Dropshipping lets entrepreneurs sell without inventory. For encouraging business owners, this Amazon dropshipping guide will show you how to succeed.
We’ll cover everything from setting up your account, sourcing products, and managing orders. We’ll provide tips on how to increase your visibility on Amazon and generate more sales. Let’s get started!
What is Amazon Platform?
Amazon has the most market share in the largest online marketplace in the world. With Amazon’s help, businesses of every size may sell their products to its large client base.
Companies that sell their wares on Amazon are required to pay the company a percentage of the profits made as well as a monthly service fee.
What is Dropshipping?
When it comes to starting a business for the first time, dropshipping is an excellent choice. It frees up time for marketing and allows small firms to test new product concepts and lines without owning or paying for them.
Dropshipping is a business model where eCommerce entrepreneurs sell products without having to carry any inventory. When a store owner receives an order from a customer, they simply contact the supplier, who will then ship the products directly to the customer’s doorstep.
Does Amazon Make it Possible to Drop Ship?
Yes, Amazon does allow exporting on the marketplaces; however, some basic rules must be accompanied:
- Always be the product’s seller.
- Identify yourself as the seller on packing slips, invoices, and other product details
- Remove all third-party seller identification before sending the order
- Handle returns.
- Follow your seller agreement, Amazon, and dropshipping policies.
How Does Amazon Dropshipping Work?
Three steps must be taken for a consumer’s order of a drop-shippable product to be fulfilled. Utilizing Amazon’s dropshipping service, you, the seller, can skip the time and effort involved in stocking, warehousing, packing, and shipping.
The fact that Amazon, the eCommerce behemoth, has a variety of policies and guide that are applicable to drop shippers is the defining characteristic of the dropshipping business model used by Amazon sellers.
The seller agreement requires sellers to accept and process orders. You must manage product inquiries and returns.
Start Your Own Dropshipping Business on Amazon with the Help of an Automation Tool
Amazon dropshipping pays. Dropshipping margins average 10%–30%. Amazon cuts 15% of top-line revenue. If your margins are 30%, Amazon store dropshipping will give you 15%.
The idea of starting an Amazon dropshipping business is appealing to business owners, and it is not difficult to persuade them to do so. With an automation tool, you can easily create and publish your products without hassle in this guide. How?
Here are the five steps and guide you need to do to get started dropshipping on Amazon:
1. Establish a Seller Account on Amazon
To start selling on Amazon, you will need to open a seller account on Amazon first. You can choose to register as an Amazon individual or a professional seller. You will need to register as a professional seller to dropship on Amazon.
2. Product Category Approval
Before a seller is allowed to post their products in certain categories on Amazon, the seller must first obtain clearance.
When you first start an Amazon store, one of the requirements is to obtain approval to sell products in a number of the most popular categories, such as apparel, food, music, and jewelry. Amazon may ask for some basic information as well as a fee in exchange for the book.
3. Sign in to Your Online Shop Hosted on Shopify
After you’ve finished configuring Amazon, the next step is to link it up with Shopify. Before you can sell on Amazon with Shopify, you must first log in to your account.
4. Multi-channel Fulfillment Apps Let You Link Amazon to Shopify
After getting accepted for an Amazon account, use an Amazon fulfillment app from Shopify to connect your eCommerce site to Shopify.
Amazon integration apps connect Amazon and Shopify to automate product delivery, update tracking, and synchronize product inventory.
You can use the PODTurbo automation tool to automatically carry out the order’s fulfillment and post tracking information to the relevant marketplace(s). Every one of these steps will be taken care of by a machine. You are not required to take any action.
5. Product Listings
Now that Amazon is connected to your Shopify store, it’s time to start listing products. Despite the fact that you may have installed an integration app, your dropshipping products will not immediately begin selling on Amazon.
Shopify offers three ways to manage Amazon dropshipping listings:
- Integrate Shopify with your Amazon listings using your app
- Offer an Amazon product you sell
- List a new product on Amazon
Many markets sell products. More marketplaces mean more passive income. PODTurbo can support Amazon, Etsy, eBay, Shopify, and WooCommerce. Connecting your account to the system is all you need to do.
These global marketplaces will immediately publish your products. Automatically add passive income streams!
How Does Owning an Online Store Benefit a Dropshipping Business?
Start an online store instead of exporting Amazon products through Amazon and eBay. Most eCommerce best way to lead this delivery approach. Here are the benefits for the business owner:
1. Enhanced Command and Management
With your own online store, you can build a shopping experience that sells your products and, most importantly, adds value to your customers. You are in full control of how your brand is presented to the world and can better manage the customer shopping experience from start to finish.
2. Increased Margins and Revenues
Dropshipping margins vary but are typically very low — 10% or less. By having your own store, you will be able to keep more of the profits and reinvest them back into your business.
3. Improved Customer Loyalty and Retention
Customers that buy from your shop are more likely to be patrons of your enterprise. Owning your store can develop these relationships and deliver excellent customer service.
4. Greater Branding Opportunities
Your store provides the perfect platform to build and market your brand. You can use your store to connect with customers, tell your story, and differentiate yourself from the competition.
5. Convenient for Mobile Use
Selling on eBay and Amazon via smartphone is difficult. Your online store will likely be responsive if you establish it with a reputable hosted eCommerce platform. Since roughly 30% of internet sales are on mobile devices, this is becoming more significant.
Shopify lets you run your internet store from your phone. This appeals to dropshipping business owners who want to work on the go or even at the beach.
Final Thoughts
It is time to start constructing your store now that you have a working knowledge of Amazon’s dropshipping program. Shopify is the easiest platform to use, and we recommend utilizing an Amazon fulfillment app from Shopify to connect your e-commerce site to Amazon.
You are able to manage all of your Amazon listings from a single, straightforward interface when you use PODTurbo. Your business will expand faster and save time.