Amazon’s popularity is increasing day by day and many sellers are now turning their eye to this goldmine of a platform. In 2019, Amazon saw a whopping sales of 280 billion dollars! This is why every entrepreneur wants to make something from this platform – and frankly – who can blame them?
If you’re one of those people that want to know what all the fuzz about Amazon dropshipping is, and want to see if it’s the right fit for you, then this post is a perfect read for you.
Before we get to guiding you about Amazon dropshipping, Let’s shed some light on what dropshipping is.
What is Dropshipping?
Dropshipping is the process of selling products (without having them in your inventory). This makes running an online store easy compared to a store that has to keep track of all its inventory. Because of this ease, this model has become popular in recent years and many have made millions from it!
The basic dropshipping process looks something like this:
1. You post all the listings of products you are dropshipping.
2. A customer sees those listings and orders a product from you.
3. Now you get the product from the supplier that has it.
4. You ship that product from the supplier to the customer.
It’s not that hard when you look at it. You’re mostly acting as a bridge between customer and supplier. The customer thinks he’s getting the product from you, but in reality, he’s getting the product from someone else. This allows you to earn a commission by selling someone else’s goods. You earn this commission through the raised price on your product listing compared to the actual product’s price of the supplier.
The same dropshipping principle applies to Amazon but is a little different because of the platform’s policies
Dropshipping on Amazon
What most drop shippers do is sell through their social media pages or online stores. They use tools like Oberlo(on Shopify) to drop ship products directly from supplier websites and onto their stores. However, the same cannot be done when dropshipping on Amazon. Amazon has strict policies when it comes to selling, one of them being that you cannot sell products from a supplier that also directly ships to customers. This means that you cannot just dropship products from Aliexpress or Alibaba and sell them as your own.You can still do this, however, if you’re careful enough. The trick is to never get your supplier’s identity revealed. An agreement with the supplier that you want to use your name on everything can enable you to dropship from retailers that directly ship to their customers.
Now that you have a basic idea about what Amazon dropshipping is, let’s get down to a step-by-step guide about how to start dropshipping on the platform.
1. Do Product Research
Do extensive product research before you get to the selling part. This step should not be overlooked as it determines the success or failure of your product. Pick a niche of your interest and start researching different products in it. Don’t go heavy with products at the start. Pick 2-3 products (same niche) and start with those.
2. Find The Right Supplier
After you’ve decided on the product, the next step is finding the right dropshipping supplier. This step is also critical as you’re supplier dependant on dropshipping. Imagine a customer orders from you, and you contact the supplier only to hear that the product has run out. Supplier’s reputation isn’t at stake here, your’s is. So make sure to find a supplier to is pro-active and coordinates well. You can find many suppliers on Aliexpress or you can also go with independent dropshipping marketplaces
3. Check If Your Product Can Sell
By “can sell”, we don’t mean the volume of sales but if your product can make even one sale. That’s right, you can’t just sell anything on Amazon. There are product selling guidelines that every seller needs to adhere to, to sell anything on the platform. Make sure that you pick a niche and a product that is eligible to sell on Amazon
4. Create A Seller Account
To sell on Amazon, you need to have a presence on it. You can achieve this by creating an Amazon seller account. Amazon offers you two pricing plans to choose from – individual and professional. Pick the one that suits your needs. If you’re going for a target to sell more than 40-50 products, then better go for a professional plan.
5. Select The Right Category
There might be thousands of categories for the product you are selling. You need to select the one that is most relevant to your product. If you’ve trouble identifying the right category for your product, look at your competitors. Once you’ve selected your product category, get it approved from Amazon.
6. Create Your Listings
The most exciting part is here! Now, you’re all set to start listing your items on Amazon. Create your listing by describing your product’s price, condition, shipping method, etc. Make sure you obey all product listing guidelines of Amazon before you publish your listing. Once you meet the criteria of Amazon, your product listing will go live!
7. Promote Your Listings
Buyers won’t come to you easily just by publishing your listing. You have to promote your listing to bring in customers. As a beginner, you can go for Amazon Sponsored Ads to get more exposure to your products. If you’ve not already researched keywords, then do that to make your listings more search engine friendly. Keep promoting and optimizing your listings for the best results!
Final Thoughts
Dropshipping on Amazon is rewarding – but also tricky. Hopefully, this beginner-friendly Amazon dropshipping guide has made you aware of what Amazon dropshipping is about, and how to get started with it. To find if dropshipping can work for you, you have to get your hands dirty and do it yourself. It is one of those things that needs experience to achieve great results.
