The Ultimate Amazon Dropshipping Guide: How to Dropship on Amazon

October 17, 2019 eCommerce Tips

Amazon is one of the biggest and most recognizable brands in the world. It is also an innovative brand that has adopted different strategies to improve sales and become a household name worldwide. It is not surprising, therefore, that it has become one of the biggest platforms for dropshippers.

Dropshipping on Amazon is an awesome opportunity for anyone to benefit from the incredible benefits of dropshipping, leveraging on Amazon. Are you interested in this opportunity? Do you want to start dropshipping on Amazon but have no idea of how to start? We will briefly discuss everything you need to know to get started.

What Does Dropshipping On Amazon Entail?

Dropshipping general involves listing your products on your website without holding any physical inventory. When orders are placed, your supplier ships directly to your buyer. With Amazon, things are a little different. The company has a policy that explicitly states that ‘purchasing products from an online retailer and having that retailer ship directly to customers is not allowed.

What you can legitimately do is to use the ‘Fulfillment by Amazon (FBA) program. This allows you to purchase items from retailers and have Amazon fulfil the order. We will get into how you can do that but let’s look at the major benefits first.

Benefits of Amazon Dropshipping

It is possible that you already understand the benefits dropshipping offers but it is important we briefly discuss them here. The major benefits of Amazon dropshipping include:

Fast Shipping Time: Customers generally want their purchases at their doorsteps as early as possible. Amazon can do this better than most marketing channels. Dropshipping on Amazon will help you get your orders to your customers faster and improves customer satisfaction.

Large Potential Customers: One of the biggest benefits of leveraging on Amazon is a large customer base. As at the last reported period, the company had 310 million active users. With such a channel, you can reach several people who are interested in your products.

No Warehouse Cost: This is one of the biggest benefits of the dropshipping business model. You don’t have to own or run a website as Amazon has you completely covered. This also means that your running cost will be minimal and there is zero risk of incurring losses due to damages.

Lower Ad Spend: While you can run ads on Amazon to promote your products, the platform is friendly to dropshippers who don’t have so much to spend on ads. The Amazon marketplace receives serious organic traffic and you can align your business to benefit from this by optimizing your page. You also set your ad cost.

Top-Notch Suppliers: Some of the world best suppliers can be found on Amazon. Dropshipping on the channel gives you access to these top-notch suppliers from around the world. This means you can easily sell some of the best products from Europe, Asia, America and other recognized markets. The phrase ‘Fulfilled by Amazon’ also improves the legitimacy of your products.

Downsides to Amazon Dropshipping

Since we have discussed some of the benefits of dropshipping with Amazon, it is only fair that we talk about the downsides. The only major issue with Amazon dropshipping is the fact that it only works via the FBA (Fulfillment by Amazon) program. This means that dropshippers cannot purchase from other retailers and have the retailer ship directly to the customer. Everything must go through Amazon.

How Do You Start Dropshipping With Amazon?

Getting started with Amazon dropshipping shouldn’t be a big deal. Here is how you can go about it:

Choose the Right Ecommerce Platform: Shopify is an excellent option to consider. It allows dropshippers to add Amazon as a sales channel to simplify order management.

Sell the right products: Amazon has a list of eligible stores as well as the sort of products that are restricted on the platform. You have to sell products in approved Amazon niches and play by their rules to qualify as a seller.

Create Amazon Seller Account: While it will attract monthly subscription and a few additional fees, owning a professional seller account is important to dropship on Amazon. It shouldn’t take you long to create the account once you are entering the right information on Amazon Seller Central.

Get Approved In Your Product Category: Depending on the niche you apply for, you may need approval before starting your Amazon store. The requirements are not often too strict and you can easily get approved when you do your homework well.

Set up Your Amazon Account on Shopify: Connecting your Amazon seller account to your e-commerce store is the next important step after approval. It is very easy to do on Shopify. Just click on Sales Channels and select Amazon, which will normally be first on the list. Add channel and connect to Amazon.

Create Product Listing: You can create product listing by following the steps: click create listing> select product> this product is made by another brand. You can search for the product, once found, click select and publish to get the process completed. It is important that you let Shopify track inventory levels so that your customers don’t order products that are out of stock.

Promote Your Amazon Store: While you can benefit meaningfully from Amazon organic traffic, your store will perform better when you promote it. Amazon ads are not too expensive and can meaningfully boost your sales.

Dropshipping on Amazon can be very rewarding. It is quite different from regular dropshipping and you have to get it right to succeed. This guide contains basic information on how you can dropship on the platform. It should get you started but never relent on getting more information to succeed with dropshipping on Amazon.

 In case you will like to know more about Amazon dropshipping or other services we offer, contact us today at Fulfillman. Our dedicated team will be available to speak with you. We will provide suitable answers to your questions and concerns. An amazing experience awaits you.