Have you ever considered Amazon dropshipping as a business model?
This is a good idea. After all, Amazon is one of the world’s most recognized brands.
Amazon is the top-ranked shopping app in the United States, with 150,6 million mobile users.
Are you ready to reach the next level and have your stock? Handshake is a wholesale marketplace created by Shopify that allows you to buy wholesale products.
Amazon customers are loyal and trusting. Dropshipping on Amazon allows you to leverage this trust and build your brand.
With the Amazon channel, you can sell your products more efficiently than ever if you already have a Shopify store.
You might find it intimidating, but once you understand the basic rules and process, you will have a great experience with Amazon drop shipping. In this Amazon dropshipping tutorial, we will do just that.
Dropshipping is a type of dropshipping.
Let’s take a moment to review how dropshipping generally works before we discuss Amazon drop shipping.
Dropshipping refers to selling a product without carrying inventory or shipping the products.
The product manufacturer is responsible for the manufacturing, inventory management, and shipment of the goods.
Dropshippers are responsible for maintaining an online store and handling all customer-related matters, including taking orders, placing orders with suppliers, and managing customer service.
What is Amazon?
Amazon is the largest e-commerce website in the world. It gained popularity because it allowed retailers to sell products on its platform.
Amazon is a new channel that manufacturers and brands can use to expand their sales.
After you are approved for an Amazon Seller Account, you can start selling on Amazon. Remember that not all products and brands are approved.
What is Amazon dropshipping?
How do you dropship on Amazon? Dropshipping on Amazon is possible through the Fulfilled by Amazon program.
This program lets you ship your products directly to customers by sending them to Amazon.
This program will allow your customers to receive their orders even faster. We’ve learned that 21st-century customers are very interested in fast delivery.
Dropshipping: Delivery times and how to deal with them
Dropshipping on Amazon is legal?
Amazon does allow dropshipping on its platform as long as the merchant follows a few rules.
Sell your products as soon as possible.
Identify yourself as the seller on all packing slips and any other information included with or in conjunction with your product(s).
Accept and process customer returns.
Follow all other terms and conditions of your seller agreement and applicable Amazon policies.
Dropshipping examples that are prohibited:
Purchase products from an online retailer and have that retailer ship the product directly to you.
Ship orders that include packing slips, invoices, or any other information indicating a different seller’s name or contact details.
Here you can find out more about dropshipping with Amazon.
How much does it cost to start dropshipping on Amazon?
Amazon dropshipping is only available to those registered as sellers on Amazon.com. The Individual plan is $0.99 per item sold. However, the Professional program is $39.99 regardless of how many products you sell.
Dropshipping charges vary depending on the product but are usually between 10%-15%. It may not be possible for those with small profit margins.
Find out more about Amazon commission fees.
Dropshipping on Amazon is profitable?
It is possible. Dropshippers sell their products with a margin of 10% to 30%. Dropshipping via Amazon will reduce their revenue by around 15%.
If you sell at a margin of 30%, your net profit after selling on Amazon is 15%. This is a good deal, especially considering the large audience you can reach.
Note: You can increase your Amazon dropshipping margins by winning the Amazon Buy Box. However, it is a highly competitive market, so you shouldn’t focus on this first.
What are the benefits of Amazon drop shippers?
This part of our guide will teach you some of the advantages of having an Amazon dropshipping business.
Dropshipping on Amazon is a great way to save money. You don’t have to pay the costs of a warehouse. Some Amazon sellers decide to have their products FBA-ed (Fulfilled by Amazon). FBA allows sellers to ship their products directly to Amazon, and Amazon will then send them out.
Amazon Suppliers
Amazon purchases products in large quantities from European suppliers. Amazon holds the product in its warehouses until it is ready to ship. Amazon Suppliers can also receive customer service and returns in multiple languages.
Amazon allows suppliers to increase and expand globally. Amazon suppliers also receive strategic guidance from their account managers to maximize profits.
A large audience to sell
Amazon has 300 million users. Amazon can be a great sales channel for businesses. You can attract new customers by selling the right product for the right price.
Amazon offers over 30 classes to choose from.
You can sell in as few as two niches, as many as five, or as many.
There’s no limit on how many niches and categories you can serve with the right products.
You can serve multiple audiences, for example, by selling both Electronics and Tools & Home Improvement simultaneously.
Selling the right products
Store owners who wish to sell on Amazon face several restrictions and requirements.
Amazon has a list of stores eligible to open an Amazon store. These include niches like computer and video games and office products.
Check out Amazon’s restricted product list and ensure you don’t fall into these categories. This includes items like hoverboards or dangerous goods.
Create an Amazon Seller Account
Using a professional account is better if you plan on selling large product volumes. You’ll be charged 0.99 cents for each item in the individual selling plan. This can reduce your profit margins.
You’ll need to be competitive in pricing, offer discounts, and ensure you have a profit large enough to invest in your business. Watch your margins. You pay a monthly subscription and a few extra fees for a professional seller’s account.
Register with your email address on Amazon. You’ll then need to enter your name, email address, and password. Then, you’ll need to enter more information about your business, such as the address and tax details.