How to Start Dropshipping on Amazon: Strategies for Success

In a Nutshell

This blog will discuss the following points –

  • Introduction to Amazon dropshipping
  • How you can start Amazon dropshipping
  • Today’s finest Amazon dropshipping strategies
  • Points to note when selecting Amazon dropshipping supplier
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Table of Contents

There has been a steady increase in interest in Amazon dropshipping in the past many years. Generally, it has been the small investors that have preferred this practice and chose it over the fulfilment model, thereby becoming an established business. Still, many argue that Amazon dropshipping is not profitable. Well, if you are this person or someone who is curious about the topic then this will be a must-read blog for you. This is because it will explain to you how to start dropshipping on Amazon.

In support of Amazon dropshipping, Allied Market Research has done a statistical analysis. This highlights that the dropshipping business is estimated to witness robust growth till 2031. The same analysis shows that it will increase to more than $1600 billion in around 10 years.

Here is a simple worded definition of dropshipping for those who are unfamiliar with it – Dropshipping allows any business entity to fulfil retail orders while not keeping products in stock. In this model, when the business receives an order, it sends it to another business (in this case, Amazon), which then ships the order directly to the customer. In essence, the seller becomes a middleman connecting the customer with the main product supplier.

How to Start Dropshipping on Amazon

Dropshipping is commonly chosen by those businesses that have limited finances yet want to make their business idea successful. If all goes well then dropshipping makes any retailer avoid concerns related to store management, staffing and investment in general. Here, Amazon comes as a reliable and reputable name from where you can begin working on your idea, thereby creating a brand. This is how to start dropshipping on Amazon:

The Niche Selection:

Before you select anything, you should take a good look at Amazon’s dropshipping business policies. Then, you can go with a profitable niche of items that suit your interests. Additionally, make sure that you evaluate Amazon’s and supplier’s product prices. This will allow you to propose a more customer-friendly offer to the potential buyers. Also, don’t forget to analyze your competitors.

Setting Your Account:

Amazon’s business account is separate from its routine membership account. So, make sure that you go with the right one at Amazon Seller Central. Here, you have the option of going with a free business account, which is also known as the Individual Selling Plan. It is available at a very affordable rate. Moreover, if you have a long list of items to sell then you should go with Amazon’s Professional Selling Plan. You have the option of alternatively switching your plans whenever you want.

Search for Suppliers:

While searching for the right suppliers, you must ensure that the seller is authentic and has legal authority given by the manufacturer to sell. Also, see if the seller offers tech support whenever needed. Don’t forget to ensure that your team handles the Amazon seller account credentials and not any third party.

Uploading and Maintaining Inventory:

When your Amazon seller account is ready, you should upload your product list. At this stage, your customers will be able to see your uploaded products, making them search and find products in particular categories. A very good thing here is that you can easily list your products. All that you must do is take a few steps, and that should be it.

Maintenance and Fulfilling:

In a sense, you are free from the worry of managing your inventory as products are stocked at the supplier’s end. But you should routinely communicate with your supplier and discuss things such as alterations in price/product or information about new entries. Here, the fulfilment is managed by a third party.

Today’s Best Amazon Dropshipping Strategies

The following are some of the finest Amazon dropshipping strategies for those who are new to the Amazon dropshipping business activity and ask the “how to start dropshipping on Amazon” query:

Product-Related Research:

It is extremely important for you to spend a good amount of time doing your niche research. This will then help you select the right things to sell online. You should try to go with the finest quality products in your desired niche. This action will better propel your company’s name. Also, you should go through a number of adverts, features, and customer reviews. All of this should assist you in finalizing an item that you can confidently offer.

Focus on Product Titles:

Your product title enjoys its own bit of importance as this is what is showcased in search results. So, make sure that you effectively optimize the product title, which allows it to have a good search-related position.

The Pricing Factor:

Remember that throughout your business activity, you need to pay Amazon’s charges related to your selected plan, and this does not include any other spending. Just make sure that you do all of the right calculations regarding product pricing since this calculation is directly related to your overall sales. Here, feel free to assess the prices of other sellers.

Maintain Excellent Rating:

If you are able to maintain an excellent seller rating, something like more than 90%, you will be able to easily build a customer’s trust. It is a well-known fact that a brand that enjoys a higher seller rating has a better shot at securing customers. Furthermore, if your business has a high ranking then it will also do well throughout the search rankings, which is another thing that can lead to better sales.

Offer Coupons/Discounts:

This is perhaps one of the finest ways to attract customers. Here, you have the option of routinely or occasionally releasing coupons/discounts. Here, Amazon is known to give the option to present coupons/discounts to potential buyers. You should definitely take a look into that. Maybe your business will do well if it offers a Buy 1 Get 1 offer or a 10% discount on a trendy item.

Selecting the Right Amazon Dropshipping Supplier

These are some critical things that you need to take note of when selecting the right Amazon dropshipping supplier:

Fees:

You should prefer those suppliers that charge the actual cost and not a fixed sum on a monthly note. Remember that if you are able to sort the supplier fees issue right then you will answer a huge chunk of the “how to start dropshipping on Amazon” question.

Availability:

Take note of the fact that your preferred supplier has enough storage, which allows them to update inventory. It is always wise to select a supplier that can regularly serve orders at high-sales events. Note that you should avoid those suppliers that take more delivery time just because the item is not available.

Product Quality:

There should be no compromises regarding your product’s quality. This is essential because today’s customers usually take a look at every potential qualitative aspect of their purchases. Just a slight dent in quality can result in you getting poor feedback or reviews, which is not suitable for your business.

Conclusion

This entire blog is an excellent read for those who want to seek a good answer to the “how to start dropshipping on Amazon” question. Optimistically, the information that you will find here should be enough for anyone who wants to start dropshipping on Amazon.

Is dropshipping on Amazon profitable?

According to a number of estimates, the dropshipping market will continue to rise for many years. This highlights a very important point, which is the overall profitability factor associated with it. Therefore, it is safe to say that those who are looking to seriously consider dropshipping as a business venture have a promising future ahead.

What is Amazon’s take on dropshipping?

Amazon’s take has been very positive regarding dropshipping. This is evident from the fact that it allows and even promotes dropshippers, so that they are able to sell items on it. Moreover, Amazon has its own policy document that is meant for dropshippers. Just to give you an idea of this policy document, it enforces that if there are any errors then it could lead towards account suspension or removal of product.

How much can I expect to make as an Amazon dropshipper?

The amount that an Amazon dropshipper can make could vary from case to case. But if we have to look at an average then an Amazon-based dropshipper earns as much as $30000 annually.

What is the qualification required to become an Amazon dropshipper?

There are no concrete requirements for you to become an Amazon dropshipper. It is safe to say that if you have specific knowledge regarding the subject matter then this can be more than enough for you to become an Amazon dropshipper. Of course, you should try to learn from the experiences of those who have already established themselves as successful Amazon dropshippers.

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