Amazon Dropshipping Benefits & How To Make Money From It


Dropshipping on Amazon has boomed in popularity since it allows people to sell things online without buying or maintaining inventory. This way of doing business has already inspired many rookie entrepreneurs to launch their businesses.

After all, we now live in the Amazon era, where the eCommerce behemoth accounts for 38 percent of all eCommerce sales in the United States. However, if you want to run a thriving dropshipping business on Amazon, you must follow their guidelines, which can be pretty strict.

But don’t worry, this article will lay down multiple helpful tips for launching your own Amazon dropshipping business, so let’s get started!

Amazon Dropshipping Vs. Regular Dropshipping 

So, what’s the big deal about dropshipping on Amazon versus conventional dropshipping?

These two business concepts appear to be very similar at first glance. You sell your products in your store as a standard dropshipper, and you never have to worry about inventory or shipment.

The approach is much the same. The only difference is that you list your products on Amazon instead of selling them through your web store.

Note that this is a significant difference, although it may not look like one.

Dropshipping on Amazon gives you access to a market with over 300 million active users. Thus, leveraging Amazon as a sales channel for your company can lead to huge profits. You may lure new clients if you sell the correct product at the proper price.

How to Make Money With Amazon Dropshipping?

Making money with Amazon dropshipping entails five simple steps:

  • Create an Amazon seller account
  • Conduct keyword research to locate profitable items to sell
  • Ensure that you have dependable wholesale suppliers to provide your items
  • Generate an Amazon listing for your product.
  • Promote your store

Create a Seller Account on Amazon

To sell on Amazon, you must first create an Amazon seller account. To complete the Amazon Seller account conditions, you’ll need your personal and tax information and a bank account.

If you’re a newbie, create a free Individual Seller account. Upgrade to a Professional Seller Account once you reach 40 sales per month to save money on Amazon fees.

Locate Profitable Items to Sell

The next step is to find a product to sell on Amazon. Follow these tips to locate profitable products to dropship on Amazon:

  • 1. Sell things that aren’t going to go of style, at least for the near future
  • 2. Sell things that are eye-catching or flashy and encourage impulse purchases
  • 3. Sell items that aren’t easily accessible from the maker or other Prime merchants
  • 4. Sell high-ticket items to increase your profit margins per sale

This should provide you with enough options to choose from across all categories. Check Amazon’s list of prohibited products to ensure you are not choosing a product that falls into any of these categories. Hoverboards and unsafe goods are examples of prohibited products.

Find a Supplier

Finding a source for your products is the next step in your Amazon dropshipping strategy. And by a supplier, we mean a reputable, trustworthy wholesaler who understands dropshipping and isn’t out to defraud you. 

Consider the following ways for locating legitimate dropship suppliers:

Use a Supplier Directory

A supplier directory is a massive database of distributors and suppliers categorized by niche/markets. Once you get your hands on these directories, you’ll have access to all the information you need.

Contact the Manufacturer

This is a fantastic way to locate legitimate providers for your product. All you have to do is approach the product’s manufacturer and ask for a list of wholesale dealers. Then, reach out to these distributors to see if they have a dropship program in place. 

Attend Wholesale Tradeshows

There are wholesale tradeshows for products in every category worldwide. Attending a tradeshow allows you to find dropship wholesalers quickly and conveniently in one location. To find tradeshows in your area, go to www.WholesaleCentral.com.

Make a Listing on Amazon

When users view your Amazon page, the first thing they will see is your product listing. They’ll decide whether or not to buy based on the facts and content you supply. Thus, the listing must be unique, captivating, innovative, and, most importantly, include all of your product’s main keywords.

Simply put, it must reply to the reader’s question: “Why should I buy your product?” You must also ensure that Amazon’s search engines can readily find it. After all, for your dropshipping business to succeed, you must attract customers to your listing and persuade them to purchase your product.

The first step is to choose a product category. Go to your amazon central account and click on inventory > Add a product to create a listing. When the Add a Product box appears, select “Create a new product listing.” After that, you’ll need to fill out the information for the listing.

