Amazon Dropshipping Guide for 2022: Everything You Need to Know

It might seem daunting, but you can have a smooth experience dropshipping with Amazon once you know the rules and basic process. That ’ mho just what we ’ ll do in this Amazon dropshipping steer. Without farther bustle, let ’ s get started. And if you have a Shopify store, it ’ sulfur easier than ever with the summation of the Amazon sales channel. On top of that, there ’ sulfur strong trust and fierce customer commitment among Amazon shoppers. By dropshipping on Amazon, you can leverage that reliance for your own post. ready to level up and hold your own stock ? Buy wholesale products on Handshake, a wholesale marketplace built by Shopify.

It leads the ranking of the most popular denounce apps in the United States, with 150.6 million mobile users accessing the Amazon app. It ’ s a solid theme. Amazon is one of the world ’ s most recognizable brands, after all .

What is Dropshipping ?

Before discussing Amazon dropshipping, let us give you a quick refresher course how dropshipping works in general .
Dropshipping is the process of selling a product without the responsibility of carrying inventory or shipping the goods .
The product manufacturer is responsible for manufacturing the product, maintaining inventory and shipping the goods to the customer .
Your job as a dropshipper is to maintain an on-line shop where you handle everything customer-related, from taking their orders, placing those orders with your supplier, and managing customer service .

What Is Amazon?

Amazon is one of the biggest ecommerce websites in the world. It grew in popularity because it allows retailers to sell their products on their platform .
Manufacturers and brands are able to sell on Amazon as an extra sales channel for their stores .
You ’ ll be able to start selling on Amazon mighty after you ’ re approved for an Amazon seller report, you ’ ll be able to start selling on Amazon. Just keep in mind that not all brands and products get approved .

What Is Amazon Dropshipping?

sol, how precisely do you start dropshipping on Amazon ? You can dropship on Amazon through their Fulfilled by Amazon program .
In this plan, you ship your products to Amazon where they carry the inventory and ship directly to your customers .
The profit of this program is that Amazon has some of the fastest embark times on the market, then your customers get their products even sooner. If there ’ s one thing we ’ ve learned from the twenty-first century, it ’ s that customers love fast delivery times .
Related : How to Tackle Delivery Times in Dropshipping

Can You Dropship on Amazon Legally?

Yes, Amazon allows their merchants to dropship on their platform angstrom long as you play by a few key rules .
You must constantly :

  • Be the seller on record of your products .
  • Identify yourself as the seller of your products on all packing slips and other data included or provided in connection with them .
  • Be creditworthy for accepting and processing customer returns of your products .
  • comply with all other terms of your seller agreement and applicable Amazon policies .

Examples of dropshipping that are not permitted :

  • Purchasing products from another on-line retailer and having that retailer ship directly to customers .
  • Shipping orders with packing slips, invoices, or early data indicating a seller name or contact information other than your own .

You can read more about how to dropship with Amazon on their web site here .

How Much Does It Cost to Start Dropshipping on Amazon?

Amazon dropshipping requires everyone to sign up as a seller on Amazon ’ s web site. Their person plan costs $ 0.99 per unit sold, while the Professional design will cost you $ 39.99, careless of how many items you sell .
Amazon ’ s dropshipping fees deviate by product type but are typically in the 10 % -15 % range. This might not be feasible for those who ’ re working with relatively small profit margins .
Learn more about Amazon ’ s mission fees .

Is Amazon Dropshipping Profitable?

It can be. The average dropshipper sells products at a 10 % to 30 % margin. If they dropship via Amazon, the chopine will take around 15 % off their top-line gross .
If you ’ re sell at a 30 % margin, your net margin after selling a product on Amazon will be 15 %. This is quite decent, particularly when you consider the broad hearing base you ’ ll be able to tap into .
note : Your Amazon dropshipping margins can be higher if you win the Amazon Buy Box, but it ’ sulfur highly competitive and shouldn ’ deoxythymidine monophosphate be something you focus on at the begin .

What Are The Benefits Enjoyed By Amazon Dropshippers?

In this separate of our guidebook, you ’ ll learn some of the benefits of running an Amazon dropship commercial enterprise .
No warehouse cost
One of the benefits of having an Amazon dropshipping commercial enterprise is that you don ’ t need to pay for the cost of a warehouse. Some Amazon sellers choose to make their products FBA ( Fulfilled by Amazon ). With FBA, sellers ship their products to Amazon and Amazon sends the products out for them .
Amazon Suppliers
Amazon buys products in bulk from many european suppliers. Amazon then holds this provide in their warehouses, ready to ship to customers. The party besides handles returns and customer service in many different languages for all Amazon suppliers .
With Amazon, suppliers ( even little businesses ) can grow quickly and operate globally. Plus, Amazon suppliers receive avail from report managers to strategically guide their business to increase profits long-run .
Large audience to sell to
Amazon has 300 million active users. This means using Amazon as a sales channel for your business can mean huge returns. Sell the right product at the right price and you can lure in new customers .
Another benefit is the ability to well reach new customers your memory wouldn ’ metric ton have reached on its own. This will help you to expand your target hearing. Who knows, you might even discover a whole new hearing you never even knew was concern !
amazon dropshipping benefits
Multiple categories to target 
Amazon has over 30 categories that you can target .
So you may decide to sell in two, three, five, or as many niches as you desire .
With the correct products and trustworthy suppliers, there ’ s no limit to how many categories and niches you can cater to .
For example, you can sell in the Electronics and Tools & Home Improvement categories simultaneously, as there ’ south nothing to prevent you from serving multiple audiences .

