Dropshipping by Amazon: How to Start

Have you ever wished to have the magic power to generate passive income? Everyone does! Here, you can find answers to all your questions about dropshipping by Amazon, and it is still worth it! Let’s see.

You finally made a goal to start dropshipping by Amazon, but like everything in this critical digital era, you’re running into an information overload problem!

You need to figure out where you should start or what strategy to follow, and you will shortly feel overwhelmed and might give up the whole e-commerce complications.

No! Wait a minute… after reading this piece, you can throw your ideas at the top, crank the hand of your imagination machine and leave it for a few minutes while a brilliant outcome rolls at the other side. 

Indeed, dropshipping becomes a highly demanding skill that can make serious money if you understand the ins and outs and use the right tools and approach. 

Ready?

We will give you exactly what you want without leaving any confusion on the table. It’s a beginner-friendly step-by-step guide on how to get started right now! By the end of this article, you will feel fully confident in your ability to run a side-hassle business.

But let’s first understand what dropshipping is and how it works. 

Let’s get jump right into it. 

What is Dropshipping?

To break it down, let’s imagine this scenario:

You have a grocery in the city centre. So many people like your products, coming in and out to check what you have. Not because you are the prettiest shop in the area— but because you’re funny, compassionate, and they really like you. Everything seems cool, right?

Not really!

Here is the problem: People started asking for a certain type of detergent because of its affordability and efficiency. Unfortunately, you couldn’t offer it for many reasons: first, there was no room in the inventory— second, under a monopoly by another competitor, it’s impossible to sell this new detergent for at least 2 months.

With a deep sigh, you sat down at your desk! What should you do not to lose your loyal customers?! 

I will offer it through a third party!

YES… Brilliant.

You will contact the supplier to provide certain amounts and ship them directly to your customers, and you will get a fair share for smoothing the process.

No one hurts… and everyone is happy (customers, your main supplier, and you)

That’s what exactly dropshipping is all about! The only difference is that rather than making calls to manufacturers to send products to your customers, an e-commerce website handles this operation. 

Dropshipping may be the answer if you’re having trouble keeping up with the demand for your items by depending on outsourcing. You need to be picky when choosing the products and leave the process of displaying and shipping to another party. 

So, the buying and selling transactions no longer depend on two parties; the third party plays a vital role in providing products.   

Who is the seller in this case?

E-commerce businesses. 

This model suits entrepreneurs seeking low overhead and offering superb and efficient service.

However, this fulfilment method will cost you something if you offer the best customer experience. Therefore, many things should be considered to save time and simplify the process to guarantee customer retention. 

What is Dropshipping by Amazon?

It’s not different so much from the general idea of dropshipping. 

Dropshipping by Amazon is an e-commerce methodology. It’s an excellent trend to allow anyone to start an online business without having an online store by displaying products on behalf of a supplier or the primary manufacturer. 

So, once you showcase this product and a customer places the order, you communicate with the distributor (Amazon, in this case, will be the sales channel) to provide and ship the product to the customer. 

So, you offer the items as your own, and the buyer has no idea where this product comes from. You will play as a disguised intermediate, building a relationship with your customers through a third-party supplier. 

This process can be handled through big e-commerce websites such as Amazon, Shopify and eBay. 

Is it easy to dropship by Amazon?

Yes, it’s easy if you have the right execution and marketing strategy in your hand. That’s why many entrepreneurs like the idea of dropshipping and starting to establish a profitable business with big returns.

We want to make it as straightforward as it should be. So, let’s review the entire process in these three steps:

• A customer presses on a product you’ve listed on Amazon.
• A customer places the order, and you will see the cash in your wallet and receive the buyer’s information.
• You buy the product from the manufacturer.
• Amazon will send the products to the buyer using the customer’s information. 

Recent Amazon Updates About Dropshipping

Amazon’s marketplace offers an exclusive opportunity for anyone to dropship only if you apply its strict policy. Otherwise, you might face harsh circumstances. 

 Please follow all its housekeeping policies so as not to lose the chance to sell for good. (Rest assured, they are simple!)

To start dropshipping by Amazon, keep reading.

• Introduce yourself as a seller on packing slips, stickers, all invoices, and any other information related to your products. (Never mention any name of a supplier or manufacturer)
• Eliminate any information on packing labels or invoices that might uncover where you got these products. (Make sure to get rid of any stickers before shipping the order to the customers)
• You must be updated with all conditions added to Amazon’s seller agreement.
• You must accept to receive returns and pay back the payment. 

