Dropshipping Amazon: How to Start and Tips for Finding Winning Products?

Dropshipping Amazon

There is no denying that starting an online business is the easiest way to make money in 2022. But when it comes to earning big with a small investment then no one can beat Amazon as it provides you with immediate access to a large audience. So, if you want to get in on the action without breaking the bank then undoubtedly Dropshipping Amazon is the easiest and quickest way.

Now you must be thinking that why only Amazon when there are many other opportunities? Well, the reason is simple as it is exceptionally super for reliable customer service, competitive price, and lightning-fast shipping. 

You know what! In the US there are 95 million people with Amazon prime membership who spends $1.4K on average annually. Moreover, by dropshipping on Amazon with some extra homework, you can start making sales in a very short time.

But wait! Don’t be hasty and before jumping into steps to start let’s have a look at what drop shipping is:

What is Dropshipping Amazon?

Dropshipping is the process in which there is the direct delivery of products from the wholesaler to the customer. Moreover, it makes selling like cake as you can sell without maintaining the inventory and handling shipping or stock. So, it would not be an exaggeration if we say that dropshipping is the easiest way to Selling Products on Amazon.

Even though Amazon sells and stocks various products but many of the items listed there are sold by third-party traders through this site. 

Why Dropshipping Amazon is preferable?

Below there are some reasons why Amazon is preferred by drop shippers:

Access to a large audience:

You know that Amazon has hundreds of millions of regular clients and has more than a hundred million people with prime memberships. Thus, it means that Selling Products on Amazon means just a profit nothing else. But what you have to do is just to do little homework before selling to sell the right item at the right prices.

Cost next to nothing to startup:

For Selling on Amazon you are not required to pay for warehouse or shipping so you can start with zero. However, for selling on Amazon you are supposed to create your Amazon seller account which costs 39.99 dollars a month. But it is not a big deal to pay a small amount for such a greater benefit.

Can select multiple niches:

If you want to sell a variety of things at a time then don’t worry as you can cover various categories and niches there without any limitations.

Professional store:

Amazon is a global brand with millions of active users and with great professionals so you are not required to work as hard, for instance, no need to register a domain, no need to manage to host, and no need to make any website design like starting other online businesses to attract an audience. What you have to do is just create an Amazon Seller Account. Moreover, as it is big so you are not required to do things like problem-solving, relationship building, SEO, advertising, and marketing.

Things to remember for Dropshipping on Amazon:

There are a few cons of Dropshipping on Amazon as well which we suggest you take into concern before starting to sell on Amazon.

  • You have to pay a commission fee which usually ranges from 10% to 15%. However, it is not static and varies from product to product. 
  • As everything is under the control of Amazon itself so you can’t make long-term relationships with buyers.
  • You can’t keep your data private as Amazon can see the entirety of your business information, from the things that offer best to the amount you’re selling.
  • Amazon provides no guarantee for profit just like other businesses. So you have to take the risk as no risk no gain.
  • It additionally takes out the chance to do customization as everything is in the control of Amazon.

Amazon Product Dropshipping Policy:

If you are thinking that is Dropshipping Legal on Amazon then yes it is but there are certain requirements that you have to meet for dropshipping. Let’s have a look at them:

  • Be liable for processing and accepting client returns of your items.
  • Distinguish yourself as the seller of your items on all invoices, packing slips, packing slips, and other data included.
  • It is a prerequisite for shipping that any packing slips, external packaging, invoices, or other data should not mark third-party drop shippers.
  • Comply with all Amazon policies and seller agreements.

Dropshipping that is not allowed on Amazon:

  • Those shipping orders which contain information or the name of another seller not your own on invoices, packing slips, packing slips, and other data are not permitted.

Restricted products on Amazon:

You can sell various products on Amazon including computers, office products, books, video games, and much more but some categories require pre-approval before listing. Furthermore, there are certain products that you can’t sell on Amazon that including:

How does Dropshipping Amazon work?

Dropshipping Amazon work

Alright, before starting the dropshipping on Amazon let’s have a look at how does it works:

  • First, you create an account on Amazon as a seller.
  • After this, without holding any stock you create Product Listing on their site.
  • At last, inform your dropshipping partner when accepting any order as they are responsible for the fulfillment.

But remember! Amazon will likewise examine whether the product you are listing is fulfilling the requirements or not. Unapproved utilization of taglines, trademarks, pictures, and even color schemes can get you banned forever.

