts
3. Major appliances
4. Video, DVD, and Blu-Ray
5. Fine Jewelry
6. Collectibles like coins, books, entertainment, and sports
7. Watches
8. Grocery and gourmet food

Now the question arises, are the other categories completely open. If a group is not gated, it does not mean that it is entirely transparent, and restrictions will not apply. There are rules and regulations for them too, which you need to follow.

Suggested reading:Best Selling Products On Amazon and Top Selling Categories

·  Create Amazon Product Listings

Find the right product to sell online is a critical factor for the success of the business. If you are selling the perfect and high demand items, an optimized product listing is a crucial factor to take your business up to the next level.

According to the latest report, among more than 1000 Amazon sellers, only a few know the importance of a premium listing.

 All of these sellers have optimized their product listing in 2020. But for the remaining, the optimization is not an easy task.

To create the Amazon product listing, you will need to evaluate products with decent demand. You select a market place like the United States from Amazon marketplaces. In the next step, for the categories, check the select all.

Set a price limit between $10 and $35. Make the minimum sales 200. And fix the listing quality score minimum as zero and maximum as there.

·  Track Inventory

Selling on Amazon can be rewarding, but is not as easy as one thinks. Because you are selling a large number of products at a time, and that is a hell tough task. With time, as your orders increase, you will need a reliable inventory management strategy.

You can use the amazon inventory management software to track the inventory. You can follow the stock manually, but it is a time-consuming process.

Inventory management software is a better option to automate your inventory management tasks.

Amazon dropshipping automation helps the sellers to track the inventory. And retailers can see about 40% increases in their inventory efficiency with the help of inventory management.

·  Start Promoting Your Amazon Store

For the success of your online store, the promotion of your store is the only option you are left with.

You can spread the product awareness outside of your store with the help of ads and other marketing efforts. And they will help you to drive the traffic.

Amazon listings are very complicated and may require both external and internal promotion. With the competition on the marketplace, sellers craft their listings to be highly visible on Amazon’s website, not just outside of it.

Suggested reading:Dropshipping Marketing: The Ultimate Guide

How To Find Amazon Dropshipping Suppliers?

The following are the best ways to find the suppliers for Amazon dropshipping.

·  Leeline Sourcing

Leeline sourcing helps to find the products which are most profitable for the Amazon dropshipping. The company also does factory audits for you in China.

Leeline sourcing also handles your Amazon FBA logistics shipping business. They also provide you the best Amazon prep services and also offer you one-month of free warehouse storage.

Leeline sourcing provides you the best suppliers from China. The company selects the suppliers carefully so that they can ensure the supply of high-quality goods.

Suggested reading:How To Find The Best China Dropshipping Suppliers?

·  Arbitrage

Dropshippers can ensure the success of their business through reliable suppliers. The company provides you complete detail of verified suppliers.

Amazon wants to see the source of products before you sell them online. So, Arbitrage is an excellent choice to find reliable suppliers.

·  Domestic Dropship Suppliers

It is the best way to get trusted and reliable dropshippers.

The suppliers are significant for the success of your business.

They not only provide you the products but also help you in making your business a success story.

·  AliExpress Dropshipping

For the AliExpress, there is a need for any introduction. You can find the most trusted and reliable suppliers for amazon dropshipping.

The company provides not only a wide range of high-quality products, but it offers you a list of most trusted suppliers.

The suppliers can provide you with a continuous supply of high-quality goods from China.

Suggested reading:Top 25 Best-Selling Products on Aliexpress To Sell Online

The Most Profitable Dropshipping Product Categories on Amazon

The following are the most profitable products for the Amazon dropshipping.

·   Toys & Games

The studios like Disney and Pixar used to launch the movies every month for the kids of all ages. And with each video, there comes a series of must-have toys and games.

Therefore, there is a constant stream of new toys and games, all year round. And that’s why it is big business for Amazon. 

In addition to these toys, there is also a category of educational toys and generic games. The Amazon also offers a toy list, to help the customers to select the required and best toys. 

·   Electronics

Well, if you are in the office or at home, the technology surrounds you. And their demand is increasing day by day.

There are millions of products within this electronics category, which help the customers in making the buying decisions.

The following are the best electronic products for the Amazon dropshipping.

1. Fire TV Stick
2. Voice remote control
3. Echo Dot
4. Amazon basics cable

·   Books

Amazon is the best place to get books online. With time, it has evolved and become more focused.

The best-selling books for the Amazon dropshipping are epic adventure novels, many of which have been turned into blockbuster films.

For instance, most popular books include The Hunger Games, the Hobbit, and Divergent. These books have more than four stars and thousands of reviews.

·   Camera & Photo

It is a subsection of the electronics, and products from this category include the camera, camera accessories, and photographic equipment.

With the advancement in technology, customers have many options. Now they can compare the products to find the best ones.

 You can found many cameras and other related goods, which were once launched on the Amazon, and now they are a leader in home security.

·   Clothing, Shoes & Jewelry

Amazon has grown with time and has gained much popularity. Now, it is the most favorite destination to buy clothes and other fashion accessories.

The most profitable products for the Amazon dropshipping for this category include the following:

1. Casual tops
2. Shoes
3. Casual bottoms
4. Dresses
5. Athletic wear
6. Accessories

5 Tips For Success When Dropshipping On Amazon

It is a simple way to earn money or an enormous profit. The Amazon dropshipping policy is quite simple and easy to follow.