Promote Your Amazon Store

Visibility is essential for generating sales. This implies you’ll need to develop a marketing approach to get people to visit your Amazon store. 

An excellent place to start with is a mix of social networking, affiliate marketing, and paid ads. It’s also crucial to improve your product descriptions, as they’ll help you get sponsored and organic traffic to your store pages.

Amazon Dropshipping Policy 

Amazon accepts the model of enabling a third party to complete orders on your behalf, but you must first meet specific requirements, including:

  • You must be the official seller of your goods.
  • You must define yourself as the seller on any invoices, packing papers, and other seller information included with the merchandise.
  • It is your responsibility to organize and accept refunds and returns
  • You must delete any information identifying your provider as the third party fulfilling your order
  • You can’t buy things from another online retailer and have them shipped to the client directly
  • Finally, you must adhere to Amazon’s selling policies as well as your Seller Agreement

Benefits Enjoyed by Amazon Dropshippers 

Dropshipping on Amazon offers many benefits that make it an appealing marketplace for first-time entrepreneurs. Listed below are a handful of them.

You Can Quickly Enter Markets! 

This is one of the most significant advantages of dropshipping. Nothing stops you from branching out and establishing yourself as a player in new markets. There are no limits to how many categories and niches you may explore; all you need is the right product and a reliable source.

Amazon Is A Massive Marketplace

Amazon controls more than half of the eCommerce market. It is the United States’ largest online retailer by far. Every day, Amazon receives billions of visitors wanting to purchase items, some of which you can offer.

By piggybacking your products on current listings and earning the buy box, you may use the Amazon sales channel to make sales right away!

Dropshipping on Amazon Is Less Risky

Dropshipping on Amazon has the fewest entry barriers any online business model can have. You can practically start making money straight away with a free Amazon seller account and no money upfront.

You don’t have to purchase inventory. There are no overhead costs or inventory concerns, so essentially anyone with no prior experience can do it.

A Wide Range of Products to Sell

Amazon has over 35 product categories, allowing you to try out different product niches. Such an extensive product range will let you test multiple products to determine which convert the best.

Saves Time

Dropshipping on Amazon is an excellent business concept for anyone who wants to make money without having to spend a lot of time managing shipping and inventory. 

Compared to maintaining a typical brick-and-mortar business, which takes a lot of work and dedication, Amazon dropshipping is a time-saving fulfillment option. Moreover, you’ll have more time to focus on other aspects of your business if you dropship.

Bonus Tips for Succeeding in Amazon Dropshipping

Here are three golden tips to skyrocket your Amazon dropshipping career:

Understand Your Audience

Understanding what your customers want is critical to delivering a pleasant customer experience. It allows you to fine-tune marketing and sales to attract more customers. Furthermore, excellent customer service aids in favorable product reviews. And positive product reviews can make or break your Amazon sales.

Optimize Your Product Listings

To boost your product’s visibility, conversion rate, and ranking, you’ll need to optimize your product listing. A well-optimized product listing will lure in crucial leads to your dropshipping store, while a poorly optimized listing is challenging to convert.

Ensure the product title, bullet points, and description contain relevant keywords. You may use Amazon A+ content to make your product description even more appealing and generate traffic to your product page.

Win the Amazon Buy Box

Winning the Amazon Buy Box can significantly enhance your Amazon dropshipping business. Offer competitive pricing, maintain adequate inventory levels, and keep good seller feedback to achieve the Amazon Buy Box. Customers trust Amazon sellers who win the Buy Box to supply excellent and top-notch products; thus, sellers who win the Buy Box typically earn more sales.

Takeaway 

Dropshipping on Amazon is a promising endeavor if your provider is trustworthy, dependable, and knowledgeable about what needs to be done. 

On your end, you’ll need to take care of listing creation, marketing, collecting reviews, and increasing your product’s visibility on Amazon. If you believe you are well-versed in these areas but lack the financial means to buy inventory, dropshipping may be the solution for you.

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