An ultimate guide to starting Amazon Dropshipping now:

The wait is over! Here is all that you need to know to start dropshipping on Amazon. So if you want to get your order in less than 24 hours then start dropshipping on Amazon now by following the steps given below:  

  • Find the ideal supplier:

First of all, you have to locate a reliable provider. For this, you have to look at searching sites and drop shipping marketplace. Moreover, we suggest you attend tradeshows to find the best supplier.

  • Select the fulfillment center:

After finding the supplier the next significant step is to search out a third-party fulfillment center that will transport your items for your sake once they arrive from your provider. We suggest you select those centers that are close to the spot you’re planning to sell in.

  • Sign up for Amazon Seller Account:

As you know that you can dropship only if you have an Amazon seller account so create your Amazon seller account. But there you are supposed to pay a little bit fee as it comes with the price tag. It’s all up to you how you want to pay, as the Amazon seller account offers you two options either pay a $0.99 fee on every sale irrespective of volume or pay a $39.99 fee every month. 

  • Select category:

The next step is to choose an eligible category as it is mentioned above that there are certain categories that you can’t sell on Amazon. However, ‘open categories’ are present there and the products listed in that categories can be sold without any permission. On the other hand, some categories required preapproval.

  • Set up your Amazon Product Listing:

At last, you need to make a new listing in case you’re the first merchant to offer that exact item in the marketplace. For creating a new listing click on ‘add a product option’ after going to Amazon Seller Account. However, for the developing list of the items that already exist in the catalog of the company just open the page of the company and choose “Sell on Amazon.”

Things to keep in mind while listing a product:

  • Don’t forget to provide offer details that include price, shipping option, quantity, etc. However, you can update them anytime.
  • To provide your customers with clear views of your product give them product details such as description, images, brand, title, and category.
  • Provide product identifiers as some items have unique codes like ISBN, EAN, UPC, and so on.
  • To make it easier for the buyer to find your product use search terms and keywords.

Dropshipping using Amazon FBA:

Dropshipping can get very complicated so if you don’t want to get crazy then dropshipping using FBA is best for you. Because FBA manages to ship, pick, and pack on its own so you can send orders to your client without dealing with all these things. 

Not only this but there is also Amazon dropshipping software with special management tools for your ease.

To start dropshipping with Amazon all you need to do is just to create an FBA seller account or update the previous seller account.

Pros of dropshipping using Amazon FBA:

  • Fulfillment using Amazon FBA provides your brand high performance and brings trust to your brand as once in a while Amazon mishandled a situation.
  • It provides excellent customer service so there is no need to worry about it.
  • Give a chance to your product to win Buy Box.
  • Last but not the least; your items can qualify for Amazon Prime’s 2-day shipping as well by using Amazon FBA.

Cons of dropshipping using Amazon FBA:

  • FBA demands monthly storage fees and fulfillment charges.
  • You can’t maintain a proper record of inventory.
  • As there are many other healthy competitors so it becomes very difficult to compete.
  • Profit is not guaranteed so you must be careful.
  • You can’t contact your buyers directly.

Dropshipping VS Amazon FBA

Dropshipping VS Amazon FBA
DropshippingAmazon FBA
Little investment costHigh investment cost
Freedom of customizationNo freedom of customization
Can contact customer directlyCan’t contact the customer directly
Lower riskHigher risk
Low-profit marginHigh-profit margin
The customer base is smallerThe customer base is wider
High competitionHigher competition
Poor shippingStronger shipping

Dropshipping Amazon tools to boost your sale:

Below there are many dropshipping tools provided by Amazon to simplify your selling experience by saving your money and time. Moreover, these tools help in improving results, marketing, research, and business automation. So what are you waiting for? Let’s have a look at them:

  • Amazon Volume Listing Tool:

With the help of this tool, you can easily download spreadsheets related to information and records. In addition to this, you can also easily modify product quantity and price with the help of this tool.

  • Sellery:

You Know what! With this free tool, you can win even Amazon Buy Box due to its extraordinary repricing strategies. Moreover, to stay competitive while boosting profit it permits you to run pricing experiments.

  • Merchant Words:

Stop wasting your money on other tools as the merchant words tool is there for you to maximize your sale. So, if you want to view keyword data, search volume, and keywords then you can use this tool now. However, its pro plan costs 30 dollars per month.

  • Feedback Express:

If you want to increase your selling rate then use Feedback Express as it aids in getting more reviews and removing the negative ones to improve the rating of your store and product.

That’s not all! You can even blacklist people who always give negative remarks.