What is the biggest mistake you must avoid when dropshipping by Amazon?

To purchase products from another online store and ship them to your customers.

It’s inexcusable! Sooner or later, Amazon will suspend your account permanently. 

How possible might it happen?

For example, you might list a hair conditioner for sale on Amazon. A customer adds your product to the cart and finalises the order. You’re a drop shipper, so order the conditioner from TK Maxx and fill in the customer shipping information. 

The result is that a package with Tesco identifiers will arrive at your Amazon customer’s doorstep.  

No, don’t do that.

Instead, you should take advantage of retail arbitrage, which means buying a discounted product from a retailer and reselling it on Amazon.

So, how can you get started? Read on to find out more! 

How to Dropshipping by Amazon 

It might not seem very easy, but you can start your dropshipping business right now. Always remember it depends on your seller’s agreement.

Speaking generally, the process will apply to these sequences. 

Have a good plan.

Building your dropshipping business like any other, you need a plan. At first glance, it seems easy and quick, but you must establish an online presence, from a logo to a business website, to increase credibility as an entrepreneur.

You need to think of the customers you target, the products they would need, and other marketing initiatives to promote your business and magnify your sales.   

Establish your Amazon Seller

Set up your Amazon seller account by hitting sellercentral.amazon.com. Complete the registration process. Be ready with extra information about your business, tax and credit card. 

Search for a Product

Here is the indispensable step in dropshipping by Amazon. Find a product— not all products will guarantee you a profitable business. You need to spot one with two conditions:

1. High demand
2. Low competition

So, how can you find them?

Use tools such as Jungle Scout. But before jumping into the product meta search engine, you need to identify your metrics, including how many times the items are being sold monthly, the price, and the niche score. 

Pro tip: Our e-commerce expert suggests setting the competition between low to very low and doesn’t get a product with any more than £58 and a 7 niche score. Also, starting with simple products such as sports, housewares, and home necessities would be better. 

Browse the products throughout all categories and choose the suitable one for you.

Search for a Supplier or Distributor

Once you have gathered enough information about products and the market to target, you need to find a supplier.

So, where can you start?

Google: There is no surprise that Google can give you an overall prospect of suppliers who can provide you with the necessary products. Hit their website and start exploring how they can help you. The biggest mistake beginners can make is that they subscribe for tools or contact sourcing agents who will give them a channel to the supplier. No, you don’t need all of that. Instead, search for a reliable dropship provider. Once you find a connecting form, leave your information and wait until they get back to you. 

Dropship directories: If you decide to work with an outsourcing agency, you can check out Aliexpress, one of the best big e-commerce websites that will contact other suppliers eager to cooperate with you to dropship their items. It plays as a third party loaded with high-demand products. Just enter the product you need to offer, and you will get plenty of options. 

Attending live trade shows: in-person meetings can have an enormous impact on your business, enabling you to meet potential suppliers, build a rapport, and get involved in a similar community you’d like. Being a successful drop shipper should go beyond the screen and scour the internet. 

 

List Your Products on Amazon 

There is no time better than now to showcase your products and start receiving orders. What if your products are already on Amazon?

You will need to optimise your product listing.  

How can you make this happen?

Here are the best practices to guarantee a conversion-driven list.

• Use the right keywords in titles and descriptions. You need to do keyword research to explore what shoppers use to find a product like yours.
• Capture clear photos: Your photos should show your product’s impressive features. You don’t need to invest in a high-quality camera — your iPhone can do a great job. Just make sure to have a 1000×1000 pixels image. Add photos to all slots to complete your listings.  
• Hone your copywriting skills: Conjure up all your writing skills to entice customers to press “add to cart” because they find how your product can make their life better.  

General Tips Before Start Dropshipping by Amazon 

• You need to finalise the order with your supplier ahead of time to guarantee that they will only ship the product with labels belonging to the company if you want to get suspended by Amazon.
• Don’t rely too much on an intermediate website listing a vetted product pile. The best way is to manage a facetime with your suppliers.
• Before signing any contract with a wholesale, make sure to have answers to all questions related to payment terms, shipping process, and inventory fulfilment. 
• Create a seamless buyer experience to guarantee to receive great reviews about your product that keep other customers purchasing your offering.  

SEE ALSO: How to create an invoice.

Ready to start your e-commerce business? Contact us… A team of strategists, developers, and marketers are waiting for you!