How to Start Amazon Dropshipping Business

Sharline Shaw

Amazon dropshipping business has risen to new heights in the past few years. It is possible due to the significant number of customers, flexible policies, and less overhead costs with lower FBA fees.

Based on our ten years of years, we have helped hundreds of customers gain quality products. Before starting an Amazon dropshipping business, do you know what is crucial? You must have the dropshipping supplier, whether Aliexpress dropshipping supplier or any other. The ultimate goal is to gain high-profit margins by selling products at retail prices.

In this guide, we will explore Amazon dropshipping business and eCommerce business.

Amazon Dropshipping Ultimate Guide 2020

Is Amazon Dropshipping Profitable?

Yes, dropshipping on Amazon is quite a popular business. Here are many advantages of starting dropshipping on Amazon.

  • Customer purchases products at a retail price that ensures high-profit margins.
  • Effective dropshipping model
  • Lower shipping fees
  • Direct sales channel for dropshipping on Amazon

All these factors make it a favorable scenario for dropshipping on Amazon.

How Does Amazon Dropshipping Work?

You can drop ship from Amazon through the ‘Fulfilled by Amazon’ program. According to this program, you can dropship your products to the customers.

Amazon Dropshipping

Dropshipping is an online business where overseas suppliers or European suppliers take the shipping orders on behalf of the manufacturer or third-party supplier. The customer buys the products and uses the third-party supplier to fulfill those sales.

  1. The Amazon customers purchase the products that you (dropshipper) have listed on the online store or retail stores.
  2. Once the transaction is finalized, you can receive the funds.
  3. Now you can buy products directly from the third-party 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

Print-On-Demand Dropshipping

Drop shipping allows you to advertise products like posters, t-shirts, mugs, and even books. And you do not need to store the inventory to sell products.

We can Made Amazon DropShipping Easy

Leeline Sourcing is to help Shopify & small businesses sourcing products from China and build your branded business.

Pros and Cons of Amazon Dropshipping

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

Pros

  • Fulfillment Process by Amazon

You must store the items at Amazon’s warehouse and leave the rest on them to carry inventory to your customers’ addresses. They will not only do online selling but also retailer ship the products to the customers.

  • Very Large Audience

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

  • Easy Set-Up

With the help of Amazon, you are not registering URLS; instead, you are using their process and listing products on their website to sell products.

  • Less marketing

It is a fact on the platform of the Amazon account dropshipping model; you can address a large number of audiences, so better marketing opportunity.

Cons

  • Listing fees

The biggest downside to Amazon drop shipping is that you will have to pay a hefty fee. 

  • Exposure To 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.

  • No Long-Term Connection With Customers

You may have only a few repeat customers. And the remaining will not buy from you ever again. In this way, you may feel restricted while communicating with the customers. 

  • 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.

Suggested reading: Alibaba vs Aliexpress

How to Dropship on Amazon?

How to Look for Best Selling Products on Amazon

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

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

1. Set Up An Amazon Seller Account

To open an Amazon seller account, you must know different aspects. Once you have decided to sell the products through Amazon, you must get through the Amazon selling registration process to create a professional Amazon seller account. It is quite an easy process to follow.

To sign up for an Amazon seller account, 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 sellercentral.amazon.com, and then click the register now option. Open an Amazon seller account. Here, you can also choose the selling on the Amazon link. Both of these options will take you to the services.amazon.com.
  3. 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.

2. Find A High-Demand And Low-Competition Product

The catalog Amazon offers you a lot of products to sell. A few key factors have been provided here to summarize your product research. 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 dropship suppliers products with less than 100reviews are the best
  4. Try to choose those products which are light in weight and small in size. So, you can fit them in a shoebox and find the relevant multiple suppliers.
  5. The products which offer a margin for improvement are among the top-selling goods
  6. The products should be easy and quick to manufacture

Looking for the Best Dropshipping Products?

Leelinesourcing helps you find the Best Products Made in China with high quality at an attractive cost.

3. Get Approved In Your Product Category

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

The following are the product categories that are restricted at Amazon. You will have to get a permission letter if you are willing to sell any 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.

4. Create Amazon Product Listings

To create the Amazon product listing, you will need to evaluate products with decent demand. You select a marketplace 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.

5. Track Inventory

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.