How to Dropship on Amazon: 8-Step Checklist

1. Choose an ecommerce platform

As Shopify recently partnered with Amazon, using their ecommerce chopine would be ideal. Shopify allows users to add Amazon as a sales channel to simplify managing orders on both platforms .

2. Sell the right products

There are several requirements and restrictions for memory owners who want to sell their product on Amazon .
According to Amazon ’ second list of eligible stores, you can open up an Amazon store without approval if you ’ re in a niche like books, calculator and television games, electronics, office products and the like
Take a glance at Amazon ’ second tilt of restricted products to make certain you ’ ra not in any of these categories. These items include things like hoverboards and dangerous goods.

Amazon eligible stores

3. Create an Amazon seller account

If you plan on selling a high volume of products, it ’ mho well to have a professional report. In the individual sell design, you ’ re charged 0.99 cents per item sold, which can eat away at your margins .
Keep in thinker that you ’ ll besides need to offer competitive price and the periodic deduction, while however ensuring you make a large enough profit to reinvest in the business. So watch your margins. With a professional seller account, you pay a subscription each calendar month, american samoa well as a few extra fees .
You ’ ll want to register with your electronic mail on Amazon Seller Central. then, you ’ ll necessitate to fill out your name, electronic mail, and password. You ’ ll then need to provide more details about your business, such as address and tax information .

Amazon seller central dashboard

4. Get approved in your product category

As I mentioned earlier, certain niches and product types require Amazon blessing. fashion, beauty, and jewelry are some of the popular niches that require blessing before starting up your Amazon store. You can view the specific approval requirements for each class .

Amazon category approval requirements

5. Set up your Amazon account on Shopify

once you ’ ve been approved and your report is created, connect your Amazon report to your Shopify shop. On the leave panel in your Shopify bill, scroll down to ‘ Sales Channels ’ and click the + release beside it .
Amazon shopify setup
You ’ ll have a pop-up book come up. Amazon should be the first detail on the list. Click ‘ Add Channel. ’
shopify amazon sales channel
then, continue with ‘ Connect to Amazon. ’

connect Amazon to Shopify

6. Start dropshipping from Amazon to Shopify

Click on the Amazon sales distribution channel connect, see Shopify ’ second left panel. Click ‘ Create Listing. ’
following, click ‘ Select Product. ’ You ’ ll see two options. If your brand makes the product, you ’ ll need to make surely you purchase UPC codes. But as a dropshipper, you ’ ll pawl on the second option : ‘ This product is made by another brand. ’
future, you ’ ll be able to search for the merchandise to become a seller for that SKU. once you ’ ve found the product, click ‘ Select. ’ Lastly, you ’ ll necessitate to click ‘ Publish ’ to finish the process .

7. Have Shopify track inventory

Make certain that Shopify tracks inventory levels. This ensures that when a customer orders on Amazon, the product is still in stock .
Make certain you don ’ deoxythymidine monophosphate allow customers to arrange products that are out of sprout – this can lead to negative reviews and some extra customer service time you didn ’ thyroxine plan on spending .

8. Start promoting your Amazon store

You won ’ deoxythymidine monophosphate get any sales if cipher knows about your storehouse, right ? The next dance step is to send traffic to it .
Be certain to promote your store on any social channels you have. You can besides create Amazon ads to help bring in some newly eyeballs and boost sales .

Bonus Strategies for Succeeding on Amazon

In this share of the Amazon dropshipping steer, you ’ ll learn a few strategies for succeeding on Amazon .

Win the Buy Box

Most of Amazon ’ s sales come from the Buy Box. This means your goal as a dropshipper is to win the Buy Box so you can maximize your sales like the pros .
first, you ’ ll motivation to have a high seller rate. many have found having a denounce above 95 % has worked well for them .
second, you need to ship products cursorily, ideally within 14 days .
Third, your cost ( shipping and product monetary value total ) should be lower than most of the other offers being presented. Having a gloomy refund rate, fast customer answer clock, and gamey feedback score besides help you win the Buy Box .

Amazon buy box

Don’t rely on Amazon

Don ’ thyroxine be dependent on sales from Amazon alone. Explore other platforms excessively. By having Amazon as one of many sales channels, you improve your odds for sales while minimizing risk .
With Shopify, you can add other sales channels such as Instagram, Facebook Messenger, and Facebook Shops to grow your brand ’ south audience .
It ’ randomness besides deserving noting that if a customer recognizes your brand, they ’ ll be more likely to buy from you on Amazon. Be where your customers are .

