How to Dropship on Amazon Without Money

How to Dropship on Amazon Without Money

Amazon is a globally trusted online shopping platform that attracts millions of customers daily. It supports dropshipping and makes it easy for sellers to sign up and get started.

These factors make it a leading dropshipping platform. Yet, most entrepreneurs shy away from it due to the misconception that dropshipping on Amazon requires a lot of capital. They have heard about dropshipping and want to know how to do dropship on Amazon without money.

However, starting an Amazon dropshipping business without money is like a myth. You need a small amount of money or a credit card to start selling on Amazon. Your investment will be minimal, and you’ll soon be using your profits to reinvest and grow the business.

What is Dropshipping Business?

Dropshipping is an e-commerce business model in which you take orders from a distributor, supplier, or manufacturer.

When a customer purchases a product, your supplier will be responsible for fulfilling the order by shipping the product to the customer. As a drop shipper, you will take the products sold with you. Customers purchasing products will never know that their orders were shipped to them through manufacturers.

In addition to Amazon, Shopify and eBay also participate in dropshipping.

Amazon Dropshipping Rules

Before you start dropshipping, you should review Amazon’s rules, or you could risk getting your Amazon seller account suspended.

Here are the things you must remember for your dropshipping online business:

• You must identify yourself as the seller on the outer packaging, packing slips, invoices, or any other information included with the products.
• There should be no manufacturing or supplier labels.
• It will be your responsibility to accept and process the return.

You must comply with Amazon’s Terms of Service as per the Seller Agreement.

For example, If you buy a product from another online store, such as a Walmart or Shopify store, and the online retailer ships it to a customer with its online store’s branding or identifiers, you can suspend your Amazon account.

Are you a new seller on Amazon and want to enhance your product listing? Know how our Amazon A+ content services can enhance your product page content.

Can You Dropship on Amazon Without Money?

The individual seller account costs $0.99 for each item you sell. The subscription fee for a Professional Seller account is $39.99.

Therefore, the Personal Seller Account allows you to drop ship without money because the per-sale fee is deducted. Other costs like Amazon referral fees and other deductions are manageable as they are also determined based on the products you sell.

Here’s an overview of how to dropship on Amazon without money;

1. Sign up for a personal seller account on Amazon – Free, but each sale will cost $0.99.
2. Manually research specialties and items to find the most profitable and popular products.
3. Find a quality supplier and list products.
4. Promote your amazon listing on social media or use free influencer marketing.
5. Buy the product on behalf of your customer upon completion of the sale. Using a credit card (Amazon takes too long to release funds).
6. Once the payments are released from Amazon, pay with your credit card.

This is a long and laborious option that is possible, but it will mean that your dropshipping business will grow at a turtle’s pace.

Essential Tips to Dropship on Amazon Without Money

1. Market Products

Drop shippers need to advertise their products to increase sales and traffic to their websites. If your products are never seen, selling them on Amazon will be nearly impossible. Build an Amazon store and use Amazon ads to promote all your listings.

2. Provide Excellent Service to Customers

Spend your time improving customer service because there’s nothing to manufacture, and you don’t need to keep track of your inventory. Incredible customer support will help you get amazing audits and increase deals.

3. Get tested

Buy at least one unit of each product you want to list on your Amazon online store before listing it for dropshipping. Check the product’s condition, whether it’s the same as described, how long it took to arrive, and other details. This will give you an idea of the condition in which your customers will receive the goods.

4. Add Different Types Of Products

The preferred approach is to try to include as many products as possible. Some things will fall short, and some will be successful. Focus on what works and include similar products. Eliminate the rest. It is a numbers game.

How to Dropship on Amazon Without Money

Setting up a successful dropshipping business on Amazon is not difficult but a process. So, set aside enough time to make moves before expecting returns. Here’s a brief step-by-step guide on how to get your Amazon dropship business up and managing successfully.

1. Choose Your Niche

To start dropshipping on Amazon, you need to find profitable niches. This is probably the most important step in your business process, as choosing the wrong location can have adverse effects. You can manually check the products in the search results to see how popular they are, how much they are in demand, and how much they cost by reviewing their Best Seller Rank (found in the product description – the lower, the better). But how many reviews do they have?

However, this is a long and laborious process. You can check out the article on what to sell on Amazon here for more information on how to research specifications and products.

Using paid product research tools like the Jungle Scout Opportunity Finder to find products in high demand but with little competition has been made much easier. A niche score of 7+ usually indicates that the product is in a popular niche, and starting your dropshipping business with that product would be a wise decision.

Also, check the historical sales of the products. If a product sells consistently and has a high Uniqueness Score, it’s a great choice. This is not the only tool available in the market. AMZscout is another popular product research tools for Amazon FBA to help you find similar information.

• Not saturated – Aim for a small number of vendors or a large variety of products in a location. This allows you to avoid the hassle of competing with multiple vendors offering similar products.
• Provides opportunities to diversify – Successful regions eventually attract lots of sellers. So it is better to choose one where you can get innovative products and differentiate yourself from your competitors. For example, cosmetic products and gadgets are often innovated.
• Have a good profit margin – Consider the retail cost versus the wholesale cost of products on Amazon to determine whether their margin is worthwhile.
• Your interests – It will be much easier for you to acquire and market products that you understand and are interested in, as opposed to products that you know little or nothing about.

The goal is to find products that meet the following criteria:

• Sales per month: 100 to 300 units.
• Competition: Very Low or Low – Determined by low review numbers.
• Average product price: $20 to $35.
• Niche Score: 7+.

