With the advent of dropshipping, several dropshippers are now opting to work with established platforms.
One platform that has taken all the spotlight is Amazon. Amazon is the biggest suppliers and e-commerce store offers a wide range of opportunities.
This guide will show how to become an Amazon seller, highlighting important insights for its proceedings.
Amazon is the leading e-commerce store in the world. It has been working in the domain for the past many years and has dominated the market as well. Working with Amazon brings several perks that you can take advantage of:
As highlighted earlier, Amazon is a trusted brand that you can work with. Most of the dropshippers that want to start in the business work with Amazon.
The reason is that having Amazon’s name with your brand would allow attracting more customers.
Buyers from around the world trust Amazon. Your brand’s profile, when attached to it, will allow getting more customers easily.
In addition, the customer support of Amazon caters the best support services. Once the business has been set up, you’ll get the best services from Amazon that will allow you to take your dropshipping business to heights.
Working with Amazon is beneficial for entrepreneurs. Facing hurdles for creating your brand can be mitigated while working with Amazon.
In addition, you don’t have to find reliable contacts since Amazon has elevated the level of trust that customers do on its name.
This is one of the best perks of working with Amazon. When you sell on Amazon you get to enjoy the traffic coming to Amazon.
Since Amazon already has thousands of customers on their platform, getting buyers is not an issue.
Moreover, your products are managed by Amazon. Using Fulfilled by Amazon or FBA will allow you to get your inventory and orders managed by Amazon.
This will also boost your sales, speeding the process, and will lead to better sales generation.
Another one of the perks of working with Amazon is that it minimizes the need for an online store and website.
Many dropshippers that want to enter the market, opt for working with Amazon
You don’t get to create your store; however, working with Amazon will help establish your name in the market. all you need to do is to choose the products to connect with your site.
Another plus point that you get while working with Amazon is that you will get marketing and promotional services.
From promotion to marketing, everything is handled by Amazon, which further reduces the costs for your dropshipping services.
Moreover, Amazon will be responsible for handling all processes related to logistics and order. From inventory management to order processing, you can depend upon Amazon’s workability that will offer competitive solutions.
Suggested reading:How To Sell On Amazon For Free Step By Step Guide
Now that you know why working with Amazon is beneficial, it’s time to know how to become an Amazon seller. Here’s how you can do it:
The first process is to choose a product to sell on Amazon. As easy as it seems, finding the right product is important.
You’d need to make competitive research regarding the product you want to sell. This can involve data gathering regarding different products.
It will also need a thorough comparison of different products that will help make a sound decision.
While choosing the product for selling on Amazon, you need to select the selling methods too. There are 3 selling methods, including:
Suggested reading:How to Start Dropshipping from Amazon to eBay
Apart from that, you would need to decide on the market criteria for your product too. The market criteria comprise of the following factors:
Apart from that, you should invest your time in analyzing various market constraints. This analysis phase is known as Market Intelligence.
Having market intelligence will allow you to make your way in the market efficiently. This can include:
Keeping these factors in mind, you should be able to make a competitive choice for the product that you want to sell.
Suggested reading:How to Sell Products On Amazon for Beginners:Free Guide
When you’ve decided on the type of product you want to sell, it’s time to work with Amazon. The next step is to open an account and choose the type of account that you want to work as. You’ll be registering yourself as a seller via opening your Seller Central account.
The account registration process is simple. All you need to do is to provide the necessary credentials. This will include:
However, when setting up your account, you’ll need to choose the type of account that you want to open. There are two types of account, including:
The individual seller plan has perks of individual sellers. You’ll get access to 20 product categories and 40 products restriction for the month.
In addition, you’ll be charged with $1 per item sold without having to pay a monthly subscription fee.
Apart from the individual sellers, you can opt for the professional seller account. With this account, you get to enjoy up to 30 product categories.
In addition, you can also get access to restricted categories after getting approval from Amazon. However, this would cost you a monthly fee of $39.99.
The choice of the accounts is based on the type of workability that you have. If you’re able to sell more than 40 products each month then using the professional account is recommended.
However, if you’re someone that has started in the business, you can choose Amazon individual seller account and RA to establish your footings.
Once your account is set, you need to select the type of fulfillment method. FBA vs FBM is an important choice to make and requires competitive workability.
The Fulfilment by Amazon or FBA means that you can sell and Amazon would ship the products. From order preparation to storage and shipping, all processes are handled by Amazon.
This makes it easier for those that aren’t knowledgeable regarding the order handling process. It also streamlines the processes for the seller.
