Two years ago, Amazon had over 300 million active users, and it generated more than $280 billion in sales. These numbers only grew in the years to come, and the viral outbreak just added to this effect.
The most significant benefit of Amazon is that it has a vast customer base. However, that also means that you’ll have numerous competitors regardless of your industry.
Millions of people are buying and selling on Amazon, and you can learn more about it by consulting reliable online resources. For a start, take a look below at this comprehensive guide that will help you start dropshipping on Amazon the right way.
First of All, Respect the House Rules
Amazon allows dropshipping using their marketplace. But you’ll have to respect their rules if you want to have a successful business venture on the platform.
First of all, you have to be the seller of record for products and identify yourself as the seller on packing slips, invoices, and other information related to products. It’s necessary to remove all details that identify the third-party seller before shipping the actual order.
Also, you have to be responsible for accepting and processing returns. This is a strict policy, and Amazon isn’t joking around with it.
Last but not least, you need to go through and follow all terms of your seller agreement with the marketplace.
What Can I Dropship Using Amazon?
Successful dropshipping involves impulse buying, exciting products, and engaging ads. When selecting products, you can dropship almost anything you want. Except for firearms and illegal items and substances.
The simplest approach for beginners to test multiple goods at once is to stick to a niche. But if you add all products from a specific place to your store and that niche doesn’t sell well on social media, your entire effort will be for nothing.
There are some of the more popular niches at the moment. For example, female clothing has been one of the most popular and profitable dropshipping sectors for the past five years. You can sell everything from T-shirts to formal gowns for a modest price.
Moreover, you can even consider dropshipping coffee. Coffee dropshipping is somewhat new to the whole marketplace, but it worked wonders for some companies that started doing it. Specialized services allow you to create coffee products with your logo, launch your official website, and quickly generate sales.
The next niche is tools. This popular and successful dropshipping niche has over 100,000 Amazon search results and a lot of online buzzes. Target younger customers and industry specialist toolkits for handling those occasional wear and tear problems at home, work, or on the road in cars to benefit from this niche.
Finally, there are car accessories. So many people love and drive cars, so they always need specific accessories and gadgets for their vehicles.
Choose wisely. That is the best piece of advice any entrepreneur will give you when you decide to start dropshipping.
How Much Does It Cost to Do Dropship on Amazon?
To use Amazon dropshipping, you must first register as a seller on Amazon’s website.
Individual plans cost $0.99 per unit sold, whereas Professional plans cost $39.99 regardless of the number sold.
Dropshipping fees on Amazon vary by product type but are generally between 10% and 15%.
Amazon Dropshipping Benefits
There are numerous advantages to dropshipping on Amazon, so let’s list some of them.
Low Initial Costs
Unlike other popular eCommerce tactics like private label and wholesale, dropshipping does not require you to possess your inventory. Instead, when the consumer pays you for sale, you take a portion of the money and purchase the product from the supplier, who then ships it to your customer.
Dropshipping on Amazon is quick and straightforward to set up because you don’t have to possess your inventory. You don’t have to wait for them to make your product or send it to the fulfillment center. Also, this means that all you need is a good deal.
Dropshipping on Amazon entails selling things that are already manufactured. As a result, many developers released tools that let you assess how well other sellers of those products are doing on Amazon. However, this gives you an edge over the competition when it comes to starting your dropshipping eCommerce business.
Amazon Dropshipping Shortcomings
There are two sides to every coin, so let’s see some disadvantages of Amazon dropshipping.
Since the entrance barriers to dropshipping are so low, competition can be fierce. Furthermore, while the products you’re selling are unique, nothing prevents other Amazon sellers from selling the same items.
Dropshipped items on Amazon are usually shipped directly from suppliers and manufacturers. You can frequently locate those providers outside of the US. As a result, delivery timeframes from international vendors can take several weeks to reach the end customer.
This guide will help you start your business using Amazon. However, you will need to do research on your own and monitor marketing trends in your given niche. This is what will ultimately help you remain successful in the long run.