2. Find a Dropship Supplier

Once you’ve locked on a product category or location, you’ll need to source products for dropshipping on Amazon, for which you’ll need to find Amazon FBA suppliers. Most Amazon sellers use AliExpress to source their products from China. It’s like a B2B version of Amazon where e-commerce entrepreneurs can connect with suppliers.

To find a product, you’ll input your search terms, and AliExpress will display dozens of products with various details like price, shipping, contact details, dropshipping support, and more. But AliExpress isn’t the only option. If you access the supplier database in Jungle Scout, you will find all US import records and see which products are being sourced from where. Other supplier sites include Made in China, Global Sources, etc.

Remember, however, that when you’re buying products from manufacturers in China, the cost will be lower, but the shipping time will be much longer, which isn’t always ideal for an e-commerce business. For example, especially when you’re competing with Amazon Prime.

In short, if your drop shipping business strategy has room for higher prices, you can go for local dropship suppliers like Thomasnet to save time. However, product prices will be higher.

You Can Find Dropship Suppliers By:

• • Search online marketplaces like AliExpress, Taobao, or 1688.
  • Participating in trade fairs and exhibitions.
  • Hiring a product sourcing agent.
  • Finding and reaching out to suppliers directly on the Internet.
  • Browsing through dropshipping forums.

Amazon is very strict about fulfilling orders on time. Hence it is important to select a supplier who will deliver the orders to the buyers within the given time frame. A good dropship supplier should also be able to:

• • Provide you with a reasonable wholesale price.
  • Provide a continuous and adequate supply of products.
  • Package your customers’ orders without any branded content or invoices.
  • Provide the tracking number for the order.
  • Provide Creative, Reliable Dropshipping Services.

3. Create an Amazon Seller Account

Create an Amazon seller account through Amazon Seller Central after selecting your specific dropshipping seller. You can set up a personal or business account for dropshipping on Amazon.

Top Amazon expert consultants recommend creating a professional account to use Amazon PPC ads to promote your products and gain access to advanced data as soon as possible. On the other hand, if you can, consider choosing a professional seller account. Plus, it provides access to additional Amazon features to help your company expand.

Most importantly, when adding fulfillment preferences to your Amazon seller account, select “Fulfillment by the merchant.” As a result, you can dropship all incoming orders through your store and be in charge of the shipping.

As we highlighted above, signing up for a personal seller account may be ideal if:

• You are not able to pay the initial $39.99 monthly subscription fee.
• You still need to get a sense of how Amazon works or you may want to test the market before deciding what to sell.

4. List Your Products on Amazon

You need to list your products to start dropship on Amazon without money. Once you have signed up for the seller account of your choice, log in and go to Inventory » Add Product. Once the Add Product screen appears, click ‘Create New Product Listing’.

Choose a product category and create a product listing by filling in the product description and required information. When setting the price for a drop-shipped product, add Amazon’s fee, which can be anywhere between 8% to 15% of the referral fee on the product category.

You will pay this referral fee regardless of whether you have a personal or professional seller account. If you have a personal Amazon seller account, you’ll need to pay an additional $0.99 per sale.

Amazon allows sellers to create one listing at a time or single listings in bulk. This may be easier if the drop ship supplier can give you an inventory file to upload.

Each product list should include:

• • An attractive image showcasing the product
  • A product description
  • Price and Shipping Details

5. Promote Products

You can start selling once you have completed product listings. For this, you need to attract customers to your product listing. The fastest and simplest way to get attention to your listing is to use Amazon PPC campaign ads or Pay-Per-Click ads. With this approach, you’ll create ads for dropshipping products, ensuring they appear higher in Amazon search results than Amazon listings for the keywords you’ve determined. Remember, this will cost money.

To promote your products without money, you can use email marketing, blogging, social media, podcasting, etc. But, of course, you need a large and engaging following to generate interest in your products and drive sales.

Amazon is like an ocean of suppliers competing for product listings and the same customer base. Thus marketing your products and your store is the only way to stand out in this ocean and attract customers to buy from you.

Amazon advertising options include:

• • Sponsored ads for individual products or brands
  • Sponsored display means that your ads appear on and off Amazon
  • Amazon Post (in limited areas)

All options are pay-per-click advertising plans. You will only be charged when a customer clicks on one of your ads. Additionally, you have complete control over how much you want to spend on ads.

It is equally advisable to take advantage of the large audience on Facebook, Instagram, TikTok, YouTube, and Twitter. Creating posts and product reviews about your products or highlighting discount offers can attract traffic to your Amazon listing.

6. Process Sales

In this final step, when a customer purchases a product listed by you on Amazon’s online store, you will need to forward the buyer’s information to the dropship supplier so that the supplier can ship the product to the customer.

Many tools can automate this process. So you don’t have to do it manually, but they are not free! So we suggest doing it manually until you master the model, start attracting lots of sales, and need a tool to speed up the process.

Remember, for returned products, you have to accept and process them, so finding a good supplier with quality products is essential.

Your listing may take some time to attract traffic and convert into sales. However, your first sales will come soon if you keep advertising and sharing your product links.

Share orders instantly with your dropship supplier and monitor delivery progress. Also, try to ensure that you provide exemplary customer service.

Conclusion

In conclusion, starting a dropshipping business on Amazon without money and get success is possible with the right approach and technique. Just be smart and simple! Use free tools for Amazon product research, partner with suppliers offering dropship, and promote your products with low-cost strategies. With persistence and imagination, you can run a successful Amazon dropshipping business without money.

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