Indeed it is a fact; creation of business on Amazon is easy. But you may need the patience to wait for your success. And you will have to put a lot of hard work so that you may become a successful drop shipper.

Here are the five easy steps to help you with the dropshipping.

·   Promote Your Listing

If you want to maximize the sales, you will have to drive massive traffic towards your store. Many ways can do it.

First of all, you have Amazon’s international sponsorship program and Amazon Pay per click. With the help of pay per click, you can create the advertisement for the products which can make your products appear higher in amazon’s search results for the keywords that you set.

In the next step, you can also drive the traffic to your channel through external methods like social media, email marketing, and blogging.

This method is quite tricky if you already have a following for your brand, and it can help you to differentiate your product from your competitors.

·   Ask Customers for Reviews

When you are performing the dropshipping on the Amazon, you are taking a lot of hard parts of being the entrepreneur off the table.

You are not going to manufacture the products, nor ship them to the customers. The only task you will perform here is to collect the orders and has to make sure that the customer is receiving the parcels.

When you are running a dropshipping business, you need to spend hours on the customer’s service.

Excellent customer service helps you to get unique product reviews. Excellent product reviews can make or break your products on Amazon.

·   Get a Best Seller Badge

The best seller badge is a small, orange-colored mark, and it can do great things for your listings. It can appear in different categories and even in some searches where your listing is in the top ranking.

If you successfully get the bestselling badge, you can get more customers and higher rankings for your store.

More than the hundred pages get this award. And the award is given to every category; some lower-level groups may not get much of these awards.

The best seller badge is awarded on the bases of sales in the marketplace. And surprisingly, it can be changed from one store to the other.

Well, it is a secret formula; but you can make fairly educated guesses about it and how it works. If you want to get the best seller badge, you have to be a top seller on the Amazon.com.

·   Set up an Amazon Giveaway

You can give away some products rather than keeping the price low. It will work better when you are familiar with the customer’s perspective.

Still, you can get higher sales and can be ranked at the top position without sacrificing your reputation.

The best way to run a giveaway is to start small. For instance, start with five items, and after some time, you can increase the number of items.

You can giveaway for three to five days. You can increase the number of products daily. In this way, Amazon will perceive that your sales velocity is increasing day by day.

It is a crucial factor, as it helps in calculations and helps to find the best or top seller.

·   Cast A Wide Net: List Numerous Products

You have not paid ant startup cost; therefore, it is straightforward to cast a wide net. In simple words, you can list a large number of products at the same time.

Some products may not let you earn a profit, but others will give you a considerable profit margin. Simply, focus or select those goods which have a huge profit margin and left the rest.

If you are following the Amazon dropshipping police, it can ensure the success of your business. You need to make sure that you will stay organized and will continue to focus on your work.

Frequenlty Asked Questions

While Amazon dropshipping, it is might possible many questions pop up in your mind. Many of them are given below with the best possible answers.

·   Is Amazon Dropshipping Profitable?

Yes, Amazon dropshipping is profitable and as well as legal. You can start your online store or business. There is a massive margin of massive profit.

·   What to Do If Your Amazon Account Gets Suspended?

If your account gets suspended, it means you still have a chance to appeal. You need to plan a strategy to activate your account.

After the account suspension, you need to read the suspension notice carefully and try to find the violations that you have made.

After getting the reason for your suspension, you can create an effective plan of action. And request them to activate your account.

·   Can I Dropship From Amazon To Shopify?

If you are willing to dropship from Amazon to Shopify, the answer is yes. You can go for it.

·   Does Amazon Allow You To Drop Ship To Ebay?

Yes, the dropshipping from Amazon to eBay is legal.

There are no laws that prohibit this type of dropshipping or business strategy.

Suggested reading:How to Start Dropshipping from Amazon to eBay

·   Is Amazon Dropshipping Legal?

Yes, amazon dropshipping is legal. The company allows the merchants to dropship on their platform.

But the merchants cannot buy the products from other online suppliers, and merchants have to ensure that on the third party is involved in their business.

If you honor these two conditions, the Amazon dropshipping in 100 percent legal.

How Leeline Sourcing Help You Find Best Amazon Dropshipping Suppliers

It is essential to know how to sell and what to sell, but finding a reliable supplier is paramount. You cannot ignore the importance of a reputable supplier for the success of your business.

Once you found a good and reliable supplier, try to develop good relations with him and do not let him go.

You can find trusted and verified suppliers on different ecommerce platforms. So, you can go and pick one of your businesses.

In this situation, you can select a supplier who will charge you a monthly fee before you can conduct the business. And this shows that you are going to work with a reliable and verified supplier.

It is a fact that in your Amazon drop shipping, you may face many difficulties or may lose all of your money. Therefore, Leeline sourcing recommends you have a personal meeting with the supplier.

You can also ask for the samples or a factory audit, as Leeline supply does for the sellers. It will give you a chance to check the reliability of the supplier.

Suggested reading:Best FBA Prep Services Help Your Sell on Amazon Successfully

Final Thoughts about Amazon dropshipping

Amazon is an excellent marketplace for the dropshippers to start their business.

It is a fact that Amazon has shown tremendous growth in success as well as in its popularity.

Therefore, Amazon dropshipping is one of the best to start a successful business and to earn a considerable profit.