6. Promote Your Amazon own eCommerce Store

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

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

Amazon dropshipping shipping & customer returns policy

If you want to start Amazon dropshipping, you might have questions like Is Amazon dropshipping profitable? It is undoubtedly advantageous due to flexible prime shipping with no overhead costs.

Amazon Dropshipping

1. Shipping Methods

Amazon dropshipping suppliers facilitate the drop shippers by purchasing products at low Amazon fees and carrying inventory to the customers by following prime shipping methods.

Free Two Day shipping

Two-day free shipping occurs through the FBA Amazon dropshipping providers.

Free Same Day Shipping

Free same-day shipping is possible with the Amazon FBA sellers. It occurs only in specific locations.

Free Standard Shipping

Free Standard shipping is also possible when you order over $25. There are some limitations on the weight, size, and external packaging.

Ineligible items for fast shipping

There are some items ineligible for fast shipping.

These might include:

  • Amazon FBA item that doesn’t label as Prime.
  • Magazine Subscriptions
  • Personalized Gift Cards
  • International Destinations

2. Return Policy

Amazon’s customer returns policy offers a better option to refund the products. Here are the following policies.

  • 30 Days return policy whether you have opened up the external packaging.
  • Baby products have a 90 days return policy for the intact external packaging.

You need to contact suppliers and return the item.

Got questions about FBA prep and fulfillment ?

We make it easy for any Amazon seller. You focus on growth, we’ll handle the rest.

The Most Profitable Dropshipping Product Categories on Amazon

The following are the most profitable products for Amazon dropshipping.

1. Toys & Games

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

Therefore, there is a constant stream of new toys and games all year round.

2. Electronics

There are millions of products within this electronics category.

The following are the best electronic products for Amazon dropshipping.

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

3. Books

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.

4. 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.

5. Clothing, Shoes & Jewelry

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

How To Win The Amazon Buy Box

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

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

1. Promote Your Listing

If you want to maximize the sales, you will have to drive massive traffic toward your online 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 advertisements for the products.

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

2. Ask Customers for Reviews

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

When you are running an online retail store, you need to spend hours handling customer service to handle your online retailer store.

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

3. Get a Best Seller Badge

The best Amazon seller badge is a small, orange-colored mark, and it can do great things for your listings. An excellent third-party drop shipper has the best seller badge with gross monthly sales. 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.

4. Set up an Amazon Giveaway

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

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

5. Cast A Wide Net: List Numerous Products

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 leave the rest.

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

SAFE + EASY Dropshipping from China

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Suggested reading: Is Alibaba safe and legit?

FAQs about Amazon Dropshipping

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

What to Do If Your Amazon Account Gets Suspended?

If your professional account gets suspended, 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 find the violations you have made.

You can create an effective action plan after getting the reason for your suspension. And request them to activate your account with other business models.

How much does it cost to dropship on Amazon?

Amazon dropshipping method is the best option when you consider an online store.

However, you need to pay 10%-15% of the product as a dropshipping fee. An additional fee for the Amazon FBA or FBM is also charged for your Amazon account or online store.

How to dropship on amazon without money?

Whenever your dropship on Amazon, you need to pay the fee. But, there is one way in which you don’t have to pay a single penny.

You can buy from the dropshipping suppliers directly and send customers’ addresses directly to let retailers ship directly with Amazon packaging. Since you are a customer, there will be no fee charged.

What is the Top Amazon dropshipping software?

Amazon dropshipping software assists in doing many tasks. Moreover, they automate the dropshipping process by directly connecting the sales channels.

Here are the following tools for dropshipping on Amazon.
1. Hustle Got Real
2. Wholesale2B
3. Syncee
4. Spocket
5. AppScenic
6. SkuGrid
7. AutoDS
8. Dropified

You can operate these tools, and do the order fulfillment through the supply chain and reputable dropshipping business models.

What’s Next

Dropshipping on Amazon provides many entire business benefits for your own store. It is the main reason most Amazon sellers have an online store on Amazon. But, one secret to discuss is that the eCommerce store relies on quality products. If you sell quality products, you can achieve more sales.

So, do you want to buy quality products? LeeLine Sourcing is there to assist you in sourcing the quality inventory at the best possible prices. Hit us a message right away!

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sharline

Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.