Aim for a 95% seller rating

Having a 95 % or higher seller rat has improved the likelihood that you ’ ll win the Buy Box. It ’ second besides capital because it makes you more likely to appear in organic searches .
It ’ randomness authoritative to have a high gear seller rat, as this gives a major boost to earning a electric potential customer ’ s hope. It gives your Amazon store a competitive advantage over those with lower ratings .

Do keyword research

fair as you ’ five hundred optimize your store ’ s product pages for search engines, when you ’ re learning how to dropship on Amazon, you should optimize your Amazon intersection pages angstrom well .
You can use tools like Merchant Words to find popular keywords. If you run Amazon ads, you ’ ll besides have access to a provision of keywords you can use to optimize your merchandise pages .
Doing this well will help you rank senior high school organically. If you ’ rhenium running ads, it ’ ll aid you target customers better .

amazon keywords research

Make sure you price your products accordingly

When price products for Amazon, there are a few factors to consider. First is the cost of Amazon fees. You want to make sure your margins are high enough that you can afford to pay Amazon ’ s monthly and other associated fees .

Offer a better coupon discount than competitors

By creating an Amazon coupon, you can help encourage customers to buy from you. If you promote the coupon to coupon sites, you can help drive more traffic from those looking to score fresh deals .
just remember that you need to price the coupon in a room that allows you to pay your expenses and remain profitable .
offer amazon coupons

Optimize your product titles for user intent 

Amazon favors listings whose titles are relevant to buyer ’ s search terms, preferably than being stuffed with keywords .
Put just, titles that focus on user purpose get the attention of people. As such, it ’ s worth spending some time thinking about what buyers hope to find when conducting searches related to your products .
data that matters to buyers includes product attributes such as model, size, color, measure, etc .
Pro tip: Use the brand name as the first news in the claim. Blueboard found that 93 % of best-selling Amazon products started with the name of the brand. even if you ’ rhenium considering dropshipping items from China, don ’ metric ton disregard using the local post list in your titles .
hera ’ s a number of tools that will come in handy when you ’ re learning how to start dropshipping on Amazon .
merchant Words – You can use Merchant Words to view the search book and datum of keywords. The pro plan costs $ 30/month .
FeedCheck – FeedCheck allows you to view all your product reviews in one topographic point. It ’ s a bang-up tool if you have a large choice of Amazon products in your storehouse. By having easy access to reviews, you can work on improving your reviews while providing better customer service. It besides allows you to monitor rival ’ randomness products. Their pricing starts at $ 19/month .
Shopify – You can use Shopify to add Amazon as a sales groove to your store. Shopify can besides be used to track your inventory and alarm you if you have Amazon sales you need to fulfill. To take advantage of Shopify, make sure that you have not selected FBA for shipping your products .
Sellery – This instrument has repricing strategies to help you win the Amazon Buy Box. It allows you to run pricing experiments to stay competitive while maximizing profits. You can try this one for release .
Feedback Express – Feedback Express helps you get more reviews on your Amazon store. It besides helps remove veto reviews so you can keep a high fink on your products and storehouse. You can even blacklist customers who are ill-famed for leaving negative reviews. Pricing starts at $ 20/month .
Amazon book Listing Tools – Amazon offers respective tools to simplify your seller feel. You can easily download spreadsheets for orderliness and stock information. You can besides modify pricing and product quantity with rest .

Dropshipping From Amazon to Ebay

Dropshipping from Amazon to eBay is a dropshipping model that has been used for many years. This exemplary sees sellers buying dump items on Amazon and selling them for a higher price on eBay .
This normally means that the end drug user, who bought the product from eBay, will receive the product in Amazon packaging – which is not a great user experience for them .
Although it ’ second not illegal to partake in this dropshipping from Amazon to Ebay, it ’ randomness frowned upon by manufacturers. That ’ randomness because this model increases profits for the dropshipper without the manufacturer knowing about the natural process .
Plus, eBay doesn ’ t truly like the idea of dropshipping from Amazon to eBay, which is possibly why the company banned hundreds of Israeli merchants using this model spinal column in 2017 .
so if you ’ ra aiming to build a reputable dropshipping occupation, it ’ s best to stay away from this model.

Want to Dropship for Your own Brand alternatively ?

Don ’ metric ton want to sell on Amazon ? Those who want to dropship their own products can use apps like Spocket and DSers to dropship from a massive choice of millions of products .
You ’ ll witness products in women ’ mho and men ’ mho fashion, beauty, watches, jewelry, home improvement and interior decoration, and much more .
And with a click of a button, you ’ ll be able to add your product to your Shopify Store so you can start selling today. Learn about the advantages of dropshipping vanadium Amazon to get started .

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Category : How To

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