Working with FBA has its pros and cons. You get complete hands-off fulfillment and lower shipping rates. However, it comes with additional costs and would be subjected to tax obligations as well.
The Fulfilment by Merchant or FBM means that the seller will be responsible for selling and shipping their products.
This option is for those that want to take control of their inventory and shipping. However, it increases the responsibilities of a seller because everything must be handled alongside ordering processing.
Working with FBM brings you closer to your inventory. You get better margins and fewer Amazon fees. However, it adds to your responsibilities and creates overhead costs too.
The next step is creating your Amazon listing. It’s a page whether the buyers would surf and buy goods from your brand.
Therefore, it offers a competitive way of showing what your brand is offering. That is why it’s important your listing should provide an effective view of the products.
Here are some of the important elements that you should consider:
The next step is to find a reliable manufacturer. This is also important since you need actual products to sell on Amazon. For this purpose, here are some of the manufacturers that you can connect with:
One of the leading names in the dropshipping industry, the company offers quite an assistance for product sourcing. Not only you get quality products, but you receive them at affordable rates.
The company has years of experience in handling dropshipping services. That means working with them will provide you with competitive products and quick servicing.
Alibaba is the B2B online store that offers manufacturing services. You can get quality made products since Alibaba ensures quality metrics all around their service.
In addition, it is the biggest market place to work with when you need to source products from China.
It is another Chinese manufacturing and dropshipping firm that you can connect with. The company offers a wide range of products in addition to its dropshipping services. You can also find reliable dropshippers that are connected with the firm.
Once your store is set, it’s time to order the products and ship them to the customers. When the customer places your order, you can either choose FBA or FBM according to your needs. However, you should use reliable methods for paying your supplier:
Apart from that, choosing a method is also important. If you choose FBM you’ll have to deal with quality inspection processes as well as order fulfillment.
However, choosing FBA would allow you to prevent all these risks. Once the products are received at Amazon’s warehouses, inspections will be made.
This will minimize the risk of faulty products reaching the market. In addition, you don’t have to worry about additional warehousing costs.
Once your order is shipped, you’ll have to wait for the buyer to confirm it. In most cases, the payment is made online.
This makes it easier for the payments to reach you before the order is even delivered. However, this poses a risk of refunds. If the customer isn’t satisfied with the product, you’ll have to face refunds.
This mitigates the revenue production as well as decreases your brand loyalty in the market.
Now that you know how can you sell on Amazon, it’s time to know about the fee structure for the process.
You’ll have to choose between individual and professional selling plans. The individual selling plan comes with $0.99 with $1 per item sold.
On the other hand, you face $39.99 with an additional selling fee for a professional selling plan.
The selling plan comes with special perks too. With individual selling, you’ll be able to add new products to your catalog.
You’ll also grow your business using FBA. The same perks are available for professional selling. However, it comes with some additional perks.
It offers inventory feeds, additional selling categories, and time efficiently. Moreover, you also get promotional campaigns and the use of on-site advertising tools.
The referral fee for different products is given below:
|Category||Referral Fee Percentage||Referral Fee Minimum|
|Amazon Device Accessories||45%||$0.30|
| Baby Products (excluding Baby|
|· 8% for products with a total sales price of $10.00 or less, and|
· 15% for products with a total sales price greater than $10.00
|Cell Phone Devices *||8%||$0.30|
|Collectibles – Coins||· 15% for the portion of the total sales price up to $250 (with a minimum referral fee of $1.00)|
· 10% for any portion of the total sales price greater than $250 up to $1,000
· 6% for any portion of the total sales price greater than $1,000
|15% for the portion of the total sales price up to $100.00, and|
· 8% for any portion of the total sales price greater than $100.00
|Furniture & Décor|
|· 15% for the portion of the total sales price up to $200.00, and|
· 10% for any portion of the total sales price greater than $200.00
Note: Mattresses will be charged 15% regardless of price point.
|Health & Personal Care (including|
Personal Care Appliances)
|· 8% for products with a total sales price of $10.00 or less, and|
· 15% for items with a total sales price greater than $10.00
|· 20% for the portion of the total sales price up to $250.00, and|
· 5% for any portion of the total sales price greater than $250.00
|· 15% for the portion of the total sales price up to $300.00, and|
· 8% for any portion of the total sales price greater than $300.00
|Shoes, Handbags, & Sunglasses|
|· 18% for products with a total sales price of $75.00 or less|
· 15% for products with a total sales price above $75.00
|16% for the portion of the total sales price up to $1,500.00|
· 3% for any portion of the total sales price greater than $1,500.00
The fulfillment fee for Amazon is given as below:
|Size Tier||Max Dimension||Shipping Weight||Packaging||Fulfillment Fee/unit|
|FBA Small and Light|
|16″ x 9″ x 4″|
|4 oz. or less|
4+ oz. to < 10oz.
