How to Do Dropshipping on Amazon?
If you are thinking about starting a new online business and don’t want to spend much money, Dropshipping is the best option.
Amazon is a well-known brand name that has millions of customers’ trust. Starting your business on Amazon will allow you to sell your product to those millions of customers. There are so many selling options that Amazon provides its sellers, and one of those is the dropshipping service.
What is Dropshipping?
Dropshipping is an eCommerce method in which sellers sell products on Amazon without carrying the inventory or shipping the goods. The sellers can set their selling price, and manufacturers are responsible for manufacturing the goods, maintaining stock, and shipping goods to the customers.
In this way, sellers can avoid the process of ordering, housing, and shipping out of your product inventory. It helps to reduce the cost of inventory and warehouse, which is a matter of concern for many sellers. Also, If your business doesn’t perform well, you don’t have to deal with the aftermath.
How Does Dropshipping Work on Amazon?
Dropshipping is a method in which the seller takes orders from the customers on behalf of the manufacturers or suppliers and sells them the products online. The customers only know the seller and don’t have any contact with the manufacturer.
And the suppliers supply the product at the doorstep of the customers. The sellers also receive the payment. When a customer buys the product, the seller uses their supplier to fulfill those sales. (Know: Best Amazon Price Tracker app)
The customers never know they are purchasing these products directly from the retailer. This practice is very famous on online platforms like Amazon & eBay.
Here are a few steps that explain the dropshipping process:
Step 1 – Set up an Amazon seller account
The first step to selling on Amazon is to create an account. To do so, go to sellercentral.amazon.com and fill in all your information.
Amazon will ask you to choose an Individual Account or a Personal Account. So you can select the option according to the number of products you sell.
And your account will be created.
Step 2 – Find a high-demand/low-competition product
After creating an Amazon account, the next and most important step is to find the best products to sell on Amazon. Finding the best products can be challenging as you need to find products that will give you a good profit margin.
Also, it should have high demand but low competition. For example, if you choose products that some big brands already sell and people trust those brands for that particular product, then as a seller, you will not stand out in the competition.
Choosing a product with high demand and less competition can allow you to make improvements and gain customers.
Another essential thing to keep in mind while choosing a product is a good profit margin. You can go to retail sites or stores and look for products at lower prices, and then you can sell them on Amazon at higher prices to earn a profit.
For example, you can earn a profit of $50 by purchasing a pair of shoes at $300$ and then selling them on Amazon at $350$.
Some of the best products to start your eCommerce business are housewares, sports, outdoors, patio, home, and garden. Start selling with simple things, as they require low maintenance and can be an excellent choice for beginners.
Step 3 – Check the Availability of Products
After choosing the right product, you will need a supplier.
For this, you can visit websites like Walmart, eBay, Target, and local e-commerce sites. These retail stores can offer various products at discounted prices.
You need to check the price of the same product at different stores before making the purchasing decision. Once you have chosen a product with a good profit margin, you can sell it on Amazon at higher prices and earn a profit.
Step 4 – Create an Amazon listing
Once you have found the right product to sell on Amazon FBA, you need to list the product. You’ll have to write a product description that should not be too descriptive.
You must also upload product pictures so customers can see them. In addition, you need to do keyword research and add relevant keywords in your product description to reach your target audience.
5 Tips for Success When Dropshipping on Amazon
Following are the important tips for dropshipping success-
Promote your listing
To get traffic to your product listing, you need to promote it. Promotion can be done in many ways. You can use the Amazon sponsorship program, Amazon PPC (Per-Pay-Click). Under this, you can create advertisements for your product, which will make it appear higher in the Amazon product list. You can also do social media marketing, email marketing, etc.
You can think of the Amazon PPC management services, which focus on optimizing pay-per-click advertising campaigns. This will increase brand awareness on Amazon and sales through directed traffic.
Focus on the customer
In the dropshipping method, you don’t need to manufacture or supply the product, so your only focus should be on your customers. You can make sure that the customers are happy with their products; if not, try to understand and resolve their problems. A satisfied customer will give you a positive review, which is essential to your Amazon business.
Focus on your brand
In dropshipping, you don’t have much scope to make your customers happier than your competitors. Everything is out of your hands, like delivery, packaging, etc. So, it would help if you found ways to stand out from your competitors. You can find ways to cut costs and offer special discounts and offers to gain your customers’ attention.
Get samples
Before selling it to your customers, you need to test the quality and services you provide. You can book a sample in advance and check the quality of the product, the time it took to reach you, etc., to ensure you are providing the best services to your customers.
Cast a wide net
Amazon dropshipping doesn’t cost you anything. You can start selling more than just one product. So, you can expand your business, and even if one product fails, you can get the support of other products and stay in the market for a long time.
Conclusion
This article gives you a better understanding of starting a dropshipping business on Amazon. You can grow through the article, follow the steps, and begin with your Amazon FBA business plan today.
