Dropshipping is a method of retail fulfillment that uses a third party to ship the product to the customer. Under this fulfillment style, someone purchases a product from a retailer who then places an order with a third party. Third parties are companies like a manufacturer or other retailers. 

This third party will then ship the product directly to the customer. As a result, the retailer never actually has the product they are selling physically with them and in stock.

How to Start Dropshipping on Amazon

Dropshipping on Amazon is a simple process and easy to begin. Let’s go over the easy 5-step process for getting started:

1. Open a Seller Account on Amazon

Step one is to create a seller account for yourself on Amazon. To do this, you will have to select a payment plan, input your credit card information, and provide Amazon with some basic details about yourself. There are two different payment plans available for Amazon seller accounts. 

• First, there is the Individual plan. This plan charges your on-file credit card $0.99 each time you sell an item.
• Second, is the Professional plan. This plan charges your on-file credit card $39.99 per month — regardless of how many items you sell each month.

Amazon will also collect a “referral fee” on each sale you make. The percentage depends on the product category and is variable.

2. Choose Your Products

Once you have created your Amazon seller account, you need to choose what types of products you want to dropship on Amazon. It is important to think carefully about this step because while some categories are open to any Amazon sellers, some are not. 

Some product categories require approval to sell, a professional account, and other restrictions. Some won’t allow third-party sellers at all. 

It’s important to do research on the product you’re wanting to sell before creating the account.

3. Find Your Supplier(s)

Step three is finding suitable suppliers to dropship for. Like choosing the right products, choosing the right supplier(s) is essential to the success of your business. If you are using a supplier that does not offer high-quality products or is inconsistent with their orders, your business could end up with a bad reputation.

When looking for a new supplier, it’s wise to keep these tips in mind:

• Reach out directly to manufacturers to see if they can ship the products you are looking for.
• Always make sure the supplier is within the budget that you have set for yourself.
• Look at competitors and see what suppliers they use.
• Know the supplier’s minimum order quantity

4. List Your Products 

After you have selected a supplier to work with, it is time to start listing your products on your Amazon seller account. 

You can create these listings in Seller Central or via API. These listings will include information such as:

• A product identifier that identifies the exact product you are selling.
• An SKU which is a product identifier you create to track your own inventory.
• The offer details such as price, condition of the product, availability, and options for shipping.
• The product details such as name, brand, images, description, and category.
• Keywords and other search terms for customers to find your product.

5. Market Yourself!

The last step is to increase your online presence by marketing your business. As a dropshipper, there are many different ways that you can market your business, such as social media. Using social media you can boost your visibility and post proof of how well your business is working as well as include reviews from your customers to gain credibility.

Tips for Dropshipping

Here are some additional tips to help your dropshipping business be more successful:

• Only work with reputable manufacturers. This ensures that your customers will be receiving high-quality products every time.
• Keep up with the latest trends and look for opportunities to sell seasonal products.
• Look for products that your competitors aren’t selling to stand out from the crowd and offer something different to your customers.
• Always make sure that you are optimizing your listings for maximum visibility.
• Focus on niche products. As an online retailing practice, you can offer more specialized products than brick-and-mortar stores. And because these products are not offered in larger retailers, people who want them will land right on your listing.
• Encourage your customers to leave reviews of their experience with your business. This helps to improve your credibility and increase your online visibility as well.

What has worked best for you with dropshipping? What hasn’t lived up to the hype? Drop a comment below to tell us what we’ve missed!

If you want some help with your dropshipping business, contact us today to learn about how we can empower you to focus more on the success of your business!