|60″ x 30″|
|71 lb or less|
|$8.26 + $0.38/lb above first 2 lb|
|108” (longest side)|
|151 lb or less||1 lb|
|$11.37 + $0.39/lb above first 2 lb|
|108” (longest side)|
|151 lb or less|
|$75.78 + $0.79/lb above first 90 lb|
|>108” (longest side)|
|$137.32 + $0.91/lb above first 90 lb|
Apart from the selling, fulfillment, and referral fee, you can also get additional costs, including:
Even when your store is set, you need to take care of your listings so that you can achieve effective listing success.
For this purpose, you’ll need to improve your SEO and implement keywords. Keyword research will allow focusing on core words that will get your rankings high.
Placing the right keywords will boost your rankings, improving listing’s visibility. Apart from that, you can do the following:
The first thing is to check your listing for new orders. You should have an effective response rate so that the clients can count on your services. In addition, checking and responding to orders will help boost the best results.
Transparency is everything. You don’t want your customers to keep guessing what you’re offering. That is why you should keep your listings simple yet appealing.
You should make sure that the description offers the best insights to the customers. It should have the right keywords and should provide real-time information.
The last thing you want is your customer waiting for their orders. That is why it’s important that you should ship your orders quickly.
If you’re not capable of handling the shipping process on your own, then opting for FBA is the right choice for you.
Reviews are a great way to show how well you’re working. People tend to go for reviews because it creates a credible profile.
Customers tend to opt for those suppliers that have high positive reviews. The better are the reviews, the better are your chances for retaining your clients. You can even engage your customers in offering reviews.
Suggested reading:How to Optimize Your Amazon Product Listings?
In case you’re wondering, there are other platforms that you can work with:
eBay is one of the largest working e-commerce platforms that you can work with. It offers different products from various domains that you can choose and add to your shop.
Moreover, it offers integration with Amazon so it makes it easier to connect both the stores.
Form personalized jewelry to glass panels, you can find a variety of products from here. The costs are affordable and you can easily get the best products.
The site itself offers the best sellers, which will make it easier to find the best products.
Suggested reading:Etsy Dropshipping: Ultimate Guide
If you need to include furniture for your business, then this is the right place to work with. With a variety of different products to the finest quality selection, you can get superb choices for your dropshipping store.
The company has been working in the domain for the past many years and has over 2000 clients worldwide.
It has a competent team that offers outstanding services for sourcing the right manufacturer for you. In addition, your proceedings are handled by the team effectively.
From finding the right manufacturer to arranging products, LeelineSourcing offers competitive services all along the way.
Not to mention it provides effective consultation on integrating multiple stores. You can easily import products from different sources and LeelineSourcing will help integrate it with your store.
The negotiation phase isn’t an issue as the company arranges the best support that you can get.
With their knowledge in the domain and years of experience in sourcing services, you can expect proficiency at every level.
Apart from that, you don’t have to worry about high rates because the company provides affordable services with promising results.
Apart from that, you’ll get communicated and coordinated completely regarding the processes. From product shipment to logistics, every process is integrated.
This makes it easier for you to track your goods and coordinate with the manufacturer.
Quality isn’t compromised when you’re working with LeelineSourcing. The company has its quality inspection processes that make it easier to inspect the goods.
You’ll not have to worry about ineffective products reaching the market.
Suggested reading:Best FBA Prep Services Help Your Sell on Amazon Successfully
Here are some FAQs that will help you understand the method for becoming an Amazon seller:
Amazon generates its revenue with several methods. From its retail services to subscriptions and web services, it earns the most using its online and physical store accounting services via FBA.
It also earns a lot with its advertising services. With listing services and managing the processes of FBA, Amazon creates an effective share of revenues for itself.
Yes. About 67% of the respondents when asked, responded that working with Amazon was profitable.
Even people with 1-2 years of experience reported that working with Amazon helped them in improving their business.
The necessary documents and information you need for registering with Amazon, include:
On normal approval, it can take 5 business days to get your account approved. However, the process can take from a week to a month as well.
There are several elements to know when you want to become an Amazon seller. Setting up your profile and choosing the right fulfillment method is important.
In addition, you also need to focus on choosing the right goods to sell. You can take help from any third part sourcing company such as LeelineSourcing that will offer proficient services.
This will also streamline the proceedings, giving an effective growth to your business.