  • Feed Check:

You can’t deny the importance of reviews as many people go for reviews before purchasing the product so you must monitor them as they impact your sales. But if you have a variety of products in your store that are difficult to handle then don’t worry as the Feed check tool is best for this purpose because it permits you to view all remarks in a single spot. Not only this, but it also allows you to monitor the products of competitors as well.

Tips to find winning products to sell like crazy:

Undoubtedly, it is the most complicated task and most important to find winning products while dropshipping. But by applying the right methods you can easily win the game so below there are a few tricks to find winning products

  • One of the best ways to find the winning product is Amazon’s best-seller listing as it offers great insights into what is the most selling product in the market. Below there are some steps to find a winning product on Amazon let’s dive into it right now!

Visit Amazon Best Seller Page:

After selecting your niche, go to the bestseller page and look at what are the most popular products in your niche.

Choose a few potential items:

Presently, at this stage, you need to think about a couple of things before feeling free to choose your next winning item.

  • Verify the cost (under 50 dollars) and size.
  • Look for promoting opportunities and the potential profit margin.

If you are doing dropshipping then sometimes it becomes really difficult for you to deliver fast. In this way, offering free delivery is the most ideal approach to get around these long conveyance times. Moreover, by choosing little items, you can save money on delivery, and you can offer free delivery with your orders.

Additionally, individuals care significantly less about everything when the prices are low means fewer than 50 dollars. So, they wouldn’t freeze a great deal in the case something turned out badly. Likewise, you can offer substitutions with no problems.

At last, you need to predict your promotion opportunities as well. For instance, if there is a hot selling item in your store, you can choose something that can be utilized for strategically pitching your hot item.

Check trend pattern:

To check whether your selected product is popular or not confirm its popularity by using Google trend which will let you know about the overall pattern of your selected dropshipping product. Not only this, but it will also let you know what are the most selling other items related to your product that you can sell.

Find Supplier:

Then the last step to finding a winning product for dropshipping is to find an ideal supplier.

  • Another way to find a winning product is to perform some social experiments that will help you in finding the most selling product.

For this what you have to do is:

  • Look for the products whose ads have the highest engagement on social media. When you investigate the potential winning items by utilizing your rival’s advertisements, consistently attempt to go for the promotions with the most noteworthy number of shares, tags, and positive remarks. But remember! Don’t need to think about those with a higher number of hearts or thumbs up as shares, positive remarks and tags are the things that are of use.
  • Moreover, to identify trends you can also follow your competitors to find the winning product.

The basis for winning products:

  • The item should be useful that it can easily fulfill one or more needs of buyers.
  • The product should be light, small, and easy to ship.
  • It should be qualified for Express Air Shipping.
  • Select a product that is not available in the local market.
  • It must have 10 sales per day and 150 reviews
  • Your product should be innovative enough to attract customers.
  • It should be low in price between 21-200 dollars.
  • Make sure that your supplier should have the ability to meet deadlines.

Products to avoid in dropshipping:

  • Try to avoid dropshipping of fragile items like cups or glass because they are easily breakable and can be broken up before reaching the customer’s place.
  • Don’t sell branded products as they are not allowed to sell without a license.
  • Avoid selling clothes because there are bunches of issues with them.

Amazon’s top-selling items that everyone is ordering:

Here’s the rundown of top-selling products on Amazon:

  • Elastic exercise bands with Amazon choice seal- These bands are excellent items to dropship as they are lightweight.
  • Pet grooming brush
  • Grill Mat
  • Pet Nail Clippers
  • Bento Boxes
  • Vegetable Spiralizer
  • Yoga Mat
  • Stainless Steel Straw
  • Muscle Roller
  • Stainless Steel Tumblers 
  • Compression Socks
  • Silicone Wedding Rings 
  • Compression Knee Sleeves
  • Garlic Press
  • Silicone Spatula
  • Apple Slicer
  • Silicone Baking Mat
  • Silicone BBQ Gloves
  • Marshmallow Roasting Sticks
  • Silicone Wedding Rings
  • Compression Knee Sleeves

Final Thoughts

Now it has been proved that Dropsipping Amazon is like a cake and requires very little effort from your side. What you have to do is just create your own Amazon seller account and have to pay little fees. For resolving all other issues our above-mentioned tips will help you for sure.

So, what are you waiting for? Create your seller account now to earn big with Amazon. But don’t forget to follow the guidelines provided by Amazon otherwise you can get a ban for your whole life.

But by implementing all the above-mentioned tips you will be able to run an exceptionally profitable business in a couple of weeks.

Good Luck!