Dropshipping on Amazon, how does it work? That's a great question! We'll go into the details of how to dropship on Amazon, but first let's do a quick review of what dropshipping is so you can go into it with complete understanding.
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Now, let's go through our Amazon dropshipping guide!
What is dropshipping?
Dropshipping is an e-commerce process in which a seller takes orders on behalf of the manufacturer and supplier. The product manufacturer makes the product. As a dropshipper, you maintain an online store where you handle customer-related activities like taking orders from the customers and placing orders to your supplier.
Why should you dropship for Amazon?
Dropshipping with Amazon is profitable and rewarding from a wholesaling point of view. If you manufacture your own products, you can use a private label for selling as well. Let's get into a few benefits of dropshipping with Amazon.
No inventory required
Amazon doesn’t require you to have an inventory for your products. The formula is pretty simple; when your customer pays you for a product, you use a portion of the proceeds to make an order to the supplier and ship the product to the customer. You don’t need a warehouse to store all the goods for later purchase.
No hassle setting up an account
Because you don’t need an inventory or a warehouse, dropshipping on Amazon is very simple and convenient to set up. You make an account, get your product listed, and start your dropshipping business. Pretty easy!
Amazon has a massive reach
As you know, Amazon is a huge name with more than 300 million users. So, you already have your audience set. Selling the best product at the right price with Amazon's user base is a pretty great recipe for success. If you handle your customers professionally, you have a chance of converting them into loyal return customers too!
How to dropship for Amazon
Choose an eCommerce platform
If you have a Shopify account, now is the ideal time to put it to work! If you don’t have one, it’s good to open an account at Shopify. Or, if you want us to build a site for you, hold off on opening an account and just click this link or reach out to us any time to chat about it!
Shopify has partnered with Amazon, so using them a platform is a solid choice. Their system allows its users to add Amazon to keep tabs on orders on both the platforms.
Create an Amazon seller account
You don’t need a professional account if you sell stuff that isn’t too heavy or expensive. However, creating a seller has its benefits. If you have a high volume of products, you need to have a professional account because individual selling plans can cut down your profits. Registering a professional account requires you to pay a monthly subscription fee, which can save a few bucks in the long run.
It's pretty easy to get set up. Just register with your email on Amazon Seller and go from there!
Get approved in your product category
Getting approval for your product on Amazon is essential. Certain groups and niches require Amazon approval including fashion, jewelry, beauty and skincare products. Learn more about items that require approval here.
Set up the Shopify or eCommerce platform account
After your niche has been approved, connect your Amazon account to your Shopify store or any other platforms you trust. Simple as that!
Create Amazon product listings with ease
On the Sales Channel page, click ‘Create Listing.’ Then, click ‘Select Product.’ Since you'll be working as a dropshipper, click the second option which says something like, ‘This product is made by another brand.’ Search and select the product before clicking ‘publish’ to complete the process.
Have Shopify track inventory
Have your Shopify account track the inventory levels. This helps to ensure that the product is in stock when the customer orders and eliminates the hassle when a customer orders something you don't have available!
To learn about the best dropshipping business model, check out our completely FREE webinar on how to build a successful dropship business! We'll walk you through the process step-by-step and teach you everything we know about dropshipping!
If you want a site built for you, DropshipUSA will build a fully automated USA based dropship website for you in less than three days!
We hope you enjoyed our guide on how to dropship on Amazon! If you have any questions, just reach out to us and we'll be happy to chat with you!